Wyle Information Systems awarded $11.1M for RTS contract support, raising value-for-money questions

Contract Overview

Contract Amount: $11,116,165 ($11.1M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2007-09-13

End Date: 2008-03-31

Contract Duration: 200 days

Daily Burn Rate: $55.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DESCRIPTION: TSG PROGRAM SUPPORT FOR THREE MONTHS OF EFFORT UNDER THE RTS CONTRACT FOR PERIOD 9/10/2007-3/31/08. DTFAWA-03-D-03000. [TID: 24528]

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $11.1 million to WYLE INFORMATION SYSTEMS, LLC for work described as: DESCRIPTION: TSG PROGRAM SUPPORT FOR THREE MONTHS OF EFFORT UNDER THE RTS CONTRACT FOR PERIOD 9/10/2007-3/31/08. DTFAWA-03-D-03000. [TID: 24528] Key points: 1. Contract value appears high relative to the short duration, suggesting potential overpricing or scope creep. 2. Limited competition dynamics are not detailed, but the award type suggests a broad search. 3. Risk indicators are not explicitly stated but warrant scrutiny given the cost and duration. 4. Performance context is minimal, focusing on a three-month effort under a larger contract. 5. Sector positioning is within IT services, specifically telecommunications support. 6. The contract's value of over $11 million for a six-month period warrants a closer look at efficiency.

Value Assessment

Rating: questionable

The contract's total value of $11.1 million for a six-month period (September 2007 to March 2008) appears high. Without detailed task breakdowns or performance metrics, it's difficult to benchmark the value for money. The average monthly cost exceeds $1.8 million, which seems substantial for 'program support' in the telecommunications sector. Further analysis is needed to compare this to similar contracts for IT support services during that period.

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 bids. However, the number of bidders is not specified, nor is the extent of outreach. A high level of competition typically drives down prices, but without knowing the number of bids received, it's hard to definitively assess the impact on price discovery for this specific contract.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate benefit depends on the effectiveness of the bidding process and the final negotiated price.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by receiving program support services. The services provided are related to the RTS contract, likely involving IT or telecommunications infrastructure. The geographic impact is primarily within Virginia, where Wyle Information Systems is located. Workforce implications include employment for individuals working on the RTS contract through Wyle Information Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a short duration may indicate inefficient resource allocation.
Lack of detailed performance metrics makes it difficult to assess effectiveness.
Potential for scope creep given the 'program support' nature of the work.

Positive Signals

Awarded through full and open competition, suggesting an attempt to maximize value.
Contractor is Wyle Information Systems, LLC, a known entity in the aerospace and defense sector.
The contract supports the RTS program, indicating alignment with agency objectives.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically supporting telecommunications infrastructure and program management. The NAICS code 517110, 'Wired Telecommunications Carriers,' suggests a focus on the underlying network services. The IT services market is highly competitive, and contracts of this nature are common across federal agencies. Benchmarking against similar IT support contracts awarded by the FAA or other transportation-related agencies would provide further context on pricing and scope.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific contract is likely minimal unless Wyle Information Systems engages in significant small business subcontracting, which is not detailed here.

Oversight & Accountability

Oversight for this contract would fall under the Federal Aviation Administration (FAA), likely through contract officers and program managers. Accountability measures would be tied to the terms of the Time and Materials contract and the deliverables outlined in the RTS contract. Transparency is limited by the available data; details on performance reviews or audits are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA IT Support Services
RTS Contract Support
Telecommunications Infrastructure Contracts
Federal Aviation Administration Program Management

Risk Flags

High cost relative to duration
Lack of detailed performance metrics
Potential for scope creep in 'program support'

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.1 million to WYLE INFORMATION SYSTEMS, LLC. DESCRIPTION: TSG PROGRAM SUPPORT FOR THREE MONTHS OF EFFORT UNDER THE RTS CONTRACT FOR PERIOD 9/10/2007-3/31/08. DTFAWA-03-D-03000. [TID: 24528]

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2007-09-13. End: 2008-03-31.

What was the specific nature of the 'RTS program support' provided by Wyle Information Systems?

The provided data indicates the contract was for 'TSG PROGRAM SUPPORT FOR THREE MONTHS OF EFFORT UNDER THE RTS CONTRACT'. 'TSG' likely refers to the Technical Support Group within the FAA. 'RTS' could stand for various programs, but given the NAICS code (Wired Telecommunications Carriers), it likely relates to the FAA's telecommunications systems or network infrastructure. The support could have encompassed tasks such as system maintenance, network operations, technical assistance, project management, or documentation related to these systems. Without more specific details from the original contract or task orders, the exact nature of the support remains generalized as program assistance for a telecommunications-related initiative.

How does the $11.1 million cost compare to similar IT program support contracts for the FAA or other agencies during the 2007-2008 period?

Benchmarking the $11.1 million cost for six months of IT program support requires access to historical contract databases and detailed scope comparisons. However, as a general observation, over $1.8 million per month for 'program support' in the IT/telecommunications sector during 2007-2008 was a significant expenditure. Comparable contracts for similar durations and scopes could range widely depending on the complexity of the systems supported, the level of expertise required, and the specific services rendered (e.g., system integration, cybersecurity, network management). To provide a precise comparison, one would need to identify contracts with similar NAICS codes, agencies, and service descriptions from that era. The high monthly burn rate suggests this contract may have involved specialized skills or supported critical infrastructure.

What were the key performance indicators (KPIs) or deliverables associated with this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this particular contract. As a 'Time and Materials' contract, payment is based on the hours worked and the materials used, rather than fixed deliverables. However, effective contract management would still necessitate defined objectives, milestones, or service levels that Wyle Information Systems was expected to meet. Performance would typically be assessed by the FAA's Contracting Officer's Representative (COR) or designated technical monitors, who would evaluate the quality of work, adherence to schedules (if applicable), and overall contribution to the RTS program's goals. Without access to the contract's statement of work or performance reports, a detailed assessment of performance measurement is not possible.

What is the track record of Wyle Information Systems, LLC with federal contracts, particularly with the Department of Transportation?

Wyle Information Systems, LLC (now part of KBR) has a substantial history of performing federal contracts, particularly within the aerospace, defense, and IT sectors. They have held numerous contracts with agencies like NASA, the Department of Defense, and the Department of Transportation. Their work has often involved complex engineering, scientific, and technical support services. For the Department of Transportation, Wyle has likely provided services related to aviation systems, infrastructure, and IT modernization. A review of their contract history would reveal a pattern of large-scale awards and a broad range of capabilities. Their long-standing presence suggests a generally positive track record, though like any large contractor, specific contract performance can vary.

Were there any identified risks or challenges associated with the execution of this contract?

The limited data available does not explicitly list risks or challenges encountered during the execution of this specific contract. However, potential risks inherent in a Time and Materials contract of this magnitude and duration include cost overruns if not managed tightly, scope creep where the work expands beyond the initial intent, and difficulties in ensuring consistent quality of service. For a 'program support' contract, ensuring that the support provided directly and effectively contributes to the overarching goals of the RTS program would be a key challenge. Furthermore, managing a large team of personnel under a tight deadline could present logistical and performance management hurdles.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)

Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 90

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $54,000,000

Exercised Options: $11,116,165

Current Obligation: $11,116,165

Parent Contract

Parent Award PIID: DTFAWA03D03000

IDV Type: IDC

Timeline