DoD's $43.5M Marine Corps contract for machinery repair awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $43,532,895 ($43.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-26

End Date: 2017-09-30

Contract Duration: 369 days

Daily Burn Rate: $118.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::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 $43.5 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF P&MCLS MARINE CORPS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. The contract duration is 369 days, indicating a relatively short-term service requirement. 4. The primary service area is Florida, suggesting a localized operational focus. 5. The contract falls under the repair and maintenance of commercial and industrial machinery. 6. No small business set-aside was utilized, indicating the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable service contracts. The Cost Plus Award Fee structure means the final cost is dependent on performance, making direct price comparisons difficult. However, the award amount of approximately $43.5 million for a year-long machinery repair service appears within a reasonable range for complex industrial maintenance, though further analysis of the specific services rendered and the award fee structure would be needed for a definitive value assessment.

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 a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Department of the Navy sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of contractors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the U.S. Marine Corps units requiring maintenance and repair services for their machinery and equipment. The services delivered include the repair and maintenance of commercial and industrial machinery and equipment. The geographic impact is concentrated in Florida, where the Marine Corps facilities requiring these services are located. The contract supports a workforce skilled in machinery repair and maintenance, potentially including technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed diligently, as contractor profit is tied to performance metrics.
Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
The broad NAICS code 'Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance' could encompass a wide range of services, making precise value assessment difficult without further detail.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract aims to ensure the operational readiness of critical Marine Corps equipment through necessary repairs and maintenance.
The focus on machinery repair directly supports military operational capabilities.

Sector Analysis

This contract falls within the broader industrial services sector, specifically focusing on the repair and maintenance of machinery and equipment. The market for such services is substantial, driven by both commercial and governmental needs for operational asset upkeep. Comparable spending benchmarks would typically involve analyzing other government contracts for similar repair and maintenance services across different branches of the military or other federal agencies, as well as private sector spending on industrial maintenance.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contract was likely awarded to a large business capable of meeting the extensive requirements. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are often built into the Cost Plus Award Fee structure, linking contractor performance to financial incentives. Transparency is generally facilitated through contract award databases, though detailed performance reports may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Cost Plus Award Fee contract type requires careful monitoring of performance metrics and cost justification.
Potential for cost escalation due to the nature of CPAF contracts if performance targets are aggressively pursued without strict cost oversight.
Dependence on a single contractor for critical machinery repair services in a specific region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.5 million to KBR WYLE SERVICES, LLC. IGF::OT::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 $43.5 million.

What is the period of performance?

Start: 2016-09-26. End: 2017-09-30.

What is the historical spending pattern for similar machinery repair and maintenance services by the Department of the Navy?

Analyzing historical spending for similar services by the Department of the Navy requires access to comprehensive contract databases and filtering by relevant NAICS codes (like 811310) and service descriptions. Generally, the Department of the Navy, like other military branches, allocates significant funds annually towards maintaining its vast array of equipment and infrastructure. Spending can fluctuate based on operational tempo, equipment modernization cycles, and budget allocations. Contracts for machinery repair and maintenance are recurring needs, often awarded through competitive processes, though specific award amounts and contractor choices vary year to year. Understanding these patterns involves looking at total obligated amounts, contract durations, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement) over several fiscal years to identify trends and potential areas for cost optimization or efficiency gains.

How does the Cost Plus Award Fee (CPAF) structure typically impact contractor performance and final cost for this type of service?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractors to perform beyond minimum requirements by offering a base fee plus an award amount tied to achieving specific performance objectives. For machinery repair and maintenance services, this means the contractor is reimbursed for allowable costs incurred and has the potential to earn an additional fee based on metrics like timeliness, quality of repairs, equipment uptime, and adherence to safety standards. While CPAF can drive higher performance and quality, it also introduces complexity in cost control. The government must meticulously define performance criteria and evaluation processes to ensure the award fee is justified and that costs remain reasonable. Without strong oversight, the potential for cost overruns exists as contractors may incur higher costs to achieve performance targets that yield a larger award fee, making transparency in evaluation crucial for taxpayer value.

What is KBR Wyle Services, LLC's track record with similar government contracts, particularly in machinery repair and maintenance?

KBR Wyle Services, LLC, has a significant history of performing various services for the U.S. government, including extensive work in logistics, base operations support, and technical services, which often encompass maintenance and repair of complex systems and equipment. While specific details on their performance for this particular $43.5 million Marine Corps contract require deeper analysis of performance reports and award fee determinations, their broader portfolio suggests experience in managing large-scale service contracts. Their track record often includes support for defense and aerospace sectors, implying familiarity with the rigorous demands and standards of military operations. Evaluating their performance on similar contracts would involve reviewing past contract awards, any reported issues or disputes, and their success in meeting performance metrics and award fee criteria in comparable service agreements.

Are there any specific risks associated with the repair and maintenance of Marine Corps machinery that this contract aims to mitigate?

This contract likely aims to mitigate risks associated with the degradation of critical Marine Corps machinery, which could impair operational readiness and mission effectiveness. Key risks include equipment failure due to wear and tear, inadequate maintenance schedules, or lack of specialized repair capabilities. By outsourcing these services to KBR Wyle Services, LLC, the Marine Corps seeks to ensure that machinery is maintained to high standards, reducing the likelihood of unexpected breakdowns during training or deployment. Other risks mitigated could include the cost and complexity of maintaining specialized repair facilities and a skilled workforce in-house, as well as ensuring compliance with safety and environmental regulations during repair operations. The CPAF structure further incentivizes the contractor to proactively address potential issues and maintain equipment reliability.

How does the geographic concentration in Florida impact the efficiency and cost-effectiveness of this contract?

The geographic concentration of this contract in Florida means that KBR Wyle Services, LLC's operations are focused on supporting Marine Corps facilities within that state. This localization can enhance efficiency by reducing travel time and logistical complexities associated with servicing dispersed locations. Having a dedicated team and resources within a specific region allows for quicker response times to maintenance needs and potentially better coordination with base personnel. From a cost-effectiveness standpoint, a concentrated service area can lead to economies of scale for the contractor, potentially translating into more competitive pricing. However, it also means that if the Marine Corps has significant machinery maintenance needs outside of Florida, separate contracts or arrangements would be necessary, potentially increasing overall spending if not strategically managed.

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.

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: $43,532,895

Exercised Options: $43,532,895

Current Obligation: $43,532,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6700409D0020

IDV Type: IDC

Timeline