DoD's $56.6M contract for physical therapy services awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $56,642,374 ($56.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-07

End Date: 2026-02-06

Contract Duration: 364 days

Daily Burn Rate: $155.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF HP 2510

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $56.6 million to KBR WYLE SERVICES, LLC for work described as: POTFF HP 2510 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 options indicates a need for ongoing, specialized services. 4. Focus on physical, occupational, and speech therapy highlights critical rehabilitation and readiness support. 5. The award to a single contractor necessitates careful performance monitoring to ensure value. 6. Geographic focus on Florida suggests a concentration of supported personnel or facilities in the region.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar healthcare service contracts within the Department of Defense and other federal agencies. Given the specialized nature of physical, occupational, and speech therapy services, the $56.6 million price tag for a one-year period appears within a reasonable range, assuming it covers a substantial number of personnel or complex therapeutic needs. However, a detailed cost breakdown and comparison against industry standards for these specific therapeutic services would be necessary for a more definitive value assessment. The Time and Materials pricing structure also warrants scrutiny to ensure efficient resource utilization.

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 of procurement generally fosters a competitive environment. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The agency's commitment to this procurement approach suggests a desire to leverage market competition to secure the best value for these essential healthcare services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not overpaying for services. It also promotes a wider pool of potential contractors, fostering innovation and efficiency.

Public Impact

Military personnel requiring physical, occupational, and speech therapy services will benefit from specialized care. The contract supports the health, readiness, and rehabilitation of service members, particularly within the U.S. Special Operations Command. Services are concentrated in Florida, impacting military bases and associated communities in that state. The contract likely supports a workforce of therapists and support staff, contributing to employment in the healthcare sector in Florida.

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 managed, as it reimburses the contractor for actual labor hours and material costs incurred.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the effectiveness and efficiency of the services delivered.
The concentration of services in Florida may not adequately address the needs of personnel stationed elsewhere, potentially requiring separate contracts or arrangements.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely resulted in a fair market price.
The contract addresses critical healthcare needs for military personnel, directly supporting readiness and well-being.
The selection of KBR WYLE SERVICES, LLC, implies they possess the necessary qualifications and experience for these specialized therapeutic services.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on allied health services. The market for healthcare services, particularly those supporting government and military entities, is substantial. This award represents a portion of the broader federal spending on medical and therapeutic support for active-duty personnel and veterans. Comparable contracts often involve long-term care facilities, specialized clinics, and direct patient services, with pricing influenced by geographic location, scope of services, and patient volume.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, the prime contractor, KBR WYLE SERVICES, LLC, will likely be responsible for managing subcontracting opportunities. It is crucial to monitor subcontracting plans to ensure that small businesses have a fair opportunity to participate in delivering these services, thereby contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Special Operations Command (SOCOM) and the Department of Defense. Mechanisms for oversight likely include regular performance reviews, audits of billing and service delivery, and adherence to contract terms and conditions. Transparency is typically managed through contract reporting systems and performance metrics. The Inspector General's office within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

TRICARE
Military Medical Treatment Facilities
Veterans Affairs Healthcare Services
Defense Health Agency Contracts

Risk Flags

Time and Materials contract type requires close monitoring to control costs.
Lack of specific performance metrics makes objective assessment of value challenging.
Geographic concentration may not serve all relevant personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.6 million to KBR WYLE SERVICES, LLC. POTFF HP 2510

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 $56.6 million.

What is the period of performance?

Start: 2025-02-07. End: 2026-02-06.

What is the historical spending pattern for similar physical, occupational, and speech therapy services by the Department of Defense or U.S. Special Operations Command?

Analyzing historical spending requires access to detailed procurement databases. However, federal agencies like the DoD consistently allocate significant funds towards healthcare services to maintain personnel readiness and well-being. Contracts for physical, occupational, and speech therapy are typically awarded through competitive processes and can range from millions to tens of millions of dollars annually, depending on the scope, duration, and geographic coverage. Factors such as the number of beneficiaries served, the complexity of required treatments, and the specific therapeutic modalities offered influence the overall expenditure. Trends may show an increasing emphasis on rehabilitation and mental health support, potentially driving up spending in these specialized areas over time. Without specific historical data for this contract's predecessors, it's difficult to pinpoint exact trends, but the consistent need for such services suggests sustained budgetary allocation.

How does the pricing structure (Time and Materials) for this contract compare to fixed-price contracts for similar services?

Time and Materials (T&M) contracts, like the one awarded to KBR WYLE SERVICES, LLC, reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure offers flexibility, especially when the scope of work is not clearly defined at the outset. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, where the price is set upfront. Fixed-price contracts provide greater cost certainty for the government but may require more detailed initial specifications and can be less adaptable to unforeseen changes. For specialized therapeutic services, T&M can be advantageous if the patient caseload or treatment complexity fluctuates significantly. However, robust oversight and detailed record-keeping are essential to ensure that T&M costs remain reasonable and do not exceed what would be expected under a well-defined fixed-price agreement.

What are the key performance indicators (KPIs) used to evaluate the performance of KBR WYLE SERVICES, LLC under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided contract abstract, typical performance metrics for healthcare service contracts of this nature often include: patient satisfaction scores, adherence to treatment protocols and best practices, timely delivery of services (e.g., appointment availability), clinical outcomes (e.g., improvement in patient function, reduction in pain), compliance with regulatory requirements (e.g., HIPAA), and efficient resource utilization. For a contract involving physical, occupational, and speech therapy, KPIs might also track the number of therapy sessions provided, patient progress towards rehabilitation goals, and the successful reintegration of service members into duty or civilian life. The U.S. Special Operations Command would establish and monitor these KPIs through regular performance evaluations and reporting requirements outlined in the contract.

What is the potential impact of this contract on the small business ecosystem in Florida?

Given that this contract was awarded under full and open competition and does not appear to have a small business set-aside component, its direct impact on the small business ecosystem in Florida might be limited unless KBR WYLE SERVICES, LLC actively engages small businesses as subcontractors. The primary benefit to small businesses would arise if KBR WYLE SERVICES, LLC fulfills its subcontracting goals by awarding portions of the work to local Florida-based small businesses specializing in healthcare support, administrative services, or related fields. Without explicit subcontracting requirements or demonstrated outreach, the contract's primary economic impact would be through the prime contractor's operations and employment within Florida, rather than direct opportunities for small, independent providers.

Are there any known performance issues or past concerns associated with KBR WYLE SERVICES, LLC regarding federal healthcare contracts?

Assessing the performance history of KBR WYLE SERVICES, LLC requires a review of past performance databases and contract award histories. Companies of KBR's size often hold numerous federal contracts across various agencies. While specific performance issues related to this particular type of healthcare service are not immediately apparent from the provided data, federal contractors are subject to past performance evaluations. These evaluations consider factors such as adherence to contract terms, quality of goods or services, timeliness of delivery, and overall customer satisfaction. Any significant performance concerns or disputes on prior contracts could be documented in systems like the Contractor Performance Assessment Reporting System (CPARS), which influences future award decisions. A thorough review of CPARS data and any publicly available information on past performance would be necessary for a comprehensive assessment.

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: $57,805,856

Exercised Options: $57,805,856

Current Obligation: $56,642,374

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