DoD awards $29M for Aberdeen Proving Grounds IT maintenance, with KBR Wyle Services LLC as prime
Contract Overview
Contract Amount: $29,005,456 ($29.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-02
End Date: 2026-02-28
Contract Duration: 2,067 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAINTENANCE SERVICES AT DPW ABERDEEN PROVING GROUNDS, MD
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $29.0 million to KBR WYLE SERVICES, LLC for work described as: MAINTENANCE SERVICES AT DPW ABERDEEN PROVING GROUNDS, MD Key points: 1. Contract value of $29 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract is for computer systems design services, indicating a focus on IT infrastructure. 4. Performance period spans from July 2020 to February 2026, a duration of nearly seven years. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The primary place of performance is Maryland, a key hub for defense contracting.
Value Assessment
Rating: good
The contract value of $29 million over approximately 6.7 years averages to about $4.3 million annually. Benchmarking this against similar IT maintenance contracts for large military installations is challenging without more specific service details. However, the firm-fixed-price structure suggests an attempt to control costs and ensure predictable spending. The number of bids received (2) is on the lower side for full and open competition, which could warrant further investigation into pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Despite this broad solicitation, only two bids were received. While full and open competition is generally preferred for maximizing price discovery, the limited number of bidders may indicate specific market conditions, high barriers to entry, or a lack of widespread interest from potential contractors for this particular service requirement.
Taxpayer Impact: The use of full and open competition is a positive signal for taxpayers, as it theoretically allows for the widest possible range of pricing. However, with only two bidders, the potential for significant cost savings may have been constrained compared to a scenario with more robust competition.
Public Impact
The Department of the Army benefits from essential IT maintenance services at a critical military installation. Personnel at Aberdeen Proving Grounds will have reliable access to IT systems supporting their operations. The contract supports the functioning of a key defense research and testing facility. The primary geographic impact is within Maryland, specifically at Aberdeen Proving Grounds. The contract likely supports a workforce involved in IT services and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bidders) for a full and open solicitation could indicate potential pricing inefficiencies.
- The long performance period (nearly 7 years) may present challenges in adapting to rapidly evolving IT needs and technologies.
- Specific details on the scope of 'Computer Systems Design Services' are not provided, making a precise value assessment difficult.
Positive Signals
- Awarded under full and open competition, which is the preferred method for maximizing market participation.
- Firm Fixed Price contract type shifts cost risk to the contractor, providing budget certainty.
- Performance is concentrated in Maryland, potentially supporting local IT service providers and workforce.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer systems design and maintenance. The defense sector represents a significant portion of government IT spending, driven by the need for secure and reliable systems to support national security operations. The market for IT services supporting government agencies is large and competitive, with numerous firms offering specialized capabilities. This contract likely represents a portion of the Department of Defense's overall IT infrastructure maintenance budget.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature provides a degree of cost control. Transparency is facilitated by the contract award being publicly available. Inspector General (IG) jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Defense IT Modernization Programs
- Military Base IT Infrastructure Support
- Computer Systems Design Services Contracts
- Aberdeen Proving Grounds Operations
Risk Flags
- Limited competition (2 bidders) for a full and open solicitation.
- Long contract duration (nearly 7 years) may pose risks for technological relevance.
- Lack of detailed service scope makes precise value assessment difficult.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, aberdeen-proving-grounds, maryland, firm-fixed-price, full-and-open-competition, it-maintenance, defense-contracting, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to KBR WYLE SERVICES, LLC. MAINTENANCE SERVICES AT DPW ABERDEEN PROVING GROUNDS, MD
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 $29.0 million.
What is the period of performance?
Start: 2020-07-02. End: 2026-02-28.
What is the track record of KBR Wyle Services, LLC with the Department of Defense?
KBR Wyle Services, LLC, a subsidiary of KBR, Inc., has a substantial history of contracting with the Department of Defense across various service areas, including engineering, technical support, and IT services. They have been involved in numerous large-scale contracts supporting military operations, research, and development. Their past performance with the DoD is generally extensive, encompassing a wide range of complex requirements. Analyzing specific past performance metrics, such as on-time delivery, quality of service, and cost control on previous similar contracts, would provide a more granular assessment of their suitability for this specific IT maintenance role at Aberdeen Proving Grounds.
How does the annual value of this contract compare to similar IT maintenance contracts for large military installations?
The annual value of this contract, approximately $4.3 million ($29M / 6.7 years), needs to be benchmarked against comparable IT maintenance contracts for large military installations. Factors such as the scope of services (e.g., network management, cybersecurity, help desk support, hardware maintenance), the specific technologies involved, and the geographic location significantly influence pricing. Without detailed service descriptions and data on similar contracts, a precise comparison is difficult. However, for a facility like Aberdeen Proving Grounds, which is a major research and testing center, this annual figure appears to be within a plausible range for comprehensive IT support, though further analysis against specific benchmarks is recommended.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, although the FFP structure shifts this risk primarily to the contractor. Technological obsolescence is another risk given the contract's long duration (nearly 7 years) in the rapidly evolving IT landscape; mitigation might involve contract clauses for technology refresh or adaptive management. Performance risk exists, as the contractor might not meet service level agreements; mitigation involves performance monitoring and potential penalties. The limited competition (2 bidders) also presents a risk of suboptimal pricing. Mitigation strategies likely include robust performance management, clear service level agreements, and potentially periodic reviews of pricing and scope.
How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this IT maintenance service?
The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently. For IT maintenance services, where requirements can sometimes evolve, the FFP structure is most effective if coupled with clear performance standards and potentially mechanisms for managing minor scope adjustments. If the scope is highly dynamic, an FFP contract could lead to disputes or require costly change orders, potentially diminishing value.
What are the historical spending patterns for IT maintenance services at Aberdeen Proving Grounds?
Analyzing historical spending patterns for IT maintenance at Aberdeen Proving Grounds would provide crucial context for this $29 million award. This involves examining previous contracts for similar services at the installation, including their values, durations, contractors, and competition levels. Understanding whether spending has increased, decreased, or remained stable over time can indicate trends in IT needs, technology adoption, and market pricing. Significant deviations from historical spending could warrant further investigation into the reasons, such as new requirements, market shifts, or changes in contracting strategy. Without access to this historical data, it's difficult to definitively assess if this current award represents a continuation of established spending levels or a significant departure.
What is the significance of awarding this contract under 'full and open competition' despite only receiving two bids?
Awarding under 'full and open competition' signifies that the solicitation was made broadly available to all responsible sources, adhering to federal procurement regulations designed to maximize competition and achieve best value. However, receiving only two bids suggests potential limitations in the market for these specific services or barriers to entry for other potential bidders. This could be due to the specialized nature of the IT maintenance required, the contract's size and duration, or the specific security and personnel requirements at Aberdeen Proving Grounds. While the process itself is compliant and preferred, the low number of bidders raises questions about the extent of price discovery achieved and whether the government secured the most competitive pricing possible under the circumstances.
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: W912DY17R0014
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 22309 EXPLORATION DRIVE, 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: $36,605,552
Exercised Options: $36,021,302
Current Obligation: $29,005,456
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $4,025,265
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY20D0033
IDV Type: IDC
Timeline
Start Date: 2020-07-02
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-02
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