NASA's $59.7M Occupational Medicine Contract with KBR Wyle Services Faced Full and Open Competition
Contract Overview
Contract Amount: $59,752,348 ($59.8M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2006-08-01
End Date: 2012-07-31
Contract Duration: 2,191 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: OCCUPATIONAL MEDICINE OCCUPATIONAL HEALTH
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $59.8 million to KBR WYLE SERVICES, LLC for work described as: OCCUPATIONAL MEDICINE OCCUPATIONAL HEALTH Key points: 1. Contract Value: $59.7 million over 6 years. 2. Competition: Awarded under full and open competition. 3. Risk: Primarily cost-plus incentive fee structure may pose cost escalation risks. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: good
The contract's cost-plus incentive fee structure aims to balance cost control with performance incentives. While this can drive efficiency, it carries inherent risk of cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive bidding environment.
Public Impact
Ensures critical occupational health services for NASA personnel. Supports research and development activities by maintaining a healthy workforce. Long-term contract provides stability for service provider and agency planning. Potential for cost savings through performance incentives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee structure can lead to cost overruns.
- Long contract duration may not reflect current market pricing.
- Lack of specific performance metrics makes oversight challenging.
Positive Signals
- Awarded under full and open competition.
- Contract aims to incentivize performance.
- Provides essential health services for a critical agency.
Sector Analysis
This contract falls within the R&D sector, specifically focusing on occupational health services. Spending in this niche area is crucial for maintaining the productivity and safety of scientific and engineering personnel, with benchmarks varying widely based on the scope of services.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to assess small business participation and its impact.
Oversight & Accountability
The contract's oversight would involve monitoring performance against incentive targets and managing costs under the cost-plus structure. Regular reviews by NASA are essential to ensure accountability and value for taxpayer money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost overruns due to incentive fee structure.
- Potential for scope creep over the contract's long duration.
- Difficulty in benchmarking specialized occupational health services.
- Dependence on contractor's ability to manage health risks effectively.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $59.8 million to KBR WYLE SERVICES, LLC. OCCUPATIONAL MEDICINE OCCUPATIONAL HEALTH
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 $59.8 million.
What is the period of performance?
Start: 2006-08-01. End: 2012-07-31.
What specific occupational health services are included, and how do they align with NASA's R&D mission needs?
The contract covers occupational medicine and health services, essential for supporting NASA's R&D personnel. This includes medical surveillance, injury treatment, and health promotion programs tailored to the unique risks faced by astronauts and researchers. Ensuring these services directly support mission readiness and scientific output is key to demonstrating value.
What are the key performance indicators (KPIs) for the incentive fee, and how are they measured?
The specific KPIs for the incentive fee are not detailed in the provided data. Typically, they would relate to service availability, response times, employee health outcomes, and cost control. Effective oversight requires clearly defined, measurable KPIs that align with NASA's objectives and are rigorously tracked.
How does the cost-plus incentive fee structure compare to fixed-price contracts for similar services in the R&D sector?
Cost-plus incentive fee contracts offer flexibility for complex R&D projects where scope may evolve, but they carry higher cost risk than fixed-price contracts. Fixed-price contracts provide greater cost certainty for the government but may disincentivize innovation or lead to scope limitations. The choice depends on the predictability of requirements and the desired balance between cost control and performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 1290 HERCULES AVE STE 120, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $122,758,101
Exercised Options: $70,906,043
Current Obligation: $59,752,348
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-08-01
Current End Date: 2012-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2020-09-01
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