KBR Wyle Services awarded $15M for Joint Strike Fighter Program engineering support

Contract Overview

Contract Amount: $15,080,501 ($15.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: General Services Administration

Start Date: 2010-03-01

End Date: 2011-08-31

Contract Duration: 548 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: PROVIDE THE JOINT STRIKE FIGHTER PROGRAM OFFICE (JSFPO) WITH CONTINUED ENGINEERING EXPERTISE SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $15.1 million to KBR WYLE SERVICES, LLC for work described as: PROVIDE THE JOINT STRIKE FIGHTER PROGRAM OFFICE (JSFPO) WITH CONTINUED ENGINEERING EXPERTISE SUPPORT Key points: 1. Contract provides essential engineering expertise for a critical defense program. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract duration of 548 days indicates a focused, project-specific need. 4. The contract type is Time and Materials, which can carry cost risks if not managed closely. 5. This award falls within the Engineering Services NAICS code, aligning with specialized technical support. 6. The General Services Administration (GSA) managed this procurement, leveraging its acquisition expertise.

Value Assessment

Rating: good

The contract value of approximately $15 million for just over 1.5 years of support appears reasonable for specialized engineering services on a program as complex as the Joint Strike Fighter. Benchmarking against similar engineering support contracts for major defense programs would provide a more precise value-for-money assessment. The Time and Materials (T&M) contract type, while flexible, necessitates robust oversight to ensure costs remain aligned with the value delivered and do not escalate beyond expectations.

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 approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The specific number of bidders is not provided, but the method of competition suggests a deliberate effort to maximize market participation and achieve best value for the government.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider range of contractors to compete, potentially driving down prices.

Public Impact

The primary beneficiary is the Joint Strike Fighter Program Office (JSFPO), receiving critical engineering expertise. Services delivered include continued engineering support, vital for program development and sustainment. The geographic impact is likely concentrated around program management and engineering hubs, primarily in Virginia. Workforce implications involve skilled engineers and technical specialists contributing to a high-priority defense initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored for labor hours and material costs.
The specific engineering tasks and deliverables are not detailed, making it difficult to assess the scope and potential for scope creep.
Lack of detailed competition metrics (e.g., number of bidders) limits a full assessment of price discovery.

Positive Signals

Awarded under full and open competition, suggesting a broad market engagement.
Procurement managed by GSA Federal Acquisition Service, indicating adherence to established acquisition processes.
Contract supports a critical national defense program, implying strategic importance and likely high-level oversight.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for such services is characterized by highly specialized firms capable of supporting complex, long-term government programs. Spending in this sector is often driven by major acquisition programs like the Joint Strike Fighter, where continuous technical expertise is paramount. Comparable spending benchmarks would involve analyzing other engineering support contracts for large-scale defense platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Given the specialized nature of engineering support for a program like the Joint Strike Fighter, it is possible that larger, established firms with specific expertise are the primary awardees. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically reside with the Joint Strike Fighter Program Office (JSFPO) and the contracting officers within the General Services Administration (GSA). As a Time and Materials contract, robust oversight of labor hours, rates, and material costs is crucial to ensure cost control and prevent overruns. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance metrics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Strike Fighter Program
Defense Engineering Services
Aerospace Engineering Support
GSA Federal Acquisition Service Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope definition clarity for engineering tasks.
Adequacy of competition metrics for price discovery assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.1 million to KBR WYLE SERVICES, LLC. PROVIDE THE JOINT STRIKE FIGHTER PROGRAM OFFICE (JSFPO) WITH CONTINUED ENGINEERING EXPERTISE SUPPORT

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2010-03-01. End: 2011-08-31.

What is the track record of KBR Wyle Services, LLC with government contracts, particularly in defense engineering?

KBR Wyle Services, LLC has a significant history of performing government contracts, including extensive work within the defense sector. Their portfolio often includes engineering, scientific, and technical support services for various military branches and agencies. For the Joint Strike Fighter Program specifically, their involvement suggests a demonstrated capability to meet the stringent requirements of advanced aerospace projects. Analyzing past performance reviews, contract awards, and any reported issues on previous government contracts would provide a comprehensive understanding of their reliability and expertise in delivering complex engineering solutions.

How does the $15 million contract value compare to similar engineering support contracts for major defense programs?

The $15 million value for approximately 1.5 years of engineering support for the Joint Strike Fighter Program appears to be within a reasonable range for specialized technical services on a program of this magnitude. However, direct comparisons are challenging without knowing the exact scope of work, required skill sets, and duration. Contracts for similar large-scale defense initiatives, such as other fighter jet programs or major weapons system development, can range from tens to hundreds of millions of dollars over their lifecycles. The 'per-year' cost, if extrapolated, would need to be benchmarked against industry standards for comparable engineering expertise in the defense aerospace sector to definitively assess value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services?

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If not managed diligently, this can lead to costs exceeding initial estimates, especially if the scope of work is not well-defined or if project timelines extend. For the government, effective oversight is critical to monitor labor hours, ensure rates are fair, and validate material costs. Scope creep can also be a significant risk, as additional tasks may be added without a corresponding adjustment to the contract's ceiling, potentially driving up the total cost.

How effective is full and open competition in ensuring competitive pricing for specialized engineering services?

Full and open competition is generally the most effective method for ensuring competitive pricing for specialized engineering services. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids. This broad competition can drive down prices as contractors vie for the contract. Furthermore, it encourages innovation and allows the government to select the offer that provides the best overall value, considering factors beyond just price, such as technical approach and past performance. However, the effectiveness is contingent on the number of capable bidders and the clarity of the solicitation requirements.

What is the historical spending trend for engineering services supporting the Joint Strike Fighter Program?

Historical spending data for engineering services supporting the Joint Strike Fighter Program (JSFPO) would reveal trends in investment for technical expertise. Analyzing past contracts awarded for similar support functions would indicate whether spending has been consistent, increasing, or decreasing over time. Factors influencing these trends could include program maturity, evolving technological requirements, and shifts in acquisition strategies. Understanding this historical context is crucial for forecasting future needs and budgeting effectively. Without specific historical data for this contract's predecessors, it's difficult to establish a precise trend, but the ongoing nature of the JSF program suggests a sustained need for engineering support.

What are the implications of the General Services Administration (GSA) managing this procurement?

When the General Services Administration (GSA) manages a procurement, it leverages its extensive experience and established contracting vehicles to acquire goods and services for other federal agencies. For this contract, GSA's involvement suggests a reliance on their expertise in navigating complex acquisition processes and potentially utilizing pre-negotiated contract terms or schedules. This can streamline the procurement for the end-user agency (in this case, supporting the JSFPO) and often ensures compliance with federal acquisition regulations. GSA's role can also contribute to achieving economies of scale and promoting best practices in government contracting.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wyle Services Corporation (UEI: 963281881)

Address: 1960 EAST GRAND AVENUE STE 900, EL SEGUNDO, CA, 36

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,380,388

Exercised Options: $22,673,203

Current Obligation: $15,080,501

Parent Contract

Parent Award PIID: GS23F0019N

IDV Type: FSS

Timeline