DoD's $49.3M contract for therapist services awarded to KBR Wyle Services, LLC, with a 364-day term

Contract Overview

Contract Amount: $49,268,000 ($49.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-07

End Date: 2023-02-06

Contract Duration: 364 days

Daily Burn Rate: $135.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF HPP 2210

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $49.3 million to KBR WYLE SERVICES, LLC for work described as: POTFF HPP 2210 Key points: 1. The contract value represents a significant investment in specialized healthcare support for military personnel. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and access to quality services. 3. Performance risk is moderate, given the specialized nature of the services and the single-year duration. 4. This contract positions the DoD to leverage external expertise for essential therapeutic services. 5. The spending aligns with broader federal efforts to provide comprehensive healthcare for service members and veterans.

Value Assessment

Rating: good

The contract's value of $49.3 million for a one-year period appears reasonable for specialized therapeutic services. Benchmarking against similar contracts for physical, occupational, and speech therapists, especially those supporting federal agencies or large healthcare systems, would provide a clearer picture of value for money. The pricing structure, likely based on labor rates and material costs, needs careful scrutiny to ensure it reflects market competitiveness and avoids overpayment. Without specific per-unit cost data, a definitive assessment is challenging, but the overall contract size suggests a substantial need for these services.

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 this competitive approach generally fosters price discovery and encourages contractors to offer their best terms. A robust competition suggests that the government sought a wide range of capabilities and pricing options, which should theoretically lead to a more favorable outcome for the agency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader pool of qualified service providers, ensuring that government funds are used efficiently.

Public Impact

Beneficiaries include U.S. Special Operations Command personnel requiring physical, occupational, and speech therapy, as well as audiology services. Services delivered encompass a range of therapeutic interventions aimed at rehabilitation, recovery, and maintaining the health and readiness of service members. The geographic impact is concentrated in Florida, where the services are being delivered. Workforce implications include the potential for employment of licensed therapists and support staff by the contractor, KBR Wyle Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor rates or material costs escalate beyond projections.
Ensuring consistent quality of care across all therapy disciplines and locations.
Managing contractor performance to meet the specific needs of special operations personnel.
Dependence on a single contractor for a critical year-long service period.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has a significant presence and experience in government contracting.
Clear service delivery period (one year) allows for focused performance evaluation.
Specialized nature of services may indicate a high level of contractor expertise.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically focusing on outpatient care facilities and allied health services. The market for these services is substantial, driven by both civilian healthcare needs and the specialized requirements of federal agencies like the Department of Defense. Benchmarking against similar contracts for therapeutic services within the federal government, particularly those supporting military branches or veterans' affairs, would provide context. The $49.3 million value for a single year indicates a significant demand for these specialized medical support functions.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As it was awarded under full and open competition, the primary focus was likely on securing the best overall value from a broad range of potential offerors. Further analysis would be needed to determine if KBR Wyle Services, LLC has plans for small business subcontracting, which could provide opportunities for smaller firms within the healthcare support ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to quality standards, delivery schedules, and reporting requirements. Transparency is generally facilitated through contract award announcements and public databases, though specific performance metrics and detailed spending breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Healthcare Services Contracts
Military Treatment Facility Support Services
Therapeutic Services for Federal Agencies
Outpatient Care Services Contracts
Special Operations Forces Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Ensuring consistent quality of specialized therapeutic services.
Dependence on contractor performance for critical personnel readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.3 million to KBR WYLE SERVICES, LLC. POTFF HPP 2210

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 $49.3 million.

What is the period of performance?

Start: 2022-02-07. End: 2023-02-06.

What is the historical spending pattern for similar therapeutic services by the U.S. Special Operations Command?

Analyzing historical spending by SOCOM for physical, occupational, and speech therapy services is crucial for understanding trends and identifying potential anomalies. Without specific historical data for SOCOM, we can look at broader DoD trends. Federal procurement data often shows fluctuations in spending based on operational tempo, force readiness requirements, and the availability of in-house versus contracted services. For instance, if SOCOM has historically relied on a mix of internal clinics and external contracts, a significant increase in contract value could signal a shift in strategy or an increased demand. Conversely, a stable spending pattern might indicate consistent needs. Understanding the duration and value of previous contracts, as well as the number of competitors, provides context for the current $49.3 million award, helping to assess if it represents a fair market price or a potential escalation.

How does the per-unit cost of services under this contract compare to market rates for similar therapeutic services in Florida?

A detailed comparison of per-unit costs for services rendered under this $49.3 million contract against market rates in Florida is essential for assessing value for money. This would involve examining the contract's labor rates for various therapist roles (physical, occupational, speech, audiologist), as well as any material or equipment charges. These rates would then be benchmarked against what private clinics or other healthcare providers in Florida charge for comparable services. Factors such as the volume of services, the specific patient population (military personnel with unique needs), and the overhead associated with government contracting can influence these rates. If the contract rates are significantly higher than market averages, it could indicate potential overpricing or unique service requirements justifying the premium. Conversely, rates below market might suggest aggressive bidding or potential challenges in service delivery quality.

What is KBR Wyle Services, LLC's track record in providing healthcare services to the federal government, particularly the Department of Defense?

KBR Wyle Services, LLC, has a substantial track record in providing a wide array of services to the federal government, including significant support for the Department of Defense. Their experience often spans engineering, logistics, base operations, and technical services. Within the healthcare domain, KBR has been involved in providing medical support, facility operations, and specialized services to military personnel. Assessing their specific performance on past healthcare-related contracts, particularly those involving therapeutic services or support for special operations forces, is key. This includes reviewing past performance evaluations, any contract disputes or terminations, and their demonstrated ability to meet stringent government requirements for quality, timeliness, and cost control. A strong history suggests a lower risk profile for this current contract.

What are the key performance indicators (KPIs) used to measure the effectiveness of the therapeutic services provided under this contract?

The effectiveness of the therapeutic services provided under this contract is likely measured through a combination of quantitative and qualitative Key Performance Indicators (KPIs) outlined in the Performance Work Statement (PWS). Quantitative KPIs might include metrics such as patient wait times for appointments, the number of therapy sessions completed per patient, patient adherence to treatment plans, and successful completion of rehabilitation goals. Qualitative KPIs could involve patient satisfaction surveys, feedback from referring physicians or command staff, and assessments of the therapists' clinical competency and professionalism. For special operations personnel, specific readiness metrics or return-to-duty rates following injury or illness could also be critical indicators. Regular performance reviews between SOCOM and KBR Wyle Services, LLC would track these KPIs to ensure the services meet the demanding standards required for military readiness and well-being.

Are there any specific risks associated with the 'Time and Materials' contract type for these therapeutic services?

The 'Time and Materials' (T&M) contract type, used for this delivery order, carries inherent risks for the government, primarily related to cost control. T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for profit. This structure can lead to cost uncertainty and potential overruns if not carefully managed, as the final cost is not fixed upfront. For therapeutic services, risks include inflated labor hours, unnecessary material usage, or inefficient service delivery, as the contractor's incentive is to bill for more time and resources. Effective oversight, detailed record-keeping, and robust monitoring of labor hours and material consumption by the government are critical to mitigate these risks and ensure fair pricing. The government must actively manage the scope and duration of work to prevent uncontrolled cost escalation.

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: $49,590,050

Exercised Options: $49,590,050

Current Obligation: $49,268,000

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