Interior's $23M IT services contract to KBR Wyle Services awarded under full and open competition

Contract Overview

Contract Amount: $23,077,373 ($23.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2012-11-15

End Date: 2018-11-15

Contract Duration: 2,191 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $23.1 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support. 2. The firm-fixed-price contract type suggests predictable costs for the government. 3. A duration of approximately six years points to a long-term need for these services. 4. The contract was awarded to a single entity, KBR Wyle Services, LLC. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services'. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered under the $23 million award. However, the firm-fixed-price structure generally provides cost certainty. Comparing it to similar IT services contracts within the Department of the Interior or other federal agencies would require detailed service scope and performance metrics. The duration of six years suggests a substantial, ongoing requirement, and the total value over this period implies a moderate annual spend.

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 a bid. The data does not specify the number of bidders, but this procurement method is generally expected to foster competitive pricing and encourage a wide range of potential contractors to participate. The government's use of this method aims to secure the best value through market forces.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and reduces the risk of overpayment compared to less competitive methods.

Public Impact

The U.S. Geological Survey (USGS) within the Department of the Interior is the primary beneficiary of these IT services. The services likely support the USGS's scientific research, data collection, and dissemination activities. Geographic impact is nationwide, supporting USGS operations across various locations. Workforce implications may include support for federal employees and potentially contractors involved in IT infrastructure and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the services provided makes it difficult to assess true value for money.
The long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single awardee for a significant IT services contract may pose risks if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost predictability.
The contract supports a critical scientific agency (USGS), aligning with government missions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically 'Other Computer Related Services.' The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are essential for supporting agency operations, data management, and scientific endeavors, such as those undertaken by the USGS. Benchmarking against similar IT service contracts would typically involve comparing rates for specific roles (e.g., system administrators, network engineers) or project-based pricing for defined IT solutions.

Small Business Impact

The provided data indicates that 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 prime contractor, KBR Wyle Services, LLC, is a large business. While not a set-aside, large contracts can sometimes offer subcontracting opportunities to small businesses, but this is not guaranteed and depends on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Geological Survey (USGS) and the Department of the Interior's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of the Interior IT Modernization Initiatives
U.S. Geological Survey Scientific Computing Services
Federal Civilian Agency IT Support Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) IT Services Contracts

Risk Flags

Contract duration exceeds typical IT refresh cycles.
NAICS code is broad, potentially masking specific service risks.
No indication of small business participation or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $23.1 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2012-11-15. End: 2018-11-15.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support, including IT management consulting, network design, system integration, data processing services, and IT support services. Without access to the specific statement of work (SOW) or task orders issued under this delivery order, the precise nature of the services rendered remains unspecified. However, given the agency (USGS), it likely supported scientific data management, research computing infrastructure, or general IT operations essential for the agency's mission.

How does the $23 million total value compare to similar IT services contracts for the USGS or DOI?

Comparing the $23 million total contract value requires context regarding the duration and scope of services. This contract spans approximately six years (2191 days), equating to an average annual spend of roughly $3.8 million. This figure is moderate for federal IT services, especially for an agency like the USGS, which manages extensive data and research operations. Larger, more complex IT modernization or enterprise-wide support contracts can easily reach tens or hundreds of millions of dollars. To provide a precise comparison, one would need to analyze other USGS or DOI IT contracts with similar durations and service complexities, looking at both total value and annual spend rates.

What is the track record of KBR Wyle Services, LLC with federal IT contracts?

KBR Wyle Services, LLC, has a significant history of performing federal contracts, including those related to IT and technical services. As a large, established government contractor, they have experience across various agencies and contract types. Their performance on this specific $23 million contract with the Department of the Interior would be documented through past performance evaluations and contract administration records. A deeper dive into their contract history would reveal their success rates, any past performance issues, and their overall capacity to deliver complex IT solutions for federal clients.

What are the potential risks associated with a six-year IT services contract?

A six-year IT services contract, while providing stability, carries several potential risks. Technology evolves rapidly, and a contract of this length might not adequately adapt to new advancements, potentially leading to outdated solutions or requiring costly modifications. There's also the risk of vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making it difficult to switch providers or negotiate favorable terms later. Performance degradation over time is another concern, as is the potential for cost overruns if the firm-fixed-price model doesn't account for unforeseen complexities or scope creep. Effective contract management and regular performance reviews are crucial to mitigate these risks.

How does the 'Other Computer Related Services' NAICS code impact the interpretation of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that indicates the contract is for IT services not specifically covered by more specialized codes like software development (541511) or computer systems design (541512). This suggests the contract likely involves a mix of IT support, consulting, integration, or management services. It implies flexibility for the contractor to provide a range of IT solutions tailored to the agency's needs, but it also means the specific deliverables are less defined than under a more specialized code. This broadness necessitates careful oversight to ensure the services align with the agency's objectives and represent good value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: G12PS00920

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,953,928

Exercised Options: $23,077,373

Current Obligation: $23,077,373

Actual Outlays: $13,844

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5381H

IDV Type: FSS

Timeline