Army awards $154.6M for logistics support, with KBR Wyle Services as a major contractor
Contract Overview
Contract Amount: $163,615,310 ($163.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-01
End Date: 2010-09-30
Contract Duration: 1,552 days
Daily Burn Rate: $105.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Official Description: 200608!001560!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06D0029 !A!C! !Y!0001 ! !20060701!20110630!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL INC !2800 EISENHOWER AVE SUITE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000013089078!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Z!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $163.6 million to KBR WYLE SERVICES, LLC for work described as: 200608!001560!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06D0029 !A!C! !Y!0001 ! !20060701!20110630!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL INC !2800 EISENHOWER AVE SUITE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. Contract value of $154.6 million over approximately 5 years indicates significant investment in logistics. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The primary contractor, KBR Wyle Services, LLC, has a substantial presence in government contracting. 4. The service category (541614) points to specialized consulting in logistics and distribution. 5. The contract duration of over 4 years suggests a need for sustained, long-term support. 6. The award type 'DO' (Defense Order) signifies a priority for national defense needs.
Value Assessment
Rating: good
The contract's value of $154.6 million for over four years of logistics support services appears reasonable given the scope. Benchmarking against similar large-scale logistics contracts within the Department of Defense would provide a more precise value-for-money assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific performance metrics or comparisons to industry standards for similar services, a definitive value judgment is challenging, but the competitive award suggests a market-driven price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of a competitive process generally leads to better price discovery and potentially more favorable terms for the government. The fact that it was competed openly suggests that the agency sought the best value from the widest possible pool of qualified contractors, rather than restricting the field.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among contractors vying for the award. This process ensures that government funds are used more efficiently by selecting the most cost-effective and capable solution.
Public Impact
The U.S. Army is the primary beneficiary, receiving essential logistics support services. Services include process, physical distribution, and logistics consulting, crucial for military operations. The contract's geographic impact is likely centered around Army installations or operational theaters requiring logistical coordination. Workforce implications include employment opportunities for personnel with expertise in logistics and supply chain management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if labor hours are not managed effectively.
- Reliance on a single primary contractor (KBR Wyle Services, LLC) could pose risks if performance falters.
- Ensuring consistent service quality across a multi-year contract requires ongoing performance monitoring.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Contract duration suggests a stable, long-term need being met.
- The specific service code (541614) points to specialized expertise being acquired.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for logistics support services is substantial, driven by the complex supply chain needs of government agencies, particularly the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale logistics contracts awarded by the Army or other military branches for similar support functions, which often run into hundreds of millions of dollars over several years.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is a large business, there may be subcontracting opportunities for small businesses within the scope of logistics support services. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of qualified small business vendors for specific tasks.
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. Accountability measures would include performance reviews, adherence to contract terms, and delivery of specified services. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Logistics Support Contracts
- Army Industrial Operations Contracts
- Professional, Scientific, and Technical Services Contracts
- Logistics Consulting Services
Risk Flags
- Potential for cost overruns due to labor hour billing.
- Performance variability risk with long-term service contracts.
- Dependency on contractor's specialized expertise.
Tags
department-of-defense, department-of-the-army, logistics-support-services, professional-services, labor-hours, full-and-open-competition, large-contract, kbr-wyle-services-llc, virginia, consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.6 million to KBR WYLE SERVICES, LLC. 200608!001560!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06D0029 !A!C! !Y!0001 ! !20060701!20110630!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL INC !2800 EISENHOWER AVE SUITE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000013089078!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !5!B!M! !A! !999
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 $163.6 million.
What is the period of performance?
Start: 2006-07-01. End: 2010-09-30.
What is the track record of KBR Wyle Services, LLC with the Department of Defense?
KBR Wyle Services, LLC has a significant history of contracting with the Department of Defense across various service areas, including logistics, engineering, and base operations support. Their extensive portfolio demonstrates a deep understanding of military requirements and operational environments. Analyzing their past performance ratings, any contract disputes, and the types of services they have previously provided to the DoD can offer insights into their capabilities and reliability. Their consistent award of large-scale contracts suggests a strong performance history and a trusted relationship with defense agencies, though specific details would require a deeper dive into individual contract performance data and any associated CPARS (Contractor Performance Assessment Reporting System) reports.
How does the awarded amount compare to similar logistics support contracts?
The awarded amount of approximately $154.6 million for a duration of over four years places this contract within the mid-to-large tier for specialized logistics support services within the Department of Defense. Similar contracts for comprehensive logistics, supply chain management, and operational support for major military branches can range from tens of millions to several billion dollars, depending on the scope, duration, and specific services required. For instance, contracts supporting large overseas deployments or extensive base operations often exceed this value significantly. However, for focused consulting and process improvement in logistics, this figure represents a substantial investment, suggesting a critical need or a broad scope of services.
What are the primary risks associated with this type of contract?
Primary risks associated with this type of logistics support services contract include potential cost overruns if labor hours are not managed efficiently, scope creep where the services expand beyond the original intent without adequate adjustments, and performance deficiencies if the contractor fails to meet service level agreements. There's also a risk of over-reliance on a single contractor, which could lead to disruptions if performance issues arise or if the contractor faces financial instability. Furthermore, changes in military strategy or operational needs could render the contracted services less relevant, requiring contract modifications or termination. Ensuring robust oversight and clear performance metrics are crucial to mitigating these risks.
How effective are logistics support services contracts in improving military readiness?
Logistics support services contracts are generally considered effective in improving military readiness by ensuring the efficient flow of supplies, equipment, and personnel, which are critical for operational success. By outsourcing specialized functions like supply chain management, maintenance, and transportation coordination to experienced contractors, the military can focus its organic resources on core combat capabilities. These contracts can bring industry best practices, advanced technologies, and economies of scale that might be difficult for the military to replicate internally. However, effectiveness is contingent on proper contract design, diligent oversight, and the contractor's ability to deliver as promised. Poorly managed contracts can lead to inefficiencies and fail to enhance readiness.
What are the historical spending patterns for logistics support services within the Department of the Army?
Historical spending patterns for logistics support services within the Department of the Army show a consistent and significant allocation of resources over the years. The Army, with its vast global operations and complex supply chain requirements, relies heavily on external support for various logistics functions, including transportation, warehousing, maintenance, and technical support. Spending in this category has often been in the billions of dollars annually, reflecting the scale of operations and the increasing trend towards outsourcing non-core functions to specialized contractors. Factors influencing these patterns include geopolitical events, modernization efforts, and shifts in defense strategy, all of which necessitate robust logistical capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Consolidated Contract: Yes
Parent Contract
Parent Award PIID: W52P1J06D0029
IDV Type: IDC
Timeline
Start Date: 2006-07-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2015-02-11
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