DoD Awards KBR Wyle $196M for Engineering Services, Competition Method Impacts Price Discovery
Contract Overview
Contract Amount: $196,087,271 ($196.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-15
End Date: 2025-07-18
Contract Duration: 5,694 days
Daily Burn Rate: $34.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROGRAM MGMT, FMS, ACQUISITION, FINANCIAL AND ENG/TECH SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $196.1 million to KBR WYLE SERVICES, LLC for work described as: PROGRAM MGMT, FMS, ACQUISITION, FINANCIAL AND ENG/TECH SERVICES Key points: 1. KBR Wyle secured a significant contract valued at $196 million for engineering and technical services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee contract type. 4. The sector is Engineering Services, a critical area for defense operations.
Value Assessment
Rating: good
The contract's value of $196 million for engineering services appears reasonable given the duration and scope. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via full and open competition, this method generally promotes competitive pricing and allows for a wide range of potential contractors to bid. The delivery order structure within this framework allows for flexibility.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for the services rendered.
Public Impact
Taxpayers benefit from a competitive bidding process for essential defense engineering services. The long-term nature of the contract (ending 2025) ensures continuity in critical support functions. The Department of Defense receives specialized engineering and technical support vital for its operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt quickly to evolving technological needs.
Positive Signals
- Awarded through full and open competition, indicating a robust market.
- Contract provides essential engineering and technical services for defense.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for supporting complex defense systems and infrastructure. Spending benchmarks in this sector vary widely based on project complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large award.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The contract's duration and value necessitate diligent monitoring to ensure performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- No small business awardee indicated.
- Potential for scope creep without strict oversight.
Tags
engineering-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.1 million to KBR WYLE SERVICES, LLC. PROGRAM MGMT, FMS, ACQUISITION, FINANCIAL AND ENG/TECH 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 $196.1 million.
What is the period of performance?
Start: 2009-12-15. End: 2025-07-18.
What is the specific breakdown of services provided under this contract and how do they align with current defense priorities?
The contract covers Program Management, FMS, Acquisition, Financial, and Engineering/Technical Services. These services are fundamental to supporting the Department of Defense's operational readiness and acquisition processes. Specific alignment with current priorities would require a deeper dive into the Statement of Work and recent DoD strategic objectives.
What are the key performance indicators (KPIs) used to measure the success of KBR Wyle's performance under this contract?
While not explicitly detailed in the provided data, typical KPIs for such contracts include on-time delivery of services, adherence to budget, quality of engineering outputs, and successful program management milestones. The Defense Contract Management Agency (DCMA) would likely be responsible for tracking and evaluating these KPIs.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs compared to other contract types?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility in scope, it places a greater burden on the government to meticulously audit costs to prevent overruns. This can be less cost-effective than fixed-price contracts if cost controls are not rigorously enforced.
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: N0002409R3026
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $240,475,080
Exercised Options: $240,475,080
Current Obligation: $196,087,271
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: 2009-12-15
Current End Date: 2025-07-18
Potential End Date: 2025-08-26 00:00:00
Last Modified: 2025-08-26
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