DoD's $32M Marine Corps P&MCLS contract awarded to KBR WYLE SERVICES, LLC shows fair value

Contract Overview

Contract Amount: $32,062,587 ($32.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2019-06-30

Contract Duration: 272 days

Daily Burn Rate: $117.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: P&MCLS MARINE CORPS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to KBR WYLE SERVICES, LLC for work described as: P&MCLS MARINE CORPS Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of 272 days is relatively short, potentially limiting long-term risk exposure. 3. The 'COST NO FEE' contract type indicates that the government reimburses allowable costs without an additional fee. 4. The contract falls under the 'Commercial and Industrial Machinery and Equipment Repair and Maintenance' NAICS code. 5. The award was made by the Department of the Navy, a component of the Department of Defense. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract's total value of approximately $32 million for a 272-day period suggests a daily burn rate of roughly $117,877. Without specific performance metrics or detailed cost breakdowns, it is challenging to definitively benchmark the value for money. However, the 'COST NO FEE' structure implies that the government is primarily covering direct costs associated with the services, which can be a cost-effective approach if managed diligently. Comparison to similar machinery repair and maintenance contracts would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'FULL AND OPEN COMPETITION' procurement strategy. This indicates that all responsible sources were permitted to submit a bid, fostering a competitive environment. The number of bidders is not specified in the provided data, but the open competition suggests that multiple entities likely vied for the contract, which generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to offer their services, potentially leading to cost savings.

Public Impact

The primary beneficiaries of this contract are the United States Marine Corps, receiving essential repair and maintenance services for their machinery and equipment. The services delivered are critical for maintaining operational readiness and the functionality of vital equipment. The contract has a geographic impact primarily in Florida, where the services are likely performed or managed. The contract supports the workforce involved in specialized machinery repair and maintenance within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type requires robust government oversight to ensure that costs incurred are reasonable and directly related to contract performance, as there is no contractor incentive tied to profit margin.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance quality and efficiency.
The absence of a small business set-aside may limit opportunities for smaller businesses to participate in this contract, potentially impacting the broader small business ecosystem within this sector.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing structure and a wide range of qualified bidders.
The contract is for essential repair and maintenance services, directly supporting the operational capabilities of the Marine Corps.
The contractor, KBR WYLE SERVICES, LLC, is a known entity in the defense contracting space, suggesting a level of established capability.

Sector Analysis

This contract falls within the broader industrial machinery repair and maintenance sector, a critical component of the defense industrial base. The market for such services is substantial, driven by the extensive and diverse equipment inventories of military branches. Comparable spending benchmarks would typically involve analyzing other contracts for similar repair and maintenance services across different military branches or government agencies, considering factors like equipment type, service complexity, and contract duration.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to directly participate in this contract are limited. The impact on the small business ecosystem is neutral to potentially negative, as larger prime contractors may not be incentivized to subcontract with small businesses unless explicitly required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Marine Corps Logistics Support Services
Defense Industrial Base Maintenance Contracts
Commercial and Industrial Machinery Repair
Department of Defense Equipment Maintenance

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Monitoring Complexity
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to KBR WYLE SERVICES, LLC. P&MCLS MARINE CORPS

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-06-30.

What is the historical spending pattern for similar machinery repair and maintenance contracts by the Department of the Navy?

Analyzing historical spending for similar contracts by the Department of the Navy requires access to comprehensive contract databases. Generally, the Navy procures a wide array of maintenance and repair services for its diverse fleet and shore-based equipment. Spending patterns can fluctuate based on modernization programs, equipment lifecycle, and operational tempo. Contracts for machinery repair and maintenance are often awarded through competitive processes, with values varying significantly based on the scope of work, duration, and complexity. Benchmarking this specific $32 million contract against historical data would involve identifying contracts with similar NAICS codes (e.g., 811310), agencies (Department of the Navy), and service types to understand typical pricing, contract types, and award volumes. Without specific historical data, it's difficult to provide precise figures, but the Navy consistently invests billions annually in maintenance and repair services across all its operational and support functions.

How does the 'COST NO FEE' contract type typically affect contractor performance and government oversight?

The 'COST NO FEE' (CNF) contract type is used when the extent or frequency of the cost cannot be readily foreseen. Under a CNF contract, the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This structure places a significant emphasis on government oversight to ensure that costs are reasonable, allocable, and allowable. Contractors have less financial incentive to control costs compared to fixed-price contracts, as their profit is not directly tied to cost savings. Conversely, the government bears more of the financial risk. Effective management of CNF contracts requires robust auditing, detailed cost tracking, and close collaboration between the contractor and the government to manage the scope and associated costs efficiently. It is often used for services where performance is difficult to define in advance or for non-commercial items.

What are the potential risks associated with a 'COST NO FEE' contract for machinery repair and maintenance?

The primary risk associated with a 'COST NO FEE' contract for machinery repair and maintenance is the potential for cost overruns and a lack of contractor incentive to control expenses. Since the contractor is reimbursed for all allowable costs without a fee, there is less motivation to seek cost efficiencies or to perform work in the most economical manner. This can lead to higher overall costs for the government compared to fixed-price contracts. Another risk is scope creep, where the services required may expand beyond initial expectations, leading to increased costs without a corresponding adjustment in contractor profit. Effective government oversight, clear definition of allowable costs, and strong contract administration are crucial to mitigate these risks. Without diligent management, the government might end up paying more than necessary for the services rendered.

What is the typical track record of KBR WYLE SERVICES, LLC in performing similar defense maintenance contracts?

KBR WYLE SERVICES, LLC, as part of KBR, Inc., has a substantial track record in providing a wide range of services to the U.S. government, including extensive support for defense agencies. Their experience often encompasses logistics, base operations support, engineering services, and technical support, which frequently include maintenance and repair of complex systems and equipment. While specific performance details for individual contracts are not always publicly available, KBR generally holds numerous large-scale contracts across various military branches. Their history suggests a capacity to manage complex projects and deliver services in demanding environments. For this specific contract, the 'COST NO FEE' structure and the nature of machinery repair indicate a need for meticulous cost tracking and performance monitoring by the government to ensure value.

How does the geographic location (Florida) influence the cost and logistics of this contract?

The contract's performance location in Florida can influence costs and logistics in several ways. Florida has a significant defense presence, which may mean a readily available pool of skilled labor for machinery repair and maintenance, potentially moderating labor costs. However, depending on the specific location within Florida and the nature of the equipment, travel costs for specialized technicians or parts could be a factor. Logistics for parts procurement and delivery might also be influenced by Florida's infrastructure and proximity to supply chains. Furthermore, state-specific regulations, taxes, and environmental compliance requirements could add to the overall cost structure. The presence of multiple military installations in Florida might also indicate a competitive market for support services, which could have a moderating effect on pricing.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,062,587

Exercised Options: $32,062,587

Current Obligation: $32,062,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6700409D0020

IDV Type: IDC

Timeline