DOI's $13.4M contract for seismic network support awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $13,378,591 ($13.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2005-10-01

End Date: 2011-01-31

Contract Duration: 1,948 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GLOBAL SEISMOLOGICAL NETWORK SUPPORT SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87198

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $13.4 million to KBR WYLE SERVICES, LLC for work described as: GLOBAL SEISMOLOGICAL NETWORK SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in maintaining critical geological infrastructure. 2. The full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The duration of the contract (over 5 years) indicates a long-term need for these services. 4. The 'Other Electronic and Precision Equipment Repair and Maintenance' category highlights specialized technical requirements. 5. Awarded in New Mexico, the contract supports a geographically specific, yet nationally important, function. 6. The Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring of costs to ensure value.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. However, the total award of $13.4 million over approximately 5.3 years suggests an average annual spend of roughly $2.5 million. This figure needs to be assessed against the scope of work, including the number of seismic stations supported, the complexity of the equipment, and the criticality of the network's uptime. The CPFF structure means that while the contractor's fee is fixed, the total cost can fluctuate, necessitating robust oversight to control expenditures and ensure the government receives good value for the services rendered.

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. This suggests a robust bidding environment where multiple companies likely vied for the contract. The level of competition can positively influence price discovery and potentially lead to more favorable terms for the government. Without knowing the number of bids received, it's difficult to definitively assess the intensity of the competition, but the designation itself implies a commitment to maximizing market participation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to more efficient use of public funds.

Public Impact

The U.S. Geological Survey (USGS) benefits from the continued operation and maintenance of its Global Seismological Network. Essential services include the repair and maintenance of electronic and precision equipment crucial for seismic data collection. The geographic impact is national, ensuring the integrity and functionality of a network vital for earthquake monitoring and research across the United States. Workforce implications include the need for specialized technicians and engineers skilled in maintaining sensitive scientific equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The long duration of the contract (over 5 years) increases the risk of scope creep or evolving technological needs not being fully addressed within the original contract terms.
Reliance on a single contractor for critical infrastructure maintenance could pose a risk if the contractor's performance degrades or if they face financial instability.

Positive Signals

Awarding under full and open competition suggests a deliberate effort to secure the best possible value and technical solution.
The contract's focus on repair and maintenance of essential scientific equipment highlights a commitment to maintaining critical national infrastructure.
The specific NAICS code (811219) indicates a focus on specialized technical services, suggesting the contractor possesses the required expertise.

Sector Analysis

The contract falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector, a niche but critical area supporting scientific and technological infrastructure. This sector often involves highly specialized skills and services. The market size for such specialized maintenance can be difficult to quantify broadly but is essential for government agencies relying on complex equipment. This contract represents a specific instance of federal spending within this specialized service industry, supporting the operational readiness of the Global Seismological Network.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless KBR Wyle Services, LLC proactively engages small businesses as subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Geological Survey (USGS) within the Department of the Interior. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency would be facilitated through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction isn't detailed, the DOI IG typically has oversight over departmental contracts to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Geological Survey Operations
Seismic Monitoring Programs
National Earthquake Information Center Support
Scientific Equipment Maintenance Contracts
Federal Infrastructure Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration may increase risks related to technological obsolescence or changing requirements.
Dependence on a single contractor for critical infrastructure maintenance could pose continuity risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $13.4 million to KBR WYLE SERVICES, LLC. GLOBAL SEISMOLOGICAL NETWORK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2005-10-01. End: 2011-01-31.

What is the track record of KBR Wyle Services, LLC with similar government contracts, particularly in scientific equipment maintenance?

KBR Wyle Services, LLC, as a subsidiary or part of a larger entity like KBR, has a significant history of performing complex services for various government agencies, including NASA and the Department of Defense. Their experience often spans engineering, technical support, and maintenance of specialized systems. For contracts related to scientific equipment maintenance, their track record would likely involve supporting large-scale research facilities or operational networks. A detailed review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for similar contracts would provide specific insights into their reliability, quality of service, and adherence to schedules and budgets in the scientific and technical support domain.

How does the annual cost of this contract compare to the operational costs of similar seismic networks managed by other federal agencies or international bodies?

Comparing the annual cost of this contract, approximately $2.5 million ($13.4M / 5.3 years), to similar seismic networks requires detailed data on the scope and scale of those networks. Factors such as the number of stations, geographic distribution, types of sensors, data transmission infrastructure, and the level of maintenance required (preventive vs. corrective) vary significantly. For instance, a network with fewer, more robust stations in a stable environment might have lower maintenance costs than a geographically dispersed network with older equipment requiring frequent repairs. Without specific benchmarks for comparable networks (e.g., those managed by NOAA, NSF, or international consortia like ORFEUS), it's difficult to definitively state if $2.5 million annually represents a high, low, or average cost. However, it provides a basis for evaluating the efficiency of the services procured.

What are the key performance indicators (KPIs) used to measure the success of KBR Wyle Services, LLC in maintaining the Global Seismological Network?

Key performance indicators (KPIs) for a contract like this would likely focus on the operational availability and reliability of the seismic network. Specific metrics could include: 1) Network Uptime: Percentage of time the seismic stations are operational and transmitting data. 2) Mean Time Between Failures (MTBF): Average time between equipment malfunctions, indicating reliability. 3) Mean Time To Repair (MTTR): Average time taken to repair faulty equipment and restore service, indicating responsiveness. 4) Data Quality: Metrics related to the accuracy, completeness, and timeliness of the seismic data collected. 5) Service Response Time: Time taken to respond to reported issues or deploy technicians for maintenance. Adherence to safety protocols and successful completion of scheduled preventive maintenance would also be critical KPIs.

What is the historical spending trend for Global Seismological Network support services by the Department of the Interior over the last decade?

To assess historical spending trends, one would need to analyze contract databases for the Department of the Interior (DOI) and specifically the U.S. Geological Survey (USGS) for contracts related to 'Global Seismological Network Support Services' or similar keywords and NAICS codes (like 811219) over the past 10 years. This contract, awarded in 2005 and ending in 2011, represents spending from that period. Subsequent contracts for similar services would need to be identified to establish a trend. Factors influencing spending could include network expansion, equipment upgrades, changes in maintenance strategies (e.g., shifting from corrective to preventive maintenance), and inflation. A consistent or increasing trend might indicate growing needs or aging infrastructure, while a decreasing trend could suggest efficiency gains or reduced scope.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service, and how are they mitigated?

The primary risk with a CPFF contract is that the government may end up paying more than necessary if the contractor's costs are not well-managed or if the 'fixed fee' does not adequately incentivize efficiency. The contractor is reimbursed for all allowable costs, which can escalate if not carefully controlled. Mitigation strategies employed by the government typically include: 1) Robust Cost Accounting Standards: Ensuring the contractor adheres to strict accounting principles for allowable costs. 2) Detailed Audits: Regular audits of contractor expenditures by government auditors. 3) Performance Metrics: Linking contract payments or award fees (if applicable) to achieving specific performance targets. 4) Strong Contract Surveillance: Active monitoring by contracting officers and technical representatives to ensure work is necessary, efficient, and within scope. 5) Clear Statement of Work: A well-defined SOW helps prevent scope creep and ensures costs are tied to essential requirements.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 05CRSS0006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 03

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

Financial Breakdown

Contract Ceiling: $17,715,865

Exercised Options: $13,378,591

Current Obligation: $13,378,591

Contract Characteristics

Cost or Pricing Data: YES

Timeline