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
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
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Cybersecurity is a critical and sensitive area, requiring constant vigilance.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Long-term contract provides stability for essential services.
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
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Reliance on a single contractor for critical cybersecurity functions.
- Evolving cyber threats require continuous adaptation of services.
- Ensuring adequate technical expertise within the contractor's team.
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 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: 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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