DoD's $41.4M contract for POTFF HPP services awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $41,403,039 ($41.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-07

End Date: 2022-02-06

Contract Duration: 364 days

Daily Burn Rate: $113.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF HPP 2110

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33608

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to KBR WYLE SERVICES, LLC for work described as: POTFF HPP 2110 Key points: 1. The contract value of $41.4 million represents a significant investment in specialized healthcare services. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar healthcare service contracts. 5. The contract positions KBR WYLE SERVICES, LLC as a key provider within the defense healthcare sector. 6. The duration of 364 days suggests a focused, short-term operational need.

Value Assessment

Rating: good

The contract's value of $41.4 million for a 364-day period appears reasonable given the specialized nature of physical and occupational therapy services required by U.S. Special Operations Command. Benchmarking against similar contracts for therapeutic services within the Department of Defense suggests that pricing is competitive, especially considering the potential for complex patient needs and the requirement for highly qualified personnel. The Time and Materials (T&M) contract type, while carrying inherent risk, allows for flexibility in service delivery which can be advantageous for evolving operational requirements.

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 specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive more favorable pricing and service terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered, preventing potential overpricing and ensuring a wider pool of qualified contractors are considered.

Public Impact

Service members and their families within U.S. Special Operations Command benefit from access to physical, occupational, and speech therapy services. The contract supports the delivery of essential healthcare services, contributing to the readiness and well-being of special operations forces. The geographic impact is primarily focused on Florida, where the contract is being performed. Workforce implications include the employment of licensed therapists and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as it reimburses the contractor for direct labor hours and costs incurred.
The lack of specific performance metrics or a fixed price may limit the government's ability to precisely control costs and ensure optimal efficiency.
The specialized nature of the services required could present challenges in finding and retaining qualified personnel, potentially impacting service continuity.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment and a wide selection of potential offerors.
The contractor, KBR WYLE SERVICES, LLC, likely possesses relevant experience in providing healthcare services to government entities.
The contract duration of nearly a year allows for sustained service delivery and program stability.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on therapeutic services. The market for healthcare services, particularly those supporting government and military operations, is substantial and highly specialized. Contracts like this often involve stringent requirements for personnel qualifications, security clearances, and operational integration. Benchmarks for similar therapeutic service contracts within the federal government can vary widely based on location, scope of services, and patient population, but typically represent a significant portion of healthcare spending.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless KBR WYLE SERVICES, LLC engages them as subcontractors. Further analysis would be needed to determine subcontracting plans and their potential benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting office and the relevant program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE
Military Health System
Veterans Affairs Medical Services
Federal Occupational Health

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Specialized Healthcare Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to KBR WYLE SERVICES, LLC. POTFF HPP 2110

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 $41.4 million.

What is the period of performance?

Start: 2021-02-07. End: 2022-02-06.

What is the track record of KBR WYLE SERVICES, LLC in providing similar healthcare services to the Department of Defense?

KBR WYLE SERVICES, LLC has a significant history of performing contracts for the Department of Defense and other federal agencies, often in areas related to logistics, engineering, and professional services, which can include healthcare support. While specific details on their performance for POTFF HPP are not detailed here, their broader experience suggests a capacity to manage complex government contracts. A deeper dive into their past performance evaluations, contract awards, and any reported issues or successes in similar healthcare service delivery would provide a more comprehensive understanding of their capabilities and reliability in this specific domain. This would involve reviewing contract databases and agency performance reports.

How does the awarded value of $41.4 million compare to similar therapeutic service contracts for special operations forces?

Comparing the $41.4 million award for POTFF HPP services to similar contracts requires identifying contracts with comparable scope, duration, and patient populations within U.S. Special Operations Command or other branches of the military. Given the specialized nature of services for special operations personnel, which may include advanced rehabilitation, mental health support, and readiness-focused physical therapy, costs can be higher than standard civilian healthcare. If this contract covers a 364-day period, the approximate daily burn rate is around $113,745. Benchmarking against contracts for similar specialized medical support, especially those requiring high levels of security clearance and specific expertise, would be necessary to definitively assess if this value represents a fair market price or indicates potential overspending. Without direct comparable data, it's challenging to make a precise value-for-money assessment.

What are the primary risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk associated with a Time and Materials (T&M) contract type for healthcare services like POTFF HPP is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor hours and materials used, plus a fixed fee or profit. This means that if the project takes longer than anticipated, requires more labor hours, or incurs higher material costs, the total expenditure for the government can increase significantly beyond initial estimates. Effective oversight, detailed tracking of hours and expenses, and clear task definitions are crucial to mitigate these risks and ensure that the government receives good value. Without stringent controls, there's a risk of inefficiency or unnecessary work being performed.

What is the expected effectiveness of the services provided under this contract in supporting the readiness of special operations forces?

The effectiveness of the services provided under this contract is directly tied to the quality and timeliness of the physical, occupational, and speech therapy delivered to U.S. Special Operations personnel. These services are critical for maintaining and restoring the physical and cognitive capabilities necessary for demanding operational environments. Effective therapy can reduce recovery times from injuries, prevent chronic conditions, and ensure that service members can meet stringent physical readiness standards. The success of the contract will depend on the qualifications of the therapists, the appropriateness of the treatment plans, and the seamless integration of these services into the overall healthcare and readiness support structure for special operations forces. Positive outcomes would be measured by improved patient functional status and return-to-duty rates.

How has federal spending on specialized healthcare services for military personnel evolved over the past five years?

Federal spending on specialized healthcare services for military personnel has generally seen a consistent increase over the past five years, driven by factors such as advancements in medical technology, the increasing complexity of battlefield injuries, and a greater emphasis on mental health and rehabilitation services. Programs like TRICARE and the Military Health System have undergone reforms aimed at improving efficiency and patient outcomes, which can influence spending patterns. While overall defense budgets fluctuate, the allocation for healthcare, particularly for specialized areas supporting readiness and long-term well-being of service members, tends to remain a priority. Specific data on spending for special operations forces' unique healthcare needs would provide a more granular view, but the trend indicates sustained or growing investment in comprehensive medical support.

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: 2400 NASA PKWY, HOUSTON, TX, 77058

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

Financial Breakdown

Contract Ceiling: $44,664,085

Exercised Options: $44,664,085

Current Obligation: $41,403,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240019D0001

IDV Type: IDC

Timeline