DoD's $35.2M IT contract for preventative maintenance awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $35,204,779 ($35.2M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-17

End Date: 2023-10-31

Contract Duration: 1,870 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PREVENTATIVE&CORRECTIVE MAINTENANCE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 million to KBR WYLE SERVICES, LLC for work described as: PREVENTATIVE&CORRECTIVE MAINTENANCE Key points: 1. Contract value represents a significant investment in maintaining critical IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration indicates a long-term need for ongoing IT support. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. Focus on preventative and corrective maintenance highlights a proactive approach to IT system reliability. 6. Awarded under a broad IT services category, suggesting potential for broader application.

Value Assessment

Rating: good

The contract value of $35.2 million over approximately five years for preventative and corrective maintenance of computer systems is within a reasonable range for large-scale IT support services. Benchmarking against similar contracts for IT maintenance and support for federal agencies of this size and scope would be necessary for a precise value-for-money assessment. However, the firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous in controlling costs. The number of bids received (4) also provides some indication of market interest and potential for competitive pricing.

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 solicitation attracted four bids, suggesting a healthy level of competition for this IT services requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and pricing to win the award. The presence of multiple bidders implies that the market has sufficient capacity and interest in providing these services to the Department of Defense.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The multiple bids received suggest that the government secured a fair market price for the IT maintenance services.

Public Impact

The Department of Defense benefits through the reliable operation of its computer systems, ensuring mission readiness. Services delivered include essential preventative and corrective maintenance to minimize downtime and system failures. The contract's geographic impact is primarily within California, where the contractor is located. Workforce implications include the potential for skilled IT professionals to be employed by KBR Wyle Services, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by the incumbent.
Reliance on a single contractor for critical IT maintenance could pose risks if performance degrades.
Scope creep could increase costs if not managed effectively under the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
Long-term contract duration indicates a stable, ongoing need being met.
Focus on preventative maintenance can lead to improved system reliability and reduced emergency repair costs.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services, including maintenance. The IT services market for the federal government is substantial, with significant spending allocated annually to maintain and upgrade complex systems. This contract represents a portion of that spending, aimed at ensuring the operational integrity of Department of Defense IT infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale IT maintenance contracts awarded by various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, KBR WYLE SERVICES, LLC, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely limited unless KBR WYLE SERVICES, LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
IT Infrastructure Maintenance and Support

Risk Flags

Long-term reliance on a single vendor
Potential for performance degradation over contract duration
Need for continuous oversight to ensure service quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to KBR WYLE SERVICES, LLC. PREVENTATIVE&CORRECTIVE 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $35.2 million.

What is the period of performance?

Start: 2018-09-17. End: 2023-10-31.

What is the historical spending trend for preventative and corrective maintenance services by the Department of the Army in the Computer Systems Design Services category?

Analyzing historical spending trends for the Department of the Army in the Computer Systems Design Services category, specifically for preventative and corrective maintenance, requires access to comprehensive federal procurement data over several fiscal years. While this specific contract awarded to KBR WYLE SERVICES, LLC totals $35.2 million from 2018 to 2023, understanding the broader trend involves looking at aggregate spending. Typically, agencies like the DoD maintain significant budgets for IT maintenance due to the critical nature of their systems. Spending in this area can fluctuate based on technological upgrades, system lifecycles, and evolving cybersecurity requirements. A detailed analysis would involve querying databases like FPDS-NG or USAspending.gov for all contracts within the relevant NAICS code (541512) and service description, filtering by the Department of the Army, and then examining the year-over-year expenditure. This would reveal whether spending has been consistent, increasing, or decreasing, and identify any major shifts in procurement strategies or technology adoption.

How does the per-unit cost or scope of services in this contract compare to similar IT maintenance contracts awarded to other large defense contractors?

Directly comparing the per-unit cost or scope of services for this $35.2 million contract to similar IT maintenance contracts awarded to other large defense contractors is challenging without detailed service level agreements (SLAs) and specific task orders. The provided data indicates the contract is for 'PREVENTATIVE & CORRECTIVE MAINTENANCE' under 'Computer Systems Design Services' (NAICS 541512) with a firm-fixed-price structure. To perform a robust comparison, one would need to identify comparable contracts awarded to entities like Lockheed Martin, Northrop Grumman, or Raytheon for similar IT maintenance services to the DoD or other federal agencies. Key comparison points would include the number of systems supported, uptime guarantees, response times for corrective maintenance, scope of hardware/software covered, and the specific maintenance activities included. Benchmarking would involve normalizing costs based on the scale of IT infrastructure managed (e.g., cost per server, cost per user) and the complexity of the systems. Without access to the detailed SOWs and pricing breakdowns of other contracts, any comparison remains qualitative, focusing on the overall value and duration.

What are the key performance indicators (KPIs) used to measure the success of this preventative and corrective maintenance contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a preventative and corrective maintenance contract of this nature, typical KPIs would focus on system availability, response times, resolution times, and customer satisfaction. For preventative maintenance, KPIs might include the percentage of scheduled maintenance completed on time and the reduction in unplanned downtime compared to previous periods. For corrective maintenance, critical KPIs would be the Mean Time To Respond (MTTR) to incidents and the Mean Time To Repair (MTTR) to restore systems to full functionality, often with tiered requirements based on the severity of the issue. Uptime percentages (e.g., 99.9% availability) are also common. The contract's firm-fixed-price nature suggests that performance standards would be clearly defined in the Performance Work Statement (PWS) or Statement of Work (SOW), and failure to meet these KPIs could potentially lead to contractually defined remedies or penalties, although the specifics would be detailed in the contract documentation.

What is the track record of KBR WYLE SERVICES, LLC in delivering IT maintenance and support services to the federal government?

KBR WYLE SERVICES, LLC has a significant track record in providing a wide range of services to the federal government, including extensive support in logistics, engineering, and technical services, which often encompass IT-related functions. While this specific contract focuses on IT maintenance, KBR's broader portfolio suggests experience managing large, complex government contracts. To assess their specific track record in IT maintenance and support, one would examine their past performance on similar contracts, looking at factors such as on-time delivery, quality of service, customer feedback, and any past performance issues or disputes. Databases like the Contractor Performance Assessment Reporting System (CPARS) would contain formal assessments of their performance on previous federal contracts. Their ability to win and perform on a $35.2 million contract with the Department of the Army indicates a level of trust and demonstrated capability in meeting government requirements.

What are the potential risks associated with relying on a single contractor for five years for critical IT system maintenance?

Relying on a single contractor, KBR WYLE SERVICES, LLC, for five years for critical IT system maintenance presents several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes overly dependent on the contractor's specific processes, tools, and personnel, making it difficult and costly to switch providers. Secondly, performance degradation is a risk; over time, the contractor's focus might shift, or institutional knowledge could be lost, leading to a decline in service quality. Thirdly, price escalation could be a concern, especially if contract modifications or renewals occur, although the firm-fixed-price nature of the current award aims to mitigate this for the base period. Finally, a lack of sustained competition could reduce the incentive for the contractor to innovate or maintain the highest levels of efficiency and cost-effectiveness throughout the contract duration. Robust oversight and clear performance metrics are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0015

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,879,642

Exercised Options: $43,792,417

Current Obligation: $35,204,779

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $4,783,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0004

IDV Type: IDC

Timeline