DHS awards $46.4M for aerostat and tower support, with a significant portion for engineering services

Contract Overview

Contract Amount: $46,355,331 ($46.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-11-30

End Date: 2019-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF. THE PURPOSE OF THIS SHORT-TERM BRIDGE TASK ORDER IS TO PROVIDE TACTICAL AEROSTAT AND RE-LOCATABLE TOWER SYSTEMS OPERATIONS, LOGISTICS, AND ENGINEERING SUPPORT SERVICES FOR U.S. BORDER PATROL.

Place of Performance

Location: MCALLEN, HIDALGO County, TEXAS, 78503

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.4 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF. THE PURPOSE OF THIS SHORT-TERM BRIDGE TASK ORDER IS TO PROVIDE TACTICAL AEROSTAT AND RE-LOCATABLE TOWER SYSTEMS OPERATIONS, LOGISTICS, AND ENGINEERING SUPPORT SERVICES FOR U.S. BORDER PATROL. Key points: 1. Contract provides essential operational and engineering support for border surveillance systems. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period spans three years, indicating a medium-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. The primary recipient is U.S. Border Patrol, highlighting its critical role in border security. 6. Engineering services form a substantial part of the contract's value, pointing to complex technical requirements.

Value Assessment

Rating: fair

The total award of $46.4 million over three years for aerostat and tower support appears reasonable given the specialized nature of the services. However, the Time and Materials (T&M) contract type introduces inherent risk for cost overruns. Without detailed breakdowns of labor rates and hours, a precise value-for-money assessment is difficult. Benchmarking against similar T&M contracts for specialized engineering and logistics support would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that KBR WYLE SERVICES, LLC was selected as the most advantageous offer. The level of competition is positive for price discovery, but the specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

Benefits U.S. Border Patrol by providing critical operational and engineering support for surveillance assets. Enhances border security capabilities through the reliable functioning of aerostat and re-locatable tower systems. Services are primarily delivered in Texas, directly impacting border operations in that region. Supports a workforce skilled in engineering, logistics, and specialized systems operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries a risk of cost escalation if not closely monitored and managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the support services.
The duration of the contract (three years) may not align with rapidly evolving technological needs in surveillance systems.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Provides essential support for critical border security infrastructure.
The contractor, KBR WYLE SERVICES, LLC, likely possesses specialized expertise required for these systems.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and security applications. The market for such specialized support services is driven by government needs for advanced surveillance and operational capabilities. Comparable spending benchmarks would typically involve other contracts for aerostat operations, radar systems maintenance, or complex logistical support for remote or sensitive operations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses, which means their involvement would depend on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are often not publicly available.

Related Government Programs

Border Security Technology
Aerostat Systems Support
Surveillance and Reconnaissance Equipment
Engineering and Technical Services
Department of Homeland Security Contracts

Risk Flags

Time and Materials contract type can lead to cost overruns if not managed effectively.
Lack of detailed performance metrics makes objective assessment of value difficult.
Reliance on specialized systems requires continuous technical support and potential upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.4 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF. THE PURPOSE OF THIS SHORT-TERM BRIDGE TASK ORDER IS TO PROVIDE TACTICAL AEROSTAT AND RE-LOCATABLE TOWER SYSTEMS OPERATIONS, LOGISTICS, AND ENGINEERING SUPPORT SERVICES FOR U.S. BORDER PATROL.

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $46.4 million.

What is the period of performance?

Start: 2016-11-30. End: 2019-11-30.

What is the historical spending pattern for aerostat and re-locatable tower systems support by the U.S. Border Patrol?

Analyzing historical spending for similar services is crucial for context. While this specific contract is for $46.4 million over three years (2016-2019), understanding prior investments in aerostat and tower support by CBP can reveal trends in technology adoption, operational needs, and cost fluctuations. For instance, if previous contracts were significantly smaller or larger, it might indicate a shift in strategy or technological reliance. A review of past solicitations and awards for aerostat operations and maintenance, particularly those preceding this contract, would provide valuable insights into the evolution of border surveillance technology spending and the typical contract values associated with such specialized support.

How does the pricing structure of this Time and Materials (T&M) contract compare to industry benchmarks for engineering and logistics support?

The Time and Materials (T&M) contract type, used here, allows the government to pay the contractor for the actual cost of labor and materials, plus a fixed fee or percentage for overhead and profit. Benchmarking T&M pricing requires access to detailed labor rates (by skill level), material costs, and overhead rates. Without this granular data, a direct comparison is challenging. However, industry benchmarks for specialized engineering services often consider factors like the complexity of the technology, the required security clearances, the geographic location of service, and the contractor's demonstrated expertise. If KBR WYLE SERVICES, LLC's rates are significantly higher than comparable T&M contracts for similar technical support in defense or security sectors, it could indicate potential overpricing or a lack of competitive pressure on specific labor categories.

What is KBR WYLE SERVICES, LLC's track record with Department of Homeland Security contracts, particularly in surveillance or engineering support?

KBR WYLE SERVICES, LLC's performance history with DHS is a key indicator of reliability and capability. A review of their past performance on similar contracts, especially those involving aerostat systems, border surveillance technology, or complex engineering support, would be informative. This includes examining past performance evaluations, any documented issues or disputes, and their success in meeting delivery schedules and technical requirements. A strong track record suggests a lower risk of performance failure, while a history of issues might warrant closer scrutiny of their current contract management and execution.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the success of this contract?

The effectiveness of the tactical aerostat and re-locatable tower systems operations, logistics, and engineering support hinges on clearly defined performance metrics. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), it's difficult to ascertain these KPIs. Typically, for such services, metrics might include system uptime percentages, response times for maintenance requests, successful data transmission rates, and adherence to operational schedules. The absence of publicly available performance data makes it challenging to assess whether the contractor is meeting expectations and delivering the required value for the $46.4 million investment.

What is the strategic importance of these aerostat and tower systems to the overall U.S. Border Patrol mission?

Aerostat and re-locatable tower systems are critical components of the U.S. Border Patrol's surveillance and interdiction strategy. They provide persistent, wide-area surveillance capabilities that are essential for monitoring vast stretches of the border, detecting illegal crossings, and tracking potential threats. These systems offer advantages over other surveillance methods, such as mobility (for towers) and extended duration (for aerostats), enabling Border Patrol agents to maintain situational awareness and respond more effectively. The significant investment in their support underscores their strategic value in enhancing border security operations and national security.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DRIVE, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,209,724

Exercised Options: $46,355,331

Current Obligation: $46,355,331

Actual Outlays: $112,638

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,235,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F200CA

IDV Type: FSS

Timeline