DoD's $156M logistics consulting contract awarded to KBR WYLE SERVICES, LLC shows fair value with 4 bidders
Contract Overview
Contract Amount: $156,143,788 ($156.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-27
End Date: 2011-01-31
Contract Duration: 1,587 days
Daily Burn Rate: $98.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $156.1 million to KBR WYLE SERVICES, LLC for work described as: Key points: 1. The contract demonstrates a competitive award process, indicating potential for good value. 2. While specific performance metrics are not detailed, the duration suggests ongoing support needs. 3. The sector positioning is within professional services supporting defense logistics. 4. Risk indicators are moderate, given the service nature and competitive award. 5. The contract's value is significant within its niche consulting category.
Value Assessment
Rating: good
The contract's total award value of $156,143,787.78 over its period of performance suggests a substantial investment in logistics consulting. Benchmarking this against similar large-scale, multi-year consulting contracts within the Department of Defense is challenging without more granular data on the specific services rendered. However, the presence of four bidders in a full and open competition implies a degree of market validation for the pricing and scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and interested in the opportunity. The presence of four bidders indicates a healthy market for these services and likely contributed to price discovery, potentially leading to a more favorable outcome for the government compared to a sole-source or limited competition scenario.
Taxpayer Impact: A competitive award process like this one helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.
Public Impact
The Department of Defense benefits from enhanced logistics consulting services, improving operational efficiency. Services delivered likely include process optimization, supply chain management, and distribution strategy development. The geographic impact is primarily within the Department of Defense's operational theaters and support structures. Workforce implications may involve specialized logistics analysts and consultants contributing to military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term consulting engagements.
- Dependence on contractor expertise could reduce organic government capability over time.
- Ensuring consistent quality and alignment with evolving DoD requirements throughout the contract duration.
Positive Signals
- Awarded through full and open competition, indicating a robust vetting process.
- Contract duration suggests a recognized and ongoing need for these specialized services.
- KBR WYLE SERVICES, LLC is a known entity in government contracting, implying a degree of established performance.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for defense logistics support is substantial, driven by the complex global operations of the U.S. military. Comparable spending benchmarks would involve other large-scale consulting contracts awarded by DoD or other federal agencies for similar process improvement and operational support services, often running into tens or hundreds of millions of dollars over multiple years.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded under full and open competition, the primary focus is likely on large, established service providers. The impact on the small business ecosystem would depend on whether KBR WYLE SERVICES, LLC engages small businesses as subcontractors, which is not detailed in the provided information.
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 be embedded in the contract's performance work statement and delivery orders, with potential for performance reviews and audits. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports and specific deliverables are usually internal.
Related Government Programs
- Defense Logistics Agency (DLA) Support Contracts
- Military Sealift Command (MSC) Logistics Services
- Army Materiel Command (AMC) Support
- Department of Defense Consulting Services
- Supply Chain Management Services
Risk Flags
- Long-term service contract duration may require ongoing scrutiny for relevance and efficiency.
- Potential for contractor performance drift over extended periods.
- Need for clear definition and measurement of success metrics in consulting engagements.
Tags
defense, department-of-defense, department-of-the-army, logistics-consulting, professional-services, full-and-open-competition, delivery-order, labor-hours, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $156.1 million to KBR WYLE SERVICES, LLC. See the official description on USAspending.
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 $156.1 million.
What is the period of performance?
Start: 2006-09-27. End: 2011-01-31.
What specific logistics consulting services were provided under this contract?
The contract's North American Industry Classification System (NAICS) code, 541614, indicates 'Process, Physical Distribution, and Logistics Consulting Services.' This suggests a broad range of activities, potentially including supply chain optimization, transportation management, warehousing strategy, inventory control, distribution network analysis, and the development of operational efficiencies. Without access to the specific contract line items or task orders, the precise nature of the services rendered remains generalized. However, given the substantial award value and duration, it is likely that these services were comprehensive and critical to supporting the Department of the Army's logistical operations across various theaters or functions.
How does the awarded price compare to market rates for similar logistics consulting services?
Benchmarking the exact price against market rates is difficult without detailed service descriptions and labor categories. However, the contract was awarded under full and open competition with four bidders, suggesting that the pricing was competitive within the market for large-scale, multi-year defense logistics consulting. The total award of approximately $156 million over roughly 4.3 years (from Sept 2006 to Jan 2011) implies an average annual value of around $36 million. This figure needs to be contextualized by the scope and complexity of the services. Generally, specialized consulting for major government agencies commands significant fees, and the competitive nature of this award implies the price was deemed fair and reasonable by the procuring agency.
What are the key performance indicators (KPIs) or success metrics for this contract?
Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. Typically, for logistics consulting services, KPIs would focus on measurable improvements in efficiency, cost reduction, delivery times, inventory accuracy, and overall supply chain performance. Examples could include a target percentage reduction in transportation costs, a decrease in order fulfillment time, or an improvement in on-time delivery rates. The success of the contract would be evaluated based on the contractor's ability to meet or exceed these defined metrics, as outlined in the Performance Work Statement (PWS) and subsequent task orders.
What is KBR WYLE SERVICES, LLC's track record with similar government contracts?
KBR WYLE SERVICES, LLC (and its predecessors/related entities) has a significant history of performing large-scale contracts for the U.S. military and other government agencies, particularly in areas related to engineering, technical services, and logistics support. Their extensive experience suggests a strong understanding of government procurement processes and operational requirements. While specific past performance details for this exact contract are not provided, their general profile indicates a capacity to manage complex, high-value engagements. Government contract databases often contain past performance evaluations, which would offer more granular insights into their reliability and effectiveness on similar projects.
What is the historical spending trend for logistics consulting services within the Department of the Army?
Historical spending on logistics consulting services by the Department of the Army, and the DoD more broadly, tends to be substantial and fluctuates based on strategic priorities, operational tempo, and modernization efforts. While this specific contract represents a significant single award, overall spending in this category can be influenced by factors such as the need to optimize complex global supply chains, integrate new technologies, or respond to evolving security challenges. Analyzing historical spending trends would require examining aggregate data over multiple fiscal years, looking at trends in contract awards for NAICS code 541614 and related logistics support services to understand the baseline and growth patterns.
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, Special Designations, U.S.-Owned Business
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W52P1J06D0029
IDV Type: IDC
Timeline
Start Date: 2006-09-27
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 12:01:00
Last Modified: 2016-08-11
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