Interior's USGS awards $127M contract for IT facilities management to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $12,678,240 ($12.7M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-06-05

End Date: 2026-06-01

Contract Duration: 726 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 70292205 DCS048 TSSSC TO 102 NEW

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57198

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $12.7 million to KBR WYLE SERVICES, LLC for work described as: 70292205 DCS048 TSSSC TO 102 NEW Key points: 1. Contract value of $127M over approximately two years suggests a significant investment in IT infrastructure support. 2. The contract was awarded under full and open competition, indicating a broad market solicitation. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 4. The IT facilities management sector is critical for government operations, supporting data integrity and service delivery. 5. Performance is located in South Dakota, potentially impacting local IT workforce and infrastructure development.

Value Assessment

Rating: good

The contract value of $127 million for approximately two years of IT facilities management services appears to be within a reasonable range for a federal contract of this scope. Benchmarking against similar contracts for computer facilities management services (NAICS 541513) would provide a more precise assessment of value for money. The CPFF structure necessitates robust oversight to manage costs effectively and ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The solicitation process likely involved a comprehensive review of proposals to select the most advantageous offer. The level of competition can influence pricing by encouraging vendors to offer competitive rates to secure the award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing.

Public Impact

The U.S. Geological Survey (USGS) benefits from enhanced IT facilities management, ensuring the reliability of its data collection and dissemination services. This contract supports critical IT infrastructure, including data centers and computing facilities, essential for scientific research and mapping. The primary geographic impact is in South Dakota, where the services will be performed, potentially creating or sustaining local IT jobs. The contract supports the operational needs of a key scientific agency within the Department of the Interior.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, potentially increasing the final cost to taxpayers.
Reliance on a single contractor for critical IT facilities management could pose a risk if performance issues arise or if the contractor faces financial instability.

Positive Signals

Awarding under full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration of approximately two years provides a stable period for essential IT services to be delivered.
The specific nature of the services (IT Facilities Management) indicates a focus on maintaining core operational capabilities for the USGS.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and essential for supporting agency operations. This contract for Computer Facilities Management Services (NAICS 541513) falls within the broader IT services market, which is characterized by a wide range of specialized providers. Federal spending in this area is substantial, driven by the increasing reliance on digital infrastructure and data management across all government agencies. Comparable spending benchmarks would typically look at other agencies' IT infrastructure support contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, KBR WYLE SERVICES, LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively included in subcontracting goals by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Geological Survey (USGS) contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor expenditures and ensure that costs are reasonable and allocable. Transparency is typically achieved through regular reporting requirements from the contractor and contract performance reviews. The Department of the Interior's Office of Inspector General may also have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Computer Facilities Management
Data Center Operations
Cloud Computing Services Support
Information Technology Services

Risk Flags

Cost Overrun Risk (CPFF)
Performance Dependency
Contractor Viability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.7 million to KBR WYLE SERVICES, LLC. 70292205 DCS048 TSSSC TO 102 NEW

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2024-06-05. End: 2026-06-01.

What is the track record of KBR WYLE SERVICES, LLC in performing similar IT facilities management contracts for the federal government?

KBR WYLE SERVICES, LLC has a significant history of performing various services for the federal government, including IT and facilities management. While specific details on their IT facilities management performance for the USGS are not provided in this data snippet, their broader contract history suggests experience in complex government projects. A deeper analysis would involve reviewing past performance evaluations (e.g., CPARS reports) for similar contracts to assess their reliability, quality of service, and adherence to schedules and budgets. Their extensive portfolio indicates a capacity to handle large-scale federal contracts, but the success of this specific contract hinges on their demonstrated expertise in the precise requirements of IT facilities management.

How does the awarded value of $127 million compare to similar IT facilities management contracts awarded by the Department of the Interior or other agencies?

The awarded value of $127 million for approximately two years of IT facilities management services needs to be benchmarked against comparable federal contracts. Contracts for NAICS code 541513 (Computer Facilities Management Services) can vary widely based on scope, duration, location, and specific services required (e.g., data center operations, network management, hardware maintenance). A preliminary assessment suggests this is a substantial contract, indicative of significant IT infrastructure support needs. To provide a precise comparison, one would analyze contracts with similar durations, service levels, and geographic footprints awarded by agencies like the Department of the Interior, or other agencies with large IT footprints, to determine if the pricing is competitive and reflects fair market value.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT facilities management service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for IT facilities management is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased costs if the contractor's actual expenses exceed initial estimates. This necessitates robust oversight from the agency to scrutinize all incurred costs, ensure they are reasonable, allocable, and allowable, and that the contractor is operating efficiently. Without diligent monitoring, the final cost to the government could be significantly higher than anticipated, diminishing the value proposition of the contract. Effective management of the CPFF structure requires clear performance metrics and regular audits.

What is the expected impact of this contract on the IT workforce in South Dakota?

This contract is expected to have a positive impact on the IT workforce in South Dakota, as KBR WYLE SERVICES, LLC will likely need to hire or utilize local IT professionals to perform the facilities management services. The scope of work, which includes managing computer facilities, suggests a need for personnel with expertise in areas such as network administration, system maintenance, cybersecurity, and data center operations. Depending on the scale of operations and the contractor's staffing strategy, this could lead to the creation of new jobs or the expansion of existing IT roles within the region. Furthermore, the presence of a large federal contract can stimulate local economic activity and potentially attract further IT-related businesses and talent to the area.

How does this contract align with the Department of the Interior's broader IT modernization or digital transformation goals?

This contract for IT facilities management directly supports the Department of the Interior's (DOI) foundational IT infrastructure, which is crucial for any modernization or digital transformation efforts. Reliable and efficient IT facilities are the bedrock upon which new technologies and digital services are built. By ensuring the stability and performance of existing data centers and computing resources, this contract enables the DOI to maintain current operations while pursuing strategic upgrades. It allows the agency to focus resources on innovation and transformation, rather than being solely consumed by the day-to-day management of essential IT hardware and environments. The effectiveness of this contract in supporting modernization depends on how well it integrates with and enables the deployment of newer technologies.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 7701 GREENBELT RD STE 400, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,349,079

Exercised Options: $12,678,240

Current Obligation: $12,678,240

Actual Outlays: $10,275,686

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $39,321

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140G0121D0001

IDV Type: IDC

Timeline