DoD's $39.3M Marine Corps contract for machinery repair awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $39,260,802 ($39.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-19

End Date: 2014-09-30

Contract Duration: 376 days

Daily Burn Rate: $104.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::CT::IGF P&MCLS MARINE CORPS - FY14

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to KBR WYLE SERVICES, LLC for work described as: IGF::CT::IGF P&MCLS MARINE CORPS - FY14 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs. 3. The contract duration is 376 days, indicating a medium-term service requirement. 4. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The primary NAICS code (811310) points to repair and maintenance of commercial and industrial machinery. 6. The contract was awarded to KBR Wyle Services, LLC, a significant player in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the broader IDIQ contract's terms and scope. However, the Cost Plus Award Fee (CPAF) structure means the final cost is dependent on performance, potentially exceeding initial estimates. Comparing the per-unit cost of services rendered against similar machinery repair contracts would be necessary for a more precise value assessment. The total award amount of $39.3 million for a 376-day period suggests a substantial service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these types of repair and maintenance services.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures the government receives competitive offers for its spending.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, receiving essential repair and maintenance services for their machinery. Services delivered include the upkeep and repair of commercial and industrial machinery, crucial for operational readiness. The contract has a geographic impact primarily in Florida (ST: FL, SN: FLORIDA), where the services are likely performed or managed. Workforce implications include employment opportunities for skilled technicians and support staff required for machinery repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The contract is a delivery order, implying potential for follow-on work or task orders under a larger IDIQ, which could represent significant future spending.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
KBR Wyle Services, LLC is an established contractor with experience in government services.
The contract addresses a critical need for machinery maintenance, supporting military readiness.

Sector Analysis

The contract falls within the Industrial Machinery Repair and Maintenance sector. This sector is vital for supporting various industries, including defense, by ensuring the operational readiness of critical equipment. Government spending in this area is often driven by the need for specialized maintenance services that contractors can provide more efficiently than in-house military personnel. Comparable spending benchmarks would involve analyzing other DoD contracts for similar repair and maintenance services across different branches and equipment types.

Small Business Impact

The data indicates that small business participation (SB: false) was not a specific set-aside for this contract. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether KBR Wyle Services, LLC engages small businesses as subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics to determine award fees. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Department of Defense Maintenance and Repair Contracts
Marine Corps Equipment Support Services
Industrial Machinery Maintenance Contracts
Cost Plus Award Fee Contracts

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to manage costs.
Delivery Order under IDIQ may have less defined scope than a standalone contract.
Limited information on the number of bidders impacts full competition assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to KBR WYLE SERVICES, LLC. IGF::CT::IGF P&MCLS MARINE CORPS - FY14

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $39.3 million.

What is the period of performance?

Start: 2013-09-19. End: 2014-09-30.

What is the track record of KBR Wyle Services, LLC with similar government contracts, particularly within the Department of Defense?

KBR Wyle Services, LLC, and its predecessors, have a long history of performing services for the U.S. government, including extensive work for the Department of Defense. They have been involved in various support services, including base operations, logistics, engineering, and technical support. Their experience often spans complex projects requiring specialized technical expertise. Analyzing their past performance on similar machinery repair and maintenance contracts, including any past performance evaluations or awards/debarments, would provide further insight into their reliability and capability. Government contract databases often contain information on past awards and performance metrics for large contractors like KBR.

How does the Cost Plus Award Fee (CPAF) structure typically impact the final cost and contractor performance in machinery repair contracts?

The Cost Plus Award Fee (CPAF) contract structure allows the contractor to recover all allowable costs incurred, plus a fixed fee that is subject to an award amount based on performance against pre-defined criteria. For machinery repair, this means the government pays for the actual costs of labor, materials, and overhead, plus a base fee. An award fee is then added if the contractor meets or exceeds performance expectations, such as timeliness, quality of repair, and adherence to safety standards. While CPAF can incentivize high performance and flexibility, it also carries the risk of higher final costs compared to fixed-price contracts if performance is exceptionally good or if cost controls are not rigorously managed by the government. The government must establish clear, measurable performance objectives to effectively utilize the award fee component.

What are the potential risks associated with a 376-day machinery repair contract awarded as a delivery order?

Awarding a machinery repair contract as a delivery order under a larger IDIQ vehicle presents several potential risks. Firstly, the scope and quality of work might be less defined than in a standalone contract, relying on the terms of the parent IDIQ. Secondly, the pricing structure established in the IDIQ might not perfectly align with the specific needs of this delivery order, potentially leading to suboptimal pricing. Thirdly, if the IDIQ itself was not competitively bid or has limited competition, this delivery order inherits those limitations. Finally, the effectiveness of oversight can be diluted across multiple delivery orders under a single IDIQ, requiring diligent program management to ensure each order is executed efficiently and effectively.

Can we benchmark the value of this $39.3 million contract against similar machinery repair services for other military branches or government agencies?

Benchmarking the value of this $39.3 million contract requires comparing it against similar machinery repair and maintenance services procured by other government entities, including different branches of the military (e.g., Army, Air Force) or civilian agencies (e.g., GSA, DOT) over comparable periods. Key metrics for comparison would include the type and complexity of machinery repaired, the labor rates, material costs, overhead structures, and the specific performance outcomes achieved. Without access to detailed cost breakdowns and performance data from comparable contracts, a precise value benchmark is difficult. However, the total award amount for a 376-day period suggests a significant scale of operations.

What is the typical market size and competitive landscape for commercial and industrial machinery repair and maintenance services for the federal government?

The market for commercial and industrial machinery repair and maintenance services for the federal government is substantial, encompassing a wide range of equipment from vehicles and aircraft components to specialized industrial machinery. The competitive landscape includes large, diversified government contractors like KBR, as well as numerous small and medium-sized businesses specializing in specific types of equipment or repair services. Federal procurement in this area is driven by the need to maintain operational readiness and extend the lifespan of expensive assets. Competition levels can vary significantly depending on the specificity of the required services and the availability of qualified contractors. Full and open competition, as seen here, generally indicates a healthy market with multiple capable providers.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,260,802

Exercised Options: $39,260,802

Current Obligation: $39,260,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6700409D0020

IDV Type: IDC

Timeline