DoD's $115.8M computer support contract awarded to KBR Wyle Services, LLC for DARPA

Contract Overview

Contract Amount: $115,806,700 ($115.8M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2013-10-31

Contract Duration: 1,309 days

Daily Burn Rate: $88.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE DARPA UNCLASSIFIED COMPUTER SUPPORT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $115.8 million to KBR WYLE SERVICES, LLC for work described as: PROVIDE DARPA UNCLASSIFIED COMPUTER SUPPORT. Key points: 1. Contract value represents a significant investment in essential IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk appears moderate given the nature of IT support services. 4. This contract falls within the broader IT services sector for the Department of Defense. 5. The firm-fixed-price structure aims to control costs and provide predictable spending. 6. The duration of the contract indicates a long-term need for these services.

Value Assessment

Rating: good

The contract's total value of $115.8 million over approximately 3.5 years suggests a substantial but not exorbitant annual spend for comprehensive IT support. Benchmarking against similar large-scale IT service contracts within the federal government would be necessary for a precise value-for-money assessment. However, the firm-fixed-price (FFP) award type indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders identified, this suggests a healthy level of competition for the contract. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The presence of multiple bidders implies that the market has sufficient capacity and interest to support this type of service requirement.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the Defense Advanced Research Projects Agency (DARPA) and its research initiatives, which receive essential IT support. Services delivered include computer facilities management, ensuring the operational readiness of critical IT infrastructure. The geographic impact is primarily within DARPA's operational locations, likely concentrated in research and development hubs. Workforce implications include the employment of IT professionals by KBR Wyle Services, LLC to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed under the firm-fixed-price contract.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring continued innovation and adaptation to evolving IT needs within a fixed-scope contract can be challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market and competitive pricing.
Award to an established contractor like KBR Wyle Services, LLC may indicate a track record of successful performance.
The contract duration implies a stable and predictable IT support environment for DARPA.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The federal IT services market is vast, with significant spending allocated to maintaining and upgrading government IT infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to system integrators and managed service providers across various federal agencies. The market is characterized by a mix of large prime contractors and specialized subcontractors, with a constant demand for services related to cloud computing, cybersecurity, and data management.

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 for small businesses arising from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, is likely a large business. While not a set-aside, large federal contracts often have subcontracting plans that may include opportunities for small businesses, though this specific contract's details on such plans are not provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within DARPA. Accountability measures are embedded in the firm-fixed-price contract terms, requiring KBR Wyle Services, LLC to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

DoD IT Modernization Programs
Federal Civilian IT Services
Research and Development IT Support
Defense Agency IT Infrastructure
IT Managed Services Contracts

Risk Flags

Potential for vendor lock-in
Scope creep risk
Performance quality concerns
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.8 million to KBR WYLE SERVICES, LLC. PROVIDE DARPA UNCLASSIFIED COMPUTER SUPPORT.

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 (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $115.8 million.

What is the period of performance?

Start: 2010-04-01. End: 2013-10-31.

What is KBR Wyle Services, LLC's track record with similar federal IT support contracts?

KBR Wyle Services, LLC, as a large government contractor, has a history of performing various services for federal agencies, including IT support, engineering, and logistics. Their experience with complex IT infrastructure management for entities like DARPA suggests a capability to handle demanding technical requirements. A deeper dive into their past performance evaluations (e.g., CPARS reports) for similar contracts would provide more specific insights into their reliability, technical proficiency, and customer satisfaction. Analyzing the scope and value of previous related contracts would also help contextualize their expertise in computer facilities management.

How does the $115.8 million contract value compare to industry benchmarks for similar IT support services?

The $115.8 million total contract value for approximately 3.5 years of computer facilities management services for DARPA represents a significant investment. To benchmark this against industry standards, one would need to compare it with similar-sized contracts awarded to other large IT service providers for comparable government agencies or large enterprises. Factors such as the specific services included (e.g., network management, data center operations, end-user support), the complexity of the environment, and the geographic scope influence pricing. Without detailed service level agreements and specific deliverables, a precise comparison is difficult, but the annual average of roughly $33 million suggests a substantial operational budget for IT support.

What are the primary risks associated with this firm-fixed-price IT support contract?

The primary risks associated with this firm-fixed-price (FFP) contract for IT support revolve around scope definition and potential for contractor underperformance. If the contract's Statement of Work (SOW) is not meticulously detailed, there's a risk of scope creep, where the government may request additional services not initially priced, leading to disputes or the contractor absorbing costs. Conversely, the contractor might cut corners on service quality to maintain profitability if cost pressures are high. Another risk is the potential for vendor lock-in or over-reliance on a single provider for critical infrastructure, which could impact flexibility and innovation. Ensuring robust performance monitoring and clear change management processes are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for IT services like this?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT services contracts. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The presence of four bidders in this case suggests that the market was sufficiently robust to support competition. This process allows the government to compare technical approaches and pricing from multiple vendors, selecting the best overall value. However, the effectiveness is contingent on a well-defined SOW and a thorough evaluation process that prioritizes both cost and technical merit.

What is the historical spending trend for computer facilities management services at DARPA?

Analyzing historical spending trends for computer facilities management services at DARPA would require access to historical contract databases and budget allocations. This specific contract, valued at $115.8 million over 1309 days (approx. 3.5 years), provides a data point for a particular period (2010-2013). To understand trends, one would need to examine spending on similar services in preceding and subsequent years, looking for patterns of increase, decrease, or stability. Factors influencing these trends could include changes in DARPA's research portfolio, technological advancements, shifts in IT strategy (e.g., towards cloud adoption), and overall budget appropriations. Without more historical data, it's difficult to establish a definitive trend.

What are the implications of the 'Computer Facilities Management Services' NAICS code (541513) for contract oversight?

The NAICS code 541513, 'Computer Facilities Management Services,' signifies that the contract covers the operation of clients' computer systems and/or data processing facilities. This includes services like managing and operating computer and data processing facilities, network management, and related IT infrastructure support. For contract oversight, this code implies a need for expertise in IT operations, system availability, performance monitoring, and security. Oversight teams must ensure that the contractor is meeting service level agreements (SLAs) related to uptime, response times, and system maintenance. Compliance with data security regulations and proper handling of sensitive government information are also critical oversight areas under this code.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001105R0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wyle Services Corporation (UEI: 963281881)

Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $124,297,950

Exercised Options: $124,297,950

Current Obligation: $115,806,700

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001106D0001

IDV Type: IDC

Timeline