DOI's $3.15M Task Order for IT Services to KBR WYLE SERVICES, LLC awarded under full and open competition

Contract Overview

Contract Amount: $3,148,821 ($3.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-01-11

End Date: 2026-06-01

Contract Duration: 506 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 70313222 ISAB023 DOB050 TSSC TASK ORDER 131 - LANDFIRE

Place of Performance

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

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $3.1 million to KBR WYLE SERVICES, LLC for work described as: 70313222 ISAB023 DOB050 TSSC TASK ORDER 131 - LANDFIRE Key points: 1. Contract awarded to KBR WYLE SERVICES, LLC for IT services. 2. Task order is for Computer Facilities Management Services. 3. Contract duration is 506 days. 4. Awarded under a Delivery Order mechanism. 5. The contract type is Cost Plus Fixed Fee. 6. The contract was competed using Full and Open Competition. 7. The contract is for services in South Dakota.

Value Assessment

Rating: fair

The awarded amount of $3.15 million for 506 days of IT services appears to be within a reasonable range for similar federal contracts, though specific benchmarking is difficult without more granular service details. The Cost Plus Fixed Fee structure allows for flexibility but can sometimes lead to higher costs if not managed tightly. Further analysis of the contractor's past performance and the specific deliverables will be crucial to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The use of full and open competition suggests a robust market for these services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, which can drive down costs and improve service quality.

Public Impact

The U.S. Geological Survey (USGS) will benefit from enhanced IT services. Services include computer facilities management, crucial for operational continuity. The contract has a geographic impact in South Dakota. The contract supports IT infrastructure and potentially the workforce managing it.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the true competitive pressure.
The specific nature of 'Computer Facilities Management Services' is broad and could encompass a wide range of costs.

Positive Signals

Awarded under a full and open competition, suggesting a competitive bidding process.
The task order is for a defined period, allowing for periodic re-evaluation of needs.
The contract is with a known entity, KBR WYLE SERVICES, LLC, which may have established performance history.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facilities management. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This task order represents a specific instance of the government procuring essential IT support services, aligning with broader trends of digital transformation and operational resilience within federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or mandated small business set-aside benefits associated with this particular award. The prime contractor, KBR WYLE SERVICES, LLC, is likely a large business, and their subcontracting plans, if any, would be governed by broader federal acquisition regulations.

Oversight & Accountability

Oversight for this contract will primarily fall under the U.S. Geological Survey (USGS) within the Department of the Interior. As a delivery order under a larger contract vehicle, the terms and conditions of the base contract will apply. Accountability will be managed through performance monitoring, delivery schedules, and adherence to the Cost Plus Fixed Fee structure. Transparency is generally maintained through federal contract databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

IT Infrastructure Management Services
Computer Systems Design Services
Federal IT Support Contracts
Department of the Interior IT Spending
USGS Operational Support

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not properly managed.
Limited information on the number of bidders impacts assessment of competitive pressure.
Specific details of 'Computer Facilities Management Services' are not provided, making value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.1 million to KBR WYLE SERVICES, LLC. 70313222 ISAB023 DOB050 TSSC TASK ORDER 131 - LANDFIRE

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 $3.1 million.

What is the period of performance?

Start: 2025-01-11. End: 2026-06-01.

What is the track record of KBR WYLE SERVICES, LLC in delivering similar IT facilities management services to the federal government?

KBR WYLE SERVICES, LLC has a significant history of performing various services for the federal government, including IT support and facilities management. While specific performance data for this exact type of task order is not detailed in the provided information, the company's extensive experience suggests a capacity to handle complex IT requirements. A deeper dive into their past performance ratings on similar contracts, particularly those with the Department of the Interior or U.S. Geological Survey, would provide a clearer picture of their reliability and effectiveness in delivering computer facilities management services. Reviewing contract close-out reports and any documented performance issues or commendations would be essential for a comprehensive assessment.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility for both the government and the contractor. For IT facilities management, this can be advantageous if unforeseen technical challenges arise. However, compared to fixed-price contracts, CPFF can carry a higher risk of cost overruns if the contractor's costs exceed projections, even though the fee is fixed. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty for the government but less flexibility for the contractor. Time and Materials (T&M) contracts are generally used for smaller efforts or when the level of effort is highly uncertain. The choice of CPFF suggests that the government prioritized flexibility and the contractor's ability to manage evolving technical needs over strict cost predictability at the outset.

What are the key performance indicators (KPIs) likely being used to measure the success of this task order?

Key performance indicators (KPIs) for this task order would likely focus on the reliability, availability, and performance of the managed computer facilities. This could include metrics such as system uptime percentages, response times for issue resolution, successful completion of scheduled maintenance, adherence to security protocols, and user satisfaction. For computer facilities management, KPIs might also encompass the efficiency of resource utilization (e.g., server capacity, network bandwidth) and the effectiveness of disaster recovery and business continuity plans. The Cost Plus Fixed Fee structure necessitates clear performance standards to ensure the contractor is delivering value and meeting the government's operational requirements within the agreed-upon cost parameters.

What is the historical spending trend for Computer Facilities Management Services by the U.S. Geological Survey?

Analyzing historical spending trends for Computer Facilities Management Services by the U.S. Geological Survey (USGS) is crucial for contextualizing this $3.15 million task order. While specific historical data is not provided, federal agencies like the USGS typically have ongoing needs for IT infrastructure support. Spending in this category can fluctuate based on modernization initiatives, hardware lifecycle replacements, and changes in operational requirements. A review of previous years' budgets and contract awards for similar services would reveal whether this award represents an increase, decrease, or stable level of investment. Understanding these trends can help assess if the current spending is consistent with past patterns or indicative of a new strategic direction or emerging need within the USGS.

What are the potential risks associated with a Cost Plus Fixed Fee contract for IT services in a remote location like South Dakota?

A Cost Plus Fixed Fee (CPFF) contract for IT services, especially in a location like South Dakota which might have fewer readily available specialized IT personnel compared to major metropolitan areas, presents specific risks. One primary risk is the potential for increased labor costs if the contractor faces challenges in recruiting and retaining qualified staff, leading to higher hourly rates or extended project timelines. Another risk is the contractor's incentive to manage costs efficiently; while the fee is fixed, the 'cost' portion can still escalate if oversight is lax. Furthermore, the 'fixed fee' component might not adequately compensate the contractor for unforeseen complexities or scope creep if not managed through formal change orders, potentially leading to disputes or reduced contractor motivation. Effective government oversight and clear definition of 'allowable costs' are paramount to mitigate these risks.

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: $3,328,299

Exercised Options: $3,148,821

Current Obligation: $3,148,821

Actual Outlays: $2,185,800

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