DOT awards $37.6M IT support task order to KBR Wyle Services, LLC for on-site services

Contract Overview

Contract Amount: $37,646,532 ($37.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-09-28

End Date: 2021-09-30

Contract Duration: 367 days

Daily Burn Rate: $102.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NEW SOFITS TASK ORDER FOR MANAGEMENT AND ADMINISTRATION AND IT SUPPORT SERVICES. THIS TASK ORDER WILL PROVIDE SOFITS IT SUPPORT SERVICES ON SITE AT THE DOT/VOLPE CENTER IN CAMBRIDGE, MA.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $37.6 million to KBR WYLE SERVICES, LLC for work described as: NEW SOFITS TASK ORDER FOR MANAGEMENT AND ADMINISTRATION AND IT SUPPORT SERVICES. THIS TASK ORDER WILL PROVIDE SOFITS IT SUPPORT SERVICES ON SITE AT THE DOT/VOLPE CENTER IN CAMBRIDGE, MA. Key points: 1. The contract focuses on IT support and management, indicating a need for specialized technical services within the agency. 2. Competition was full and open, suggesting a robust bidding process that should drive competitive pricing. 3. The contract type is Cost Plus Fixed Fee, which can allow for flexibility but requires careful oversight to manage costs. 4. Performance is expected to be on-site at the Volpe Center in Cambridge, MA, implying a localized service delivery model. 5. The duration of the task order is approximately one year, suggesting a need for ongoing, but not long-term, support. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', a broad category. 7. The award amount of $37.6 million over roughly one year warrants scrutiny for value for money.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires diligent monitoring to ensure costs do not escalate beyond the fixed fee. Benchmarking against similar IT support contracts for federal agencies of comparable size and scope would be necessary to fully assess value for money. Given the specific nature of on-site IT support, direct comparisons might be limited, but general IT service rates can provide a baseline. The absence of a specific fixed fee amount within the provided data makes a precise value assessment challenging without further detail on the fee structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This typically suggests a competitive environment where multiple bidders vied for the contract. The number of bidders is not specified, but the 'full and open' designation implies a deliberate effort to maximize competition and potentially achieve better pricing and service offerings.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace, which can lead to lower prices and higher quality services. It ensures that the government is not limited to a single provider, thereby increasing the likelihood of obtaining the best value.

Public Impact

The Department of Transportation (DOT) benefits from enhanced IT support and management services, crucial for its operational efficiency. The services delivered are on-site IT support and administration, directly impacting the functioning of the DOT/Volpe Center. The geographic impact is localized to Cambridge, Massachusetts, where the Volpe Center is located. The contract supports the IT workforce within the Volpe Center, potentially involving contractor personnel working alongside government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if not properly managed, potentially leading to cost overruns.
The specific fixed fee amount is not detailed, making it difficult to assess the contractor's profit margin and overall value.
The duration of approximately one year may not be sufficient for deep institutional knowledge transfer, potentially leading to inefficiencies if the contract is not renewed or transitioned effectively.
The NAICS code 541519 is very broad, making it hard to pinpoint the exact nature of IT services and compare them to specialized benchmarks.
Lack of detail on performance metrics and Service Level Agreements (SLAs) makes it challenging to objectively measure performance and contractor accountability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a reasonable price.
The contract is for essential IT support services, indicating a direct alignment with agency operational needs.
On-site support ensures immediate responsiveness and direct collaboration between contractor and government personnel.
The contractor, KBR Wyle Services, LLC, likely possesses relevant experience in providing IT services to government agencies.
The task order structure allows for specific IT needs to be addressed within a defined scope and timeframe.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract falls under 'Other Computer Related Services,' a broad category that includes IT consulting, system integration, and technical support. Federal spending on IT services consistently ranks among the largest categories of government procurement. Comparable spending benchmarks would involve analyzing other task orders for similar IT support services awarded to various agencies, considering factors like contract type, duration, and the specific services rendered.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside requirement.

Oversight & Accountability

Oversight for this task order would primarily reside with the Department of Transportation's contracting officer and the Immediate Office of the Secretary of Transportation. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the agreed-upon fixed fee and ensure that costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the DOT's Inspector General, depending on the scale and nature of any identified issues.

Related Government Programs

IT Management and Support Services
Other Computer Related Services
Federal IT Procurement
Department of Transportation IT Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
Broad NAICS code may obscure specific service details and comparability.
Limited duration may impact long-term knowledge retention and transition.
No specific performance metrics or SLAs provided in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $37.6 million to KBR WYLE SERVICES, LLC. NEW SOFITS TASK ORDER FOR MANAGEMENT AND ADMINISTRATION AND IT SUPPORT SERVICES. THIS TASK ORDER WILL PROVIDE SOFITS IT SUPPORT SERVICES ON SITE AT THE DOT/VOLPE CENTER IN CAMBRIDGE, MA.

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $37.6 million.

What is the period of performance?

Start: 2020-09-28. End: 2021-09-30.

What is the historical spending pattern for IT support services at the Department of Transportation, particularly at the Volpe Center?

Analyzing historical spending for IT support at the DOT, especially at the Volpe Center, requires access to historical contract databases and agency budget reports. Without specific historical data for this task order's predecessors or similar services at the Volpe Center, it's difficult to establish a precise pattern. However, federal agencies like the DOT consistently allocate significant portions of their budgets to IT infrastructure and support to maintain operational capabilities. Trends often show an increasing reliance on outsourced IT services for specialized functions, driven by the need for advanced technical expertise and cost-efficiency compared to in-house staffing. The $37.6 million awarded here over approximately one year suggests a substantial investment, which, if part of a recurring need, would indicate a significant ongoing expenditure for IT support at the Volpe Center.

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

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, allowing for flexibility. In CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF shifts some cost risk to the government but offers greater adaptability for evolving requirements. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks the built-in incentives for the contractor to control costs beyond the initial agreement, making robust government oversight critical. For IT support services, FFP is often preferred for clearly defined, stable requirements, while CPFF might be chosen for projects involving research, development, or complex integration where precise cost estimation is challenging. The government's choice of CPFF here suggests a need for flexibility in IT support that outweighed the cost certainty of an FFP contract.

What is KBR Wyle Services, LLC's track record with the Department of Transportation and similar IT support contracts?

KBR Wyle Services, LLC, as a large government contractor, likely has a substantial portfolio of past performance across various federal agencies. To assess their specific track record with the Department of Transportation (DOT) and for IT support services, a review of federal procurement databases (like FPDS or SAM.gov) would be necessary. This would reveal previous contracts awarded to KBR Wyle by the DOT, their performance ratings, and the types of services rendered. Similarly, examining their contracts with other agencies for IT management and support would provide insights into their capabilities, reliability, and experience in delivering comparable services. A positive performance history with the DOT or in similar IT support roles would increase confidence in their ability to successfully execute this task order.

What are the potential risks associated with relying on a single task order for comprehensive IT support at the Volpe Center?

Relying on a single task order for comprehensive IT support at the Volpe Center presents several potential risks. Firstly, there's a risk of vendor lock-in, where the agency becomes overly dependent on one contractor, potentially limiting future flexibility and negotiation power. Secondly, if the contractor's performance falters or they face financial instability, it could lead to significant disruptions in critical IT services, impacting the Volpe Center's operations. Thirdly, a single, large task order might not foster continuous innovation or cost optimization as effectively as a more competitive or modular contracting approach. Finally, the CPFF structure, while flexible, requires diligent oversight to prevent cost creep, and inadequate management could lead to the government paying more than necessary for the services received.

How does the $37.6 million award compare to the typical annual IT spending for a federal agency division like the Immediate Office of the Secretary of Transportation?

The $37.6 million award for approximately one year of IT support services represents a significant investment. To contextualize this amount, it needs to be compared against the overall IT budget of the Department of Transportation and, more specifically, the Immediate Office of the Secretary of Transportation (IOTSOT). Federal agencies' IT spending varies widely based on their size, mission complexity, and existing infrastructure. For a specific office like the IOTSOT, this figure could represent a substantial portion of its operational budget, particularly if it covers core IT functions. Without access to the IOTSOT's specific IT budget or benchmarks for similar offices within other large federal agencies, it's challenging to definitively state whether this award is high or low. However, it signals a considerable reliance on external support for IT functions within that office.

Industry Classification

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

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

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: $40,910,775

Exercised Options: $40,910,775

Current Obligation: $37,646,532

Actual Outlays: $37,396,208

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $23,229,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRT5715D30017

IDV Type: IDC

Timeline