KBR WYLE SERVICES awarded $5.4M for NIWC Pacific IT maintenance, with 5 bidders indicating moderate competition

Contract Overview

Contract Amount: $5,396,552 ($5.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTENANCE AND SERVICE FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR NAVAL INFORMATION WARFARE CENTER PACIFIC (NIWC PAC), AT SAN DIEGO, CALIFORNIA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to KBR WYLE SERVICES, LLC for work described as: MAINTENANCE AND SERVICE FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR NAVAL INFORMATION WARFARE CENTER PACIFIC (NIWC PAC), AT SAN DIEGO, CALIFORNIA Key points: 1. The contract value of $5.4 million for a 364-day period suggests a moderate annual spend for IT maintenance services. 2. Competition dynamics show 5 bidders, indicating a reasonably competitive environment for this type of specialized IT support. 3. The firm-fixed-price contract type shifts performance risk to the contractor, KBR WYLE SERVICES, LLC. 4. This contract supports the Naval Information Warfare Center Pacific (NIWC PAC), a key component of naval technology infrastructure. 5. The services provided are critical for maintaining the operational readiness of naval information systems in the Pacific region. 6. The contract's duration of one year aligns with typical IT service contract cycles, allowing for periodic re-evaluation of needs and performance.

Value Assessment

Rating: good

The contract value of $5.4 million for a one-year period for IT maintenance and support appears reasonable given the specialized nature of supporting the Naval Information Warfare Center Pacific. Benchmarking against similar IT support contracts for defense agencies suggests that this price point is within expected ranges for comprehensive maintenance and corrective services. The firm-fixed-price structure also implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. The presence of multiple bidders suggests that the market for these specialized IT maintenance services is accessible and that the solicitation process was designed to attract a range of qualified contractors. The number of bidders indicates a healthy level of competition, which typically drives more competitive pricing and encourages innovation from the offerors.

Taxpayer Impact: The full and open competition with five bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently by selecting the best value offer.

Public Impact

Naval Information Warfare Center Pacific (NIWC PAC) personnel benefit from reliable IT systems, enabling their mission-critical operations. The contract ensures the continuity of essential IT maintenance and corrective services for naval command and control systems. The geographic impact is focused on San Diego, California, supporting a key naval technology hub. Workforce implications include the potential for skilled IT professionals employed by KBR WYLE SERVICES to support naval readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep if preventative maintenance tasks are not clearly defined.
  • Reliance on a single contractor for critical IT infrastructure maintenance could pose a risk if performance degrades.
  • Ensuring timely and effective corrective maintenance for complex naval IT systems requires robust oversight.

Positive Signals

  • Firm-fixed-price contract structure transfers cost risk to the contractor.
  • Full and open competition with multiple bidders suggests a competitive market and potential for good value.
  • The contractor, KBR WYLE SERVICES, LLC, likely has experience supporting similar government IT contracts.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry supporting government operations. The market for these services is substantial, driven by the ongoing need for defense agencies to maintain and upgrade complex technological infrastructures. Comparable spending benchmarks for IT maintenance and support contracts within the Department of Defense often range from millions to tens of millions of dollars annually, depending on the scope and criticality of the systems supported. NIWC PAC's role in naval warfare technology positions this contract as vital for national security.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. The overall value of the contract suggests potential for significant subcontracting if the prime contractor utilizes a diverse supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the designated contracting officer's representative (COR) within NIWC PAC. Accountability measures are embedded in the firm-fixed-price contract terms, requiring KBR WYLE SERVICES, LLC to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible. The Department of Defense's Inspector General may conduct audits or investigations as deemed necessary.

Related Government Programs

  • Naval Information Warfare Systems Command (NAVWAR) IT Services
  • Department of Defense IT Modernization Programs
  • Defense Information Systems Agency (DISA) Support Contracts
  • Pacific Fleet IT Infrastructure Support
  • Computer Systems Design Services Contracts

Risk Flags

  • Potential for performance degradation if contractor resources are overstretched.
  • Risk of outdated technology if contract scope does not adapt to evolving naval IT needs.
  • Dependency on contractor for critical operational IT systems.

Tags

it-services, computer-systems-design, department-of-defense, naval-information-warfare-center-pacific, kbr-wyle-services, firm-fixed-price, full-and-open-competition, delivery-order, california, san-diego, it-maintenance, corrective-maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to KBR WYLE SERVICES, LLC. MAINTENANCE AND SERVICE FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR NAVAL INFORMATION WARFARE CENTER PACIFIC (NIWC PAC), AT SAN DIEGO, CALIFORNIA

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 $5.4 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the track record of KBR WYLE SERVICES, LLC in performing similar IT maintenance and support contracts for the Department of Defense?

KBR WYLE SERVICES, LLC has a significant history of performing various services for the Department of Defense, including IT support, engineering, and logistics. Their experience often encompasses complex systems maintenance and operational support across different branches of the military. While specific performance details for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record. Further analysis would involve reviewing past performance evaluations and contract histories to identify any specific strengths or weaknesses relevant to this NIWC PAC contract.

How does the $5.4 million contract value compare to previous spending on IT maintenance for NIWC PAC?

Without historical spending data specifically for NIWC PAC's IT maintenance prior to this award, a direct comparison is challenging. However, the $5.4 million for a 364-day period represents a substantial investment in maintaining critical naval IT infrastructure. If this contract is a renewal or replacement of previous services, comparing its value to prior contract periods would reveal trends in spending. Factors such as inflation, technological advancements, and changes in service scope would influence year-over-year comparisons. This contract's value suggests a consistent need for robust IT support at this command.

What are the primary risks associated with this firm-fixed-price contract for IT maintenance?

The primary risk with a firm-fixed-price contract for IT maintenance lies in the potential for the contractor, KBR WYLE SERVICES, LLC, to cut corners on service quality to maintain profitability if unforeseen technical challenges arise or if their cost estimates were too low. Another risk is the government's potential inflexibility in adapting to changing technological needs or requirements mid-contract without incurring additional costs or formal contract modifications. Ensuring clear performance standards and robust oversight is crucial to mitigate these risks and guarantee the expected level of service delivery.

How effective is the full and open competition process in ensuring value for money in IT support contracts of this nature?

The full and open competition process is generally considered highly effective in ensuring value for money for IT support contracts. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages offerors to provide the best possible technical solutions at the most competitive rates. The presence of five bidders in this case suggests that the market is robust enough to support such competition. This process helps the government avoid paying premium prices associated with sole-source or limited-competition awards and increases the likelihood of selecting a contractor that offers both technical merit and cost-effectiveness.

What are the implications of the 'Computer Systems Design Services' NAICS code for the scope of work?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the contract's scope likely involves designing, developing, and integrating computer systems. For IT maintenance and corrective services, this implies that the contractor is responsible for ensuring the systems function as designed, troubleshooting issues, and potentially implementing minor modifications or upgrades to maintain optimal performance. It suggests a scope beyond simple hardware repair, encompassing the software, network, and overall system architecture that supports NIWC PAC's operations. This code signifies a focus on the functional integrity and operational capability of the IT environment.

Are there any specific performance metrics or KPIs that KBR WYLE SERVICES, LLC must meet under this contract?

While the specific performance metrics or Key Performance Indicators (KPIs) are not detailed in the provided data, firm-fixed-price contracts typically include performance standards outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These standards would likely cover aspects such as response times for corrective maintenance, uptime requirements for critical systems, and the quality of preventative maintenance tasks. Failure to meet these defined metrics could result in penalties, reduced payment, or contract termination, serving as the primary mechanism for ensuring contractor accountability and service quality.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $48,606,754

Exercised Options: $8,896,552

Current Obligation: $5,396,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0033

IDV Type: IDC

Timeline

Start Date: 2025-09-01

Current End Date: 2026-08-31

Potential End Date: 2031-03-01 00:00:00

Last Modified: 2025-12-02

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