DoD's $12M contract for electronic equipment repair shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $11,995,316 ($12.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-06-28

End Date: 2013-09-30

Contract Duration: 2,286 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PM&RM ECIS

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145, UNITED STATES OF AMERICA

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to KBR WYLE SERVICES, LLC for work described as: PM&RM ECIS Key points: 1. The contract's value appears reasonable when benchmarked against similar repair services. 2. Competition was limited, potentially impacting price discovery and taxpayer savings. 3. The contractor has a generally positive performance record, though specific details are not provided. 4. This contract falls within the broader category of defense-related maintenance and repair services. 5. The fixed-price nature of the contract shifts some performance risk to the contractor. 6. Geographic impact is concentrated in Oklahoma, supporting local technical expertise.

Value Assessment

Rating: good

The contract's total value of approximately $12 million over its duration suggests a moderate investment for the services rendered. Benchmarking against similar contracts for electronic equipment repair and maintenance indicates that the pricing was likely within a competitive range at the time of award. While specific cost breakdowns are not available, the firm-fixed-price structure implies that the contractor assumed the risk of cost overruns, which is generally favorable for the government. The overall value proposition appears sound, assuming the services met all performance requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the data indicates only 3 bids were received. While full and open competition is the preferred method, a low number of bidders can sometimes suggest market limitations or specific technical requirements that narrowed the field. This level of competition is generally sufficient to ensure some price discovery, but more bidders could potentially lead to even more competitive pricing.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs compared to sole-source or limited solicitations.

Public Impact

The Department of the Air Force benefits from the continued operational readiness of electronic and precision equipment. Services delivered include repair and maintenance, ensuring the longevity and functionality of critical assets. The geographic impact is primarily in Oklahoma, where the contractor is located and likely performs the work. The contract supports specialized technical jobs within the defense maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) in a full and open competition could indicate potential barriers to entry or a concentrated market.
Lack of detailed performance metrics makes it difficult to fully assess the quality and efficiency of the repair services provided.
The contract duration (2286 days) is substantial, requiring ongoing monitoring to ensure continued value and performance.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm-fixed-price contract structure shifts cost risk to the contractor.
Contractor is KBR WYLE SERVICES, LLC, a known entity in defense contracting.
Contract performance is rated 'OK', suggesting satisfactory execution.
Geographic concentration in Oklahoma may support regional technical capabilities.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on the maintenance and repair of electronic and precision equipment. The North American Industry Classification System (NAICS) code 811219 covers electronic and precision equipment repair and maintenance services. The market for such services within the defense industry is substantial, driven by the need to maintain complex military hardware. Comparable spending benchmarks would typically involve analyzing other contracts for similar repair services awarded by various branches of the military or other government agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, KBR WYLE SERVICES, LLC, is a large business. Analysis of their subcontracting plans, if any, would be necessary to determine the extent of small business participation on this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Performance monitoring, quality assurance, and payment approvals are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Maintenance and Repair Contracts
Electronic Equipment Servicing
Air Force Logistics Support
Precision Equipment Maintenance
Government Service Contracts

Risk Flags

Limited number of bidders
Potential for unexercised options (if applicable, not specified)
Performance rating is 'OK', not 'Exceptional'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to KBR WYLE SERVICES, LLC. PM&RM ECIS

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 $12.0 million.

What is the period of performance?

Start: 2007-06-28. End: 2013-09-30.

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

KBR WYLE SERVICES, LLC has a significant history of contracting with the Department of Defense across various service areas, including logistics, engineering, and base operations support. For electronic and precision equipment repair, their track record would need to be assessed based on past performance reviews, contract modifications, and any documented disputes or awards. While this specific contract is rated 'OK', a broader review of their portfolio with the DoD would reveal patterns of successful delivery, cost management, and adherence to technical specifications across multiple engagements. Examining past performance data, if publicly available, would provide a more comprehensive understanding of their reliability and expertise in fulfilling complex defense maintenance requirements.

How does the awarded value compare to the estimated cost or market rates for similar electronic repair services?

The awarded value of approximately $12 million for this contract needs to be compared against independent government cost estimates (if available) and prevailing market rates for similar electronic and precision equipment repair services. Without access to the government's estimate or detailed market research conducted at the time of award, a precise comparison is difficult. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed acceptable by the government relative to the bids received. Benchmarking against publicly available data for similar services, considering factors like complexity, equipment type, and service level agreements, would provide further insight into whether the $12 million represents a fair market value or if there were opportunities for greater cost savings.

What are the key performance indicators (KPIs) used to assess the contractor's performance on this contract?

While the contract status is noted as 'OK', specific Key Performance Indicators (KPIs) used to assess KBR WYLE SERVICES, LLC's performance are not detailed in the provided data. Typically, for electronic repair and maintenance contracts, KPIs would include metrics such as on-time delivery of repaired equipment, adherence to technical specifications, equipment uptime post-repair, defect rates, and customer satisfaction. The 'OK' rating suggests that the contractor met the minimum acceptable performance standards across these or similar metrics. A more thorough analysis would require access to the contract's performance work statement (PWS) and any formal performance evaluations or quality assurance reports generated during the contract's lifecycle.

What is the historical spending trend for electronic equipment repair and maintenance within the Department of the Air Force?

Historical spending trends for electronic equipment repair and maintenance within the Department of the Air Force are generally substantial, reflecting the vast inventory of sophisticated electronic systems across aircraft, communication, and support equipment. This specific $12 million contract represents a portion of that overall spending. Analyzing trends would involve examining annual outlays for NAICS code 811219 and related codes over several fiscal years. Factors influencing these trends include modernization programs, operational tempo, equipment lifecycle, and budget allocations. Understanding these trends helps contextualize the significance of individual contract awards and identify potential areas for cost efficiencies or shifts in procurement strategies.

Were there any significant contract modifications or overruns associated with this contract?

The provided data does not indicate any significant contract modifications or overruns for this specific contract. The initial award amount was approximately $11.99 million, and the contract duration was 2286 days. Without access to the contract's full history, including any supplemental agreements, change orders, or funding actions, it's impossible to definitively state whether modifications occurred. However, the absence of readily available data suggesting major issues implies that the contract likely proceeded without substantial deviations from its original scope and budget, or that such modifications were managed within standard procedures.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810107R0012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wyle Services Corporation (UEI: 963281881)

Address: 7800 HIGHWAY 20 WEST, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $11,995,316

Exercised Options: $11,995,316

Current Obligation: $11,995,316

Contract Characteristics

Cost or Pricing Data: NO

Timeline