DoD's $15M contract with KBR Wyle Services for air transportation support extended for Option Year 3
Contract Overview
Contract Amount: $14,974,900 ($15.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-03
End Date: 2024-09-02
Contract Duration: 1,826 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS MODIFICATION IS TO EXERCISE OPTION YEAR 3
Place of Performance
Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to KBR WYLE SERVICES, LLC for work described as: THE PURPOSE OF THIS MODIFICATION IS TO EXERCISE OPTION YEAR 3 Key points: 1. Contract value for Option Year 3 is approximately $15 million, bringing the total potential value to over $82 million. 2. The contract is a Delivery Order under a larger Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract, indicating a framework for ongoing services. 3. Awarded under full and open competition, suggesting a competitive process for selecting the contractor. 4. The contract type is Cost Plus Fixed Fee (CPFF), which allows for reimbursement of costs plus a fixed fee, potentially leading to cost overruns if not managed carefully. 5. The service category is 'Other Support Activities for Air Transportation', a niche but critical support function for military aviation. 6. The contractor, KBR Wyle Services, LLC, has a significant presence in government contracting, particularly in defense and aerospace support. 7. The contract duration is substantial, spanning over 1800 days, indicating a long-term need for these services.
Value Assessment
Rating: good
The contract's value of approximately $15 million for Option Year 3 appears reasonable given the scope of 'Other Support Activities for Air Transportation' for the Department of Defense. Benchmarking against similar support contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure costs remain within acceptable parameters and that the fixed fee represents fair compensation for the contractor's efforts. The total potential value of over $82 million over its life suggests a significant and ongoing requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The specific number of bidders is not provided, but the open competition suggests multiple entities likely vied for this work, contributing to price discovery and value for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring the government receives competitive pricing for essential services.
Public Impact
The Department of the Navy benefits from the continued provision of critical air transportation support services, ensuring operational readiness. The services delivered likely encompass a range of activities essential for maintaining and operating military aircraft and associated infrastructure. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially global depending on deployment needs. Workforce implications include the employment of personnel by KBR Wyle Services, LLC, in specialized roles related to air transportation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to incur higher costs to achieve a larger fixed fee if not properly managed.
- Lack of specific performance metrics or detailed service descriptions makes it difficult to fully assess value for money.
- The broad category of 'Other Support Activities for Air Transportation' could encompass a wide range of services, making precise benchmarking difficult.
Positive Signals
- Awarded under full and open competition, suggesting a competitive environment that should drive value.
- The contract has been extended through multiple option years, indicating satisfactory performance and a continued need for the services.
- KBR Wyle Services, LLC is a large, established government contractor with experience in defense and aerospace, suggesting a capable provider.
Sector Analysis
The 'Other Support Activities for Air Transportation' sector is a specialized segment within the broader aerospace and defense industry. This contract fits within the government's need for outsourced support services that enhance the efficiency and effectiveness of its aviation operations. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided, but the overall defense aviation support market is substantial, with significant government investment.
Small Business Impact
The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions (sb: false). Therefore, the direct impact on small businesses through set-asides is likely minimal. However, KBR Wyle Services, LLC, as a large prime contractor, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would be a key factor in assessing the overall impact on the small business ecosystem for this contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee is justified. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Department of Defense Aviation Support Services
- Air Mobility Command Contracts
- Naval Air Systems Command Support
- Aerospace Maintenance and Support Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring of costs.
- Broad service category may obscure specific performance and value metrics.
- Lack of detailed performance metrics in provided data.
Tags
defense, department-of-defense, department-of-the-navy, air-transportation-support, delivery-order, cost-plus-fixed-fee, full-and-open-competition, kbr-wyle-services, option-year, maryland, aerospace, support-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to KBR WYLE SERVICES, LLC. THE PURPOSE OF THIS MODIFICATION IS TO EXERCISE OPTION YEAR 3
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 $15.0 million.
What is the period of performance?
Start: 2019-09-03. End: 2024-09-02.
What specific services are included under 'Other Support Activities for Air Transportation' for this contract?
The specific services encompassed by 'Other Support Activities for Air Transportation' for this KBR Wyle Services, LLC contract are not detailed in the provided data. However, this category typically includes a broad range of support functions essential for military aviation operations. These can encompass maintenance, repair, logistics, ground support equipment operation, airfield management, technical support, training, and other specialized services required to keep aircraft operational and airfields functioning efficiently. The exact scope would be defined in the contract's Statement of Work (SOW), which is not available here. Understanding the precise services is crucial for a comprehensive value assessment.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?
Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as research and development or complex support services. In this case, the government reimburses the contractor for allowable costs and pays a predetermined fixed fee. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but provides flexibility. It differs from Cost Plus Incentive Fee (CPIF) contracts, which include incentives for performance, and Cost Plus Award Fee (CPAF) contracts, which offer award fees based on subjective performance evaluations. For routine support services, FFP contracts are often preferred for their cost predictability, but CPFF may be deemed necessary if the nature of air transportation support involves significant unknowns or evolving requirements.
What is the historical spending pattern for this specific contract or similar services provided by KBR Wyle Services, LLC?
The provided data indicates this is an extension for Option Year 3, with a value of $14,974,900.39 for this period. The total potential value of the contract is $82,010,000. This suggests a consistent level of spending across the option years, averaging roughly $16.4 million per year if all options are exercised and the spending is evenly distributed. To assess historical patterns comprehensively, one would need to examine the spending in Option Years 1 and 2, as well as any prior contracts for similar services awarded to KBR Wyle Services, LLC by the Department of the Navy or other agencies. This would reveal trends in cost growth, utilization, and overall investment in these support activities.
What are the key performance indicators (KPIs) used to evaluate KBR Wyle Services, LLC's performance under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate KBR Wyle Services, LLC's performance. However, for a contract involving 'Other Support Activities for Air Transportation,' typical KPIs would likely focus on operational metrics such as aircraft availability rates, turnaround times, maintenance completion rates, safety incident frequency, response times for support requests, and adherence to schedules. Given the CPFF structure, performance against defined service levels and quality standards would be critical. The government's contracting officer and program managers would monitor these KPIs, often documented in the contract's Performance Work Statement (PWS), to ensure the contractor is meeting its obligations and to justify continued service.
What is the potential risk associated with the contractor, KBR Wyle Services, LLC, based on past performance or financial stability?
The provided data does not include specific risk indicators related to KBR Wyle Services, LLC's past performance or financial stability for this particular contract. KBR Wyle Services, LLC is a subsidiary of KBR, Inc., a large, publicly traded company with extensive experience in government contracting, including significant defense and aerospace operations. While large contractors generally have established processes for managing risk, potential concerns could arise from past performance issues on other contracts, financial health indicators, or any ongoing litigation. A thorough risk assessment would typically involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), financial statements, and any relevant news or regulatory filings concerning the contractor.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
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: N0042117R0055
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: $17,180,094
Exercised Options: $17,175,294
Current Obligation: $14,974,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042119D0071
IDV Type: IDC
Timeline
Start Date: 2019-09-03
Current End Date: 2024-09-02
Potential End Date: 2024-09-02 00:00:00
Last Modified: 2025-09-29
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