GSA awards $237.9M for NAVAIR Cyber Security, with KBR Wyle Services as prime contractor

Contract Overview

Contract Amount: $237,917,093 ($237.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: General Services Administration

Start Date: 2019-12-19

End Date: 2025-03-29

Contract Duration: 1,927 days

Daily Burn Rate: $123.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NAVAIR CYBER SECURITY ENTERPRISE SERVICES AND INFRASTRUCTURE

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $237.9 million to KBR WYLE SERVICES, LLC for work described as: NAVAIR CYBER SECURITY ENTERPRISE SERVICES AND INFRASTRUCTURE Key points: 1. Contract value represents a significant investment in cyber defense capabilities. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Performance period extends over multiple years, indicating a long-term need for these services. 4. The use of Time and Materials pricing may present cost control challenges. 5. The contract is managed by GSA, leveraging a central procurement authority. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: fair

The total contract value of $237.9 million over its period of performance is substantial. Benchmarking this against similar large-scale cyber security enterprise services contracts is challenging without more granular data on the specific services provided. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely managed, potentially impacting overall value for money. The contract's duration suggests a sustained need, but the T&M nature warrants careful monitoring of labor hours and rates to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders in such a competitive environment generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the designation implies a healthy level of market interest and engagement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can drive down prices and encourage innovation, ultimately leading to better value for public funds.

Public Impact

The primary beneficiaries are the Naval Air Systems Command (NAVAIR) and the Department of Defense, receiving enhanced cyber security services and infrastructure. The contract supports the delivery of critical cyber security services essential for protecting military networks and data. The contract is geographically focused in Maryland, suggesting a concentration of cyber security operations in that region. It likely supports a workforce of skilled cyber security professionals, contributing to the specialized labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost escalation if not rigorously managed, potentially exceeding budgeted amounts.
The long performance period increases the risk of scope creep or evolving cyber threats not adequately addressed by the initial contract.
Lack of specific performance metrics or outcome-based measures makes it difficult to assess the true effectiveness and value delivered.
Reliance on a single prime contractor for enterprise-wide cyber security services could create vendor lock-in and limit future flexibility.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
The contract addresses a critical national security need for robust cyber security, aligning with government priorities.
The long duration suggests a stable, long-term partnership that can foster deep expertise and efficient service delivery.
Managed by GSA, leveraging established procurement processes and oversight capabilities.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration for cyber security. The market for cyber security services is substantial and rapidly growing, driven by increasing digital threats and the need for robust defense across all government agencies. Comparable spending benchmarks would typically involve analyzing other large-scale, multi-year cyber security support contracts awarded to prime integrators within the federal government, particularly those supporting defense-related entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business entity. Consequently, the direct impact on small business set-asides is minimal. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing indirectly to the small business ecosystem. The extent of small business subcontracting would need further investigation.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) as the contracting agency, in conjunction with the Naval Air Systems Command (NAVAIR) as the end-user. Mechanisms would typically include regular performance reviews, audits of billing and labor hours (especially given the T&M structure), and adherence to contractual milestones. Transparency is generally facilitated through contract award databases, but detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

Cyber Security Services
IT Enterprise Services
Defense IT Support
Naval Air Systems Command Contracts
GSA IT Schedule Contracts
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of vendor lock-in with a single prime contractor.
Need for robust contract administration to monitor labor hours and rates.
Evolving cyber threat landscape may outpace contract scope.
Dependence on contractor's ability to maintain cutting-edge cyber capabilities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $237.9 million to KBR WYLE SERVICES, LLC. NAVAIR CYBER SECURITY ENTERPRISE SERVICES AND INFRASTRUCTURE

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $237.9 million.

What is the period of performance?

Start: 2019-12-19. End: 2025-03-29.

What is the track record of KBR WYLE SERVICES, LLC in delivering similar cyber security enterprise services to the federal government?

KBR WYLE SERVICES, LLC, has a significant history of performing large-scale government contracts, including those related to defense, aerospace, and technical services. While specific details on their cyber security enterprise service delivery for NAVAIR under this particular contract require ongoing monitoring, their broader portfolio suggests experience in complex IT and engineering support. Analyzing past performance on similar contracts, including any reported issues or successes, would provide a clearer picture of their capabilities and reliability in this domain. Government contract databases and past performance reviews are key resources for this assessment.

How does the awarded value compare to similar cyber security contracts for defense agencies?

The $237.9 million award for NAVAIR cyber security services is substantial, reflecting the critical nature and scope of cyber defense for a major military branch. Comparing this value requires identifying contracts with similar objectives, such as enterprise-wide security operations, infrastructure support, and advanced threat detection for large defense organizations. Contracts awarded through full and open competition for comparable services often range in the hundreds of millions of dollars over multi-year periods. Factors like the specific technologies employed, the level of threat intelligence, and the breadth of services (e.g., R&D, implementation, ongoing operations) influence the total value. Without precise service breakdowns, direct comparisons are indicative rather than definitive.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to budget uncertainty and potentially higher overall costs if the scope of work expands, labor hours are not efficiently managed, or material costs increase unexpectedly. For the government, effective oversight is crucial to ensure that hours are necessary and reasonable, and that rates are competitive. This structure places a greater burden on contract administration to monitor expenditures closely and prevent cost overruns.

How effective are GSA's oversight mechanisms in managing large IT service contracts like this one?

GSA's oversight mechanisms for large IT service contracts are generally robust, leveraging established procurement regulations and contract administration best practices. They typically involve contract officers, technical monitors, and financial analysts who review performance reports, invoices, and compliance documentation. For T&M contracts, rigorous monitoring of labor hours and rates is paramount. GSA's experience with a wide range of federal agencies and contract types provides a foundation for oversight. However, the effectiveness can vary depending on the specific team assigned, the complexity of the services, and the level of detail provided by the contractor. Continuous assessment and adaptation of oversight strategies are key to mitigating risks.

What is the historical spending trend for cyber security services within NAVAIR or similar defense entities?

Historical spending on cyber security services within NAVAIR and similar defense entities has shown a consistent upward trend over the past decade. This is driven by the escalating sophistication of cyber threats, the increasing reliance on digital systems for mission-critical operations, and evolving regulatory requirements. Budgets allocated to cyber defense have grown significantly as agencies prioritize protecting sensitive data and maintaining operational integrity. Analyzing specific NAVAIR budget allocations or broader DoD cyber security spending reports would reveal multi-year trends, highlighting the sustained and increasing investment in this critical capability area.

What are the implications of awarding a large cyber security contract to a single prime contractor for future flexibility?

Awarding a large cyber security contract to a single prime contractor can create vendor lock-in, potentially limiting future flexibility and innovation. This occurs when the contractor develops proprietary systems or deep integration that makes switching providers difficult and costly. While a single prime can offer streamlined management and potentially economies of scale, it reduces the government's ability to easily adopt new technologies or approaches from competing vendors. This necessitates careful contract structuring to include provisions for technology refresh, data portability, and clear exit strategies to mitigate long-term inflexibility.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID10190008

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $275,840,128

Exercised Options: $275,840,128

Current Obligation: $237,917,093

Subaward Activity

Number of Subawards: 198

Total Subaward Amount: $170,120,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0033

IDV Type: GWAC

Timeline