GSA Awards $260M TENCAP HOPE Contract to KBR Wyle for Custom Computer Programming
Contract Overview
Contract Amount: $259,687,554 ($259.7M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: General Services Administration
Start Date: 2020-11-25
End Date: 2024-11-24
Contract Duration: 1,460 days
Daily Burn Rate: $177.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: TENCAP HOPE AWARD.
Place of Performance
Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $259.7 million to KBR WYLE SERVICES, LLC for work described as: TENCAP HOPE AWARD. Key points: 1. Significant contract value of $260M for custom computer programming services. 2. KBR Wyle Services, LLC is the sole awardee. 3. Contract duration extends to November 2024. 4. Fixed Price with Economic Price Adjustment (FPEPA) pricing structure. 5. Awarded under the Federal Acquisition Service.
Value Assessment
Rating: good
The contract's fixed-price structure with economic price adjustments aims to control costs while accounting for market fluctuations. Benchmarking against similar custom programming contracts is necessary to confirm value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the specific award mechanism (Delivery Order) warrants review to ensure competitive fairness.
Taxpayer Impact: Taxpayer funds are being utilized for essential custom computer programming services, with competition aiming for cost-effectiveness.
Public Impact
Supports critical government IT infrastructure and custom software development. Potential for long-term IT service reliance on a single vendor. Economic price adjustments could impact final cost to taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to economic price adjustments.
- Limited visibility into specific task orders and their execution.
- Reliance on a single vendor for critical programming services.
Positive Signals
- Awarded through full and open competition.
- Contract duration provides stability for IT services.
- Fixed-price elements offer some cost predictability.
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, a critical area for government IT modernization. Spending benchmarks for similar services vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis is needed to determine if small business subcontracting opportunities were pursued or mandated.
Oversight & Accountability
Oversight will be crucial to monitor the execution of task orders and manage the economic price adjustment clauses to ensure fair pricing and prevent cost creep.
Related Government Programs
- Custom Computer Programming Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Single vendor reliance.
- Limited transparency on specific task orders.
- No small business awardee.
Tags
custom-computer-programming-services, general-services-administration, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $259.7 million to KBR WYLE SERVICES, LLC. TENCAP HOPE AWARD.
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 $259.7 million.
What is the period of performance?
Start: 2020-11-25. End: 2024-11-24.
How does the pricing structure, particularly the economic price adjustment, compare to industry standards for similar custom programming services?
The Fixed Price with Economic Price Adjustment (FPEPA) structure is common for long-term IT contracts to account for inflation and material cost changes. However, the specific adjustment formula and historical data are key to assessing its fairness. Benchmarking against contracts with similar durations and service scopes would reveal if the adjustment mechanism is reasonable or potentially inflates costs beyond market norms.
What are the specific risks associated with relying on KBR Wyle Services, LLC for custom computer programming over the contract's duration?
Key risks include vendor lock-in, potential for decreased innovation if competition is stifled post-award, and the possibility of cost escalation through the economic price adjustment clause. If the vendor faces financial instability or operational challenges, it could disrupt critical government IT functions. Ensuring robust performance metrics and clear exit strategies are vital mitigation steps.
How effectively does this contract support the government's overall IT modernization goals and ensure the delivery of high-quality custom software?
The effectiveness hinges on the specific requirements outlined in the task orders and KBR Wyle's ability to meet them. While the contract provides a framework for acquiring custom programming, its success in modernization depends on clear objectives, agile development practices, and rigorous quality assurance. Regular performance reviews and user feedback are essential to gauge its contribution to IT goals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA19R041
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 22309 EXPLORATION DRIVE, 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: $538,811,936
Exercised Options: $538,811,936
Current Obligation: $259,687,554
Actual Outlays: $-519,378
Subaward Activity
Number of Subawards: 164
Total Subaward Amount: $184,517,392
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F553AA
IDV Type: FSS
Timeline
Start Date: 2020-11-25
Current End Date: 2024-11-24
Potential End Date: 2025-11-24 00:00:00
Last Modified: 2024-09-30
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