Marine Corps awards $670M for maintenance and repair of combat vehicles, with KBR Wyle Services as prime contractor

Contract Overview

Contract Amount: $670,104,845 ($670.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 1999-03-10

End Date: 2009-07-13

Contract Duration: 3,778 days

Daily Burn Rate: $177.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200106!000121!1700!F7004 !MARINE CORPS LOGISTICS BASE !M6700499C0002 !A!N!*!N!P00015 !20010228!20080930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!35000!031!12!JACKSONVILLE !DUVAL !FLORIDA !+000004292865!N!N!000000000000!J049!MAINT & REPAIR OF EQ/MAINTENANCE & REPAIR SHOP EQ !A4A!COMBAT VEHICLES !2000!NOT DISCERNABLE OR CLASSIFIED !811310!*!*!3! ! !C!*!*!*!B!*!*!A! !A !N!J!2!006!B! !C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001!

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $670.1 million to KBR WYLE SERVICES, LLC for work described as: 200106!000121!1700!F7004 !MARINE CORPS LOGISTICS BASE !M6700499C0002 !A!N!*!N!P00015 !20010228!20080930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!35000!031!12!JACKSONVILLE !DUVAL… Key points: 1. Contract awarded for maintenance and repair of combat vehicles, indicating a significant need for sustainment in this area. 2. The contract's duration of over 10 years suggests a long-term requirement for these services. 3. The large dollar value points to the complexity and scale of the combat vehicle maintenance operations. 4. The prime contractor, KBR Wyle Services, has a substantial role in supporting critical military equipment. 5. The contract falls under the broader category of industrial machinery repair, highlighting the specialized nature of military equipment upkeep.

Value Assessment

Rating: good

The total award of $670,010,484.78 over approximately 10 years for combat vehicle maintenance and repair appears reasonable given the scope. Benchmarking against similar large-scale sustainment contracts for complex military platforms is necessary for a definitive value assessment. However, the firm-fixed-price contract type suggests that the government has negotiated a set price, which can offer cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bids suggests a competitive environment, which typically drives better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring taxpayer value.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive marketplace. The multiple bids received suggest that the government secured a competitive price for these essential maintenance services.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, ensuring the operational readiness of their combat vehicle fleet. Services delivered include maintenance and repair of combat vehicles, crucial for military effectiveness. The geographic impact is primarily within Florida, where the Marine Corps Logistics Base is located, and potentially extends to operational theaters where these vehicles are deployed. Workforce implications include employment opportunities for skilled technicians and support staff involved in vehicle maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single prime contractor for such a critical function may pose risks if performance falters.
The specific nature of combat vehicle maintenance requires highly specialized skills, and availability of such talent could be a constraint.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a robust bidding process, likely resulting in competitive pricing.
The contract's focus on maintenance and repair ensures the readiness of essential military assets.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the maintenance and repair of heavy machinery and vehicles. The market for defense sustainment services is substantial, with numerous contractors specializing in supporting military equipment. This contract represents a significant portion of spending dedicated to ensuring the operational readiness of the Marine Corps' combat vehicle fleet, aligning with broader defense spending trends on equipment lifecycle management.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, KBR WYLE SERVICES, LLC, may utilize small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, with performance expectations outlined in the contract. Transparency is generally maintained through contract award databases, though specific performance metrics may be considered sensitive.

Related Government Programs

Combat Vehicle Maintenance
Military Equipment Repair
Defense Logistics Support
Marine Corps Sustainment Programs
Industrial Machinery Maintenance

Risk Flags

Long contract duration
Potential for cost escalation
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $670.1 million to KBR WYLE SERVICES, LLC. 200106!000121!1700!F7004 !MARINE CORPS LOGISTICS BASE !M6700499C0002 !A!N!*!N!P00015 !20010228!20080930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!35000!031!12!JACKSONVILLE !DUVAL !FLORIDA !+000004292865!N!N!000000000000!J049!MAINT & REPAIR OF EQ/MAINTENANCE & REPAIR SHOP EQ !A4A!COMBAT VEHICLES !2000!NOT DISCERNABLE OR CLASSIFIED !811310!*!*!3! ! !C!*!*!*!B!*!*!A!

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 $670.1 million.

What is the period of performance?

Start: 1999-03-10. End: 2009-07-13.

What is the historical spending pattern for combat vehicle maintenance and repair by the Department of the Navy over the last decade?

Analyzing historical spending for combat vehicle maintenance and repair by the Department of the Navy over the last decade reveals a consistent and significant investment in fleet readiness. While specific figures fluctuate based on modernization programs, operational tempo, and budget allocations, the overall trend indicates a sustained commitment to ensuring these critical assets remain operational. Spending often increases during periods of heightened global security concerns or extensive deployment cycles. Contracts of this magnitude, like the one awarded to KBR WYLE SERVICES, LLC, are indicative of the ongoing need for specialized maintenance and repair services, suggesting that annual expenditures in this category likely range in the hundreds of millions of dollars, if not billions, across the entire department. Benchmarking this $670 million award against historical averages would provide further context on its relative size and significance within the broader defense budget for vehicle sustainment.

How does the pricing structure of this contract compare to similar maintenance contracts for military vehicles?

The pricing structure of this contract, a firm-fixed-price (FFP) award valued at approximately $670 million over roughly 10 years, offers cost certainty to the government. FFP contracts are common for services with well-defined scopes, like maintenance and repair, where risks of cost overruns are manageable. To compare its pricing effectively, one would need to benchmark it against other FFP contracts for similar military vehicle classes (e.g., tanks, armored personnel carriers) awarded by different branches of the military or even allied nations. Key metrics for comparison would include the average cost per vehicle per year, the cost of specific repair actions (e.g., engine overhaul, track replacement), and the overhead rates charged by contractors. Without access to detailed pricing breakdowns and comparable contract data, a precise value-for-money assessment is challenging. However, the full and open competition with six bidders suggests that the pricing achieved is likely competitive within the market for such specialized sustainment services.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract of this nature, focused on the maintenance and repair of combat vehicles, are crucial for ensuring operational readiness and contractor performance. While specific KPIs are typically detailed within the contract's Performance Work Statement (PWS), common metrics would likely include: 1) Mean Time Between Failures (MTBF) for critical vehicle components, aiming to increase reliability; 2) Mean Time To Repair (MTTR), focusing on minimizing downtime; 3) Vehicle availability rates, ensuring a target percentage of the fleet is mission-capable at any given time; 4) Quality of repair, measured through defect rates or rework required; 5) Turnaround time for scheduled maintenance and unscheduled repairs; and 6) Adherence to safety protocols. The government would monitor these KPIs to assess the contractor's effectiveness in maintaining the combat vehicles to the required standards, directly impacting the Marine Corps' operational capabilities.

What is the track record of KBR WYLE SERVICES, LLC in managing large-scale defense maintenance contracts?

KBR WYLE SERVICES, LLC, and its predecessor entities, have a long and extensive track record in managing large-scale defense maintenance and support contracts across various military branches. The company has historically been involved in providing a wide range of services, including base operations, logistics support, technical services, and systems engineering, often for complex platforms and extensive operational environments. Their experience spans decades, encompassing support for aviation, ground vehicles, and naval systems. For instance, KBR has held significant contracts related to base support services, logistics management, and specialized engineering for various defense programs. Evaluating their specific performance on similar combat vehicle maintenance contracts, including past performance reviews, contract modifications, and any disputes or terminations, would provide a more granular understanding of their capabilities and reliability in executing this particular award.

Are there any identified risks associated with the long duration (over 10 years) of this contract?

Yes, the long duration of this contract, spanning over 10 years, introduces several potential risks that require careful management. Firstly, there's the risk of cost escalation beyond initial projections, particularly if inflation rates are higher than anticipated or if unforeseen technical challenges arise that increase the scope or complexity of maintenance. Secondly, technological advancements in combat vehicles could render current maintenance procedures or required parts obsolete, necessitating contract modifications or potentially requiring the contractor to adapt rapidly, which could incur additional costs. Thirdly, long-term contracts can sometimes lead to complacency or a decrease in competitive pressure over time, potentially impacting service quality or innovation if not actively managed through robust performance monitoring and incentive structures. Finally, changes in strategic defense priorities or budget constraints could lead to contract restructuring or termination, creating uncertainty for both the government and the contractor.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

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

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline