DoD's $52.6M contract for therapist services awarded to KBR WYLE SERVICES, LLC via full and open competition

Contract Overview

Contract Amount: $52,650,213 ($52.7M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-07

End Date: 2024-02-06

Contract Duration: 364 days

Daily Burn Rate: $144.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF HP 2310

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $52.7 million to KBR WYLE SERVICES, LLC for work described as: POTFF HP 2310 Key points: 1. Contract value represents a significant investment in specialized healthcare support for military personnel. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of one year with a potential for extension warrants monitoring for long-term cost-effectiveness. 4. Performance is situated in Florida, indicating a focus on supporting personnel within that geographic region. 5. The North American Industry Classification System (NAICS) code 621340 points to a specific niche within healthcare services. 6. The award type as a delivery order suggests it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $52.6 million for a one-year period appears reasonable for specialized healthcare services, particularly given the potential need for highly qualified professionals. Benchmarking against similar contracts for physical, occupational, and speech therapists, especially those supporting federal agencies or military branches, would provide a clearer picture of value for money. Without specific per-unit cost data or comparison to market rates for these specialized services, a definitive assessment is challenging, but the overall investment aligns with the critical nature of therapeutic support.

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 bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the designation suggests a healthy level of competition, which is generally beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of securing services at the most competitive prices, preventing potential overspending that could occur with less competitive procurement methods.

Public Impact

Beneficiaries include U.S. Special Operations Command personnel requiring physical, occupational, and speech therapy services. Services delivered are critical for the rehabilitation, recovery, and readiness of military members. Geographic impact is concentrated in Florida, where the services will be provided. Workforce implications include the potential employment of licensed therapists and support staff in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and quality of services delivered.
The 'Time and Materials' contract type, if not carefully managed, can lead to cost overruns if not properly monitored.
Limited information on the specific needs and patient population served makes it hard to gauge the true scope and necessity of the contract.
The absence of a small business set-aside raises questions about opportunities for smaller, specialized firms in this sector.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract addresses a critical need for specialized healthcare services within the U.S. Special Operations Command.
The contractor, KBR WYLE SERVICES, LLC, is a known entity in government contracting, potentially indicating a level of established capability.
The contract duration, while one year, allows for a defined period of service delivery and evaluation.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on allied health professions like physical, occupational, and speech therapy. The market for these services is substantial, driven by both civilian healthcare needs and specialized requirements within government and military contexts. The U.S. Special Operations Command's need for such services highlights a niche but critical segment of the healthcare support market. Comparable spending benchmarks would involve analyzing other contracts for similar therapeutic services awarded to federal agencies or large healthcare providers.

Small Business Impact

The contract does not indicate a small business set-aside, meaning it was competed broadly. This suggests that larger, established firms were likely the primary participants. While this ensures broad competition, it may limit direct opportunities for small businesses unless they are subcontractors. The implications for the small business ecosystem depend on KBR WYLE SERVICES, LLC's subcontracting plans, which are not detailed here. Without specific subcontracting goals, it's difficult to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated by the contract award process itself, especially given the full and open competition. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

TRICARE
Military Medical Treatment Facilities
Veterans Affairs Healthcare Services
Department of Defense Medical Readiness Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of defined performance metrics makes outcome assessment difficult.
Geographic limitation to Florida may not serve all personnel.
Limited transparency on the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.7 million to KBR WYLE SERVICES, LLC. POTFF HP 2310

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 $52.7 million.

What is the period of performance?

Start: 2023-02-07. End: 2024-02-06.

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

Analyzing historical spending reveals trends in demand and investment in specialized healthcare. For instance, if the DoD has consistently awarded multi-million dollar contracts for physical and occupational therapy over the past five years, it indicates a sustained need and a recognized budget allocation for these services. Comparing the current $52.6 million award to previous contract values for similar scopes of work can highlight whether spending is increasing, decreasing, or remaining stable. This context is crucial for understanding if the current award represents a typical investment or a significant shift in resource allocation. Without specific historical data for SOCOM or DoD's therapy contracts, it's difficult to provide precise figures, but such analysis would typically involve reviewing contract databases and budget justifications to identify patterns and justify the current expenditure level.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar therapy services, and what are the associated risks?

Time and Materials (T&M) contracts, like this one, offer flexibility by reimbursing the contractor for direct labor hours and costs, plus a fixed fee or percentage for overhead and profit. This structure is often used when the scope of work is not clearly defined or is expected to change. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For therapy services, a fixed-price contract might be feasible if the number of sessions or specific treatment plans were well-defined. The risk with T&M is that without stringent oversight and management, labor hours and material costs can escalate. Benchmarking against similar T&M contracts for therapy services would involve examining the average hourly rates and overhead percentages charged by other providers to assess if KBR WYLE SERVICES, LLC's rates are competitive and reasonable within the market.

What is the track record of KBR WYLE SERVICES, LLC in delivering healthcare services, particularly to federal agencies?

KBR WYLE SERVICES, LLC, as part of KBR, Inc., has a significant history of providing services to government agencies, including extensive support for military and aerospace programs. Their experience often encompasses logistics, engineering, and technical services. While their primary focus may not exclusively be healthcare provision, their established presence in government contracting suggests they possess the infrastructure and management capabilities to handle large-scale service contracts. Assessing their specific track record in delivering healthcare services would involve reviewing past performance evaluations, any reported issues or successes on similar contracts, and their compliance history. Information from sources like the Federal Procurement Data System (FPDS) or past performance questionnaires can provide insights into their reliability and quality of service delivery in related fields.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how are they monitored?

Key Performance Indicators (KPIs) for a contract like this, focused on therapeutic services, would likely revolve around patient outcomes, service availability, and provider qualifications. Examples could include patient satisfaction scores, adherence to treatment plans, timely scheduling of appointments, and the percentage of services delivered by qualified and licensed professionals. The contract's terms and conditions should specify these KPIs and the methods for monitoring them, such as regular performance reports submitted by the contractor and periodic reviews by the government's contracting officer's representative (COR). Effective monitoring ensures that the services meet the required standards and that the U.S. Special Operations Command personnel receive the necessary quality of care.

How does the geographic concentration in Florida impact the overall strategy and potential scalability of these therapeutic services?

The concentration of services in Florida suggests a specific operational focus, likely tied to the presence of a significant U.S. Special Operations Command population or facilities in that state. This geographic focus allows for tailored support to a defined user base, potentially leading to more efficient service delivery and stronger relationships with local military commands. However, it also means that personnel located outside of Florida may not directly benefit from this specific contract, necessitating separate arrangements or contracts for other regions. Scalability could be a consideration if the demand for these services increases within Florida or if the command's presence shifts. The current contract structure might need adjustments or new awards to accommodate broader geographic needs or significant increases in demand.

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

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: $56,206,257

Exercised Options: $56,206,257

Current Obligation: $52,650,213

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