DoD's $26.2M KBR Wyle contract for SAIL Lab support shows fair competition but raises questions on value

Contract Overview

Contract Amount: $26,251,576 ($26.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-26

End Date: 2024-09-17

Contract Duration: 1,880 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR SUPPORT SERVICES AND INCIDENTAL MATERIAL FOR SAIL LAB.

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to KBR WYLE SERVICES, LLC for work described as: CONTRACTOR SUPPORT SERVICES AND INCIDENTAL MATERIAL FOR SAIL LAB. Key points: 1. Contract awarded via full and open competition, indicating a competitive marketplace. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. Performance period of nearly 2 years suggests a need for sustained support. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. No specific small business set-aside, but subcontracting opportunities may exist. 6. The contract is positioned within the broader defense engineering services sector.

Value Assessment

Rating: fair

The contract's total value of $26.2 million over its period of performance appears to be within a reasonable range for complex engineering support services. Benchmarking against similar contracts for specialized laboratory support within the Department of Defense suggests that the pricing structure, while Cost Plus Fixed Fee, is not excessively high. However, the lack of detailed cost breakdowns makes a precise value-for-money assessment challenging without further data on labor rates and material costs. The fixed fee component provides some cost control, but the variable cost component necessitates diligent monitoring to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of a competitive bidding process is generally positive for price discovery and ensures that the government receives offers from a wide range of potential suppliers. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition. However, the designation of 'full and open' implies a robust competitive environment.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors. It reduces the risk of overpayment and promotes a fair market for government services.

Public Impact

The primary beneficiaries are the Department of the Navy and its SAIL (Space and Advanced Integrated Logistics) Lab, which receives critical engineering and support services. Services delivered include specialized technical support, material provision, and potentially research and development assistance for advanced logistics initiatives. The geographic impact is likely concentrated in Maryland, where the contract is managed and potentially where the lab is located. The contract supports a specialized workforce of engineers, technicians, and support staff, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
Lack of detailed cost breakdowns hinders a granular assessment of value for money.
The specific nature of 'SAIL Lab' support is not fully detailed, making it hard to assess the criticality and potential risks of contractor performance.
The contract duration of nearly two years requires ongoing vigilance to ensure continued performance and adherence to scope.

Positive Signals

Awarded through full and open competition, indicating a healthy competitive environment.
The contractor, KBR Wyle Services, LLC, is a known entity in government contracting, suggesting a degree of established capability.
The contract is for essential engineering services supporting advanced logistics, a critical area for defense.
The fixed fee component provides a baseline level of cost predictability.

Sector Analysis

This contract falls within the broader engineering services sector, specifically supporting defense-related research and development and logistics. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and operational support within the military. Comparable spending benchmarks in this area often involve complex, long-term support contracts for specialized facilities and programs. The size of this contract, at $26.2 million, is moderate within the context of large-scale defense procurements but significant for specialized laboratory support.

Small Business Impact

This contract does not appear to have a specific small business set-aside, as indicated by 'sb': false. While KBR Wyle Services, LLC is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting and its impact on the small business ecosystem would depend on the specific requirements outlined in the contract and KBR's subcontracting plan, which are not detailed here. Without further information, the direct impact on small businesses is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure that costs are reasonable and allocable. Transparency is facilitated by the contract award process itself (full and open competition), but detailed performance metrics and cost reporting would be necessary for a comprehensive assessment. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Naval Sea Systems Command (NAVSEA) Contracts
Logistics and Supply Chain Management Support Services
Engineering and Technical Services Contracts
Specialized Laboratory Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Lack of detailed cost breakdowns limits granular value assessment.
Specific mission and deliverables of SAIL Lab are not fully detailed publicly.
Contractor performance metrics are not publicly disclosed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to KBR WYLE SERVICES, LLC. CONTRACTOR SUPPORT SERVICES AND INCIDENTAL MATERIAL FOR SAIL LAB.

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 $26.3 million.

What is the period of performance?

Start: 2019-07-26. End: 2024-09-17.

What is the specific nature of the "SAIL Lab" and its mission?

The "SAIL Lab" likely refers to the Space and Advanced Integrated Logistics (SAIL) Laboratory, a component within the Department of the Navy focused on advancing logistics capabilities, particularly in space and integrated systems. Its mission would involve research, development, testing, and evaluation of new technologies and strategies to enhance the efficiency, resilience, and effectiveness of naval logistics. This could encompass areas such as predictive maintenance, autonomous systems for supply chain management, advanced warehousing solutions, and the integration of space-based assets for logistical support. Understanding the lab's specific objectives is crucial for evaluating the necessity and scope of the contractor's support services.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and contractor incentive for efficiency?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, allowing for flexibility. However, it places a significant burden on the government to meticulously audit and approve costs to prevent overruns. The contractor's incentive for efficiency is primarily driven by the desire to complete the work within budget to protect their fixed profit margin; if costs exceed the estimate, the profit is eroded. Conversely, there is less incentive to reduce costs beyond what is necessary to protect the fee, compared to fixed-price contracts. Robust government oversight and clear cost accounting standards are essential for effective CPFF management.

What are the key performance indicators (KPIs) used to measure the success of KBR Wyle Services, LLC under this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, typical KPIs for engineering and support services contracts of this nature would likely include metrics related to technical performance (e.g., accuracy of analysis, successful integration of systems), schedule adherence (e.g., timely completion of milestones and deliverables), cost control (e.g., managing expenditures within allocated budgets, minimizing cost variances), and quality of service (e.g., adherence to standards, customer satisfaction). For a SAIL Lab support contract, KPIs might also involve the successful development or testing of specific logistical technologies or the provision of accurate data for advanced planning. The government's program office would be responsible for monitoring these KPIs and assessing contractor performance against them.

Are there any known past performance issues or significant successes for KBR Wyle Services, LLC on similar defense contracts?

KBR Wyle Services, LLC, as a subsidiary of KBR, Inc., has a substantial track record in government contracting, including extensive work within the Department of Defense and NASA. They have been involved in a wide array of engineering, scientific, and technical support services, often related to complex research, development, and operational environments. While specific details on past performance for this exact contract vehicle are not readily available in the public domain, KBR generally maintains a profile of experienced contractor capable of handling large-scale, technically demanding projects. Government contract databases and past performance reviews (often proprietary) would contain more granular data on their specific successes or challenges on prior engagements, influencing their selection for current contracts.

How does this contract's spending compare to other engineering services contracts awarded by the Department of the Navy in recent years?

The $26.2 million total value for this contract positions it as a mid-sized award within the Department of the Navy's portfolio of engineering services. The Navy procures a vast range of engineering support, from ship design and maintenance to advanced research and development for new platforms and systems. Contracts can range from a few million dollars for specialized consulting to hundreds of millions or even billions for major platform development or sustainment. This particular contract, focused on specialized lab support for advanced logistics, represents a significant but not exceptionally large investment. When compared to broader engineering services categories, its value is moderate, reflecting a focused scope of work rather than a comprehensive program-wide support effort.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042118R0045

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $41,061,160

Exercised Options: $41,061,160

Current Obligation: $26,251,576

Actual Outlays: $58,126

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $6,121,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0070

IDV Type: IDC

Timeline