DoD's $23M Engineering Services Contract with KBR Wyle Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $23,089,495 ($23.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2013-03-01
End Date: 2018-12-13
Contract Duration: 2,113 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF ENGINEERING&TECHNICAL SUPPORT SERVICES.
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF ENGINEERING&TECHNICAL SUPPORT SERVICES. Key points: 1. The contract awarded to KBR Wyle Services, LLC for engineering and technical support services represents a significant investment by the Department of Defense. 2. Competition for this contract was full and open, suggesting a robust price discovery process. 3. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed tightly. 4. The engineering services sector is critical for defense operations, but requires careful oversight to ensure efficiency.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can be less cost-effective than fixed-price contracts if scope creep or inefficiencies occur. Benchmarking against similar engineering services contracts is needed to confirm value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The Delivery Order (DO) award mechanism within a larger contract framework is standard.
Taxpayer Impact: While competition was present, the CPFF structure warrants monitoring to ensure taxpayer funds are used efficiently and not inflated by cost-plus mechanisms.
Public Impact
Taxpayers may be impacted by the efficiency of the CPFF contract type, which can sometimes lead to higher costs than fixed-price agreements. The Department of Defense relies on these engineering services for critical operations, making contract performance a key factor. The duration of the contract (over 5 years) suggests a long-term need for these services, highlighting the importance of sustained value. The specific engineering services provided are essential for maintaining and advancing defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Potential for cost overruns if not managed effectively
Positive Signals
- Full and open competition
- Awarded by Department of Defense
- Essential engineering services
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government operations, particularly in defense. Spending benchmarks in this sector often vary widely based on project complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Analysis should explore if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
Oversight is crucial for CPFF contracts to ensure costs are reasonable and allocable. The Department of Defense's contracting officers must diligently monitor performance and expenditures to maintain accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of specific performance metrics in provided data
- No indication of small business subcontracting
- Long contract duration requires sustained oversight
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF ENGINEERING&TECHNICAL SUPPORT SERVICES.
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 $23.1 million.
What is the period of performance?
Start: 2013-03-01. End: 2018-12-13.
What specific engineering services were provided under this contract, and how did their complexity justify the CPFF structure?
The contract covered general engineering and technical support services. The CPFF structure is often used when the scope of work is not precisely defined at the outset or is expected to evolve, allowing for flexibility. However, it necessitates rigorous oversight to prevent cost escalation and ensure the services delivered align with the fixed fee and overall value proposition for the DoD.
How did the final costs compare to initial estimates, and were there any significant cost underruns or overruns under this CPFF contract?
The provided data does not include final cost figures or comparisons to initial estimates, making it impossible to assess cost performance. For CPFF contracts, tracking deviations from projected costs is essential for evaluating contractor efficiency and taxpayer value. Further analysis would require access to detailed financial reporting for this specific contract.
What mechanisms were in place to ensure the quality and effectiveness of the engineering services provided, beyond just cost management?
While cost management is a key concern, the effectiveness of engineering services is typically ensured through performance metrics, technical reviews, and adherence to specific project milestones outlined in the contract. The Department of Defense likely employed quality assurance personnel and technical experts to monitor the contractor's deliverables and overall performance against requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0002412R3035
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: $24,385,329
Exercised Options: $24,377,230
Current Obligation: $23,089,495
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $5,911,797
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: 2013-03-01
Current End Date: 2018-12-13
Potential End Date: 2018-12-13 00:00:00
Last Modified: 2018-12-19
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