DoD's $21M Engineering Services Contract Awarded to KBR WYLE SERVICES, LLC Shows Limited Competition
Contract Overview
Contract Amount: $21,060,344 ($21.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2015-04-15
End Date: 2020-08-31
Contract Duration: 1,965 days
Daily Burn Rate: $10.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SWISS/KUWAIT LABOR/ODC/NMCI - BASE YEAR (FMS) IGF::OT::IGF
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to KBR WYLE SERVICES, LLC for work described as: SWISS/KUWAIT LABOR/ODC/NMCI - BASE YEAR (FMS) IGF::OT::IGF Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract's duration of 1965 days suggests a long-term requirement for these services. 3. Awarded to a single vendor, raising questions about the extent of market competition. 4. The cost-plus-fixed-fee pricing structure may incentivize cost overruns. 5. The contract is a definitive contract, suggesting a firm commitment from the agency. 6. The geographic location of performance is Alabama, potentially impacting local economies and workforce.
Value Assessment
Rating: fair
The contract's total value of $21,060,343.70 for engineering services over approximately five years needs further benchmarking against similar contracts. The cost-plus-fixed-fee (CPFF) structure, while allowing flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the absence of competition suggests potential for less favorable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed openly, as indicated by the 'NOT AVAILABLE FOR COMPETITION' status. This suggests that either a sole-source justification was applied, or the procurement process did not involve a broad solicitation of potential bidders. The limited competition means that the government may not have benefited from the full range of market offerings or the most competitive pricing that a wider solicitation could have generated.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding, as the agency did not leverage market forces to drive down costs.
Public Impact
The Department of Defense benefits from specialized engineering services crucial for its operations. The contract supports the maintenance and enhancement of defense infrastructure and systems. The geographic impact is primarily in Alabama, where the services are performed. The contract likely supports a specialized engineering workforce, contributing to employment in that sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in higher costs for taxpayers.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
- Lack of transparency in the non-competitive award process hinders public scrutiny.
Positive Signals
- Contract awarded to an established entity (KBR WYLE SERVICES, LLC) with potential for reliable service delivery.
- Definitive contract award provides a clear commitment for service provision.
- Engineering services are critical for national defense infrastructure.
Sector Analysis
Engineering services are a vital component of the professional, scientific, and technical services sector, which is a significant part of the U.S. economy. This contract falls under the North American Industry Classification System (NAICS) code 541330 (Engineering Services). Spending in this sector by the federal government is substantial, supporting various agencies' needs for design, consulting, and technical support. Benchmarking this contract's value against the broader market for engineering services would require detailed analysis of specific service types and complexity.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement. The extent of such subcontracting is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The specific oversight mechanisms, such as audits, progress reviews, and performance monitoring, would be detailed in the contract itself. Transparency is limited due to the non-competitive nature of the award, making detailed public scrutiny of the selection and pricing process difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Contract Management Agency (DCMA) Contracts
- Engineering Services Contracts
- Department of Defense Procurement
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Limited Competition
- Cost-Plus-Fixed-Fee Structure
- Potential for Cost Overruns
- Lack of Transparency in Award
Tags
department-of-defense, engineering-services, definitive-contract, cost-plus-fixed-fee, limited-competition, kbr-wyle-services-llc, alabama, defense-contract-management-agency, professional-scientific-and-technical-services, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to KBR WYLE SERVICES, LLC. SWISS/KUWAIT LABOR/ODC/NMCI - BASE YEAR (FMS) IGF::OT::IGF
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 $21.1 million.
What is the period of performance?
Start: 2015-04-15. End: 2020-08-31.
What is the track record of KBR WYLE SERVICES, LLC with the Department of Defense?
KBR WYLE SERVICES, LLC, and its predecessor entities, have a long history of contracting with the U.S. government, particularly the Department of Defense, across a wide range of services including engineering, logistics, and base operations support. They are a significant federal contractor. Analyzing their specific performance on similar engineering services contracts would involve reviewing past performance evaluations, any contract disputes, and their history of meeting cost, schedule, and performance targets. Without access to detailed past performance information specific to this contract or similar ones, a comprehensive assessment is difficult. However, their continued awards suggest a generally acceptable performance history, though specific contract successes and failures would provide a more nuanced view.
How does the pricing of this contract compare to similar engineering services contracts awarded by the DoD?
A direct comparison of pricing for this $21 million, five-year engineering services contract is challenging without detailed service descriptions and performance metrics. The cost-plus-fixed-fee (CPFF) structure means the final price is not fixed upfront and depends on actual costs incurred plus a predetermined fee. To benchmark effectively, one would need to compare the labor rates, overhead, and fee percentages against similar CPFF contracts for comparable engineering services within the DoD or other federal agencies. The limited competition aspect suggests that the pricing might not be as competitive as it could be in a fully open market. Further analysis would require access to detailed contract line item numbers (CLINs) and associated rates.
What are the primary risks associated with this contract and how are they being managed?
Key risks include potential cost overruns inherent in the CPFF structure, performance deficiencies if KBR WYLE SERVICES, LLC fails to deliver adequate engineering expertise, and the risk associated with limited competition potentially leading to suboptimal pricing. Management of these risks would involve robust oversight by the Defense Contract Management Agency (DCMA), including regular performance reviews, audits of costs, and adherence to contract milestones. The contract's duration also presents a risk of scope creep or evolving requirements not being adequately addressed. The agency's management approach would focus on proactive monitoring and clear communication channels with the contractor.
How effective is the Defense Contract Management Agency (DCMA) in overseeing contracts of this nature?
The DCMA is the primary agency responsible for contract administration and oversight for a vast portfolio of defense contracts, including those awarded by various DoD components. Their effectiveness in overseeing contracts like this one hinges on adequate staffing, expertise, and resources. DCMA utilizes various tools and processes, including performance surveillance, quality assurance, and financial reviews, to ensure contractor compliance and value for money. While generally considered effective, the scale and complexity of defense contracting mean that challenges can arise. The specific effectiveness for this contract would depend on the diligence of the assigned DCMA representatives and the clarity of the contract's performance standards.
What is the historical spending trend for engineering services within the Department of Defense?
The Department of Defense consistently represents one of the largest federal spenders on engineering services, driven by the complex and evolving nature of military technology, infrastructure, and global operations. Historical spending data shows a significant and often increasing demand for these services, encompassing areas like aerospace engineering, civil engineering, electrical engineering, and systems engineering. Factors influencing this trend include modernization programs, research and development initiatives, base construction and maintenance, and support for weapon systems. While specific annual figures fluctuate based on budget allocations and strategic priorities, engineering services remain a critical and substantial expenditure category for the DoD.
What are the implications of awarding a definitive contract versus other contract types for this service?
A definitive contract, as opposed to an indefinite-delivery/indefinite-quantity (IDIQ) contract or a basic ordering agreement (BOA), signifies a firm commitment by the government to purchase a specific quantity of goods or services over a defined period, often with a specified total dollar value. For engineering services, this implies the agency has a clear, established need and has allocated the necessary funds. This provides stability for both the government and the contractor. However, it also means less flexibility to adjust quantities or scope compared to IDIQ vehicles. The choice of a definitive contract suggests a well-defined requirement at the time of award.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042114R0054
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,723,515
Exercised Options: $23,615,866
Current Obligation: $21,060,344
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $631,968
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-04-15
Current End Date: 2020-08-31
Potential End Date: 2020-08-31 00:00:00
Last Modified: 2022-04-02
More Contracts from KBR Wyle Services, LLC
- Bioastronautics Contract-Activities for the Health &productivity of Crews Working and Living in Space — $1.5B (National Aeronautics and Space Administration)
- Fpds-Ng Mission Systems Operations Contract (msoc) — $1.0B (National Aeronautics and Space Administration)
- THE Purpose of This Contract IS to Acquire Engineering Services and Related Services to MSD and Related Organizations Throughout Gsfc, AS Required, for the Formulation, Design, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. the Engineering Areas of Emphasis ARE Multidisciplinary With Concentration in the Mechanical Engineering Areas of Materials, Structural Analysis and Loads, Mechanical Design, Electromechanical Design, Thermal, Contamination and Coatings, Manufacturing and Integration and Test — $728.5M (National Aeronautics and Space Administration)
- 200106!000121!1700!F7004 !marine Corps Logistics Base !M6700499C0002 !a!n!*!n!p00015 !20010228!20080930!041014242!041014242!139691877!n!honeywell Technology Solutions!7000 Columbia Gateway Driv!columbia !md!21046!35000!031!12!jacksonville !duval !florida !+000004292865!n!n!000000000000!j049!maint & Repair of Eq/Maintenance & Repair Shop EQ !a4a!combat Vehicles !2000!NOT Discernable or Classified !811310!*!*!3! ! !C!*!*!*!B!*!*!A! !A !N!J!2!006!B! !C!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $670.1M (Department of Defense)
- Mission Operations Management Services (moms) — $623.8M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)