DoD's $41.6M Marine Corps Maintenance Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $41,614,791 ($41.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2016-09-30
Contract Duration: 365 days
Daily Burn Rate: $114.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CT::IGF P&MCLS MARINE CORPS
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $41.6 million to KBR WYLE SERVICES, LLC for work described as: IGF::CT::IGF P&MCLS MARINE CORPS Key points: 1. Contract value of $41.6M for machinery repair and maintenance. 2. Awarded under full and open competition. 3. Potential risk associated with cost-plus award fee structure. 4. Sector is Commercial and Industrial Machinery Repair and Maintenance.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee (CPAF) type, which can lead to higher costs if performance incentives are not carefully managed. Benchmarking against similar CPAF contracts for industrial machinery repair is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPAF structure requires careful monitoring to ensure competitive pricing is maintained throughout the contract lifecycle.
Taxpayer Impact: Taxpayer funds are utilized for this contract. While competition is positive, the CPAF structure necessitates diligent oversight to prevent cost overruns and ensure efficient use of taxpayer money.
Public Impact
Ensures operational readiness of Marine Corps equipment. Supports critical maintenance and repair services. Impacts the efficiency and cost-effectiveness of military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may incentivize higher costs.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in maintenance services.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential military equipment maintenance.
- Located in Florida, potentially supporting regional readiness.
Sector Analysis
This contract falls within the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this sector is crucial for maintaining the operational capabilities of various government agencies, particularly defense.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this contract.
Oversight & Accountability
The contract type (CPAF) requires robust oversight to ensure performance standards are met and costs are controlled. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee structure.
- Potential for cost overruns.
- Limited transparency on performance metrics.
- No clear indication of small business participation.
Tags
commercial-and-industrial-machinery-and-, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.6 million to KBR WYLE SERVICES, LLC. IGF::CT::IGF P&MCLS MARINE CORPS
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 $41.6 million.
What is the period of performance?
Start: 2015-10-01. End: 2016-09-30.
What specific performance metrics are used to determine award fees in this CPAF contract, and how do they align with achieving optimal value for the government?
The effectiveness of a Cost Plus Award Fee (CPAF) contract hinges on clearly defined and measurable performance metrics. For this contract, understanding these metrics is crucial to assess if KBR Wyle Services, LLC is incentivized to deliver high-quality services efficiently. Without specific details on these metrics, it's difficult to definitively gauge the value achieved beyond the base service provision.
What are the primary risks associated with the Cost Plus Award Fee (CPAF) structure in this contract, and what mitigation strategies are in place?
The primary risk of a CPAF contract is the potential for cost escalation, as the contractor is reimbursed for costs plus an award fee based on performance. Mitigation strategies typically involve stringent oversight, well-defined performance standards, and clear criteria for earning the award fee. The Department of the Navy would need robust mechanisms to monitor costs and ensure the contractor's performance justifies the fees awarded.
How does the pricing of this contract compare to industry benchmarks for similar machinery repair and maintenance services, considering the CPAF structure?
Benchmarking this CPAF contract requires comparing its total estimated cost (including potential award fees) against similar contracts for industrial machinery repair and maintenance. Factors like contract duration, scope of services, and geographic location are important. Without access to detailed cost breakdowns and specific performance outcomes, a precise comparison is challenging, but the CPAF nature suggests a premium for performance incentives.
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: $41,614,791
Exercised Options: $41,614,791
Current Obligation: $41,614,791
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6700409D0020
IDV Type: IDC
Timeline
Start Date: 2015-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-02-28
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