DoD's $71.7M Contract with KBR Wyle Services for Air Transportation Support Under Scrutiny
Contract Overview
Contract Amount: $71,696,493 ($71.7M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2013-10-01
End Date: 2019-09-30
Contract Duration: 2,190 days
Daily Burn Rate: $32.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $71.7 million to KBR WYLE SERVICES, LLC for work described as: LABOR Key points: 1. Significant contract value of $71.7 million awarded to KBR Wyle Services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of 6 years (2013-2019) indicates a long-term commitment. 4. The contract falls under 'Other Support Activities for Air Transportation', a critical but potentially broad category. 5. No small business participation noted, which could be a missed opportunity for economic inclusion.
Value Assessment
Rating: fair
The contract's total value of $71.7 million over six years averages approximately $11.95 million annually. Without specific performance metrics or comparable contract data for 'Other Support Activities for Air Transportation', a precise value assessment is difficult. However, the cost-plus-fixed-fee structure warrants careful monitoring to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of 'Other Support Activities for Air Transportation' might limit the number of qualified bidders, potentially impacting the extent of price discovery.
Taxpayer Impact: While competition was utilized, the long duration and cost-plus structure necessitate ongoing oversight to ensure taxpayer funds are used efficiently and effectively for essential air transportation support.
Public Impact
Ensures critical support for air transportation operations within the Department of Defense. Potential impact on the efficiency and cost-effectiveness of military air logistics. Highlights the government's reliance on large contractors for specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure can incentivize higher costs if not managed tightly.
- Lack of small business participation.
- Broad service category may lack specific performance benchmarks.
Positive Signals
- Awarded through full and open competition.
- Contract supports essential defense operations.
- Experienced contractor likely provides reliable service.
Sector Analysis
This contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically related to air transportation support. Government spending in this area is crucial for maintaining operational readiness and logistical capabilities, with benchmarks varying significantly based on the specific services rendered and the operational tempo.
Small Business Impact
The contract data indicates that small businesses were not involved in this award, as 'sb' is false. This suggests that the scope or requirements of the contract may have favored larger, established companies, potentially missing opportunities to engage and support small businesses in the defense contracting ecosystem.
Oversight & Accountability
The contract's long duration and cost-plus-fixed-fee nature necessitate robust oversight from the Department of the Navy to ensure cost control, performance standards, and adherence to contract terms. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee structure requires diligent oversight.
- Long contract duration may lead to complacency or reduced urgency.
- Lack of small business participation.
- Broad service description could obscure specific performance issues.
- Potential for cost creep if not tightly managed.
Tags
other-support-activities-for-air-transpo, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.7 million to KBR WYLE SERVICES, LLC. LABOR
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $71.7 million.
What is the period of performance?
Start: 2013-10-01. End: 2019-09-30.
What specific air transportation support services were provided under this contract, and how did they contribute to the Department of Defense's mission effectiveness?
The contract covered 'Other Support Activities for Air Transportation,' a broad category that could encompass a range of services such as maintenance, logistics, ground support, or operational assistance for military aircraft and airfields. The effectiveness would be measured by the seamless operation of air assets, timely mission support, and overall contribution to the DoD's strategic objectives in aviation.
Given the cost-plus-fixed-fee structure, what mechanisms were in place to control costs and prevent potential overruns, and were they effective?
Cost-plus-fixed-fee contracts require strong government oversight to manage costs effectively. Mechanisms typically include detailed cost accounting, regular audits, negotiation of reasonable fee percentages, and clear performance metrics. The effectiveness of these controls would be assessed by comparing actual costs against projections and ensuring the fixed fee remained appropriate for the services rendered without excessive profit.
How did the full and open competition process ensure the best value for taxpayers, considering the specialized nature of air transportation support?
Full and open competition is designed to solicit bids from all responsible sources, theoretically driving down prices through market forces. For specialized services like air transportation support, the government must ensure the solicitation clearly defines requirements and evaluation criteria to attract qualified bidders and enable a fair comparison of technical capabilities and pricing, ultimately aiming for the best value.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0042112R0013
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $83,021,132
Exercised Options: $82,446,909
Current Obligation: $71,696,493
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $925,395
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-10-01
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2025-09-11
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