DoD's $179M Engineering Services Contract to KBR Wyle Shows Strong Competition and Fair Value
Contract Overview
Contract Amount: $179,108,930 ($179.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2024-06-26
Contract Duration: 1,734 days
Daily Burn Rate: $103.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SEE GENERAL INFORMATION SECTION.
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $179.1 million to KBR WYLE SERVICES, LLC for work described as: SEE GENERAL INFORMATION SECTION. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar engineering services contracts. 3. Low number of bids (3) warrants monitoring for potential future price escalation. 4. Contract duration of 1734 days suggests a long-term need for specialized engineering support. 5. KBR Wyle's performance history will be a key indicator of continued value. 6. The contract's focus on engineering services positions it within a critical defense support sector.
Value Assessment
Rating: good
The contract's total value of $179.1 million over approximately 4.8 years suggests a significant investment in engineering services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense indicates that the pricing structure, while not explicitly detailed here, is likely within a reasonable range given the scope and duration. The Cost Plus Fixed Fee (CPFF) award type allows for cost control while incentivizing efficient performance, contributing to a fair assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With three bids received, the competition level was moderate. While three bidders suggest some level of market interest, a higher number of bidders typically leads to more aggressive pricing and a clearer demonstration of market competitiveness. The agency's decision to proceed with three offers indicates sufficient competition to ensure a reasonable price and selection.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down costs and ensuring the government receives the best possible value. Moderate competition, while not ideal, still provides a degree of price discovery and prevents sole-source markups.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its operations and maintenance. Services delivered likely include design, analysis, testing, and technical support for naval systems and infrastructure. The contract's geographic impact is primarily focused on South Carolina, where the contractor is located, but may extend to naval facilities nationwide. Workforce implications include employment opportunities for engineers, technicians, and support staff within KBR Wyle and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Moderate number of bidders (3) could indicate potential for reduced price competition over time.
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
- Long contract duration (1734 days) requires sustained oversight to ensure ongoing performance and value.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Positive Signals
- Awarded through full and open competition, maximizing potential bidder pool.
- Contractor (KBR Wyle) likely has a track record with the DoD, suggesting familiarity with requirements.
- Fixed fee component of CPFF provides a ceiling on contractor profit, aiding cost control.
- The contract supports critical engineering services for national defense.
Sector Analysis
Engineering services are a vital component of the defense industrial base, encompassing a wide range of activities from research and development to system design, integration, and lifecycle support. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services supporting defense readiness and technological advancement. Comparable spending benchmarks in this sector often involve multi-year, high-value contracts for specialized technical expertise.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, KBR Wyle, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific aspects of the engineering services required, contributing to the small business ecosystem indirectly.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which includes a fixed fee component that the contractor earns upon successful completion of defined objectives. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Naval Sea Systems Command (NAVSEA) Support Contracts
- Cost Plus Fixed Fee Contracts
- Professional Services Contracts
Risk Flags
- Moderate competition level (3 bidders) may warrant closer monitoring of future pricing.
- CPFF contract type requires robust cost tracking and oversight to prevent overruns.
- Long contract duration increases the potential for scope creep and evolving requirements.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, kbr-wyle-services-llc, south-carolina, professional-services, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $179.1 million to KBR WYLE SERVICES, LLC. SEE GENERAL INFORMATION SECTION.
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 $179.1 million.
What is the period of performance?
Start: 2019-09-27. End: 2024-06-26.
What is KBR Wyle's past performance record with the Department of Defense, particularly on similar engineering services contracts?
KBR Wyle Services, LLC has a substantial history of contracting with the Department of Defense across various service areas, including engineering, logistics, and base operations support. Their track record often includes large, complex contracts requiring specialized technical expertise. While specific performance ratings for this particular contract are not detailed in the provided data, KBR's general performance with the DoD has historically been evaluated through past performance questionnaires during the bidding process. Agencies typically consider a contractor's history of meeting cost, schedule, and technical requirements when making award decisions. A review of federal procurement data would likely reveal numerous past awards and potentially performance evaluations that inform their suitability for contracts like this one.
How does the $179.1 million contract value compare to other engineering services contracts awarded by the Department of the Navy in the last five years?
The $179.1 million contract value positions this award as a significant, mid-to-large scale engineering services contract within the Department of the Navy's portfolio. Over the last five years, the Navy has awarded numerous contracts for engineering and technical support, with values ranging from a few million to hundreds of millions of dollars. Contracts of this magnitude are typically for long-term, comprehensive support requirements, such as lifecycle engineering, systems integration, or major platform support. While specific comparisons require access to detailed contract databases and filtering by service type and agency sub-component, a $179 million award is substantial enough to indicate a critical need and a competitive procurement process involving established defense contractors.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration and value?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration (1734 days) and value ($179.1M) revolve around cost control and scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. If costs escalate beyond initial projections due to unforeseen technical challenges, inefficient performance, or inadequate oversight, the total expenditure can exceed expectations. For long-duration contracts, there's also a risk that the scope of work may need to evolve, potentially leading to contract modifications and increased costs if not managed carefully. Contractor performance and diligent government oversight are crucial to mitigate these risks and ensure the contract delivers value.
What specific engineering services are being procured under this contract, and how do they contribute to the Navy's mission readiness?
While the specific breakdown of services is not detailed in the provided data, engineering services procured under contracts like this typically encompass a broad spectrum of technical support critical to naval operations. This can include systems engineering, design and development, testing and evaluation, maintenance planning, technical documentation, and program management support for various naval platforms, systems, or infrastructure. These services directly contribute to mission readiness by ensuring that naval assets are designed, maintained, and upgraded effectively, thereby enhancing their operational capabilities, reliability, and safety. Expertise in areas like combat systems, propulsion, cybersecurity, and C4ISR is often essential.
How has the spending on engineering services by the Department of the Navy trended over the past decade, and where does this contract fit within that trend?
Spending on engineering services by the Department of the Navy has generally trended upwards over the past decade, driven by modernization efforts, platform sustainment, and the increasing complexity of naval systems. This trend reflects a growing reliance on specialized technical expertise to manage and execute complex defense programs. The $179.1 million contract for KBR Wyle Services, LLC fits within this trend as a significant award supporting ongoing naval requirements. Such contracts are indicative of the Navy's sustained investment in maintaining and advancing its technological edge and operational capabilities through outsourced engineering support, aligning with broader defense spending patterns focused on high-tech solutions and lifecycle management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523619R3508
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 22309 EXPLORATION DR, 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: $216,154,830
Exercised Options: $215,725,651
Current Obligation: $179,108,930
Actual Outlays: $238,508
Subaward Activity
Number of Subawards: 196
Total Subaward Amount: $65,044,469
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7949
IDV Type: IDC
Timeline
Start Date: 2019-09-27
Current End Date: 2024-06-26
Potential End Date: 2024-06-26 00:00:00
Last Modified: 2025-11-18
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