DoD Logistics Support Contract Awarded to KBR WYLE SERVICES, LLC for $95.3 Million

Contract Overview

Contract Amount: $95,340,894 ($95.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-23

End Date: 2013-07-21

Contract Duration: 1,032 days

Daily Burn Rate: $92.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT PROVIDES A DESCRIPTION OF LOGISTICS SUPPORT, PROPERTY ACCOUNTABILITY SERVICES, OPERATOR-LEVEL MAINTENANCE AND READINESS MANAGEMENT OPERATIONS REQUIRED BY THE UNITED STATES ARMY SUSTAINMENT COMMAND (ASC) IN SUPPORT OF APPLICABLE MILITARY UNITS, GOVERNMENTAL AGENCIES OR OTHER ENTITIES AS DESIGNATED BY ASC. THE GOAL OF THIS CONTRACT IS TO OBTAIN EFFICIENT, COST-EFFECTIVE LOGISTICS, PROPERTY MANAGEMENT AND MAINTENANCE SERVICES DIRECTLY SUPPORTING THOSE ENTITIES. SUPPORT WILL BE REGIONALLY ALIGNED TO THE 406TH ARMY FIELD SUPPORT BRIGADE WITH ALL SERVICES REQUIRED SUPPLIED BY THE SUCCESSFUL OFFEROR.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $95.3 million to KBR WYLE SERVICES, LLC for work described as: THIS CONTRACT PROVIDES A DESCRIPTION OF LOGISTICS SUPPORT, PROPERTY ACCOUNTABILITY SERVICES, OPERATOR-LEVEL MAINTENANCE AND READINESS MANAGEMENT OPERATIONS REQUIRED BY THE UNITED STATES ARMY SUSTAINMENT COMMAND (ASC) IN SUPPORT OF APPLICABLE MILITARY UNITS, GOVERNMENTAL AGENCIES … Key points: 1. Contract focuses on essential logistics, property accountability, and maintenance services for the Army Sustainment Command. 2. Services are regionally aligned to support the 406th Army Field Support Brigade. 3. The contract aims for cost-effective delivery of critical support functions. 4. Awarded through full and open competition, indicating a broad market search. 5. The duration of the contract spans over 1000 days, suggesting a significant operational commitment. 6. The firm fixed-price contract type helps manage cost certainty for the government. 7. This award represents a substantial investment in maintaining military readiness and operational efficiency.

Value Assessment

Rating: good

The contract value of $95.3 million over approximately 3 years appears reasonable for comprehensive logistics and maintenance support for a major Army command. Benchmarking against similar large-scale sustainment contracts is challenging without more granular service details, but the scope suggests a significant operational requirement. The firm fixed-price structure provides cost predictability, which is a positive indicator for value, assuming the contractor can manage their costs effectively within the agreed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 8 bids indicates a healthy level of interest and competition for this significant logistics support requirement. This broad competition is generally expected to drive competitive pricing and encourage offerors to present their best value proposals.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the United States Army Sustainment Command and the military units it supports, ensuring operational readiness. Services delivered include logistics support, property accountability, operator-level maintenance, and readiness management operations. The geographic impact is focused on regions served by the 406th Army Field Support Brigade. This contract supports a workforce involved in specialized logistics, maintenance, and property management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's operational efficiency is lower than anticipated under the firm fixed-price structure.
Dependence on a single contractor for critical logistics functions could pose a risk if performance issues arise.
Ensuring consistent quality of maintenance and property accountability across all designated entities requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The contract duration indicates a long-term commitment and potential for stable service delivery.
The scope of services addresses critical operational needs for Army sustainment and readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a broad category encompassing a wide range of services necessary for the operation and maintenance of facilities. The federal government is a significant consumer of these services, particularly for military installations and operational support. Spending in this sector often involves complex logistics, maintenance, and management requirements, with contracts ranging from localized facility upkeep to large-scale operational support like this one. The market is competitive, with many large and small businesses offering specialized services.

Small Business Impact

While this contract was awarded through 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. The nature of large-scale logistics and maintenance contracts often involves a tiered approach where prime contractors leverage specialized small business capabilities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of suitable small business partners.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, specifically the contracting officer and the contracting officer's representative (COR) responsible for the Army Sustainment Command and the 406th Army Field Support Brigade. Accountability measures are embedded within the contract's performance work statement (PWS), requiring adherence to service levels and quality standards. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational performance metrics may not always be publicly disclosed. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Logistics Readiness Contracts
Base Operations Support Services
Defense Logistics Agency Contracts
Global Contingency Logistics Support
Military Base Maintenance Contracts

Risk Flags

Potential for cost overruns if contractor efficiency is low.
Risk of performance degradation if contractor faces financial or operational challenges.
Ensuring consistent service quality across diverse operational environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.3 million to KBR WYLE SERVICES, LLC. THIS CONTRACT PROVIDES A DESCRIPTION OF LOGISTICS SUPPORT, PROPERTY ACCOUNTABILITY SERVICES, OPERATOR-LEVEL MAINTENANCE AND READINESS MANAGEMENT OPERATIONS REQUIRED BY THE UNITED STATES ARMY SUSTAINMENT COMMAND (ASC) IN SUPPORT OF APPLICABLE MILITARY UNITS, GOVERNMENTAL AGENCIES OR OTHER ENTITIES AS DESIGNATED BY ASC. THE GOAL OF THIS CONTRACT IS TO OBTAIN EFFICIENT, COST-EFFECTIVE LOGISTICS, PROPERTY MANAGEMENT AND MAINTENANCE SERVICES DIRECTLY SUPPORTING THOSE ENTITIES. SUPPORT WILL BE REGIONA

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 $95.3 million.

What is the period of performance?

Start: 2010-09-23. End: 2013-07-21.

What is the historical spending pattern for similar logistics support contracts by the Department of the Army?

The Department of the Army, and the Department of Defense more broadly, consistently allocates significant portions of its budget to logistics, maintenance, and operational support. Historical data shows a trend of multi-year, high-value contracts awarded through various competition methods, including full and open, and set-asides. Spending in this area fluctuates based on global operational tempo, modernization efforts, and strategic priorities. For instance, major sustainment contracts often range from tens to hundreds of millions of dollars, reflecting the scale of military operations. Analyzing past awards for similar services, such as base operations support or global logistics, reveals a pattern of awarding contracts to large, established defense contractors with proven track records in managing complex supply chains and maintenance operations.

How does the performance of KBR WYLE SERVICES, LLC on previous contracts compare to industry benchmarks?

Assessing KBR WYLE SERVICES, LLC's performance requires a detailed review of past contract performance evaluations (e.g., CPARS reports) and any documented disputes or contract modifications. Generally, KBR has a long history of performing large government contracts, including significant logistics and engineering services for DoD. Their performance on similar large-scale contracts would be benchmarked against industry standards for on-time delivery, quality of service, cost control, and customer satisfaction. Without specific CPARS data for this particular contract or directly comparable ones, a definitive comparison is difficult. However, their continued success in winning large federal contracts suggests a generally positive performance record, though like any large contractor, they may have faced challenges on specific projects.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract of this nature typically focus on operational readiness, efficiency, and cost-effectiveness. These would likely include metrics related to the timeliness and accuracy of logistics support, such as on-time delivery rates for supplies and equipment. Property accountability KPIs would measure the accuracy of inventory records and the reduction of loss or damage. Maintenance performance indicators might include equipment uptime percentages, mean time between failures (MTBF), and the efficiency of repair processes. Readiness management KPIs could involve the availability of personnel and equipment for deployment or operations. The contract's Performance Work Statement (PWS) would detail these specific KPIs, along with acceptable performance levels and any associated incentive or penalty clauses.

What is the potential risk associated with the firm fixed-price contract type for this scope of services?

The firm fixed-price (FFP) contract type aims to provide cost certainty for the government by shifting most of the cost risk to the contractor. For a contract involving logistics support, property accountability, and maintenance, the primary risk with FFP is that unforeseen circumstances, such as significant increases in labor costs, fuel prices, or unexpected repair needs, could erode the contractor's profit margin or lead to performance issues if they attempt to cut corners to maintain profitability. However, it also incentivizes the contractor to be highly efficient and manage their costs effectively. The government's risk is generally lower in terms of cost overruns, but they must ensure the PWS is comprehensive and clearly defined to avoid scope creep or disputes over what is included.

How does this contract align with the Army Sustainment Command's overall mission and strategic goals?

This contract directly aligns with the Army Sustainment Command's (ASC) core mission of providing logistics, maintenance, and sustainment support to Army forces worldwide. The ASC's strategic goals often revolve around enhancing readiness, improving operational efficiency, and ensuring the effective management of resources. By outsourcing essential functions like logistics support, property accountability, and operator-level maintenance, the ASC can focus its organic resources on higher-level strategic planning, command and control, and specialized sustainment functions. This contract enables the ASC to achieve cost-effective and efficient delivery of these critical services, thereby contributing directly to the overall readiness and operational capability of the Army units it supports.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,340,894

Exercised Options: $95,340,894

Current Obligation: $95,340,894

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $253,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J10D0101

IDV Type: IDC

Timeline