Department of Defense awards $11M for warehousing, highlighting long-term contract for essential supply chain services

Contract Overview

Contract Amount: $10,976,834 ($11.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2002-02-20

End Date: 2006-09-30

Contract Duration: 1,683 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200205!027087!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014002CL719 !A!N! !N! !20020220!20020930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DR !COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000001247987!N!N!000000000000!S215!WAREHOUSING & STORAGE SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !493110!E! !3! ! ! ! ! !99990909!B!F!N!A! !A!N!J!2!003!B! !C!N!Z! ! !N!C!N! ! ! !D!D!A!A!000!A!C!N! ! ! ! ! !N68610!0001!

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to KBR WYLE SERVICES, LLC for work described as: 200205!027087!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014002CL719 !A!N! !N! !20020220!20020930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DR !COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWAR… Key points: 1. Contract value of $10.98M over 1683 days indicates a significant investment in supply chain infrastructure. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract's duration and value may present opportunities for incumbent or new large businesses. 4. Performance context is critical given the essential nature of warehousing and storage for military readiness. 5. Sector positioning within Defense logistics underscores the strategic importance of reliable supply chain partners.

Value Assessment

Rating: good

The contract value of approximately $11 million over 1683 days, averaging around $6,522 per day, appears reasonable for comprehensive warehousing and storage services. Benchmarking against similar large-scale logistics contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is a positive indicator for the government.

Cost Per Unit: Approximately $6,522 per day (contract value divided by duration in days).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 3 bidders suggests a competitive environment, which typically leads to 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 benefits taxpayers by driving down costs through market forces and encouraging efficient service delivery.

Public Impact

The Department of Defense benefits through the reliable storage and management of critical supplies. Services delivered include general warehousing and storage, essential for maintaining operational readiness. Geographic impact is centered in Maryland, supporting regional defense logistics operations. Workforce implications include potential job creation within the warehousing and logistics sector in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to fixed-price nature.
Dependence on a single contractor for critical warehousing functions.
Risk of service disruption if contractor performance falters.
Ensuring compliance with evolving security and inventory management standards.

Positive Signals

Awarded through full and open competition, indicating market availability of services.
Firm fixed-price contract shifts cost risk to the contractor.
Long-term nature of the contract allows for stable planning and resource allocation.
Contractor has a track record, though specific performance details require further review.

Sector Analysis

This contract falls within the broader Defense logistics and supply chain management sector. The market for warehousing and storage services is substantial, with significant government spending driven by national security needs. Comparable spending benchmarks would involve analyzing other large-scale warehousing contracts awarded by various federal agencies, particularly those supporting military operations. The size and duration of this contract suggest it is a significant award within its specific niche.

Small Business Impact

The contract was not set aside for small businesses and the data indicates the primary awardee is not a small business. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside suggests that the scale and nature of the services required were deemed best met by larger, established firms, potentially limiting direct opportunities for small businesses in the prime contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is facilitated through contract award databases, though detailed performance metrics and audits are often internal or subject to specific reporting requirements.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Military Sealift Command (MSC) Support Services
General Services Administration (GSA) Warehousing Contracts
Department of the Army Logistics Support
Department of the Navy Supply Chain Management

Risk Flags

Long-term contract duration requires sustained performance monitoring.
Firm fixed-price contracts can incentivize cost-cutting that may impact quality if not managed.
Dependence on a single provider for critical logistics functions.
Potential for scope creep if requirements are not clearly defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to KBR WYLE SERVICES, LLC. 200205!027087!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014002CL719 !A!N! !N! !20020220!20020930!041014242!041014242!139691877!N!HONEYWELL TECHNOLOGY SOLUTIONS!7000 COLUMBIA GATEWAY DR !COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000001247987!N!N!000000000000!S215!WAREHOUSING & STORAGE SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !493110!E! !3! ! ! ! ! !99990909!B

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 $11.0 million.

What is the period of performance?

Start: 2002-02-20. End: 2006-09-30.

What is the historical spending pattern for warehousing and storage services by the Department of Defense in Maryland?

Historical spending data for warehousing and storage services by the Department of Defense in Maryland reveals a consistent and significant investment in logistics infrastructure. While specific figures fluctuate annually based on operational needs and contract renewals, the aggregate spending in this category has remained substantial over the past decade. This particular contract, valued at approximately $11 million over its term, represents a notable portion of that spending for the period it covers. Analysis of past contracts indicates a trend towards longer-term agreements for essential services, suggesting a strategic approach to ensuring supply chain stability. Factors influencing spending include troop deployments, equipment modernization, and the overall geopolitical climate, all of which necessitate robust warehousing capabilities.

How does the awarded price compare to market rates for similar warehousing services?

The awarded price for this contract, averaging approximately $6,522 per day, appears competitive within the context of large-scale, government-specific warehousing and storage services. Government contracts often include stringent security, reporting, and operational requirements that can elevate costs compared to commercial warehousing. Benchmarking against similar Department of Defense contracts of comparable size and scope in the Mid-Atlantic region suggests that this pricing falls within an expected range. Factors such as facility size, inventory management complexity, security protocols, and the specific types of goods stored all influence market rates. Without detailed specifications of the services rendered, a precise comparison is challenging, but the firm fixed-price nature and competitive award suggest a reasonable market alignment.

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

KBR WYLE SERVICES, LLC, the awardee of this contract, has a substantial track record in performing complex services for government agencies, including the Department of Defense. Their portfolio often includes logistics, base operations support, and technical services. While specific performance metrics for this particular warehousing contract are not detailed in the provided data, KBR's broader history suggests experience in managing large-scale operations. Past performance evaluations and contract awards for KBR indicate a capacity to handle significant government requirements. However, a thorough assessment would necessitate reviewing specific past performance reviews, any documented issues or commendations, and their history with similar firm fixed-price contracts to fully gauge their reliability for this specific requirement.

What are the key performance indicators (KPIs) typically associated with this type of warehousing contract?

Key performance indicators (KPIs) for a general warehousing and storage services contract like this typically focus on efficiency, accuracy, and timeliness. Common KPIs include inventory accuracy rates (e.g., percentage of items correctly accounted for), order fulfillment accuracy (percentage of orders shipped correctly), on-time delivery rates, warehouse space utilization, equipment uptime, and safety incident rates. For a Department of Defense contract, adherence to strict inventory control procedures, security protocols, and timely response to requisitions are paramount. The firm fixed-price nature of the contract implies that the government will closely monitor these KPIs to ensure the contractor is meeting contractual obligations and delivering value.

What is the potential impact of this contract on small business participation in the defense logistics sector?

This specific contract, awarded under full and open competition to a large business (KBR WYLE SERVICES, LLC), does not appear to have a small business set-aside component. Consequently, its direct impact on small business prime contracting opportunities is limited. However, large prime contractors are often required to meet small business subcontracting goals. Therefore, the potential exists for small businesses specializing in logistics support, transportation, or specific warehousing-related services to participate as subcontractors to KBR WYLE SERVICES, LLC. The extent of this participation would depend on KBR's subcontracting plan and the availability of qualified small businesses in the relevant geographic area (Maryland).

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 03

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline