DoD's $156M Facilities Support Contract Awarded to KBR WYLE SERVICES, LLC for Sustainment Operations

Contract Overview

Contract Amount: $156,066,073 ($156.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2015-06-24

Contract Duration: 2,095 days

Daily Burn Rate: $74.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REQUIREMENTS THAT CONSIST OF MISSION ESSENTIAL SUPPORT SERVICES FOR FACILITIES, FOLLOW-ON SUSTAINMENT OPERATIONS, AND MAINTENANCE ACTIVITIES ACROSS THE 402ND AFSB SWA AOR.

Plain-Language Summary

Department of Defense obligated $156.1 million to KBR WYLE SERVICES, LLC for work described as: REQUIREMENTS THAT CONSIST OF MISSION ESSENTIAL SUPPORT SERVICES FOR FACILITIES, FOLLOW-ON SUSTAINMENT OPERATIONS, AND MAINTENANCE ACTIVITIES ACROSS THE 402ND AFSB SWA AOR. Key points: 1. Contract focuses on mission-essential support services for facilities, sustainment, and maintenance in a specific operational area. 2. The contract was awarded through full and open competition, suggesting a broad market search. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was utilized, which can incentivize cost control but requires careful oversight. 4. The contract duration of approximately 2095 days (5.7 years) indicates a long-term need for these services. 5. The award value of over $156 million highlights the significant investment in maintaining operational infrastructure. 6. The specific geographic area of operations (402nd AFSB SWA AOR) suggests a focus on deployed or remote facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and the geographic area's operational tempo. However, the duration and total value suggest a substantial commitment. The CPFF structure necessitates rigorous oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their efforts without excessive profit. Comparing this to other large-scale facilities sustainment contracts in similar operational environments would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach is generally favored as it promotes a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests a robust process was followed to solicit proposals from a wide range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services due to market forces driving efficiency and innovation among bidders.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel operating within the 402nd AFSB Southwest Asia Area of Responsibility, who receive essential facility support. Services delivered include sustainment operations and maintenance activities, crucial for the functionality and readiness of military facilities. The geographic impact is concentrated within the specified Southwest Asia operational area, supporting military presence and operations there. Workforce implications include employment opportunities for personnel involved in facilities management, maintenance, and support services, both directly by the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to manage costs and prevent potential overruns, as profit is not directly tied to cost savings.
The long duration of the contract could lead to complacency or reduced urgency if not actively managed and monitored for performance.
The specific operational area (SWA AOR) may present unique logistical and security challenges that could impact service delivery and costs.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price and qualified contractor.
The contract addresses mission-essential services, indicating a critical need that, when met, directly supports operational readiness.
The long-term nature of the contract provides stability for both the government in terms of service continuity and the contractor in terms of business planning.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to facilities management and maintenance. The market for such services is substantial, driven by government and private sector needs for operational infrastructure support. Comparable spending benchmarks would involve analyzing other large-scale, long-term facilities support contracts awarded by the Department of Defense or other federal agencies for deployed or remote operations.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the prime contractor is KBR WYLE SERVICES, LLC, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the services provided.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting command responsible for the 402nd AFSB. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. Transparency would be facilitated through contract reporting requirements and potentially through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering and Maintenance Services
Logistics and Sustainment Contracts
Contingency Support Services
Defense Infrastructure Projects

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Long contract duration may present challenges in adapting to changing requirements or technological advancements.
Operational environment (SWA AOR) may introduce unique risks related to security, logistics, and personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.1 million to KBR WYLE SERVICES, LLC. REQUIREMENTS THAT CONSIST OF MISSION ESSENTIAL SUPPORT SERVICES FOR FACILITIES, FOLLOW-ON SUSTAINMENT OPERATIONS, AND MAINTENANCE ACTIVITIES ACROSS THE 402ND AFSB SWA AOR.

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $156.1 million.

What is the period of performance?

Start: 2009-09-28. End: 2015-06-24.

What is the track record of KBR WYLE SERVICES, LLC in providing similar facilities support services, particularly in challenging operational environments?

KBR WYLE SERVICES, LLC, and its predecessor entities, have a long history of supporting U.S. military operations globally, including extensive experience in facilities sustainment, operations, and maintenance in contingency and operational environments. They have been awarded numerous large-scale contracts for base operations support, construction, and technical services in regions similar to the 402nd AFSB SWA AOR. Their track record generally indicates a capacity to manage complex logistical challenges and deliver essential services under demanding conditions. However, like any large contractor, specific performance reviews and past performance evaluations on individual contracts would provide a more granular understanding of their effectiveness and any historical issues encountered.

How does the $156 million contract value compare to similar facilities sustainment contracts in the Southwest Asia region or other deployed environments?

The $156 million value over approximately 5.7 years for facilities sustainment and maintenance in a deployed operational area like the 402nd AFSB SWA AOR is substantial but not necessarily out of line with the costs associated with supporting military operations in such regions. Costs in these areas are often inflated due to logistical complexities, security requirements, hazardous duty pay for personnel, and the need for robust infrastructure to support operations. To provide a precise comparison, one would need to analyze contracts with similar scopes of work (facilities maintenance, sustainment, operations), durations, and geographic locations, factoring in the specific threat levels and operational tempo. Without such detailed comparative data, it's difficult to definitively benchmark this contract's value against others.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support in a deployed environment, and how are they mitigated?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit is a fixed amount regardless of the actual costs incurred (within allowable limits). This can lead to cost overruns if not managed diligently. In a deployed environment, additional risks include potential delays due to security issues, logistical challenges, unforeseen site conditions, and fluctuations in labor or material costs. Mitigation strategies typically involve robust government oversight, including detailed cost tracking and auditing, regular performance reviews, strict adherence to the contract's scope of work, and clear communication channels. The government must actively manage the contract, ensuring that all costs claimed are reasonable, allocable, and allowable, and that the fixed fee remains appropriate for the services rendered.

What is the expected impact of this contract on the operational readiness and effectiveness of the 402nd AFSB?

This contract is designed to directly enhance the operational readiness and effectiveness of the 402nd AFSB by ensuring that its facilities are properly maintained, sustained, and operational. Reliable facilities are critical for housing personnel, storing equipment, conducting training, and executing missions. By outsourcing these essential support services to a specialized contractor, the AFSB can focus its military personnel on core combat and operational duties, rather than on facility management. Consistent and high-quality maintenance reduces downtime, prevents equipment failures due to poor environmental conditions, and ensures a safe and functional working and living environment, all of which contribute significantly to overall mission accomplishment and force protection.

How has spending on facilities support services by the Department of the Army in the Southwest Asia region evolved over the past decade?

Spending on facilities support services by the Department of the Army in the Southwest Asia region has historically been significant, particularly during periods of heightened military operations. While specific aggregate data for this contract category and region over the past decade is not provided, general trends indicate a substantial and often fluctuating expenditure driven by troop levels, mission requirements, and base consolidation or expansion efforts. Following major operational surges, there is often a sustained need for sustainment and maintenance services as infrastructure ages or requires ongoing upkeep. Budgetary constraints, strategic shifts, and evolving operational postures can influence year-over-year spending. Detailed analysis would require access to historical contract databases and budget allocations for the specific region and service category.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $156,066,073

Exercised Options: $156,066,073

Current Obligation: $156,066,073

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911SE07D0014

IDV Type: IDC

Timeline