KBR WYLE SERVICES awarded $19.7M for Marine Corps Electronic Security Systems, with 4 bidders
Contract Overview
Contract Amount: $19,965,662 ($20.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-30
End Date: 2015-12-30
Contract Duration: 1,095 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MARINE CORPS ELECTRONIC SECURITY SYSTEMS
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $20.0 million to KBR WYLE SERVICES, LLC for work described as: MARINE CORPS ELECTRONIC SECURITY SYSTEMS Key points: 1. Contract value appears reasonable given the scope of engineering services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 3 years indicates a moderate-term need. 4. The cost-plus-fixed-fee structure requires careful monitoring of expenses. 5. This contract supports critical security infrastructure for the Marine Corps. 6. The award was made to a single entity, KBR WYLE SERVICES, LLC.
Value Assessment
Rating: good
The contract value of approximately $19.7 million over three years for engineering services related to electronic security systems is within a reasonable range for defense sector contracts of this nature. Benchmarking against similar contracts for electronic security system integration and maintenance would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, necessitates diligent oversight to ensure costs remain controlled and that the fixed fee is justified by the services rendered. Without specific per-unit cost data, a direct comparison is difficult, but the overall award amount suggests a significant undertaking.
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 bids. The presence of 4 bidders suggests a competitive environment for these specialized engineering services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The fact that 4 entities vied for this contract implies that the market is sufficiently robust to support multiple providers in this niche.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. The active bidding process encourages contractors to offer their best pricing to secure the award.
Public Impact
The primary beneficiaries are the United States Marine Corps, receiving enhanced electronic security systems. Services delivered include engineering support for the design, implementation, and potentially maintenance of these systems. The geographic impact is likely focused on Marine Corps installations where these systems are deployed. Workforce implications may include the need for specialized engineers and technicians, potentially supporting jobs in the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
- Reliance on a single contractor for critical security systems poses a potential risk if performance falters.
- The specific nature of 'electronic security systems' could involve proprietary technologies requiring ongoing vendor support.
Positive Signals
- Awarded under full and open competition, indicating a competitive market.
- The contract duration of three years suggests a stable, ongoing requirement.
- The contractor, KBR WYLE SERVICES, LLC, is a known entity in government contracting.
Sector Analysis
The engineering services sector supporting defense applications is highly specialized and competitive. This contract falls within the broader category of defense contracting, specifically focusing on electronic security systems, which are critical for base security and operational integrity. The market for such services is driven by government requirements for advanced technological solutions. Comparable spending benchmarks would typically be found within Department of Defense budgets allocated for base infrastructure modernization and security upgrades.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, KBR WYLE SERVICES, LLC, may still engage small businesses as subcontractors based on their own procurement strategies, but this is not a requirement stemming from the contract's structure.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Marine Corps Base Security Modernization
- Department of Defense Electronic Warfare Systems
- Naval Facilities Engineering Command Contracts
- Defense Infrastructure Support Services
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost overruns.
- The specific nature of 'electronic security systems' may involve proprietary technology requiring ongoing support.
- Dependence on a single contractor for critical security infrastructure presents a risk if performance issues arise.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, electronic-security-systems, full-and-open-competition, delivery-order, cost-plus-fixed-fee, marine-corps, south-carolina, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to KBR WYLE SERVICES, LLC. MARINE CORPS ELECTRONIC SECURITY SYSTEMS
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 Navy).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2012-12-30. End: 2015-12-30.
What is the track record of KBR WYLE SERVICES, LLC with the Department of Defense for similar electronic security system contracts?
KBR WYLE SERVICES, LLC has a significant history of contracting with the Department of Defense across various service areas, including engineering, logistics, and technical support. While specific data on their past performance solely on electronic security systems for the Marine Corps is not detailed here, their broader experience suggests a capacity to handle complex defense-related projects. A deeper analysis would involve reviewing their contract history for similar scopes of work, past performance evaluations (e.g., CPARS reports), and any documented issues or successes on previous electronic security system projects for DoD entities. This would provide insight into their reliability, technical expertise, and ability to deliver within budget and schedule for such critical infrastructure.
How does the awarded amount of $19.7 million compare to the estimated value or previous contracts for similar Marine Corps electronic security systems?
The awarded amount of $19.7 million for Marine Corps Electronic Security Systems over a 3-year period (2012-2015) needs to be contextualized against historical spending and the specific scope of work. Without access to the detailed statement of work or prior contract values for comparable systems, a direct comparison is challenging. However, the figure represents a substantial investment in security infrastructure. To assess value, one would compare this to the cost of similar systems deployed at other Marine Corps bases or by different branches of the military, adjusting for inflation and technological advancements. The number of bidders (4) suggests the market perceived this as a reasonably valued opportunity, but a detailed cost-benefit analysis or benchmarking against industry standards for electronic security system engineering services would be necessary for a definitive value assessment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for electronic security systems?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to KBR WYLE SERVICES, LLC, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can escalate if the contractor's expenses are higher than anticipated. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep that inflates expenses without commensurate value. For electronic security systems, risks could include unforeseen technical challenges, integration complexities with existing infrastructure, or the need for specialized, costly components, all of which could drive up costs under the CPFF model.
What is the expected effectiveness of the electronic security systems being procured under this contract for the Marine Corps?
The expected effectiveness of the electronic security systems procured under this contract hinges on the specific requirements outlined in the statement of work, which is not provided here. Generally, electronic security systems for military installations aim to enhance perimeter security, control access to sensitive areas, provide surveillance capabilities, and integrate with command and control networks for real-time threat detection and response. The effectiveness would be measured by their ability to deter unauthorized access, detect intrusions promptly, provide actionable intelligence to security personnel, and maintain operational continuity. The engineering services provided by KBR WYLE SERVICES, LLC are crucial for ensuring these systems are properly designed, installed, and integrated to meet the Marine Corps' specific security objectives and threat assessments.
How has federal spending on engineering services for defense infrastructure evolved over the period encompassing this contract (2012-2015) and beyond?
Federal spending on engineering services for defense infrastructure, including electronic security systems, has historically been substantial and subject to fluctuations based on geopolitical events, modernization priorities, and budget allocations. During the period of this contract (2012-2015), the Department of Defense was engaged in ongoing efforts to upgrade aging infrastructure and enhance security measures across its global installations. Post-2015, spending trends have continued, influenced by evolving threats, technological advancements (e.g., cybersecurity, AI integration), and shifts in defense strategy. While specific figures for 'engineering services for electronic security systems' are difficult to isolate without detailed budget breakdowns, overall defense infrastructure spending remains a significant component of the DoD budget, reflecting a continuous need for modernization and security enhancements.
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
Solicitation ID: N6523609R0022
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,493,953
Exercised Options: $20,493,953
Current Obligation: $19,965,662
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $325,095
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523612D4815
IDV Type: IDC
Timeline
Start Date: 2012-12-30
Current End Date: 2015-12-30
Potential End Date: 2015-12-30 00:00:00
Last Modified: 2018-10-17
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