DoD's $168M LTPO Technical Support Contract with KBR Wyle Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $167,966,679 ($168.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-27
End Date: 2024-12-31
Contract Duration: 2,379 days
Daily Burn Rate: $70.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Engineering Services
Official Description: TECHNICAL SUPPORT TO THE LOWER TIER PROJECT OFFICE (LTPO)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $168.0 million to KBR WYLE SERVICES, LLC for work described as: TECHNICAL SUPPORT TO THE LOWER TIER PROJECT OFFICE (LTPO) Key points: 1. The contract's significant value of $168M raises questions about cost-effectiveness for technical support. 2. While awarded under full and open competition, the BPA Call mechanism warrants further examination for price discovery. 3. Potential risks include overspending on services and a lack of granular performance metrics. 4. The engineering services sector is competitive, suggesting opportunities for better pricing.
Value Assessment
Rating: questionable
The $168M contract value for technical support appears high, especially given the Time and Materials pricing structure. Benchmarking against similar engineering services contracts is crucial to determine if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition via a BPA Call. However, the Time and Materials pricing could limit price discovery and potentially lead to cost overruns if not managed tightly.
Taxpayer Impact: Taxpayer funds are being utilized for extensive technical support. Ensuring cost efficiency and value for money is paramount to minimize financial impact.
Public Impact
Citizens expect transparency and accountability in how taxpayer money is spent on defense contracts. The duration of the contract (2018-2024) suggests a long-term need for these services, impacting sustained spending. Effective oversight is critical to ensure the services provided are essential and priced appropriately.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics for value assessment.
- Long contract duration may not reflect evolving needs.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical Lower Tier Project Office functions.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is vital for defense projects. Spending benchmarks in this sector vary widely based on project complexity and duration.
Small Business Impact
There is no indication of small business participation in this contract. Opportunities for subcontracting with small businesses should be explored to foster broader economic impact.
Oversight & Accountability
Oversight is crucial for this long-term contract. Regular reviews of performance, cost, and necessity of services are needed to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost creep due to T&M pricing.
- Lack of specific performance metrics for value assessment.
- Long contract duration without clear exit strategy.
- Limited visibility into subcontractor performance (if any).
- Need for independent cost/benefit analysis.
Tags
engineering-services, department-of-defense, al, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $168.0 million to KBR WYLE SERVICES, LLC. TECHNICAL SUPPORT TO THE LOWER TIER PROJECT OFFICE (LTPO)
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 $168.0 million.
What is the period of performance?
Start: 2018-06-27. End: 2024-12-31.
What specific technical support tasks are being performed under this contract, and how do they directly contribute to the LTPO's mission?
The contract provides essential technical support to the Lower Tier Project Office (LTPO), likely encompassing areas such as systems engineering, technical analysis, program management support, and acquisition assistance. These services are critical for the successful development, testing, and deployment of defense systems managed by the LTPO, ensuring operational readiness and technological advancement.
How is the government ensuring that the Time and Materials pricing structure is not leading to excessive costs for the services rendered?
Effective management of Time and Materials contracts requires robust oversight, including detailed tracking of labor hours, rates, and material costs. The government should implement stringent monitoring mechanisms, conduct regular audits, and establish clear ceilings and performance metrics to control costs and ensure value. Negotiation of fixed-price elements where possible could also mitigate risk.
What measures are in place to assess the effectiveness and impact of KBR Wyle's technical support on the LTPO's overall project success?
Assessing effectiveness requires defining clear Key Performance Indicators (KPIs) tied to LTPO project milestones and objectives. Regular performance reviews, feedback from LTPO stakeholders, and analysis of project outcomes attributed to the contractor's support are essential. The government should ensure these metrics are objective, measurable, and directly linked to the contract's value proposition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $168,700,218
Exercised Options: $167,966,679
Current Obligation: $167,966,679
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $77,829,958
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: W31P4Q18A0018
IDV Type: BPA
Timeline
Start Date: 2018-06-27
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 12:12:00
Last Modified: 2026-01-06
More Contracts from KBR Wyle Services, LLC
- Bioastronautics Contract-Activities for the Health &productivity of Crews Working and Living in Space — $1.5B (National Aeronautics and Space Administration)
- Fpds-Ng Mission Systems Operations Contract (msoc) — $1.0B (National Aeronautics and Space Administration)
- THE Purpose of This Contract IS to Acquire Engineering Services and Related Services to MSD and Related Organizations Throughout Gsfc, AS Required, for the Formulation, Design, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. the Engineering Areas of Emphasis ARE Multidisciplinary With Concentration in the Mechanical Engineering Areas of Materials, Structural Analysis and Loads, Mechanical Design, Electromechanical Design, Thermal, Contamination and Coatings, Manufacturing and Integration and Test — $728.5M (National Aeronautics and Space Administration)
- 200106!000121!1700!F7004 !marine Corps Logistics Base !M6700499C0002 !a!n!*!n!p00015 !20010228!20080930!041014242!041014242!139691877!n!honeywell Technology Solutions!7000 Columbia Gateway Driv!columbia !md!21046!35000!031!12!jacksonville !duval !florida !+000004292865!n!n!000000000000!j049!maint & Repair of Eq/Maintenance & Repair Shop EQ !a4a!combat Vehicles !2000!NOT Discernable or Classified !811310!*!*!3! ! !C!*!*!*!B!*!*!A! !A !N!J!2!006!B! !C!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $670.1M (Department of Defense)
- Mission Operations Management Services (moms) — $623.8M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)