DoD's $38M Life-Cycle Engineering Support Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $38,037,045 ($38.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2017-09-27
End Date: 2023-03-31
Contract Duration: 2,011 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF MST LIFE-CYCLE ENGINEERING SUPPORT IV
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $38.0 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF MST LIFE-CYCLE ENGINEERING SUPPORT IV Key points: 1. Contract value of $38.04M over approximately 5.5 years. 2. Awarded via full and open competition. 3. No small business participation noted. 4. Engineering Services sector with a PSC code of 541330.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering support contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: Competitive bidding in this full and open contract likely resulted in a fair price for taxpayers, though ongoing cost management is crucial.
Public Impact
Supports critical life-cycle engineering for the Department of the Navy. Ensures continued operational readiness and technical expertise for naval assets. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- CPFF contract type requires diligent cost oversight.
Positive Signals
- Awarded via full and open competition.
- Long-term support contract indicating sustained need.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government operations. Spending benchmarks for similar services can vary widely based on scope and complexity.
Small Business Impact
The contract data indicates no small business participation. Agencies should explore opportunities to include small businesses in future solicitations for engineering services to promote economic diversity.
Oversight & Accountability
The contract's duration and value suggest a need for robust oversight to ensure performance standards are met and costs remain within reasonable bounds. Regular performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- No small business participation.
- CPFF contract type requires close cost monitoring.
- Potential for cost overruns if not managed effectively.
- Long contract duration may mask inefficiencies.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF MST LIFE-CYCLE ENGINEERING SUPPORT IV
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 $38.0 million.
What is the period of performance?
Start: 2017-09-27. End: 2023-03-31.
What is the typical profit margin for CPFF contracts in engineering services, and how does KBR Wyle's fixed fee compare?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in engineering services can range from 5% to 15%, depending on the complexity and risk involved. A detailed review of KBR Wyle's fixed fee against industry standards and the specific scope of work would be necessary to assess its competitiveness and ensure fair value for the government.
What specific life-cycle engineering tasks are covered under this contract, and how are they prioritized?
The contract likely encompasses a broad range of engineering support, including design, analysis, testing, maintenance planning, and obsolescence management for naval systems. Prioritization would typically be driven by operational readiness requirements, fleet modernization plans, and identified system vulnerabilities or sustainment needs, as directed by the Department of the Navy.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract to measure effectiveness?
While not explicitly detailed in the provided data, performance metrics and KPIs are standard for such long-term support contracts. These would likely include measures of technical accuracy, timeliness of deliverables, responsiveness to task orders, and overall contribution to system sustainment and readiness, subject to regular review by the contracting officer.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523617R3113
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
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: $41,738,512
Exercised Options: $41,738,512
Current Obligation: $38,037,045
Actual Outlays: $8,506,141
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $2,158,199
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7748
IDV Type: IDC
Timeline
Start Date: 2017-09-27
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2023-08-30
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