DoD awards $111M+ engineering services contract to KBR Wyle Services, LLC for 2395 days
Contract Overview
Contract Amount: $111,363,680 ($111.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-09
End Date: 2017-06-30
Contract Duration: 2,395 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASIC AWARD OF W31P4Q-05-A-0024/0038
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $111.4 million to KBR WYLE SERVICES, LLC for work described as: BASIC AWARD OF W31P4Q-05-A-0024/0038 Key points: 1. Contract value exceeds $111 million over its duration. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 2395 days (approx. 6.5 years) indicates a long-term need for services. 4. The primary NAICS code (541330) points to engineering services, a critical support function. 5. The contract was awarded as a Delivery Order, a common method for task-specific work. 6. The firm fixed price contract type helps manage cost certainty for the government.
Value Assessment
Rating: good
The contract value of over $111 million for engineering services over nearly 6.5 years appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering support contracts for the Department of Defense would provide a more precise value-for-money assessment. The firm fixed price structure suggests an effort to control costs, but detailed cost breakdowns are not available to fully assess pricing reasonableness.
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. This method generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage innovation among bidders.
Public Impact
The Department of Defense benefits from specialized engineering expertise. Services likely support military readiness, infrastructure, or weapon system development. The contract's geographic impact is primarily within Alabama, where the contractor is located. Potential workforce implications include employment for engineers and technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to contractor complacency if not actively managed.
- Reliance on a single contractor for extended periods may limit flexibility in adopting new technologies or approaches.
Positive Signals
- Full and open competition suggests a competitive market was leveraged.
- Firm fixed price contract type provides cost predictability.
- Award to an established entity (KBR Wyle Services, LLC) may indicate a track record of performance.
Sector Analysis
Engineering services (NAICS 541330) represent a significant segment of the professional services market supporting government and private sector clients. This contract falls within the broader defense sector, where engineering expertise is crucial for maintaining technological superiority and operational effectiveness. Comparable spending benchmarks for large-scale engineering support contracts within the DoD can range from tens to hundreds of millions of dollars, depending on the specific services and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this award. The focus on full and open competition suggests larger, established firms were likely the primary bidders, with limited direct opportunities for small businesses unless they are part of a larger subcontracting team.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed price structure and performance requirements. Transparency is facilitated by contract award databases, though detailed performance metrics and specific oversight activities are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Department of the Army Contracts
- Professional Services Contracts
- Long-Term Service Contracts
Risk Flags
- Long contract duration
- Potential for cost overruns if not managed tightly
- Risk of technological obsolescence over contract term
Tags
defense, department-of-defense, department-of-the-army, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, kbr-wyle-services-llc, alabama, professional-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.4 million to KBR WYLE SERVICES, LLC. BASIC AWARD OF W31P4Q-05-A-0024/0038
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 $111.4 million.
What is the period of performance?
Start: 2010-12-09. End: 2017-06-30.
What is the historical spending pattern for KBR Wyle Services, LLC with the Department of Defense?
Analyzing the historical spending with KBR Wyle Services, LLC by the Department of Defense requires accessing comprehensive contract databases. Generally, KBR has been a significant contractor for the DoD across various service areas, including engineering, logistics, and base operations support. Their contract portfolio often includes large, multi-year awards. Specific spending patterns would reveal trends in contract types, service areas, and geographic distribution, providing insight into their long-term relationship and performance with the DoD. Without specific historical data for this exact entity and period, it's difficult to provide precise figures, but KBR's overall presence suggests a substantial and consistent engagement with defense spending.
How does the awarded amount compare to similar engineering services contracts for the Army?
The awarded amount of over $111 million for engineering services over approximately 6.5 years is substantial, placing it among significant contracts within the DoD. To benchmark effectively, one would compare it to other firm fixed-price delivery orders for engineering services (NAICS 541330) awarded by the Department of the Army during a similar timeframe. Factors like the specific technical requirements, duration, and geographic scope are crucial for a fair comparison. Contracts for specialized R&D support or large-scale infrastructure design might exceed this value, while contracts for routine technical support might be lower. The 'full and open competition' aspect suggests the price was vetted against market alternatives.
What are the key performance indicators (KPIs) expected under this contract?
While specific KPIs are not detailed in the award data, engineering services contracts of this magnitude typically include performance metrics related to technical accuracy, timeliness of deliverables, adherence to specifications, and responsiveness to task orders. For the Department of the Army, these could include metrics on project completion rates, quality of engineering designs or analyses, cost control within task orders, and compliance with safety and environmental regulations. Performance would likely be monitored through regular progress reports, technical reviews, and potentially contractor performance assessment reporting system (CPARS) evaluations.
What is the risk associated with a long-duration contract like this?
Long-duration contracts, such as this 2395-day award, carry inherent risks. One primary risk is technological obsolescence; the services or solutions required might become outdated before the contract ends, necessitating costly modifications or workarounds. Another risk is contractor performance degradation over time, where initial high performance may wane due to complacency or changing internal priorities. Furthermore, economic fluctuations or changes in government priorities could make the contract less relevant or cost-ineffective. Effective risk mitigation involves robust contract management, regular performance reviews, and built-in flexibility clauses where possible.
What is the significance of the 'Delivery Order' award type?
The 'Delivery Order' award type signifies that this contract is likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle, where the government has established terms and conditions but orders specific quantities of goods or services over time. This particular award (W31P4Q-05-A-0024/0038) represents a specific task order or delivery order issued against a larger contract. This approach allows the government flexibility to procure services as needed, rather than committing to a fixed quantity upfront, which is common for ongoing support or evolving requirements in areas like engineering.
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: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 100 QUALITY CIR NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $111,365,668
Exercised Options: $111,363,680
Current Obligation: $111,363,680
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $91,631,367
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0024
IDV Type: IDC
Timeline
Start Date: 2010-12-09
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 12:06:00
Last Modified: 2025-05-21
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