DoD awards $2.9M contract for specialized therapy services to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $2,943,640 ($2.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF SOCKOR 2390

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to KBR WYLE SERVICES, LLC for work described as: POTFF SOCKOR 2390 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award is a delivery order under a larger contract, indicating potential for follow-on work. 4. The services provided fall under the category of physical, occupational, and speech therapists, and audiologists. 5. The contract duration is 1095 days, spanning nearly three years. 6. The contractor, KBR Wyle Services, LLC, is a significant player in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract's scope and pricing structure. However, the Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not carefully managed. The total award amount of $2.94 million over three years suggests a moderate investment for specialized healthcare support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offering. The use of full and open competition is a positive sign for market responsiveness.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer through an open process.

Public Impact

Beneficiaries include U.S. Special Operations Command personnel requiring physical, occupational, speech therapy, or audiology services. Services delivered are specialized healthcare support essential for the well-being and readiness of military personnel. The geographic impact is primarily Florida, where the contract is being performed. Workforce implications include the potential employment of licensed therapists and audiologists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of specific bidder count makes it difficult to assess the intensity of competition.
The nature of specialized medical services requires careful quality assurance to ensure efficacy.

Positive Signals

Awarded through full and open competition, indicating a robust bidding environment.
Contract duration provides stability for service delivery and contractor planning.
The contractor has a significant presence and experience in government services.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on allied health services. The market for such services within the federal government is driven by the need to support military personnel and their families. Comparable spending benchmarks would involve analyzing other contracts for similar therapeutic services awarded to various healthcare providers supporting federal agencies, particularly within the Department of Defense.

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 for small businesses stemming from a small business set-aside. The primary contractor, KBR Wyle Services, LLC, is a large business, and their subcontracting plans, if any, would be outlined in the broader contract documentation not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command (SOCOM) contracting office and the relevant program managers. Accountability measures would be embedded in the contract's performance standards and delivery requirements. Transparency is facilitated by the contract award notice, though detailed performance metrics and oversight reports are often internal or subject to specific disclosure rules.

Related Government Programs

TRICARE
Military Health System
Veterans Affairs Healthcare Services
DoD Medical Readiness Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific competition details requires further investigation into bidder numbers.
Need for strong government oversight to ensure quality and cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to KBR WYLE SERVICES, LLC. POTFF SOCKOR 2390

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 $2.9 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the historical spending pattern for KBR Wyle Services, LLC with the Department of Defense?

KBR Wyle Services, LLC, and its predecessors, have a substantial history of contracting with the Department of Defense across various service areas. Their portfolio often includes base operations support, logistics, engineering, and professional services. Analyzing historical spending requires accessing federal procurement data like FPDS or USASpending.gov to aggregate awards over time. This specific contract represents a small fraction of their overall DoD engagements, which likely total billions of dollars over the years, reflecting their established role as a major government contractor.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar healthcare services?

Time and Materials (T&M) contracts offer flexibility, allowing for adjustments in scope and effort as needs evolve, which can be beneficial for services where requirements are not fully defined upfront. However, they carry a higher risk of cost escalation for the government compared to fixed-price contracts. Fixed-price contracts provide cost certainty but require a well-defined scope of work. For specialized healthcare services like therapy, T&M might be used if the exact number of sessions or specific interventions are unpredictable. The government's ability to control costs under T&M relies heavily on robust oversight, labor rate ceilings, and efficient task management.

What are the key performance indicators (KPIs) typically used to evaluate therapy service contracts for military personnel?

Key performance indicators for therapy service contracts often focus on patient outcomes, access to care, and provider performance. Examples include patient satisfaction scores, wait times for appointments, adherence to treatment plans, achievement of therapeutic goals (e.g., range of motion improvement, functional independence), and provider qualifications and certifications. For military personnel, readiness metrics and the ability to return individuals to duty or maintain their operational capacity are also critical KPIs. The government monitors these through regular reporting, site visits, and performance reviews.

What is the typical market size for specialized therapy services procured by the federal government?

The market size for specialized therapy services procured by the federal government is significant, encompassing needs across the Department of Defense (DoD), Department of Veterans Affairs (VA), and other agencies. While precise figures for 'specialized therapy services' alone are difficult to isolate, the broader healthcare services market for the federal government runs into tens of billions of dollars annually. Contracts like this one, supporting specific operational needs within SOCOM, are part of a larger ecosystem aimed at maintaining the health and readiness of service members.

What are the potential risks associated with a sole-source or limited competition award for similar services?

Sole-source or limited competition awards for similar services carry several risks. Primarily, the lack of robust competition can lead to higher prices than might be achieved in an open market, potentially resulting in less value for taxpayer money. It can also limit the government's access to innovative solutions or specialized expertise that other potential contractors might offer. Furthermore, it can create a perception of favoritism or reduce the incentive for the awarded contractor to maintain high performance standards, as alternative options are scarce. Robust justification and oversight are crucial in such cases.

How does the geographic location (Florida) influence the cost and availability of these specialized therapy services?

The geographic location in Florida can influence both the cost and availability of specialized therapy services. Major metropolitan areas in Florida may have a larger pool of qualified healthcare professionals, potentially leading to more competitive pricing and easier access. However, demand in certain areas, especially those with significant military installations, can also drive up costs due to high demand. The cost of living and operating expenses in Florida would also factor into the contractor's pricing structure. The specific location within Florida (e.g., near a military base) would be a key determinant.

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: Brown & Root Industrial Services Holdings, LLC

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: $4,116,246

Exercised Options: $4,116,246

Current Obligation: $2,943,640

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