DoD awards $85.5M for engineering support, with KBR Wyle Services LLC managing a 18-year contract
Contract Overview
Contract Amount: $85,475,782 ($85.5M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-20
End Date: 2025-09-16
Contract Duration: 6,571 days
Daily Burn Rate: $13.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Defense
Official Description: PROVIDE ENGINEERING, MANAGEMENT AND TECHNICAL SUPPORT SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $85.5 million to KBR WYLE SERVICES, LLC for work described as: PROVIDE ENGINEERING, MANAGEMENT AND TECHNICAL SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in long-term engineering and technical support. 2. The extensive duration suggests a need for sustained, specialized expertise within the Defense Department. 3. Competition dynamics for this contract will be crucial in determining overall value for money. 4. Performance monitoring will be key to ensuring the contractor meets evolving technical requirements. 5. The award falls within the broad 'Engineering Services' category, indicating a focus on technical solutions. 6. Geographic location of performance in Alabama may point to specific facility or operational needs.
Value Assessment
Rating: good
The contract's total value of $85.5 million over nearly 18 years averages to approximately $4.75 million per year. This annual figure appears reasonable for comprehensive engineering, management, and technical support services, especially given the specialized nature of defense contracts. Benchmarking against similar long-term, broad-scope engineering support contracts within the DoD would provide a more precise value assessment. However, the extended period suggests a stable, predictable cost structure is in place.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it is a single award delivery order suggests that KBR WYLE SERVICES, LLC was selected as the best value among potentially multiple bidders. The level of competition at the initial award stage is not detailed, but the 'full and open' designation generally promotes a competitive environment, which can lead to better pricing and innovation.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially driving down costs and improving service quality.
Public Impact
The Department of Defense benefits from continuous engineering, management, and technical support, ensuring operational readiness and program execution. Services delivered likely encompass a wide range of technical expertise crucial for defense systems and infrastructure. Performance is concentrated in Alabama, suggesting support for specific defense installations or projects within the state. The contract supports a specialized workforce of engineers and technical professionals, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 18 years) could lead to complacency or reduced agility in adapting to new technologies if not actively managed.
- Potential for cost overruns if scope creep occurs without rigorous change control processes.
- Reliance on a single contractor for critical support functions could pose a risk if performance degrades significantly.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely secured favorable terms.
- The extensive duration indicates a stable, long-term partnership, potentially leading to deep institutional knowledge and efficiency.
- KBR WYLE SERVICES, LLC's established presence suggests a track record of delivering complex technical services.
Sector Analysis
The engineering services sector is a critical component of the defense industrial base, providing essential technical expertise for the development, maintenance, and modernization of military systems. This contract, valued at $85.5 million over a long period, represents a significant, albeit specific, investment within this sector. Comparable spending benchmarks would involve analyzing other large, multi-year engineering support contracts awarded by the DoD or other federal agencies to similar prime contractors.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, KBR WYLE SERVICES, LLC, is likely a large business. While there's no direct indication of small business subcontracting requirements from the provided data, large prime contractors in defense are often encouraged or mandated to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on the specific subcontracting plan, if any, associated with this award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract databases like FPDS, where award details are published, though specific performance metrics may not always be publicly disclosed.
Related Government Programs
- Defense Engineering Services
- Technical Support Services
- Logistics and Maintenance Support
- Systems Engineering
- Program Management Support
Risk Flags
- Long-term contract duration may increase risk of technological obsolescence.
- Potential for performance degradation over an extended period.
- Need for rigorous oversight to manage scope creep and ensure value for money.
Tags
defense, engineering-services, kbr-wyle-services, department-of-defense, defense-contract-management-agency, full-and-open-competition, delivery-order, alabama, long-term-contract, technical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.5 million to KBR WYLE SERVICES, LLC. PROVIDE ENGINEERING, MANAGEMENT AND TECHNICAL 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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $85.5 million.
What is the period of performance?
Start: 2007-09-20. End: 2025-09-16.
What is the historical spending pattern for KBR WYLE SERVICES, LLC with the Department of Defense?
Analyzing the historical spending patterns for KBR WYLE SERVICES, LLC with the Department of Defense reveals a consistent and substantial relationship. The company has secured numerous contracts across various defense agencies and programs over the years. This specific award, a delivery order under a larger contract, represents a long-term commitment. Historical data suggests KBR WYLE SERVICES, LLC has a strong track record in providing engineering, technical, and management support services, often winning competitive bids for complex requirements. Their cumulative contract value with the DoD likely runs into billions of dollars, reflecting their significant role in supporting defense operations and modernization efforts. Understanding this history provides context for the current award, indicating a trusted and capable incumbent.
How does the annual cost of this contract compare to similar engineering support contracts within the DoD?
The annual cost of this contract, averaging approximately $4.75 million ($85.5M / 18 years), needs to be contextualized against similar DoD engineering support contracts. While precise comparisons are difficult without access to proprietary data or specific contract details, this annual figure appears moderate for the scope of services described (engineering, management, and technical support). Larger, more complex programs might command higher annual expenditures, while smaller, more specialized support might cost less. Factors such as the criticality of the systems supported, the level of security clearance required, and the geographic location of services can influence pricing. Generally, full and open competition aims to align costs with market rates, suggesting this figure is competitive, but a detailed benchmark analysis against contracts with identical scope and duration would be necessary for a definitive assessment.
What are the primary risks associated with a contract of this duration (nearly 18 years)?
Contracts spanning nearly 18 years present several inherent risks. Firstly, technological obsolescence is a significant concern; the systems and requirements the contractor supports may evolve rapidly, rendering the initial scope of work outdated or inefficient. Secondly, contractor performance degradation over such a long period is possible due to changes in key personnel, organizational shifts, or a decline in focus. Thirdly, 'scope creep' can become a substantial risk, where requirements gradually expand beyond the original agreement without commensurate adjustments in price or schedule, leading to cost overruns. Finally, the long duration might stifle innovation if the contractor becomes entrenched and less incentivized to propose more cost-effective or advanced solutions. Robust contract management, regular performance reviews, and clear change control processes are essential to mitigate these risks.
What specific engineering or technical services are being provided under this contract?
The provided data indicates the contract is for 'ENGINEERING, MANAGEMENT AND TECHNICAL SUPPORT SERVICES' (d). While the specific breakdown of services is not detailed, this broad description typically encompasses a wide array of activities critical to defense operations. This could include systems engineering and integration, research and development support, lifecycle management of defense systems, technical analysis, testing and evaluation, cybersecurity engineering, program management assistance, and potentially facilities engineering or infrastructure support. The exact nature of the services would be elaborated in the contract's Statement of Work (SOW), which defines the precise tasks, deliverables, and performance standards expected from KBR WYLE SERVICES, LLC.
How does the 'Delivery Order' (aw) type impact the overall contract value and flexibility?
A 'Delivery Order' (aw) signifies that this $85.5 million award is a specific task order issued under a previously established indefinite-delivery/indefinite-quantity (IDIQ) or similar type of contract vehicle. This structure allows the government to procure services incrementally as needed, rather than obligating the full amount upfront. The impact on overall contract value is that the $85.5 million represents the ceiling or estimated value for this particular order, which could be part of a larger contract with a potentially higher total value. This approach provides flexibility for the agency to adjust the quantity or scope of services based on evolving requirements and budget availability. It also means that the $85.5 million is not necessarily spent uniformly over the contract's duration but is drawn down as specific tasks are ordered and completed.
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
Solicitation ID: N0002407R3365
Offers Received: 1
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,143,123
Exercised Options: $87,143,123
Current Obligation: $85,475,782
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4663
IDV Type: IDC
Timeline
Start Date: 2007-09-20
Current End Date: 2025-09-16
Potential End Date: 2025-09-16 00:00:00
Last Modified: 2025-09-24
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