DHA Awards $113M Cybersecurity Support Contract to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $113,418,344 ($113.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $103.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DEFENSE HEALTH AGENCY, CYBERSECURITY ASSESSMENT AND AUTHORIZATION SUPPORT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $113.4 million to KBR WYLE SERVICES, LLC for work described as: DEFENSE HEALTH AGENCY, CYBERSECURITY ASSESSMENT AND AUTHORIZATION SUPPORT Key points: 1. Contract awarded to KBR Wyle Services, LLC for cybersecurity assessment and authorization support. 2. The contract has a total value of $113,418,343.96 and a duration of 1095 days. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is primarily IT services within the Defense sector.

Value Assessment

Rating: good

The contract's pricing structure is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar cybersecurity support contracts is needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the cybersecurity services.

Public Impact

Ensures critical cybersecurity infrastructure for the Defense Health Agency. Supports national defense by maintaining secure health IT systems. KBR Wyle Services, LLC, a significant player in government contracting, will perform the work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cybersecurity for a critical government agency. Spending benchmarks for similar cybersecurity support contracts are typically in the tens to hundreds of millions of dollars annually.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-aside for small businesses. Therefore, the direct impact on small businesses is likely minimal unless they are subcontractors.

Oversight & Accountability

The Department of the Navy is overseeing this contract for the Defense Health Agency. Standard oversight mechanisms for federal contracts, including performance reviews and audits, should be in place.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, sc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.4 million to KBR WYLE SERVICES, LLC. DEFENSE HEALTH AGENCY, CYBERSECURITY ASSESSMENT AND AUTHORIZATION SUPPORT

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 $113.4 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the specific scope of 'Cybersecurity Assessment and Authorization Support' to ensure it aligns with DHA's evolving needs?

The scope likely includes activities such as vulnerability assessments, penetration testing, risk management framework (RMF) compliance, and documentation for system authorization. It's crucial that the SOW clearly defines these services and includes provisions for adapting to new threats and DHA's evolving IT landscape to ensure continued effectiveness and value.

How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure fair pricing?

Effective management of a CPFF contract requires stringent oversight, detailed cost tracking, and regular performance reviews. The government contracting officer must actively monitor expenditures against the fixed fee and the estimated cost ceiling, ensuring that KBR Wyle Services, LLC adheres to the contract's objectives and avoids unnecessary expenses.

What are the key performance indicators (KPIs) for this contract to measure the effectiveness of cybersecurity support provided?

Key performance indicators should include metrics such as the number of vulnerabilities identified and remediated, successful completion of authorization packages within deadlines, reduction in security incidents, and compliance audit pass rates. These KPIs will provide objective measures of KBR Wyle Services' performance and the overall effectiveness of the cybersecurity support.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N6523623R3009

Offers Received: 2

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: $245,604,211

Exercised Options: $185,459,728

Current Obligation: $113,418,344

Actual Outlays: $8,432,614

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $44,956,713

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: 2023-09-28

Current End Date: 2026-09-27

Potential End Date: 2027-09-27 00:00:00

Last Modified: 2025-12-22

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