DoD's $3M contract for physical therapy services awarded to KBR WYLE SERVICES, LLC shows potential for cost savings
Contract Overview
Contract Amount: $30,054,670 ($30.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-02-14
End Date: 2020-02-29
Contract Duration: 380 days
Daily Burn Rate: $79.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: 1910 OPS PSYCH (FY19)
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to KBR WYLE SERVICES, LLC for work described as: 1910 OPS PSYCH (FY19) Key points: 1. The contract was awarded using full and open competition, suggesting a competitive pricing environment. 2. The delivery order was for time and materials, which can sometimes lead to cost overruns if not managed closely. 3. The contract duration of 380 days is relatively short, indicating a focused scope of services. 4. The base contract value of $7,909,100 suggests a significant program of record or established need. 5. The awarded amount of $3,005,467.05 represents a portion of the potential value, with remaining value to be determined. 6. The contractor, KBR WYLE SERVICES, LLC, has a history of performing government contracts, implying some level of established capability.
Value Assessment
Rating: good
The awarded amount of approximately $3 million for physical therapy services appears reasonable given the base contract value of over $7.9 million. Benchmarking against similar contracts for physical and occupational therapy services within the Department of Defense is crucial for a definitive value assessment. However, the time and materials pricing structure necessitates careful monitoring to ensure costs remain within expected parameters and do not escalate beyond market rates for these specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of full and open competition generally fosters a more competitive environment, which can lead to better pricing and terms for the government. The specific number of bidders is not provided, but the method of award suggests a robust selection process.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market prices, preventing potential overpayment and maximizing the value of federal dollars.
Public Impact
Beneficiaries include U.S. Special Operations Command personnel requiring physical, occupational, or speech therapy services. Services delivered are likely focused on rehabilitation, injury prevention, and maintaining the physical readiness of military personnel. The geographic impact is centered in Florida, where the contract is being performed. Workforce implications include the employment of licensed physical, occupational, and speech therapists and audiologists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to Time and Materials pricing structure if not closely monitored.
- Scope creep could increase costs beyond initial projections without proper oversight.
- Dependence on a single contractor for specialized medical services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor has experience with government contracts.
- Services are critical for maintaining the health and readiness of military personnel.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on allied health services. The market for healthcare services, including physical therapy, is substantial within the federal government, supporting military readiness and veteran care. Comparable spending benchmarks would involve analyzing other contracts for similar therapeutic services awarded to various healthcare providers across different federal agencies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus remains on larger, established service providers capable of meeting the requirements of this federal contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Special Operations Command, with specific contract officers and technical representatives responsible for monitoring performance, adherence to terms, and financial expenditures. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Military Medical Readiness Programs
- TRICARE Services
- Department of Veterans Affairs Medical Services
- Federal Occupational Health Services
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Need for robust performance monitoring to ensure quality and efficiency.
- Dependence on contractor performance for critical personnel readiness.
Tags
healthcare, department-of-defense, u.s.-special-operations-command, florida, delivery-order, time-and-materials, full-and-open-competition, physical-therapy, medical-services, personnel-readiness
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to KBR WYLE SERVICES, LLC. 1910 OPS PSYCH (FY19)
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 (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2019-02-14. End: 2020-02-29.
What is the track record of KBR WYLE SERVICES, LLC in performing similar federal contracts, particularly within the healthcare or therapeutic services domain?
KBR WYLE SERVICES, LLC, as a large government contractor, has a broad portfolio of services that often includes support for military and government operations. While specific details on their performance in physical therapy contracts require deeper analysis of past performance reports and contract histories, their general presence in the federal contracting space suggests experience in managing complex requirements. It is important to review their past performance evaluations, any past performance issues, and their demonstrated capabilities in delivering specialized medical services to ensure they meet the stringent standards required by the Department of Defense and U.S. Special Operations Command.
How does the awarded amount of $3,005,467.05 compare to the total potential value of the base contract ($7,909,100)?
The awarded amount of $3,005,467.05 represents approximately 38% of the total potential value of the base contract, which is $7,909,100. This suggests that the current delivery order is a significant portion of the overall contract, but there is substantial remaining value. The actual utilization of the full contract value will depend on the ongoing needs for physical therapy services over the contract's period of performance. Factors such as demand, service utilization rates, and the specific tasks ordered will determine if the full $7.9 million is expended.
What are the primary risks associated with a Time and Materials (T&M) contract for physical therapy services?
The primary risk with a Time and Materials (T&M) contract for physical therapy services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. If not managed diligently, this structure can incentivize longer service durations or less efficient work, leading to costs exceeding initial estimates. Effective oversight, clear task definitions, and robust monitoring of labor hours and material usage are critical to mitigate these risks and ensure value for money.
What is the expected effectiveness of these physical therapy services in supporting the readiness of U.S. Special Operations Command personnel?
The provision of physical therapy services is critical for maintaining and restoring the physical readiness of U.S. Special Operations Command (SOCOM) personnel. These services are designed to treat injuries, prevent future harm, and enhance physical performance, all of which are essential for the demanding operational tempo and high-risk missions undertaken by SOCOM units. Effective physical therapy contributes directly to the deployability and operational capability of these elite forces, minimizing downtime due to injury and ensuring personnel can meet rigorous physical standards.
How has federal spending on physical and occupational therapy services evolved over the past five fiscal years?
Federal spending on physical and occupational therapy services has generally seen a steady increase over the past five fiscal years, driven by the healthcare needs of active-duty military personnel, veterans, and federal employees. Agencies like the Department of Defense (DoD) and the Department of Veterans Affairs (VA) are significant contributors to this spending, aiming to ensure comprehensive medical care and rehabilitation. While specific figures fluctuate based on program needs and budget allocations, the overall trend indicates a sustained commitment to providing these essential therapeutic services across the federal government.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: H9222218R0010
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
Address: 8120 MAPLE LAWN BLVD, FULTON, MD, 20759
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,054,670
Exercised Options: $30,054,670
Current Obligation: $30,054,670
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9240019D0001
IDV Type: IDC
Timeline
Start Date: 2019-02-14
Current End Date: 2020-02-29
Potential End Date: 2020-02-29 00:00:00
Last Modified: 2023-01-26
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