Interior's USGS awards $8.5M contract for IT facilities management to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $8,552,439 ($8.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-07-11

End Date: 2026-06-01

Contract Duration: 690 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 70292205 DCS069 TSSC NEW TO122 DPAS

Place of Performance

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

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $8.6 million to KBR WYLE SERVICES, LLC for work described as: 70292205 DCS069 TSSC NEW TO122 DPAS Key points: 1. Contract value of $8.5M over approximately two years suggests a moderate investment in IT infrastructure support. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The contract type (Cost Plus Fixed Fee) requires careful monitoring of costs to ensure value. 4. Performance is located in South Dakota, potentially impacting local IT workforce and service availability. 5. The NAICS code 541513 points to a focus on computer facilities management, a critical IT support function. 6. The award to KBR Wyle Services, LLC, a known entity in government contracting, provides some level of performance predictability.

Value Assessment

Rating: good

The contract value of $8.5 million for approximately two years of IT facilities management services appears reasonable given the scope. Benchmarking against similar contracts for computer facilities management services is challenging without more specific details on the exact services provided and the scale of the facilities managed. However, the fixed fee component within the Cost Plus Fixed Fee structure provides some cost control, though the cost-reimbursement aspect necessitates diligent oversight to prevent cost overruns and ensure efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Interior sought bids from all responsible sources. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition implies confidence that a sufficient number of qualified vendors exist in the market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value by encouraging a wide range of providers to submit proposals, driving down costs through market forces.

Public Impact

The U.S. Geological Survey (USGS) will benefit from enhanced IT facilities management, ensuring the stability and performance of critical data infrastructure. Services delivered include the management and maintenance of computer facilities, crucial for scientific research and data dissemination. The geographic impact is primarily focused on South Dakota, where the facilities are located, potentially supporting local employment in IT roles. Workforce implications may include the need for skilled IT professionals in the South Dakota region to support the contract's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
Reliance on a single contractor for critical IT facilities management could pose a risk if performance issues arise.
The duration of the contract (approx. 2 years) may limit long-term strategic planning for IT infrastructure upgrades.

Positive Signals

Awarding under full and open competition suggests a robust vetting process and potential for competitive pricing.
KBR Wyle Services, LLC has a track record in government contracting, implying familiarity with federal requirements.
The specific NAICS code indicates a focused service requirement, allowing for specialized expertise.

Sector Analysis

The IT facilities management sector is a critical component of the broader IT services industry, supporting the operational backbone of government agencies. This contract falls within the realm of IT infrastructure and operations support, a market characterized by both large established players and specialized service providers. Spending in this area is consistent with the government's ongoing need to maintain and upgrade its technological capabilities to support diverse missions. Comparable spending benchmarks would typically be assessed against the size and complexity of the facilities managed and the specific services required.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large, established contractor like KBR Wyle Services, LLC suggests that the primary focus was on securing specialized capabilities rather than promoting small business participation through this specific award. This may mean limited direct opportunities for small businesses on this particular contract, though they may participate in the broader IT services market.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Geological Survey's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Geographic concentration may pose logistical or talent acquisition challenges.
Performance monitoring is crucial for ensuring service delivery quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.6 million to KBR WYLE SERVICES, LLC. 70292205 DCS069 TSSC NEW TO122 DPAS

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 $8.6 million.

What is the period of performance?

Start: 2024-07-11. End: 2026-06-01.

What is the historical spending pattern of the Department of the Interior, specifically the U.S. Geological Survey, on IT facilities management services?

Analyzing historical spending patterns for IT facilities management by the Department of the Interior and the U.S. Geological Survey (USGS) is crucial for understanding the context of this $8.5 million award. While specific historical data for this exact service category is not provided in the abbreviated data, federal spending databases often reveal trends in IT infrastructure support. Agencies typically allocate significant portions of their budgets to maintaining and upgrading IT systems, including data centers, networks, and computing facilities. The USGS, being a science-focused agency, relies heavily on robust IT infrastructure for data collection, processing, and analysis. Therefore, consistent or increasing investment in IT facilities management would be expected. A review of past contracts for similar services, including their values and durations, would help determine if this award represents a typical investment, an increase, or a decrease in spending for this function. Understanding these patterns can highlight potential shifts in agency priorities or technological needs.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry standards for similar IT facilities management services?

The Cost Plus Fixed Fee (CPFF) pricing structure for this IT facilities management contract involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee. This structure is often used when the scope of work is not precisely defined or when there is a degree of uncertainty in the costs. For IT facilities management, CPFF can be appropriate for services like ongoing maintenance, support, and minor upgrades where the exact effort may fluctuate. Compared to industry standards, CPFF is a common, albeit complex, contract type in government contracting. Fixed-price contracts might be preferred for well-defined, routine services to provide greater cost certainty for the government. However, if the services involve research, development, or highly variable operational needs, CPFF can offer flexibility. The 'fixed fee' component aims to incentivize efficiency by ensuring the contractor's profit is not directly tied to the total cost incurred, unlike a Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) structure. Effective oversight is paramount to ensure costs are reasonable and allocable.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical for ensuring the successful delivery of IT facilities management services under this contract. While not detailed in the provided data, typical KPIs for such services might include system uptime percentages, response times for incident resolution, patch management compliance rates, data center temperature and humidity stability, and security vulnerability remediation timelines. SLAs would define the specific targets for these KPIs, along with remedies or penalties for non-performance. Monitoring these KPIs and SLAs is usually conducted through regular performance reviews, automated system monitoring tools, and contractor-submitted performance reports. The Contracting Officer's Representative (COR) plays a vital role in overseeing contractor performance against these metrics. The effectiveness of the oversight mechanism directly impacts the value received by the government and the reliability of the IT infrastructure managed.

What is the track record of KBR Wyle Services, LLC in delivering similar IT facilities management services to federal agencies?

KBR Wyle Services, LLC has a significant presence in the federal contracting space, often undertaking complex engineering, scientific, and technical support services. Their track record in delivering IT facilities management services to federal agencies would need to be assessed through contract performance reports, past performance evaluations, and any available debriefings from previous solicitations. Companies like KBR often have divisions or subsidiaries specializing in IT operations and infrastructure support. A thorough review would involve examining their history with similar contracts, including their ability to meet performance requirements, manage costs effectively, and adhere to security protocols. Past performance is a critical evaluation factor in federal procurements, and agencies typically rely on data from the Contractor Performance Assessment Reporting System (CPARS) and other sources to gauge a contractor's reliability and capability. KBR's established position suggests a level of experience, but specific performance on IT facilities management contracts would require detailed investigation.

What are the potential risks associated with the geographic concentration of this contract in South Dakota?

The geographic concentration of this IT facilities management contract in South Dakota presents several potential risks. Firstly, it could limit the pool of readily available local talent with the specific IT skills required, potentially leading to higher labor costs or reliance on remote support, which may not be ideal for all facilities management tasks. Secondly, in the event of unforeseen local disruptions (e.g., natural disasters, severe weather), the ability to maintain critical IT operations could be compromised if contingency plans are not robust. Thirdly, if the contractor faces challenges in recruiting or retaining staff in that specific location, it could impact service delivery continuity and quality. While a South Dakota location might offer cost advantages in some respects, the agency must ensure that the contractor has comprehensive plans to mitigate these geographic-specific risks, including robust business continuity and disaster recovery strategies, and effective local recruitment and retention programs.

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: Brown & Root Industrial Services Holdings, LLC

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: $8,626,602

Exercised Options: $8,552,439

Current Obligation: $8,552,439

Actual Outlays: $6,154,137

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $178,168

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