DOT awards $10.4M for IT support, with KBR Wyle Services to provide critical safety system services

Contract Overview

Contract Amount: $10,412,348 ($10.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-11-10

End Date: 2026-08-31

Contract Duration: 294 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; SAFETY ASSURANCE SYSTEM (SAS) SUPPORT

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $10.4 million to KBR WYLE SERVICES, LLC for work described as: MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; SAFETY ASSURANCE SYSTEM (SAS) SUPPORT Key points: 1. Contract focuses on essential IT and safety assurance system support, indicating a need for specialized technical expertise. 2. The contract's duration of 294 days suggests a focused scope of work, likely addressing specific system maintenance or upgrades. 3. KBR Wyle Services, LLC, is the awardee, suggesting a reliance on established contractors with demonstrated capabilities in this domain. 4. The contract type is Cost Plus Fixed Fee, which can offer flexibility but requires careful oversight to manage costs effectively. 5. This award falls under the Engineering Services NAICS code (541330), highlighting the technical and analytical nature of the support required. 6. The contract is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle.

Value Assessment

Rating: good

The contract value of $10.4 million for a period of approximately 294 days appears reasonable for specialized IT and safety assurance system support. Benchmarking against similar contracts for mission IT support services would provide a more precise assessment of value for money. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the government by driving down prices and improving service quality.

Public Impact

The Department of Transportation benefits from enhanced IT infrastructure and reliable safety assurance systems, crucial for its operational efficiency. Employees within the Department of Transportation will have access to improved IT tools and support, potentially increasing productivity. The services delivered are critical for maintaining the integrity and functionality of safety-related systems within the agency. The geographic impact is primarily focused on the Department of Transportation's operational centers, wherever these IT services are required.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the work performed.
Reliance on a single awardee for critical IT and safety systems could pose a risk if performance issues arise or if the contractor faces significant challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive environment that should drive value and quality.
The contract is for essential IT and safety assurance support, indicating a critical need that the selected contractor is expected to fulfill effectively.
The contractor, KBR Wyle Services, LLC, likely possesses relevant experience and a track record in providing similar services to government agencies.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on mission-critical support and engineering services. The market for IT support and system assurance within federal agencies is substantial, with agencies continually investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks would involve analyzing other DOT contracts or similar agency procurements for IT support and specialized system maintenance, often falling under categories like professional, scientific, and technical services.

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 specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of Transportation's contracting officers and program managers. Accountability measures will be tied to performance metrics outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Transportation IT Modernization Initiatives
Federal Information Technology Acquisition Reform Act (FITARA) Compliance
Cybersecurity Support Services
Mission Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Criticality of safety assurance systems necessitates robust performance.
Reliance on a single awardee for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.4 million to KBR WYLE SERVICES, LLC. MISSION INFORMATION TECHNOLOGY SUPPORT (MITS) SUPPORT SERVICES; SAFETY ASSURANCE SYSTEM (SAS) 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 $10.4 million.

What is the period of performance?

Start: 2025-11-10. End: 2026-08-31.

What is KBR Wyle Services, LLC's track record with the Department of Transportation and similar federal agencies for IT support and safety systems?

KBR Wyle Services, LLC has a significant history of performing various services for government agencies, including IT support, engineering, and mission-critical operations. While specific details of their past performance with the Department of Transportation (DOT) for this exact type of safety assurance system support are not provided in this data snippet, their extensive experience suggests a strong capability. Analyzing past performance evaluations and contract histories within federal procurement databases (like SAM.gov or FPDS) would offer a more granular view of their success rates, any past issues, and their overall reliability in delivering similar services. Their broad portfolio indicates they are a capable contractor in the federal space.

How does the $10.4 million contract value compare to similar IT support contracts awarded by the DOT or other federal agencies of similar size?

The $10.4 million contract value for approximately 294 days of Mission Information Technology Support (MITS) and Safety Assurance System (SAS) support appears to be within a reasonable range for specialized federal IT services. To provide a precise benchmark, one would need to compare it against contracts with similar scopes of work, durations, and complexity, particularly those awarded by the Department of Transportation or agencies with comparable IT needs. Factors such as the level of security clearance required, the criticality of the systems supported, and the specific technical expertise demanded significantly influence pricing. Without direct comparable data, it's difficult to definitively state if it's high or low, but the competitive award process suggests it was deemed fair market value at the time of award.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for critical IT and safety systems?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for critical IT and safety systems revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within reason). This can lead to potential cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is profitable, especially if unforeseen technical challenges or scope creep occur. Effective oversight, clear definition of work, and robust reporting mechanisms are crucial to mitigate these risks and ensure the government receives good value.

How effective is the 'full and open competition' process likely to be in ensuring the best value for taxpayers on this contract?

The 'full and open competition' process is generally considered the most effective method for ensuring the best value for taxpayers. It allows any responsible source to submit a bid, fostering a competitive environment that drives down prices and encourages innovation. By maximizing the number of potential bidders, the government increases its chances of receiving proposals that offer superior technical solutions at competitive prices. This process inherently promotes price discovery and transparency. While the ultimate value depends on the specific requirements and the quality of proposals received, full and open competition provides the strongest foundation for achieving cost-effectiveness and optimal performance for taxpayer-funded contracts.

What are the potential implications of this contract award on the cybersecurity posture of the Department of Transportation's safety assurance systems?

This contract's focus on Safety Assurance System (SAS) support implies a direct impact on the cybersecurity posture of these critical systems. The contractor, KBR Wyle Services, LLC, will be responsible for maintaining, updating, and potentially enhancing the IT infrastructure that underpins these safety systems. This includes implementing security patches, monitoring for threats, and ensuring compliance with cybersecurity regulations. The effectiveness of their work in these areas will directly influence the resilience of the SAS against cyberattacks. A well-executed contract should strengthen the cybersecurity posture, while any deficiencies could leave these vital systems vulnerable.

Are there any historical spending patterns with KBR Wyle Services, LLC or for similar IT support services at the DOT that this contract aligns with or deviates from?

Without access to historical spending data specific to KBR Wyle Services, LLC's contracts with the Department of Transportation (DOT) for IT support or safety assurance systems, it is difficult to establish precise patterns. However, federal agencies like the DOT typically have ongoing needs for IT support, maintenance, and system upgrades, often resulting in multi-year contracts or task orders under IDIQ vehicles. The award of this $10.4 million delivery order suggests a continued investment in these areas. To identify alignment or deviation, one would need to analyze the total spending on IT support services by the DOT over several fiscal years and compare the value, duration, and scope of this contract against previous awards to KBR Wyle Services, LLC or other contractors performing similar functions.

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: COST PLUS FIXED FEE (U)

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: $13,334,960

Exercised Options: $13,040,491

Current Obligation: $10,412,348

Actual Outlays: $3,439,159

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