DoD's $54.7M Engineering Services Contract with KBR Wyle Services, LLC awarded under full and open competition
Contract Overview
Contract Amount: $54,753,711 ($54.8M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2018-04-19
End Date: 2024-04-06
Contract Duration: 2,179 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: IGF::CT::IGF
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $54.8 million to KBR WYLE SERVICES, LLC for work described as: IGF::CT::IGF Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 2179 days suggests a long-term requirement for these services. 3. Awarded as a BPA Call, which can streamline procurement for recurring needs. 4. The contract was competed fully and openly, suggesting a competitive marketplace for these services. 5. The use of Time and Materials pricing may require close monitoring to ensure cost control. 6. The contractor, KBR WYLE SERVICES, LLC, has a significant presence in government contracting. 7. The contract is geographically focused on Alabama.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables. However, the total award amount of $54.7 million over nearly six years suggests a substantial investment in engineering services. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not managed diligently. Comparing this to similar engineering services contracts would require detailed analysis of scope, duration, and specific labor categories. Without more granular data on the services provided and the labor rates, a definitive value-for-money assessment is difficult.
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 4 bidders (no) suggests a moderate level of competition for this requirement. A competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.
Public Impact
The Department of the Army benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, testing, and technical support for various engineering projects. The geographic impact is concentrated in Alabama, where the services are likely performed or managed. The contract supports a workforce of engineers and technical professionals employed by KBR WYLE SERVICES, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
- The long duration of the contract (2179 days) increases the risk of scope creep or evolving requirements not being adequately addressed.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess performance outcomes.
- Geographic concentration in Alabama might limit broader access to diverse engineering talent pools.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
- The contractor, KBR WYLE SERVICES, LLC, is an established entity with experience in government contracting, implying a degree of reliability.
- The BPA Call award mechanism can indicate efficient procurement for established needs.
- The contract addresses a clear need for engineering services within the Department of Defense.
Sector Analysis
Engineering services are a critical component of the defense sector, encompassing a wide range of activities from research and development to operational support and infrastructure management. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services procured by the Department of Defense to maintain and enhance its technological capabilities and infrastructure. Comparable spending benchmarks would typically involve analyzing the average cost per hour for similar engineering roles or the total value of engineering services contracts awarded across the federal government.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited unless they are part of KBR WYLE SERVICES, LLC's supply chain or subcontracting network, which is not detailed here. Further investigation into KBR's subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army contracting officers and program managers. The contract's performance would be monitored against its terms and conditions, including adherence to the Time and Materials pricing structure. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and parties involved.
Related Government Programs
- Department of Defense Engineering Services
- Army Professional Services Contracts
- Base Period Agreement (BPA) Calls
- Time and Materials Contracts
- Engineering, Procurement, Construction, and Operations (EPCO) Services
Risk Flags
- Long contract duration may increase risk of scope creep and cost escalation.
- Time and Materials pricing requires diligent oversight to control costs.
- Lack of specific performance metrics in summary data hinders performance assessment.
- Geographic concentration may limit broader talent access.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, professional-services, full-and-open-competition, bpa-call, time-and-materials, kbr-wyle-services-llc, alabama, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to KBR WYLE SERVICES, LLC. IGF::CT::IGF
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 $54.8 million.
What is the period of performance?
Start: 2018-04-19. End: 2024-04-06.
What specific engineering disciplines and services are covered under this contract?
The provided data identifies the contract as being for 'Engineering Services' (NAICS code 541330) awarded to KBR WYLE SERVICES, LLC by the Department of the Army. However, it does not specify the exact disciplines (e.g., civil, mechanical, electrical, aerospace) or the detailed scope of services. These could range from design and analysis to testing, logistics support, and program management. A thorough understanding of the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this BPA Call would be necessary to detail the specific engineering disciplines and services rendered. Without this, we can only infer general engineering support functions.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services?
Time and Materials (T&M) contracts, like the one awarded to KBR WYLE SERVICES, LLC, are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For well-defined engineering services, fixed-price contracts are generally preferred for better cost control. However, for research, development, or services with inherent uncertainties, T&M can be appropriate, provided robust oversight is in place to manage labor hours and material costs effectively.
What is KBR WYLE SERVICES, LLC's track record with similar Department of Defense engineering contracts?
KBR WYLE SERVICES, LLC, is a significant government contractor with extensive experience supporting the Department of Defense across various domains, including engineering, logistics, and base operations. While specific details of their track record on similar engineering services contracts are not provided in this data snippet, their long-standing presence and the award of substantial contracts suggest a history of performance. A deeper analysis would involve reviewing past performance evaluations, contract modifications, and any past performance issues or successes reported in government databases to assess their reliability and effectiveness in delivering engineering solutions for the DoD.
What is the historical spending trend for engineering services by the Department of the Army in Alabama?
The provided data focuses on a single contract awarded in 2018 with an end date in 2024, located in Alabama. To understand historical spending trends for engineering services by the Department of the Army in Alabama, a broader analysis of federal procurement data (e.g., from FPDS or USAspending) would be required. This would involve filtering contracts by agency (Department of the Army), geographic location (Alabama), and NAICS code (541330 - Engineering Services) over several fiscal years. Such an analysis could reveal patterns in spending, identify major contractors, and indicate whether this $54.7 million contract represents a significant portion of the Army's engineering service expenditure in that region.
What are the potential risks associated with the long duration (2179 days) of this contract?
The contract's duration of 2179 days (approximately 5.97 years) presents several potential risks. Firstly, the longer the contract period, the greater the chance that the requirements may evolve or become outdated, potentially leading to scope creep or the need for costly modifications. Secondly, maintaining consistent quality and performance over such an extended period can be challenging. Thirdly, market conditions, technology, and pricing for engineering services can change significantly over nearly six years, potentially making the initial pricing less competitive over time. Finally, long-term contracts can sometimes reduce the agility of the government to respond to new opportunities or changing strategic priorities.
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: 4
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: $69,493,778
Exercised Options: $54,753,711
Current Obligation: $54,753,711
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $77,760,844
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: W31P4Q18A0032
IDV Type: BPA
Timeline
Start Date: 2018-04-19
Current End Date: 2024-04-06
Potential End Date: 2024-04-06 12:04:00
Last Modified: 2025-09-03
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