DoD awards $55.2M engineering services contract to KBR Wyle, highlighting long-term support needs
Contract Overview
Contract Amount: $55,254,703 ($55.3M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-17
End Date: 2012-08-01
Contract Duration: 1,780 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $55.3 million to KBR WYLE SERVICES, LLC for work described as: ENGINEERING SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a robust bidding process. 2. The contract duration of 1780 days indicates a need for sustained engineering support. 3. Awarded by the Department of the Army, this contract supports critical defense infrastructure. 4. The Time and Materials pricing structure may pose cost control challenges if not managed effectively. 5. KBR Wyle Services, LLC has a significant contract history with the federal government. 6. The contract's value is moderate within the context of large-scale federal engineering procurements.
Value Assessment
Rating: good
The contract value of $55.2 million over approximately 4.8 years represents a significant investment in engineering services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense suggests this award is within a typical range for comprehensive services. The Time and Materials (T&M) pricing model, while flexible, requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.
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 6 bidders suggests a healthy level of competition for this engineering services requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions. The number of bidders implies that the market has sufficient capacity and interest to support such requirements, which is positive for the government's ability to secure competitive pricing.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down potential costs. This broad competition also signals that the government is not unduly limiting its options, maximizing the potential for cost savings.
Public Impact
The Department of the Army benefits from specialized engineering expertise to support its operational and infrastructure needs. This contract provides essential engineering services, potentially including design, analysis, and technical support for military systems or facilities. The contract's performance location in Alabama (AL) suggests a direct impact on the local economy through employment and business activity. The workforce implications include the potential for skilled engineers and technical staff to be employed or retained by KBR Wyle Services, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope and efficiency.
- The long duration of the contract (1780 days) necessitates ongoing performance monitoring to ensure sustained quality and value.
- Reliance on a single contractor for extended engineering support could create vendor lock-in risks.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process that likely secured fair market pricing.
- The contractor, KBR Wyle Services, LLC, is an established entity with significant federal contracting experience.
- The contract supports critical Department of Defense engineering needs, aligning with national security objectives.
Sector Analysis
Engineering services, categorized under NAICS code 541330, represent a significant segment of the federal procurement landscape, particularly within the defense sector. This contract fits within the broader market for professional, scientific, and technical services, which is crucial for supporting complex government operations and infrastructure projects. Comparable spending benchmarks for large-scale engineering support contracts within the Department of Defense often range from tens to hundreds of millions of dollars, depending on the scope and duration. The market is characterized by a mix of large, established firms and specialized smaller businesses.
Small Business Impact
This contract was not set aside for small businesses, and the awardee, KBR Wyle Services, LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless KBR Wyle actively engages small businesses in its subcontracting efforts. Future analysis could explore subcontracting reports to assess small business participation.
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. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse, but day-to-day oversight focuses on contract performance and financial accountability.
Related Government Programs
- Department of Defense Engineering and Technical Services
- Army Corps of Engineers Support Contracts
- Professional, Scientific, and Technical Services (NAICS 541330)
- Defense Infrastructure Support
- Logistics and Readiness Support Contracts
Risk Flags
- Potential for cost overruns due to T&M pricing structure.
- Need for robust oversight to manage scope and contractor efficiency.
- Long contract duration requires sustained performance monitoring.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, kbr-wyle-services-llc, alabama, professional-scientific-and-technical-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.3 million to KBR WYLE SERVICES, LLC. ENGINEERING SERVICES
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 $55.3 million.
What is the period of performance?
Start: 2007-09-17. End: 2012-08-01.
What is KBR Wyle Services, LLC's track record with the Department of Defense and other federal agencies?
KBR Wyle Services, LLC, and its predecessor entities, have a substantial history of contracting with the U.S. federal government, particularly the Department of Defense. They have been awarded numerous contracts across various agencies, including the Army, Navy, Air Force, and NASA, for a wide range of services such as engineering, scientific support, base operations, and logistics. Their extensive portfolio indicates a deep familiarity with government procurement processes and requirements. Analyzing their past performance ratings, any contract disputes, and the types of services most frequently provided can offer insights into their capabilities and reliability as a contractor. This specific contract's value and duration are consistent with the scale of work they have undertaken previously.
How does the $55.2 million contract value compare to similar engineering services contracts awarded by the Department of the Army?
The $55.2 million contract value for engineering services awarded to KBR Wyle Services, LLC falls within a moderate range for large-scale, multi-year support contracts within the Department of the Army. The Army frequently procures extensive engineering and technical support, with contract values often ranging from tens of millions to hundreds of millions of dollars, especially for programs requiring long-term sustainment, research, development, or complex infrastructure management. Contracts for specialized engineering analysis, system design, or facility support can vary significantly based on scope, duration, and required expertise. This award appears to be a substantial but not exceptionally large procurement, suggesting it addresses a significant but defined set of engineering needs.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?
The primary risks associated with a Time and Materials (T&M) contract, especially one valued at $55.2 million and spanning nearly five years, revolve around cost control and potential scope creep. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. Key risks include: 1) Uncontrolled cost growth if labor hours or material costs exceed initial estimates. 2) Difficulty in defining and limiting the scope of work, leading to 'scope creep' where additional tasks are added without formal modification. 3) Potential for contractor inefficiency if there is less pressure to complete tasks quickly. Effective oversight, detailed reporting requirements, and clear task definitions are crucial to mitigate these risks.
What is the expected impact of this contract on the Department of the Army's engineering capabilities?
This contract is expected to bolster the Department of the Army's engineering capabilities by providing essential external expertise and support. It likely addresses specific needs that may exceed the Army's organic workforce capacity or require specialized skills not readily available internally. The services procured could range from technical analysis and design to system integration and lifecycle support for various military platforms or infrastructure. By leveraging KBR Wyle Services, LLC's capabilities, the Army can maintain operational readiness, modernize its assets, and ensure the effective functioning of its facilities. This contract allows the Army to access specialized knowledge and manpower flexibly, supporting its mission objectives without necessarily increasing its permanent civilian or military engineering staff.
How has federal spending on 'Engineering Services' (NAICS 541330) evolved over the past five years, and where does this contract fit?
Federal spending on 'Engineering Services' (NAICS 541330) has generally remained robust, driven significantly by the Department of Defense and other agencies involved in infrastructure, research, and development. Over the past five years, spending in this category has seen fluctuations but generally reflects consistent demand for specialized technical expertise. The Department of Defense is consistently the largest federal spender in this category, utilizing engineering services for weapon system development, facility construction and maintenance, and operational support. This $55.2 million contract awarded by the Department of the Army fits within this trend, representing a substantial but typical investment for a multi-year engineering support requirement. It aligns with the ongoing need for technical services to maintain military readiness and technological superiority.
What does the 'AL' (Alabama) location signify for this contract's execution and impact?
The 'AL' designation indicates that the contract's performance or administrative location is in Alabama. This could mean several things: the contractor's facility is located there, a significant portion of the work will be performed in Alabama, or it relates to the state where the contracting activity is based. For Alabama, this contract signifies potential economic benefits, including job creation for engineers and support staff, and business opportunities for local suppliers and subcontractors. It also suggests that the Department of the Army has engineering-related activities or facilities within or near Alabama that require this specialized support. The specific impact depends on whether the work is performed on-site at a military installation or at a contractor facility within the state.
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: W91CRB05R0015
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wyle Services Corporation (UEI: 963281881)
Address: 100 QUALITY CIR, HUNTSVILLE, AL, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $55,923,819
Exercised Options: $55,923,819
Current Obligation: $55,254,703
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB06D0011
IDV Type: IDC
Timeline
Start Date: 2007-09-17
Current End Date: 2012-08-01
Potential End Date: 2012-08-01 00:00:00
Last Modified: 2014-09-15
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