NASA's $623M Mission Operations Management Services Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $623,753,038 ($623.8M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-11-01
End Date: 2012-03-31
Contract Duration: 3,073 days
Daily Burn Rate: $203.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Engineering Services
Official Description: MISSION OPERATIONS MANAGEMENT SERVICES (MOMS)
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $623.8 million to KBR WYLE SERVICES, LLC for work described as: MISSION OPERATIONS MANAGEMENT SERVICES (MOMS) Key points: 1. Significant contract value of over $623 million for mission operations management. 2. KBR Wyle Services, LLC is the sole awardee, raising questions about competition. 3. The contract spans nearly a decade, indicating long-term reliance on the provider. 4. Engineering Services (NAICS 541330) is the sector, crucial for space missions.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar mission operations contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single awardee implies that only one company met the requirements or was selected.
Taxpayer Impact: Taxpayer funds are being utilized for critical mission operations, with the effectiveness of competition impacting the final price paid.
Public Impact
Ensures continuity of essential mission operations for NASA. Supports complex engineering and management services for space exploration. Potential for cost overruns due to the Cost Plus Award Fee structure. Impacts the efficiency and success of NASA's scientific and exploratory missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may incentivize higher spending.
- Long contract duration could limit opportunities for cost savings through re-competition.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- KBR Wyle Services, LLC is a known entity in aerospace services.
- Contract supports critical national space missions.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for supporting complex government operations like NASA's. Spending benchmarks for similar mission operations contracts are highly variable due to unique mission requirements.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests that large businesses dominated the bidding and execution of this significant contract.
Oversight & Accountability
Oversight is crucial for Cost Plus Award Fee contracts to ensure that costs remain reasonable and that award fees are tied to performance. NASA's internal oversight mechanisms will be key to managing this contract effectively.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Long contract duration may limit future competition and innovation.
- Lack of small business participation.
- Single awardee raises questions about the extent of initial competition.
- Performance metrics for award fees need rigorous oversight.
Tags
engineering-services, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $623.8 million to KBR WYLE SERVICES, LLC. MISSION OPERATIONS MANAGEMENT SERVICES (MOMS)
Who is the contractor on this award?
The obligated recipient is KBR WYLE SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $623.8 million.
What is the period of performance?
Start: 2003-11-01. End: 2012-03-31.
What specific performance metrics are tied to the award fee structure, and how are they measured to ensure value for taxpayer money?
The award fee structure is typically tied to specific performance objectives and metrics outlined in the contract. These could include mission success rates, adherence to schedules, cost control, and technical innovation. NASA's contracting officers are responsible for objectively evaluating KBR Wyle's performance against these metrics to determine the appropriate award fee, ensuring that taxpayer funds are only used for exceptional service delivery.
Given the long duration and single award, what mechanisms are in place to mitigate the risk of vendor lock-in and ensure future cost competitiveness?
While the contract duration is long, NASA should have provisions for regular performance reviews and potential contract modifications. To mitigate vendor lock-in, NASA could explore market research for alternative solutions periodically and plan for future re-competition well in advance. This proactive approach helps ensure that even with a long-term incumbent, competitive pressures can be maintained.
How does the Cost Plus Award Fee structure compare to other contract types in terms of overall cost efficiency for long-term mission support services?
Cost Plus Award Fee contracts aim to incentivize contractor performance by offering additional profit for exceeding expectations. However, they carry a higher risk of cost growth compared to fixed-price contracts if not rigorously managed. For long-term, complex services where scope is difficult to define precisely upfront, it can be effective, but requires strong government oversight to prevent cost overruns and ensure value.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFP03 NAW-001
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $900,000,000
Exercised Options: $900,000,000
Current Obligation: $623,753,038
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-11-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2018-08-29
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