DoD's $20.5M MCESS Maintenance Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $20,546,167 ($20.5M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-21
End Date: 2013-02-20
Contract Duration: 1,826 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MCESS MAINTENANCE
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to KBR WYLE SERVICES, LLC for work described as: MCESS MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract was awarded by the Defense Contract Management Agency, a key oversight body. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract value of over $20 million represents a significant investment in maintenance services.
Value Assessment
Rating: fair
Benchmarking the value of this $20.5 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, carries inherent risks of cost escalation if not managed diligently. The fixed fee component provides some incentive for the contractor to control costs, but the primary cost driver remains the actual expenses incurred. Further analysis would require understanding the scope of 'MCESS Maintenance' and comparing the per-unit costs or labor rates to industry standards for similar engineering services.
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 bids. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.
Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging contractors to offer their best pricing. However, with only two bids, the potential for significant cost savings may have been limited compared to a scenario with numerous competing offers.
Public Impact
The primary beneficiaries are the Department of Defense (DoD) and its various components requiring maintenance for MCESS systems. The services delivered are critical for the operational readiness and longevity of defense assets. The contract's geographic impact is centered in Maryland, where the Defense Contract Management Agency is located, but the actual service delivery locations are not specified. The contract supports specialized engineering and maintenance roles, potentially impacting the workforce in the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
- Limited competition (2 bidders) may have reduced the government's leverage in price negotiation.
- The specific nature of 'MCESS Maintenance' is not detailed, making it difficult to assess the true value and necessity of the services.
Positive Signals
- Awarded through full and open competition, ensuring a broad solicitation of potential contractors.
- The contract has a defined duration, providing clarity on the expected service period.
- Awarded by the Defense Contract Management Agency, an entity focused on contract oversight and performance.
Sector Analysis
The engineering services sector, particularly within defense, is characterized by complex, high-value contracts. Companies like KBR Wyle Services, LLC are major players in providing specialized technical and maintenance support to government agencies. The market for defense engineering services is substantial, driven by the continuous need to maintain and upgrade sophisticated military equipment and infrastructure. This contract fits within the broader category of defense readiness and sustainment spending, where long-term support contracts are common.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, KBR Wyle Services, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Analysis of the contractor's historical subcontracting performance would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring contractor performance and compliance. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to manage costs effectively. Transparency regarding performance metrics and expenditures would be beneficial for public accountability. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Defense Maintenance Contracts
- Engineering Services Contracts
- Department of Defense IT and Support Services
- Logistics and Readiness Support
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Limited competition (2 bidders) may reduce price discovery.
- Lack of specific details on 'MCESS Maintenance' hinders full value assessment.
Tags
defense, department-of-defense, kbr-wyle-services-llc, engineering-services, maintenance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, maryland, defense-contract-management-agency, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to KBR WYLE SERVICES, LLC. MCESS MAINTENANCE
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 $20.5 million.
What is the period of performance?
Start: 2008-02-21. End: 2013-02-20.
What is the specific nature of 'MCESS Maintenance' and what systems does it cover?
The provided data does not specify what 'MCESS' stands for or the exact nature of the maintenance services required. MCESS could potentially refer to a specific military communication, command, or electronic system. Understanding the scope of these systems is crucial for evaluating the necessity and appropriateness of the $20.5 million expenditure. Without this context, it is difficult to assess if the maintenance is routine, specialized, or related to upgrades. Further investigation into DoD system inventories and maintenance requirements would be needed to clarify the specifics of MCESS.
How does the $20.5 million contract value compare to historical spending on MCESS maintenance?
The provided data only includes information for this specific contract award. To compare this $20.5 million value to historical spending, one would need access to historical contract databases or DoD budget documents related to MCESS maintenance. Analyzing past spending patterns would reveal whether this award represents an increase, decrease, or stable level of investment. It would also help identify trends in contractor selection and contract types over time. Without historical data, it's impossible to contextualize the current award's financial scale relative to past expenditures.
What is KBR Wyle Services, LLC's track record with similar DoD maintenance contracts?
KBR Wyle Services, LLC is a known defense contractor, and their track record with the DoD would need to be assessed through contract databases and performance reviews. Key indicators would include their history of on-time delivery, adherence to budget, quality of work, and any past performance issues or awards. Specifically examining their experience with similar engineering services or maintenance contracts for complex defense systems would provide insight into their capability to fulfill this MCESS maintenance requirement effectively. A review of their contract history, including any past disputes or contract terminations, would be prudent.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
The provided data does not include details on the Key Performance Indicators (KPIs) or the specific metrics used to measure the performance of KBR Wyle Services, LLC under this MCESS Maintenance contract. For a Cost Plus Fixed Fee contract, performance measurement is critical to ensure value for money. Typical KPIs in such contracts might include system uptime, response times for maintenance requests, successful repair rates, and adherence to safety protocols. Without access to the contract's statement of work and performance requirements, assessing the effectiveness of the contractor's service delivery is not possible.
What is the risk profile associated with this Cost Plus Fixed Fee contract?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If these costs are not meticulously tracked and controlled, the total contract price can exceed initial estimates. This necessitates robust government oversight, detailed cost accounting, and clear definitions of allowable expenses to mitigate the risk of the government paying more than necessary for the services rendered.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3102
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,425,851
Exercised Options: $38,005,515
Current Obligation: $20,546,167
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017806D4760
IDV Type: IDC
Timeline
Start Date: 2008-02-21
Current End Date: 2013-02-20
Potential End Date: 2013-02-20 00:00:00
Last Modified: 2018-09-20
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