DoD's $16.2M Facility Maintenance Contract with KBR Wyle Raises Questions on Value and Competition
Contract Overview
Contract Amount: $16,223,779 ($16.2M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-29
End Date: 2016-06-28
Contract Duration: 2,008 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 35-5119-11 COMPREHENSIVE FACILITY OPERATIONAL MANINTENANCE SUPPORT
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to KBR WYLE SERVICES, LLC for work described as: 35-5119-11 COMPREHENSIVE FACILITY OPERATIONAL MANINTENANCE SUPPORT Key points: 1. Contract awarded to KBR Wyle Services, LLC for facility operational maintenance. 2. Significant spending of $16.2M over its period of performance. 3. Awarded under full and open competition, but details on price discovery are limited. 4. The contract falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: questionable
The contract's total value of $16.2M for facility operational maintenance over approximately 5.5 years warrants scrutiny. Without detailed performance metrics or cost breakdowns, it's difficult to assess if this represents good value compared to industry benchmarks for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a broad solicitation. However, the specific pricing mechanisms and how competitive bids influenced the final cost are not detailed, leaving potential for unoptimized price discovery.
Taxpayer Impact: The $16.2M expenditure represents taxpayer funds. While competition was intended to ensure fair pricing, the lack of transparency on cost-effectiveness makes the ultimate taxpayer impact uncertain.
Public Impact
Taxpayers funded $16.2M for facility maintenance services. The contract supported operational readiness for the Department of the Navy. The duration of the contract (2010-2016) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost-effectiveness analysis.
- Limited insight into price discovery despite full and open competition.
- Potential for cost overruns with Cost Plus Fixed Fee structure.
Positive Signals
- Awarded through full and open competition.
- Supported critical facility maintenance for the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to facility operational maintenance. Spending in this area can vary widely based on facility size, complexity, and geographic location. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the effectiveness of this oversight in ensuring optimal value for this specific contract is not evident from the provided data.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Unclear price discovery effectiveness.
- Potential for contractor inefficiency in CPFF contracts.
- No indication of small business subcontracting.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.2 million to KBR WYLE SERVICES, LLC. 35-5119-11 COMPREHENSIVE FACILITY OPERATIONAL MANINTENANCE SUPPORT
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 $16.2 million.
What is the period of performance?
Start: 2010-12-29. End: 2016-06-28.
What specific maintenance tasks were included in this $16.2M contract, and how do their costs compare to industry averages for similar facilities?
The provided data lacks specific details on the maintenance tasks covered. To assess value, a breakdown of services (e.g., HVAC, electrical, plumbing, groundskeeping) and their associated costs would be necessary. Comparing these to industry benchmarks for comparable facilities would reveal if the $16.2M expenditure was reasonable or excessive.
Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms were in place to mitigate the risk of contractor inefficiencies driving up costs?
CPFF contracts carry inherent risks of cost escalation if not managed tightly. While the fixed fee provides some incentive for efficiency, the government must actively monitor costs and performance. Robust oversight, clear performance metrics, and regular audits are crucial to ensure the contractor remains incentivized to control costs and deliver value within the agreed-upon fee.
How effectively did the 'full and open competition' process ensure competitive pricing for these essential facility maintenance services?
While 'full and open competition' theoretically maximizes the pool of bidders, its effectiveness in ensuring competitive pricing depends on the clarity of the solicitation, the evaluation criteria, and the government's negotiation strategy. Without insight into the bidding process and the number of responsive bids received, it's difficult to definitively state how well competition drove down costs for this contract.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,223,779
Exercised Options: $16,223,779
Current Obligation: $16,223,779
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-29
Current End Date: 2016-06-28
Potential End Date: 2016-06-28 00:00:00
Last Modified: 2018-03-13
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