DoD's $11.5M contract for therapist services awarded to KBR Wyle Services, LLC, with a 364-day term

Contract Overview

Contract Amount: $11,562,188 ($11.6M)

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: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: POTFF COG 2560

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to KBR WYLE SERVICES, LLC for work described as: POTFF COG 2560 Key points: 1. Contract value of $11.5 million for a one-year period suggests a moderate investment in specialized healthcare services. 2. The award was made under full and open competition, indicating a broad market search for qualified providers. 3. The contract type is Time and Materials, which can pose risks if not closely managed to control costs. 4. The North American Industry Classification System (NAICS) code 621340 points to a focus on outpatient physical, occupational, and speech therapy services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The geographic location of performance is Florida, suggesting a specific operational need within that state.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services and personnel provided. However, an $11.5 million award for a year of specialized therapy services is substantial. Without comparable contract data for similar therapeutic support within the Department of Defense or other federal agencies, it is difficult to definitively assess value for money. The Time and Materials pricing structure necessitates careful oversight to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment. A competitive process is expected to drive more favorable pricing and service terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of obtaining services at a fair market price and encourages a wider pool of qualified contractors to participate.

Public Impact

Beneficiaries include military personnel and potentially their families requiring physical, occupational, or speech therapy services. Services delivered are likely focused on rehabilitation, recovery, and maintenance of physical and cognitive functions. The geographic impact is concentrated in Florida, where the services will be performed. Workforce implications include the potential employment of licensed therapists and support staff by the contractor, KBR WYLE SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly monitored for labor hours and material costs.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the effectiveness of the services.
The contract is a delivery order, which might indicate it's one of many under a larger IDIQ, potentially obscuring the full scope and cost of the overall requirement.

Positive Signals

Awarded under full and open competition, suggesting a robust market search and potential for competitive pricing.
The contractor, KBR WYLE SERVICES, LLC, is a known entity in government contracting, implying a level of established capability.
The contract has a defined period of performance (364 days), providing a clear timeframe for service delivery and budget allocation.

Sector Analysis

The healthcare services sector, particularly allied health professions like physical and occupational therapy, is a critical component of military readiness and personnel well-being. Federal spending in this area supports a range of medical and therapeutic needs for service members and veterans. This contract fits within the broader category of healthcare support services procured by the Department of Defense to ensure comprehensive medical care. Comparable spending benchmarks would typically involve analyzing other contracts for similar therapeutic services across different military branches or federal health agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if KBR WYLE SERVICES, LLC chooses to engage them. Without specific subcontracting plans, the direct impact on the small business ecosystem for this particular contract is likely limited.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command (SOCOM) contracting office and the relevant program managers within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Medical Treatment Facilities
TRICARE
Defense Health Agency Contracts
Outpatient Rehabilitation Services
Therapeutic Services Contracts

Risk Flags

Time and Materials Pricing Structure
Potential for Cost Overruns
Limited Performance Data Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to KBR WYLE SERVICES, LLC. POTFF COG 2560

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 $11.6 million.

What is the period of performance?

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

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

Analyzing historical spending patterns for similar therapeutic services by the U.S. Special Operations Command (SOCOM) requires access to detailed contract databases and search functionalities. Typically, one would look for contracts with NAICS codes related to health services (e.g., 621340 for Offices of Physical, Occupational and Speech Therapists, and Audiologists) awarded by SOCOM over several fiscal years. Trends in spending could reveal whether this $11.5 million award represents an increase, decrease, or stable level of investment in such services. Factors influencing historical spending might include changes in operational tempo, troop deployment locations, specific medical needs identified, and budget allocations. Without specific historical data for SOCOM's therapeutic service procurements, it's challenging to provide a precise comparison, but such analysis is crucial for understanding the context of the current award and forecasting future needs.

How does the per-unit cost of services under this contract compare to market rates for physical, occupational, and speech therapists?

Determining the per-unit cost comparison for this contract is challenging without specific details on the number of hours, types of services rendered, and the labor categories involved. The contract is Time and Materials (T&M), meaning payment is based on actual labor hours and material costs incurred, plus a fixed fee or profit. To benchmark, one would need to identify the average hourly rates for the specific therapist roles (e.g., Physical Therapist, Occupational Therapist, Speech-Language Pathologist) in the Florida region, factoring in experience levels and any required certifications. These market rates can be obtained from sources like the Bureau of Labor Statistics (BLS) or salary survey data. The government's objective in a competitive T&M contract is to negotiate rates that are fair and reasonable, reflecting prevailing market wages and the contractor's overhead. A detailed analysis would involve comparing the contractor's proposed hourly rates against these benchmarks, considering any additional costs for materials or administrative support.

What is the track record of KBR WYLE SERVICES, LLC in delivering similar healthcare support services to the federal government?

KBR WYLE SERVICES, LLC, has a significant track record in providing a wide range of services to the federal government, including extensive support in logistics, engineering, and professional services, often within defense and aerospace sectors. While their primary focus may not exclusively be healthcare, their experience in managing complex contracts, deploying skilled personnel, and adhering to stringent government requirements is substantial. To assess their specific track record in delivering healthcare support services, one would need to examine past contracts awarded to them that involved medical staffing, therapeutic services, or health-related facility support. Performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) from previous healthcare-related contracts would be invaluable. A review of these past performances would indicate their reliability, quality of service, and ability to meet the unique demands of healthcare delivery within a government context, particularly for specialized entities like SOCOM.

What are the potential risks associated with a Time and Materials contract for specialized therapy services?

Time and Materials (T&M) contracts, like the one awarded to KBR WYLE SERVICES, LLC for therapy services, carry inherent risks primarily related to cost control. Since payment is based on actual hours worked and materials used, there is a potential for costs to escalate beyond initial estimates if the scope of work is not well-defined or if work extends beyond anticipated durations. For specialized therapy services, this could mean higher-than-expected labor hours billed by therapists or increased costs for necessary equipment and supplies. Effective risk mitigation requires robust government oversight, including diligent monitoring of timesheets, verification of work performed, and strict adherence to the contract's ceiling price. Without strong management and clear performance metrics, T&M contracts can be less cost-effective than fixed-price arrangements, potentially leading to budget overruns and less predictable spending for taxpayers.

How does the duration of this contract (364 days) align with typical needs for ongoing therapeutic support?

A contract duration of 364 days is common in federal contracting, often used to align with fiscal year cycles or to provide a full year of service without triggering certain regulatory requirements associated with longer-term contracts. For ongoing therapeutic support, a one-year term is generally sufficient to establish service delivery and assess performance. It allows the agency to evaluate the contractor's effectiveness and make informed decisions about future contract renewals, extensions, or re-competition. If the need for these specialized therapy services is expected to be long-term, this 364-day contract likely represents an initial period or a single delivery order under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract, which would allow for subsequent orders or extensions. The duration itself does not inherently indicate a risk, but rather a standard procurement practice for managing service contracts.

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: $12,550,040

Exercised Options: $12,550,040

Current Obligation: $11,562,188

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