DOT awards $3.7M for IT support, with KBR Wyle Services securing a delivery order under a larger contract

Contract Overview

Contract Amount: $3,719,217 ($3.7M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-09-09

End Date: 2026-09-30

Contract Duration: 751 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; A/I AND ITD PROGRAM SUPPORT

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $3.7 million to KBR WYLE SERVICES, LLC for work described as: MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; A/I AND ITD PROGRAM SUPPORT Key points: 1. Contract focuses on critical IT and AI program support, indicating a need for specialized technical expertise. 2. The award is a delivery order, suggesting it's part of a broader indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Pricing is time-and-materials, which can pose cost control challenges if not closely managed. 4. The contract duration of approximately 2 years suggests a need for ongoing, but not long-term, support. 5. The specific NAICS code (541330) points to engineering services, though the description emphasizes IT and AI. 6. No small business set-aside was utilized, indicating the competition was open to all eligible offerors.

Value Assessment

Rating: fair

The contract value of $3.7 million over roughly two years for IT and AI program support appears moderate. Without knowing the specific scope of services and the underlying IDIQ contract's pricing structure, a direct value-for-money assessment is difficult. However, time-and-materials contracts can sometimes lead to higher costs if not managed diligently, as they are directly tied to labor hours and material usage. Benchmarking against similar IT support contracts within the federal government would be necessary for a more precise evaluation of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple companies had the opportunity to bid. The fact that it is a delivery order implies it was placed against an existing IDIQ contract that itself was competed. The level of competition for the underlying IDIQ would determine the extent of price discovery. For this specific delivery order, the competition details are not provided, but the initial award mechanism suggests a competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, potentially leading to better value and service quality.

Public Impact

The Immediate Office of the Secretary of Transportation (OST) is the primary beneficiary, receiving essential IT and AI program support. Services delivered are crucial for the operational efficiency and modernization of the Department of Transportation's IT infrastructure and AI initiatives. The geographic impact is primarily within the Department of Transportation's operational sphere, likely supporting headquarters and potentially broader agency functions. Workforce implications include the potential for specialized IT and AI professionals to be engaged through KBR Wyle Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing structure requires rigorous oversight to prevent cost overruns.
The description 'Engineering Services' for NAICS 541330 may not fully capture the IT and AI focus, potentially leading to misclassification or scope creep.
Dependence on a single delivery order against a larger IDIQ could concentrate risk if the prime IDIQ contract has issues.
Limited information on the specific deliverables makes it hard to assess performance metrics and potential risks.
The contract's success hinges on the effective management of the underlying IDIQ vehicle and the specific task orders issued.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
KBR Wyle Services, LLC is an established contractor with a significant federal presence.
The contract supports critical IT and AI programs, aligning with government modernization efforts.
The delivery order mechanism allows for flexibility in tasking and resource allocation.
The contract duration provides a stable period for service delivery and program development.

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 within the broader category of professional, scientific, and technical services, specifically engineering services (NAICS 541330), but with a clear emphasis on IT and AI program support. Federal spending on IT services consistently ranks among the largest categories of government expenditure. This contract, valued at $3.7 million, represents a small fraction of the overall federal IT budget but is significant for the specific programs it supports within the Department of Transportation.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting requirements explicitly detailed in the provided data. The prime contractor, KBR Wyle Services, LLC, is a large business. Therefore, this specific award does not directly contribute to small business prime contracting goals. However, as a large IDIQ holder, KBR Wyle may engage small businesses as subcontractors, which would be detailed in their subcontracting plan for the overall IDIQ contract, not necessarily this specific delivery order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. As a delivery order under an IDIQ, the underlying contract likely has established oversight mechanisms. The time-and-materials (T&M) nature of the award necessitates close monitoring of labor hours and material costs to ensure compliance with the contract terms and prevent overspending. Transparency would be enhanced through contract reporting systems like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Transportation IT Modernization Programs
Federal AI Initiatives
IT Program Management Support Services
Engineering Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Potential for cost overruns due to T&M pricing.
Scope definition clarity for IT/AI support under Engineering Services NAICS.
Dependence on the performance of the parent IDIQ contract.
Need for robust oversight of labor hours and material costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.7 million to KBR WYLE SERVICES, LLC. MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; A/I AND ITD PROGRAM SUPPORT

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 $3.7 million.

What is the period of performance?

Start: 2024-09-09. End: 2026-09-30.

What is the track record of KBR Wyle Services, LLC in delivering IT and AI support services to the federal government?

KBR Wyle Services, LLC, is a significant federal contractor with a broad portfolio of services, including IT, engineering, and logistics support. They have a history of performing complex technical services for various agencies, including the Department of Defense and NASA. Their experience in IT support often involves system integration, cybersecurity, and program management. For AI support, their capabilities would likely leverage their engineering and data science expertise. A review of their past performance on similar contracts, particularly those involving IT modernization and AI program support within civilian agencies, would provide a clearer picture of their capabilities and reliability in this specific domain. Their extensive federal contracting history suggests a capacity to manage large and complex programs, but specific performance on AI-related tasks would require deeper investigation.

How does the $3.7 million value compare to similar IT support contracts awarded by the Department of Transportation or other agencies?

The $3.7 million value for approximately 2.5 years of IT and AI program support is a moderate award size within the federal IT services landscape. Many federal IT contracts, especially those involving large-scale system modernization, cloud migration, or cybersecurity, can range from tens to hundreds of millions of dollars. However, for specific program support or specialized technical assistance within an office, this value is not unusual. Comparing it to similar 'Immediate Office of the Secretary' support contracts or specific AI program enablement efforts across agencies like GSA or DHS would provide better context. The time-and-materials (T&M) pricing structure also means the final cost could fluctuate based on actual hours worked, making direct comparisons challenging without knowing the labor rates and estimated hours.

What are the primary risks associated with a time-and-materials (T&M) contract for IT support services?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts obligate the government to pay for all direct labor hours at specified hourly rates and for the cost of materials used or consumed. This structure can incentivize contractors to extend project timelines or increase labor hours if there isn't strong oversight. For IT support, risks include scope creep where requirements expand without formal change orders, inefficient task execution, or the use of higher-than-necessary labor categories. To mitigate these risks, the government must implement robust oversight, closely monitor labor hours and resource allocation, establish clear performance metrics, and ensure that the contract includes appropriate ceiling prices and CLIN structures to control overall expenditure.

How does the NAICS code 541330 (Engineering Services) align with the described IT and AI program support services?

The classification under NAICS code 541330, 'Engineering Services,' for a contract described as 'MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; A/I AND ITD PROGRAM SUPPORT,' presents a potential misalignment or a broad interpretation of engineering. While engineering services can encompass aspects of system design, integration, and technical consulting that are relevant to IT and AI, the primary focus described leans heavily towards IT operations, AI development, and program management. Typically, IT services fall under NAICS codes like 541511 (Custom Computer Programming Services), 541512 (Computer Systems Design Services), or 541519 (Other Computer Related Services). The use of 541330 might indicate that the contract involves significant systems engineering, architectural design, or technical consulting related to the IT and AI programs, rather than purely operational IT support or software development. This could also be a legacy classification or chosen to fit within a specific IDIQ vehicle's structure.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract being a 'Delivery Order' signifies that it is a task-specific order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The IDIQ contract itself would have undergone a competitive bidding process, establishing terms, conditions, and pricing structures (like labor rates for T&M). The delivery order then allows the agency (DOT) to procure specific services or supplies up to a certain ceiling amount within the scope of the IDIQ. This approach offers flexibility and efficiency, as the foundational contract is already in place. However, the overall value and performance of the services ultimately depend on the quality of the original IDIQ competition and the specific tasking and oversight applied to each delivery order. It also means that the contractor, KBR Wyle Services, LLC, was likely selected for the broader IDIQ based on their overall capabilities and pricing.

What is the historical spending pattern for IT support services within the Department of Transportation's Immediate Office of the Secretary?

Analyzing historical spending patterns for IT support within the DOT's Immediate Office of the Secretary (OST) would require access to historical contract data, likely through databases like FPDS-NG. Without direct access to this data, it's difficult to provide specific figures. However, federal agencies, including DOT, consistently allocate significant portions of their budgets to IT operations, maintenance, and modernization. The OST, as the central administrative and policy-making body, would require robust IT infrastructure and support to function effectively. Spending on IT support can fluctuate based on major system upgrades, cybersecurity initiatives, or the adoption of new technologies like AI. The $3.7 million award for this delivery order suggests a sustained need for such support, and comparing this amount to previous years' spending on similar services would indicate whether IT support costs are increasing, decreasing, or remaining stable within the OST.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 8120 MAPLE LAWN BLVD, FULTON, MD, 20759

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: $5,110,146

Exercised Options: $4,548,123

Current Obligation: $3,719,217

Actual Outlays: $2,729,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6913G621D300001

IDV Type: IDC

Timeline