DoD's $31M Engineering Services Contract Awarded to KBR WYLE SERVICES, LLC for Nearly 2 Decades
Contract Overview
Contract Amount: $31,080,710 ($31.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-10-29
End Date: 2010-03-31
Contract Duration: 1,979 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $31.1 million to KBR WYLE SERVICES, LLC for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract's long duration (1979 days) may indicate a need for sustained engineering support. 3. The cost-plus-fixed-fee (CPFF) pricing structure can incentivize cost control by the contractor. 4. The award value of $15.7M is a significant investment in engineering services. 5. The North American Industry Classification System (NAICS) code 541330 points to a specialized engineering services market. 6. The contract was managed by the Defense Contract Management Agency, indicating a focus on defense-related engineering.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, the award value of $15.7M over its duration suggests a substantial commitment to engineering services. The CPFF structure, while common, requires careful oversight to ensure costs remain reasonable and the fixed fee provides adequate profit without excessive risk to the government. Further analysis would involve comparing the per-unit cost of specific engineering tasks against industry standards and other government contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the competition are not detailed. Full and open competition generally leads to better price discovery and potentially more favorable terms for the government compared to limited or sole-source procurements.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win the contract.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its operations and projects. Services delivered likely include design, analysis, testing, and technical support for defense systems. The geographic impact is likely concentrated around defense installations or project sites within Maryland. The contract supports a workforce of engineers and technical professionals, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long duration of the contract could lead to potential cost overruns if not managed effectively.
- The CPFF contract type requires diligent oversight to prevent contractor inefficiencies from increasing costs.
- Market shifts or technological advancements during the contract period might reduce the overall value proposition.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contractor, KBR WYLE SERVICES, LLC, likely possesses specialized expertise in defense engineering.
- The contract's duration suggests a stable and ongoing need for the services provided.
Sector Analysis
The engineering services sector is a critical component of the defense industrial base, providing essential technical expertise for the development, maintenance, and modernization of military systems. This contract, falling under NAICS code 541330 (Engineering Services), represents a significant portion of federal spending in this specialized area. The market is characterized by highly skilled professionals and often involves complex, long-term projects. Comparable spending benchmarks would typically be found within other large-scale defense contracts for similar engineering support.
Small Business Impact
The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary bidders. While this contract may not directly benefit small businesses through set-asides, KBR WYLE SERVICES, LLC might engage small businesses as subcontractors, depending on the scope of work and subcontracting plans, which are not detailed here.
Oversight & Accountability
Oversight for this contract was managed by the Defense Contract Management Agency (DCMA), a key agency responsible for ensuring contractors meet their contractual obligations and that taxpayer funds are used efficiently. DCMA's role typically involves monitoring performance, cost, quality, and schedule. The CPFF structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting and audits, though specific details on these mechanisms are not provided.
Related Government Programs
- Defense Engineering Services
- Professional, Scientific, and Technical Services
- Department of Defense Contracts
- Engineering and Architectural Services
Risk Flags
- Long contract duration may increase risk of cost escalation.
- CPFF contract type requires robust cost oversight.
- Limited competition (2 bidders) may impact price discovery.
Tags
defense, department-of-defense, engineering-services, kbr-wyle-services-llc, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, dcma, naics-541330, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to KBR WYLE SERVICES, LLC. See the official description on USAspending.
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 $31.1 million.
What is the period of performance?
Start: 2004-10-29. End: 2010-03-31.
What specific engineering services were provided under this contract?
The provided data indicates the contract falls under NAICS code 541330 (Engineering Services) and was awarded by the Department of Defense. While specific service details are not available in the abbreviated data, contracts under this code typically encompass a wide range of engineering disciplines. This could include conceptual design, detailed engineering, systems engineering, technical analysis, testing and evaluation, program management support, and lifecycle engineering for defense systems, platforms, or infrastructure. The duration of the contract (nearly 20 years) suggests the services were likely ongoing and critical to a specific defense program or capability.
How does the award value of $15.7 million compare to similar engineering services contracts awarded by the DoD?
The award value of $15.7 million for this contract, which ran for approximately 1979 days (over 5 years), needs to be considered in the context of its duration and the specific services rendered. Without knowing the exact scope of work, it's difficult to make a precise comparison. However, for long-term, complex engineering support, $15.7 million spread over five years might represent a moderate to significant investment. Larger, more complex defense programs often involve engineering contracts in the hundreds of millions or even billions of dollars. To provide a more accurate benchmark, one would need to compare this contract's value per year or per specific deliverable against other DoD contracts for similar engineering disciplines and complexity.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks associated with a CPFF contract of this magnitude ($15.7M award value) and duration (nearly 20 years) revolve around cost control and contractor performance. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government bears the cost of performance plus a fixed fee. This can lead to cost overruns if not meticulously managed and audited. Contractor performance risk also exists; if the contractor fails to deliver the required quality or quantity of services, the government may still be obligated to pay the fixed fee, potentially without receiving full value. Conversely, the contractor bears the risk if actual costs exceed estimates, but the fixed fee remains constant.
What does the fact that this contract was awarded under 'Full and Open Competition' imply about the market for these engineering services?
Awarding this contract under 'Full and Open Competition' signifies that the Department of Defense made the requirement available to all responsible sources, allowing any interested company to submit a bid. This implies a healthy and competitive market for the specific engineering services required. It suggests that multiple companies possessed the capability and capacity to fulfill the contract's needs. Such a process generally leads to better pricing, innovation, and a wider selection of qualified contractors, ultimately benefiting the government and taxpayers by ensuring they receive the best value available in the marketplace.
How has federal spending on engineering services (NAICS 541330) evolved over the period this contract was active?
This contract was active from October 29, 2004, to March 31, 2010. During this period, federal spending on engineering services, particularly within the defense sector, generally saw fluctuations tied to ongoing military operations, modernization efforts, and budget appropriations. The early to mid-2000s were characterized by significant defense spending related to conflicts in Iraq and Afghanistan, which would have likely driven demand for engineering support services. Post-2008 financial crisis, defense budgets faced some constraints. Analyzing specific spending trends for NAICS 541330 would require access to historical federal procurement data, showing overall outlays and the distribution across agencies and contract types during those years.
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: 2
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-10-29
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2021-11-03
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