DoD's TACOM MF&T contract awarded to KBR WYLE SERVICES, LLC for over $26M shows mixed value and competition

Contract Overview

Contract Amount: $26,320,554 ($26.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-04

End Date: 2022-06-21

Contract Duration: 1,295 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TANK AUTOMOTIVE AND ARMAMENT COMMAND (TACOM) MATERIAL FIELDING AND TRAINING (MF&T)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to KBR WYLE SERVICES, LLC for work described as: TANK AUTOMOTIVE AND ARMAMENT COMMAND (TACOM) MATERIAL FIELDING AND TRAINING (MF&T) Key points: 1. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 2. Limited public data makes a definitive value-for-money assessment challenging. 3. The contract's duration and scope suggest a significant investment in specialized services. 4. Performance context is limited due to the nature of R&D and specialized support. 5. The award falls within the R&D sector, specifically focusing on physical and engineering sciences. 6. The contract's value is substantial, indicating a critical need for these services. 7. The presence of multiple bidders suggests a competitive market for these specialized services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without more detailed performance metrics and cost breakdowns. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can lead to higher costs if not managed tightly. Comparing it to similar contracts for material fielding and training services would provide better context, but such data is not readily available. The total award amount of over $26 million over its period of performance suggests a significant investment, but the true value depends on the successful delivery of complex technical support and training.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a moderately competitive environment for this specialized service. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and evaluation criteria would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to better pricing and innovation. However, with only two bidders, the cost savings might not be as significant as in a more crowded field.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the TACOM, which receives critical support for material fielding and training. The services delivered likely include technical support, logistics, training development, and potentially specialized maintenance for military equipment. The geographic impact is primarily centered around military installations where TACOM operates and where training is conducted, with a specific mention of Michigan (MI) as the state. Workforce implications include the employment of skilled personnel by KBR WYLE SERVICES, LLC in areas such as engineering, logistics, and training instruction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
Limited transparency on specific performance metrics makes it hard to gauge the full value delivered.
The duration of the contract (over 3 years) increases the risk of scope creep or evolving requirements not being adequately managed.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
The contractor, KBR WYLE SERVICES, LLC, is a known entity in government contracting, implying a level of established capability.
The contract addresses critical support functions for the Department of Defense, indicating strategic importance.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector, with the NAICS code 541712. This sector is characterized by innovation and specialized expertise. The total contract value of over $26 million positions it as a significant award within this niche. Comparable spending benchmarks in this area are difficult to establish without more specific details on the services provided, but it represents a substantial investment in specialized technical and training support for military materiel.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor may engage small businesses as subcontractors, which would depend on their specific subcontracting plan, information not available here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force and TACOM. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is limited by the nature of defense contracts, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TACOM Material Fielding and Training
Department of Defense R&D Contracts
KBR WYLE SERVICES, LLC Contracts
Air Force Support Services
Military Equipment Training

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Limited number of bidders (2) may indicate potential for suboptimal price competition.
R&D contracts inherently carry risks of evolving requirements and uncertain outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to KBR WYLE SERVICES, LLC. TANK AUTOMOTIVE AND ARMAMENT COMMAND (TACOM) MATERIAL FIELDING AND TRAINING (MF&T)

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 Air Force).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2018-12-04. End: 2022-06-21.

What is the track record of KBR WYLE SERVICES, LLC with similar Department of Defense contracts?

KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a significant history of performing contracts for the Department of Defense and other federal agencies. They are known for providing a wide range of services, including engineering, technical support, logistics, and operations and maintenance, often in complex and demanding environments. Their portfolio includes work on various military platforms and systems, aligning with the nature of the TACOM MF&T contract. While specific performance metrics for past contracts are not detailed here, their continued success in securing large-scale government contracts suggests a generally positive track record and established capabilities in meeting government requirements. However, like any large contractor, they may have faced past performance reviews or challenges on specific projects that would require deeper investigation.

How does the cost-plus-fixed-fee (CPFF) structure of this contract compare to other R&D contracts in the defense sector?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. In the defense R&D sector, CPFF is often used for exploratory research, advanced technology development, and system design where uncertainties are high. While it can lead to higher total costs than fixed-price contracts, it is often deemed necessary to attract contractors for high-risk, innovative projects where the final costs are inherently unpredictable. The effectiveness of a CPFF contract hinges on robust government oversight, detailed cost accounting, and clear performance metrics to control expenditures.

What are the primary risks associated with this specific contract, and how might they be mitigated?

The primary risks associated with this TACOM MF&T contract include potential cost overruns due to the CPFF structure, scope creep as R&D requirements evolve, and performance deficiencies in delivering specialized training and fielding support. Mitigation strategies should involve stringent government oversight of contractor costs and progress, clearly defined milestones and deliverables, and proactive communication channels between the government and KBR WYLE SERVICES, LLC. Regular performance reviews, independent cost audits, and a robust change management process are crucial. Furthermore, ensuring the contractor has adequate technical expertise and experienced personnel is vital to meeting the complex demands of material fielding and training for military equipment.

What does the contract's duration of 1295 days imply about the nature of the services being provided?

A contract duration of 1295 days, approximately 3.5 years, suggests that the services required for TACOM's Material Fielding and Training (MF&T) are complex, long-term, and likely involve ongoing support rather than a one-time delivery. This extended period is typical for R&D projects that require iterative development, testing, and refinement, or for sustained operational support functions. It implies that the contractor is expected to provide continuous expertise in areas such as logistics planning, technical documentation, curriculum development, and the execution of training programs for new or upgraded military equipment. Such a duration also allows for the establishment of a stable working relationship and the development of deep institutional knowledge regarding TACOM's specific needs and operational environment.

How does the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) inform our understanding of this contract's objectives?

The NAICS code 541712 indicates that this contract is focused on research and development activities within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, aerospace), and life sciences (excluding biotechnology). For the TACOM MF&T contract, this likely means the R&D efforts are geared towards improving military equipment, developing new fielding strategies, enhancing training methodologies, or researching advanced materials and systems relevant to ground and armament systems. The 'except Biotechnology' clause suggests the focus is on the engineering and physical aspects rather than biological applications. This classification helps frame the contract's objectives as pushing the boundaries of technology and knowledge to enhance military capabilities, rather than purely acquisition or operational support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $31,598,732

Exercised Options: $31,598,732

Current Obligation: $26,320,554

Actual Outlays: $5,020,548

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,958,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0025

IDV Type: IDC

Timeline