DoD awards $42M for Engineering, Technical, and Logistics Services to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $41,991,169 ($42.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-31

End Date: 2014-04-14

Contract Duration: 2,144 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, TECHNICAL, OPERATIONAL, TEST AND LOGISTICS SERVICES FOR R&D PROGRAM

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $42.0 million to KBR WYLE SERVICES, LLC for work described as: ENGINEERING, TECHNICAL, OPERATIONAL, TEST AND LOGISTICS SERVICES FOR R&D PROGRAM Key points: 1. Significant contract value of $41.99M for R&D program support. 2. KBR Wyle Services, LLC, a large established contractor, secured the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Defense, specifically Engineering Services, indicating specialized technical support.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, indicating multiple bidders likely participated. The Delivery Order award mechanism suggests this is one of potentially many orders under a larger contract, impacting price discovery over the life of the contract.

Taxpayer Impact: Taxpayer funds are utilized for specialized R&D support services. The competitive nature of the award aims to ensure reasonable pricing, but the CPFF structure warrants monitoring.

Public Impact

Supports critical research and development programs within the Department of Defense. Ensures the availability of specialized engineering, technical, and logistics expertise. The contract's duration and value suggest a long-term commitment to these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
  • Lack of specific performance metrics makes it difficult to assess value for money.
  • Long contract duration may not adapt to evolving R&D needs.

Positive Signals

  • Awarded through full and open competition.
  • Contractor has a history of providing similar services.
  • Supports critical national defense R&D efforts.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex government R&D initiatives. Spending in this area is often substantial due to the specialized nature of the work and the need for experienced personnel.

Small Business Impact

The awardee, KBR Wyle Services, LLC, is a large business. There is no indication of small business participation in this specific award, which could be an area for improvement in future contracting strategies.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The CPFF contract type requires diligent monitoring to ensure costs are reasonable and allocable to the contract's objectives.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • Lack of specific performance metrics.
  • No clear indication of small business participation.

Tags

engineering-services, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.0 million to KBR WYLE SERVICES, LLC. ENGINEERING, TECHNICAL, OPERATIONAL, TEST AND LOGISTICS SERVICES FOR R&D PROGRAM

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $42.0 million.

What is the period of performance?

Start: 2008-05-31. End: 2014-04-14.

What specific R&D programs are being supported by these services, and how critical are they to national security objectives?

The specific R&D programs are not detailed in the provided data. However, given the Department of Defense as the agency, it is reasonable to infer these programs are related to defense modernization, technological advancement, or strategic capabilities. Understanding the criticality would require further investigation into the DoD's strategic priorities and the specific projects funded under this contract.

How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the taxpayer, given the contract's duration?

Assessing the effectiveness of cost control under a CPFF contract requires detailed financial reviews and performance monitoring data, which is not available here. The long duration (2144 days) increases the risk of cost escalation if not rigorously managed. DCMA's oversight would be crucial in ensuring that costs incurred were reasonable, allocable, and allowable, and that the fixed fee remained appropriate.

What was the competitive landscape like for this contract, and did the full and open competition result in demonstrably better pricing compared to other contracting methods?

The contract was awarded under 'full and open competition,' suggesting multiple bids were solicited and evaluated. While this method generally promotes competitive pricing, the CPFF structure can complicate direct price comparisons. The ultimate value for the taxpayer depends on the rigor of the evaluation process and ongoing cost management, rather than solely the initial bid prices.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0002407R3270

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $44,260,890

Exercised Options: $44,260,890

Current Obligation: $41,991,169

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4663

IDV Type: IDC

Timeline

Start Date: 2008-05-31

Current End Date: 2014-04-14

Potential End Date: 2014-04-14 00:00:00

Last Modified: 2018-09-14

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