DoD's $17.5M contract with KBR WYLE SERVICES, LLC for support services shows long-term engagement

Contract Overview

Contract Amount: $17,524,131 ($17.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 1999-10-01

End Date: 2009-09-30

Contract Duration: 3,652 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to KBR WYLE SERVICES, LLC for work described as: Key points: 1. The contract's duration of 10 years suggests a stable, long-term need for the services provided. 2. The cost-plus-fixed-fee pricing structure can incentivize contractor efficiency while managing costs. 3. The definitive contract type indicates a commitment to a specific set of services over an extended period. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract's value of over $17.5 million over its lifespan reflects significant investment in these support services. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific contract.

Value Assessment

Rating: fair

The contract value of $17.5 million over 10 years averages to $1.75 million annually. Without specific details on the services rendered, direct comparison to similar contracts is challenging. However, the long duration and definitive contract type suggest a substantial and ongoing requirement. The cost-plus-fixed-fee structure, while common for complex services, requires careful monitoring to ensure value for money and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair market pricing and encourage efficiency from the winning contractor. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value proposition.

Public Impact

The Department of Defense benefits from consistent and reliable support services essential for its operations. The contract likely supports various defense-related functions, contributing to national security objectives. The geographic impact is centered around Maryland, where the contract is managed, potentially supporting local economies through employment. The workforce implications include employment opportunities for individuals with specialized skills required for defense support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for innovation if not actively managed.
Cost-plus-fixed-fee contracts require diligent oversight to ensure costs remain reasonable and fixed fees are justified.
Lack of small business participation may indicate barriers to entry or a focus on large, established contractors.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
The definitive contract type implies a clear scope of work and commitment, providing stability for both parties.
The long-term nature of the contract indicates a sustained need and successful performance history with the contractor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of support functions for government agencies. The defense sector, in particular, relies heavily on such services for operational readiness, research, and administrative support. Annual spending in this sector can reach billions of dollars, with individual contracts varying significantly in scope and value.

Small Business Impact

The contract does not indicate any small business set-asides, nor does it explicitly mention subcontracting plans for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited unless they are part of KBR WYLE SERVICES, LLC's supply chain or subcontracting network. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance, and adherence to contract terms. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Defense Support Services
Professional and Technical Services
Logistics and Readiness Support
Government Contracting

Risk Flags

Long contract duration may reduce flexibility.
Cost-plus-fixed-fee requires diligent oversight.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to KBR WYLE SERVICES, LLC. See the official description on USAspending.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 1999-10-01. End: 2009-09-30.

What specific services were provided under this $17.5 million contract?

The provided data does not specify the exact services rendered under this contract. However, given the contractor (KBR WYLE SERVICES, LLC) and the awarding agency (Department of Defense), it is highly probable that the services relate to defense support, which can encompass a wide array of activities. These might include technical support, engineering services, logistics, maintenance, program management, or other specialized functions critical to military operations. The definitive contract type and cost-plus-fixed-fee structure suggest complex, potentially evolving requirements that necessitate close collaboration and detailed cost tracking between the government and the contractor over the 10-year period.

How does the annual value of this contract compare to similar support service contracts within the DoD?

The contract's total value of $17.5 million over 10 years equates to an average annual value of $1.75 million. Benchmarking this against similar DoD support service contracts requires access to a broader dataset of contracts with comparable scopes of work, durations, and service types. Without such comparative data, it's difficult to definitively state whether $1.75 million annually represents a high, low, or average expenditure. Factors like the criticality of the service, the level of expertise required, and the specific performance metrics would influence pricing. Generally, DoD support contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on complexity and scale.

What are the primary risks associated with a 10-year cost-plus-fixed-fee contract of this magnitude?

The primary risks associated with a 10-year cost-plus-fixed-fee (CPFF) contract of this magnitude include potential cost overruns and contractor inefficiency. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If cost controls are weak or the scope of work expands without adequate adjustments, total costs can escalate significantly beyond initial projections. The long duration also presents a risk of scope creep, where requirements may evolve over a decade, potentially leading to disputes or increased costs if not managed meticulously. Furthermore, the fixed fee, while intended to incentivize efficiency, might not always be sufficient to drive maximum cost savings if oversight is lacking. Robust government oversight, clear performance metrics, and regular audits are crucial to mitigate these risks.

What does the 'definitive contract' designation imply about the nature of the services and the government's commitment?

A 'definitive contract' signifies a contract with a definite price, quantity, and delivery schedule, or a contract that specifies the terms and conditions under which future orders will be placed. In this case, awarded as a definitive contract, it implies a clear understanding and commitment from the Department of Defense regarding the scope, duration, and overall value of the services to be procured from KBR WYLE SERVICES, LLC. This contrasts with indefinite-delivery/indefinite-quantity (IDIQ) contracts, which offer more flexibility but less upfront certainty. The definitive nature suggests that the government had a well-defined need and was prepared to commit resources over the specified 10-year period, likely for essential and ongoing support functions.

Given the contract was awarded in 1999 and ended in 2009, what can be inferred about contractor performance and historical spending patterns?

The contract's award in 1999 and completion in 2009, spanning a full decade, suggests a level of contractor performance that met the Department of Defense's requirements for an extended period. Awarding a contract for such a long duration, especially under a cost-plus-fixed-fee structure, typically indicates satisfaction with the contractor's capabilities and reliability. Historically, spending patterns for such long-term support contracts reflect a consistent need for specialized services within the DoD. The total expenditure of $17.5 million over 10 years ($1.75 million annually on average) indicates a significant but potentially stable investment in these particular support functions, reflecting ongoing operational demands rather than short-term project needs.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline