DoD Awards $28.9M Engineering Services Task Order to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $28,904,316 ($28.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2026-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CUAS TASK ORDER

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to KBR WYLE SERVICES, LLC for work described as: CUAS TASK ORDER Key points: 1. Significant contract value for engineering services. 2. KBR Wyle Services, LLC is a major player in defense contracting. 3. Full and open competition suggests potential for competitive pricing. 4. Task order duration extends over multiple fiscal years.

Value Assessment

Rating: good

The contract is a cost-plus-fixed-fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is recommended to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for the engineering services procured.

Public Impact

Supports critical Department of the Navy engineering requirements. Impacts the defense industrial base through a major contract award. Potential for follow-on work based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contract type requires vigilant oversight to control costs.
  • Long contract duration may introduce scope creep risks if not managed.

Positive Signals

  • Awarded through full and open competition.
  • Experienced contractor selected.

Sector Analysis

This contract falls within the Engineering Services sector, which is a critical component of defense spending. Benchmarks for similar services vary widely based on complexity and duration.

Small Business Impact

No indication of small business participation in this specific task order. Further analysis would be needed to determine if subcontracting opportunities were offered.

Oversight & Accountability

The Department of Defense's oversight mechanisms will be crucial in managing the cost-plus-fixed-fee structure and ensuring the delivery of required engineering services within budget.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost-plus-fixed-fee contract type.
  • Long contract duration.
  • Potential for scope creep.
  • Lack of explicit small business participation noted.

Tags

engineering-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to KBR WYLE SERVICES, LLC. CUAS TASK ORDER

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 $28.9 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-03-31.

How does the fixed fee component compare to industry standards for similar engineering services contracts?

Assessing the fixed fee requires detailed knowledge of the project's scope and complexity. Industry standards for fixed fees in engineering services can range from 5% to 15% of the estimated cost, depending on the risk and innovation involved. A thorough review of the contractor's proposal and cost breakdown would be necessary to determine if this fee is competitive and justified.

What are the key performance indicators (KPIs) for this task order, and how will they be monitored to mitigate performance risks?

Key performance indicators for engineering services typically include adherence to schedule, quality of deliverables, technical accuracy, and cost control. The Department of the Navy will likely establish specific KPIs in the contract's performance work statement. Regular progress reviews, milestone tracking, and quality assurance checks are essential monitoring mechanisms to identify and address any performance deviations proactively.

What is the potential for cost overruns given the cost-plus-fixed-fee structure and the extended performance period?

Cost-plus-fixed-fee contracts inherently carry a risk of cost overruns if the estimated costs are inaccurate or if unforeseen issues arise during performance. The extended period (2020-2026) increases this risk. Robust government oversight, detailed cost tracking, and change control processes are critical to mitigating overruns. The fixed fee itself is not subject to increase, but the cost base upon which it is calculated can escalate.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0102

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,425,182

Exercised Options: $33,569,182

Current Obligation: $28,904,316

Actual Outlays: $190,393

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $7,149,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042120D0121

IDV Type: IDC

Timeline

Start Date: 2020-09-30

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2025-12-30

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