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 Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, 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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