DoD's $126.4M Facilities Support Contract Awarded to KBR WYLE SERVICES, LLC for 4270 Days
Contract Overview
Contract Amount: $126,400,365 ($126.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-22
End Date: 2026-06-01
Contract Duration: 4,270 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: APS-4 KOREA IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $126.4 million to KBR WYLE SERVICES, LLC for work described as: APS-4 KOREA IGF::OT::IGF Key points: 1. The contract value represents a significant investment in maintaining critical infrastructure. 2. Full and open competition suggests a robust market for these services. 3. The duration of the contract indicates a long-term need for these facilities support services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. The award was made by the Department of the Army, highlighting its importance within the service branch. 6. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities support. 7. The contract's performance period extends into mid-2026, implying ongoing operational requirements.
Value Assessment
Rating: good
Benchmarking the value of this $126.4 million contract requires detailed analysis of the specific facilities supported and the scope of services. However, given the full and open competition, it suggests that the pricing was deemed competitive by the Department of the Army. The CPFF structure necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee. Without specific comparable contract data, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 9 bidders (as indicated by 'no': 9) suggests a healthy level of competition for these facilities support services. This broad participation is generally favorable for price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.
Public Impact
The primary beneficiaries are the Department of the Army personnel and operations relying on well-maintained facilities. Services delivered include a broad range of facilities support, crucial for military readiness and administrative functions. The geographic impact is likely concentrated at the specific military installations where KBR WYLE SERVICES, LLC is providing support. Workforce implications include the creation or sustainment of jobs for individuals involved in facilities management and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
- The long contract duration (4270 days) may lead to potential complacency or reduced innovation if not actively managed.
- Dependence on a single contractor for critical facilities support could pose risks if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a competitive market and potentially favorable pricing.
- The extensive duration suggests a stable, long-term partnership that can foster efficiency and expertise.
- The contractor, KBR WYLE SERVICES, LLC, likely possesses significant experience in providing facilities support services.
Sector Analysis
Facilities Support Services, categorized under NAICS code 561210, represent a substantial segment of the government contracting market. This sector encompasses a wide array of services essential for the operation and maintenance of government facilities, including maintenance, repair, custodial, and security services. The Department of Defense is a major consumer of these services due to its vast real estate holdings. Comparable spending benchmarks would typically involve analyzing other large-scale facilities support contracts awarded by federal agencies, particularly within the defense sector, to gauge cost-effectiveness and market rates.
Small Business Impact
The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors to fulfill portions of the contract, depending on their own subcontracting plans and the specific needs of the services required. The absence of a set-aside means that large businesses were eligible to compete and potentially win the entire contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the purview of the Department of the Army contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The Cost Plus Fixed Fee (CPFF) structure necessitates particularly close financial oversight to verify allowable costs and ensure the fixed fee is earned appropriately. Transparency is typically managed through contract reporting mechanisms and performance reviews. Depending on the nature of the facilities and services, an Inspector General may also have jurisdiction for audits and investigations.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Readiness Support
- Facilities Engineering and Maintenance
- Government Property Management
- Construction and Facilities Maintenance
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight of costs.
- Long contract duration may present risks of obsolescence or performance degradation.
- Potential for contractor complacency due to extended performance period.
Tags
department-of-defense, department-of-the-army, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, large-contract, long-duration, kbr-wyle-services-llc, naics-561210, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $126.4 million to KBR WYLE SERVICES, LLC. APS-4 KOREA IGF::OT::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 $126.4 million.
What is the period of performance?
Start: 2014-09-22. End: 2026-06-01.
What is the historical spending pattern for facilities support services by the Department of the Army?
Historical spending on facilities support services by the Department of the Army is substantial, reflecting the vast infrastructure managed by the service branch. While specific figures for this contract's predecessors are not provided, the Army consistently awards numerous contracts for base operations, maintenance, repair, and related services across its installations worldwide. These contracts often span multiple years and can range from millions to billions of dollars annually, depending on the scope and scale of operations. Analyzing past awards for similar services, such as Base Operations Support (BOS) contracts, would reveal trends in pricing, contractor performance, and competition levels. Factors influencing historical spending include military readiness requirements, infrastructure modernization efforts, and budget allocations. The trend generally shows a continuous need for these services to ensure operational effectiveness and personnel well-being.
How does the per-unit cost of this contract compare to similar facilities support contracts?
A direct per-unit cost comparison for this $126.4 million facilities support contract is challenging without specific details on the units of service provided (e.g., cost per square foot maintained, cost per service call). Facilities support contracts are highly variable based on location, type of facility (e.g., barracks, administrative buildings, training grounds), and the specific services included (e.g., janitorial, HVAC maintenance, groundskeeping, pest control). However, the fact that this contract was awarded under full and open competition with 9 bidders suggests that the pricing achieved was likely competitive within the market for the defined scope of work. To perform a robust comparison, one would need to identify contracts with similar service scopes, geographic locations, and contract types (CPFF) and then normalize the costs based on the quantity and type of services rendered.
What is KBR WYLE SERVICES, LLC's track record with similar government contracts?
KBR WYLE SERVICES, LLC has a significant track record in providing a wide range of services to the U.S. government, including extensive experience in logistics, base operations support, and facilities management, particularly for the Department of Defense. They have been awarded numerous large-scale contracts across various agencies and military branches. Their past performance often includes managing complex operations in challenging environments. A review of their contract history would likely reveal a pattern of successfully executing large, long-term service contracts. While specific performance metrics for this particular contract are not yet available due to its ongoing nature, their established presence and repeated awards suggest a generally positive performance history. However, as with any large contractor, a detailed review of past performance reports and any past performance issues would be necessary for a comprehensive assessment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract of this $126.4 million magnitude is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost incurred. For the government, this necessitates rigorous oversight and auditing of all claimed costs to ensure they are reasonable, allocable, and necessary for contract performance. Without stringent controls, the total contract cost could significantly exceed initial estimates. Another risk is the potential for scope creep, where the contractor may perform work beyond the original scope, leading to increased costs that may or may not be adequately captured by the fixed fee or change order process. Effective contract administration and clear communication are crucial to mitigate these risks.
How does the duration of this contract (4270 days) impact its overall value and risk?
The extended duration of this contract, approximately 11.7 years (4270 days), has significant implications for both value and risk. On the value side, a long-term contract can foster stability, allowing the contractor to invest in specialized equipment, personnel, and processes, potentially leading to greater efficiency and economies of scale over time. It also reduces the administrative burden and costs associated with frequent re-competition. However, this extended period also introduces risks. Market conditions, technology, and requirements can change substantially over nearly a decade, potentially making the contract terms or services obsolete or less cost-effective. There's also a risk of contractor complacency, where performance may decline due to a lack of competitive pressure over an extended period. Furthermore, the government's ability to adapt to evolving needs is constrained by the long-term commitment. Robust contract management, including periodic reviews and performance incentives, is essential to mitigate these risks and ensure continued value.
What is the significance of the NAICS code 561210 for this contract?
The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is highly significant as it precisely defines the core business activity for this contract. This code encompasses establishments primarily engaged in providing operating engineers, building management, and operational staff to operate and maintain buildings on a contract basis. This includes services such as operating building systems (e.g., heating, ventilation, and air conditioning), cleaning, security, and groundskeeping. For this Department of Defense contract, it signifies that KBR WYLE SERVICES, LLC is responsible for the day-to-day operational management and maintenance of specific government facilities, ensuring they are functional, safe, and secure for military personnel and operations. This classification helps in benchmarking the contract against others in the same industry and understanding the expected scope of services.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $145,402,913
Exercised Options: $145,402,913
Current Obligation: $126,400,365
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W52P1J12G0061
IDV Type: BOA
Timeline
Start Date: 2014-09-22
Current End Date: 2026-06-01
Potential End Date: 2026-06-01 00:00:00
Last Modified: 2025-12-22
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