DoD's $20.5M Field Maintenance O&M Task Order Awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $20,482,546 ($20.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-27

End Date: 2026-06-26

Contract Duration: 1,825 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: FIELD MAINTENANCE O&M TASK ORDER AND OBLIGATE FUNDS

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to KBR WYLE SERVICES, LLC for work described as: FIELD MAINTENANCE O&M TASK ORDER AND OBLIGATE FUNDS Key points: 1. The contract is for field maintenance operations and maintenance (O&M) services. 2. KBR Wyle Services, LLC, a significant player in government contracting, secured this award. 3. The award falls under the Engineering Services sector, specifically NAICS 541330. 4. The contract duration is 5 years, indicating a long-term need for these services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in engineering services is challenging due to variability, but the fixed fee component aims to control profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing, although the CPFF structure requires diligent oversight.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value. However, the CPFF contract type necessitates careful monitoring to ensure costs remain reasonable.

Public Impact

Ensures continued operational readiness for Navy assets through essential maintenance. Supports KBR Wyle Services, LLC's role as a key contractor for the Department of Defense. The long-term nature of the contract provides stability for service delivery and potential follow-on work. Highlights the significant investment in maintaining complex military equipment and facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee (CPFF) contract type can incentivize cost growth.
  • Long contract duration (5 years) requires sustained oversight.
  • No specific mention of small business participation.

Positive Signals

  • Awarded under full and open competition.
  • Significant contract value indicates critical need.
  • Experienced contractor selected.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex government operations. Spending in this sector is often driven by defense needs, infrastructure maintenance, and specialized technical support, with benchmarks varying widely based on service type and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The use of full and open competition provides a baseline for oversight. However, the CPFF contract type requires robust government oversight to manage costs and ensure performance aligns with the fixed fee.

Related Government Programs

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

Risk Flags

  • Cost Plus Fixed Fee (CPFF) contract type.
  • Long contract duration (5 years).
  • Potential for cost growth without stringent oversight.
  • No explicit small business set-aside 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 $20.5 million to KBR WYLE SERVICES, LLC. FIELD MAINTENANCE O&M TASK ORDER AND OBLIGATE FUNDS

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 $20.5 million.

What is the period of performance?

Start: 2021-06-27. End: 2026-06-26.

What is the typical profit margin for CPFF contracts in engineering services for the DoD, and how does KBR Wyle's fixed fee compare?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in engineering services for the DoD can vary, but typically range from 7-15% of the total contract cost. Without knowing the specific fixed fee amount or the estimated cost base, it's difficult to benchmark KBR Wyle's profit directly. However, the government's negotiation process aims to ensure this fee is reasonable and reflects the level of risk and effort involved.

What specific field maintenance tasks are included in this O&M contract, and how do they align with the Navy's readiness requirements?

The contract details for 'FIELD MAINTENANCE O&M TASK ORDER' likely encompass a broad range of services essential for maintaining the operational readiness of Navy assets. This could include preventative maintenance, repairs, logistical support, and technical services for equipment, vehicles, and facilities. The specific tasks would be detailed in the task order itself, and their alignment with readiness requirements would be assessed through performance metrics and mission impact evaluations.

Given the 5-year duration and CPFF structure, what are the primary risks to the government regarding cost control and performance effectiveness?

The primary risks to the government with a 5-year CPFF contract are potential cost overruns if the contractor lacks sufficient cost control incentives, and performance effectiveness if the fixed fee does not adequately motivate high-quality service delivery. Effective oversight, clear performance metrics, and strong contract management are crucial to mitigate these risks and ensure value for taxpayer money.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: N0042120R0158

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: $28,575,397

Exercised Options: $26,020,419

Current Obligation: $20,482,546

Actual Outlays: $8,111,142

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,387,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0022

IDV Type: IDC

Timeline

Start Date: 2021-06-27

Current End Date: 2026-06-26

Potential End Date: 2026-06-26 00:00:00

Last Modified: 2025-12-04

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