DoD's $12.9M network support contract awarded to KBR Wyle Services, LLC, spanning 5 years

Contract Overview

Contract Amount: $12,918,971 ($12.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-20

End Date: 2013-05-19

Contract Duration: 1,825 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NETWORK AND SYSTEMS SUPPORT FOR USFLTFROCOM N023 COMMAND INFORMATION OFFICE

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to KBR WYLE SERVICES, LLC for work described as: NETWORK AND SYSTEMS SUPPORT FOR USFLTFROCOM N023 COMMAND INFORMATION OFFICE 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 lead to cost overruns if not managed carefully. 3. Performance period of 5 years indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The base award amount is over $7 million, with a potential for more through subsequent orders. 7. The contractor, KBR Wyle Services, LLC, has a significant presence in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific $12.9 million contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type inherently carries a higher risk of cost escalation compared to fixed-price contracts. While the base award was $7.08 million, the total value reached $12.9 million, indicating significant tasking. Further analysis would require comparing the labor rates and overhead applied to similar engineering support services contracts within the Department of Defense.

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 a bid. The presence of two bids suggests a moderate level of competition for this specific delivery order. While competition is generally beneficial for price discovery, the limited number of bidders could mean that the full potential for cost savings was not realized.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used more efficiently by driving down prices through multiple offers.

Public Impact

The primary beneficiaries are the U.S. Forces in Latin America and the Caribbean (USFLTFROCOM) Command Information Office, receiving essential network and systems support. Services delivered include the maintenance, operation, and enhancement of critical IT infrastructure. The geographic impact is focused on supporting USFLTFROCOM's operational capabilities, likely within their area of responsibility. Workforce implications may include the employment of skilled IT and engineering professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns.
Limited number of bidders (2) may indicate less competitive pressure on pricing.
Long contract duration (5 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Contractor has experience in government services, suggesting familiarity with requirements.
Delivery Order structure implies it's part of a potentially larger, pre-vetted framework.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure and network operations for a military command. The federal IT services market is substantial, with significant annual spending on network support, cybersecurity, and systems integration. This contract represents a portion of the Department of Defense's broader investment in maintaining robust command and control capabilities through technology.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the prime contractor's size, it is unlikely that small businesses were the primary focus of this particular award, though they may participate indirectly through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including reporting requirements and performance standards. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data is often sensitive.

Related Government Programs

DoD IT Support Services
Command and Control Systems
Network Infrastructure Maintenance
Engineering Services Contracts
USFLTFROCOM Operations Support

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition (2 bidders)
Long contract duration (5 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to KBR WYLE SERVICES, LLC. NETWORK AND SYSTEMS SUPPORT FOR USFLTFROCOM N023 COMMAND INFORMATION OFFICE

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 $12.9 million.

What is the period of performance?

Start: 2008-05-20. End: 2013-05-19.

What is the track record of KBR Wyle Services, LLC with similar IT support contracts for the Department of Defense?

KBR Wyle Services, LLC, a subsidiary of KBR, Inc., has a substantial history of performing complex engineering, IT, and support services for various U.S. government agencies, including the Department of Defense. They have been involved in numerous contracts related to military base operations, aerospace engineering, and IT infrastructure management. Their experience often includes providing network support, cybersecurity solutions, and systems integration for defense clients. Analyzing their past performance on similar contracts, particularly those involving network and systems support for combatant commands, would provide insight into their capability to meet the requirements of this specific contract. Past performance reviews and award histories available through federal procurement data can offer a more detailed picture of their reliability and success rates in delivering on complex defense IT projects.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for IT support, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex IT integration projects. Under CPFF, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it shifts much of the cost risk to the government, as the final price can exceed initial estimates if costs escalate. Compared to fixed-price contracts, CPFF offers more flexibility but less cost certainty for the government. For IT support, if requirements are well-defined, a firm-fixed-price contract might offer better cost control. The CPFF structure here suggests that the DoD anticipated potential scope adjustments or cost uncertainties in providing network and systems support.

What are the potential risks associated with a 5-year contract duration for network and systems support?

A 5-year contract duration for network and systems support presents several potential risks. Firstly, technology evolves rapidly in the IT sector; a 5-year-old system or support strategy might become outdated, requiring significant adaptation or replacement, which could be costly if not planned for. Secondly, long-term contracts can lead to contractor complacency, potentially reducing innovation or responsiveness over time if performance is not rigorously monitored. Thirdly, the fixed fee component, while intended to provide profit stability, might become disproportionately high or low relative to market rates over a 5-year period, especially if labor costs or market conditions change significantly. Finally, the government's flexibility to change direction or adopt new technologies could be constrained by the existing long-term commitment, potentially leading to vendor lock-in or the need for costly contract modifications.

How does the base award amount of $7.08 million compare to the total awarded amount of $12.9 million, and what does this difference signify?

The difference between the base award of $7.08 million and the total awarded amount of $12.9 million signifies the potential for task orders or modifications that increased the contract's value over its lifespan. In a Delivery Order contract, the base award often represents the initial guaranteed amount or the minimum commitment, while the total awarded amount reflects the cumulative value of all orders placed against it. This nearly doubling of the contract value suggests that the USFLTFROCOM Command Information Office actively utilized the contract to procure additional services or extend support beyond the initial scope. It indicates a sustained need for the services provided by KBR Wyle Services, LLC, and potentially reflects the flexibility inherent in the contract vehicle to adapt to evolving operational requirements or unforeseen demands.

What is the significance of the NAICS code 541330 (Engineering Services) for this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary nature of the work performed under this contract is professional engineering. This encompasses a wide range of activities, including design, consultation, analysis, and project management related to engineering disciplines. For this specific contract supporting network and systems for USFLTFROCOM, it implies that the services go beyond basic IT maintenance and may involve system design, integration, optimization, and potentially the development of new technical solutions. This classification suggests a requirement for specialized engineering expertise to ensure the robustness, security, and efficiency of the command's information systems, aligning with the complex technical demands of military operations.

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: N0002408R3147

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: $15,163,464

Exercised Options: $15,163,464

Current Obligation: $12,918,971

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017806D4760

IDV Type: IDC

Timeline