DoD awards $29.7M for Program Management Support to KBR WYLE SERVICES, LLC, a sole-source contract
Contract Overview
Contract Amount: $29,679,706 ($29.7M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-01
End Date: 2009-12-15
Contract Duration: 289 days
Daily Burn Rate: $102.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROGRAM MANAGEMENT SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to KBR WYLE SERVICES, LLC for work described as: PROGRAM MANAGEMENT SUPPORT Key points: 1. Contract Value: $29.7 million for program management support. 2. Competition: Sole-source award, raising questions about price discovery. 3. Risk: Lack of competition may lead to inflated costs. 4. Sector: Engineering Services (NAICS 541330) within the Defense sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the fixed fee and overall price are reasonable compared to market rates for similar program management support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $29.7 million contract raises concerns about potential overspending of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The sole-source nature of the award limits transparency in how the price was determined. Essential program management support for the Department of Defense is being provided, but at what cost?
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential service provided to DoD
Sector Analysis
The Engineering Services sector (NAICS 541330) is critical for government projects, particularly in defense. Spending benchmarks for program management support can vary widely based on project complexity and duration, but competitive bidding typically ensures better value.
Small Business Impact
The data indicates this contract was awarded to KBR WYLE SERVICES, LLC, and does not specify any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the fixed fee and cost reimbursements are justified and that future requirements are competed to ensure fair pricing.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpricing due to lack of competition.
- Cost Plus Fixed Fee structure can incentivize higher costs.
- Limited transparency on pricing justification.
- No indication of small business subcontracting.
Tags
engineering-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.7 million to KBR WYLE SERVICES, LLC. PROGRAM MANAGEMENT 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $29.7 million.
What is the period of performance?
Start: 2009-03-01. End: 2009-12-15.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the requirement. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The specific justification for this DoD contract would need to be reviewed in the contract's documentation.
How does the fixed fee compare to industry standards for similar program management support contracts?
Without competitive bids or access to detailed cost breakdowns, it is challenging to benchmark the fixed fee against industry standards. A Cost Plus Fixed Fee structure means the fee is set, but the cost reimbursement can fluctuate. A thorough review would require comparing the scope of work and the fee percentage to similar government contracts awarded competitively.
What measures were in place to ensure the effectiveness and efficiency of the program management support provided under this sole-source contract?
Effectiveness and efficiency under a sole-source contract rely heavily on the government's contract administration and performance monitoring. This includes establishing clear performance metrics, regular progress reviews, and ensuring the contractor meets defined objectives. The Defense Contract Management Agency's role would be crucial in overseeing performance and ensuring value for money.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,371,379
Exercised Options: $34,371,379
Current Obligation: $29,679,706
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-01
Current End Date: 2009-12-15
Potential End Date: 2009-12-15 00:00:00
Last Modified: 2019-12-02
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