Army awards $39.6M for logistics support, with KBR Wyle Services as a key contractor
Contract Overview
Contract Amount: $39,603,629 ($39.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-08-31
End Date: 2007-01-31
Contract Duration: 883 days
Daily Burn Rate: $44.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: TAS::21 2020::TAS 200411!001841!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0385K !C!N! !Y!W52P1J04F0021! !20040831!20050831!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!00000! !KU!* !* !KUWAIT !+000019051442!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !541614!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.6 million to KBR WYLE SERVICES, LLC for work described as: TAS::21 2020::TAS 200411!001841!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0385K !C!N! !Y!W52P1J04F0021! !20040831!20050831!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!00000! !KU!* … Key points: 1. Contract value of $39.6M indicates significant investment in logistics support. 2. Full and open competition suggests a robust bidding process. 3. The contract duration of 883 days points to a substantial, ongoing need. 4. The primary contractor, KBR Wyle Services, LLC, has a significant role. 5. The North American Industry Classification System (NAICS) code 541614 highlights a focus on specialized consulting services. 6. The contract was awarded as a delivery order, suggesting it's part of a larger framework agreement.
Value Assessment
Rating: good
The contract value of $39.6 million for logistics support services appears reasonable given the duration of 883 days. Benchmarking against similar contracts for logistics support services within the Department of Defense would provide a more precise assessment of value for money. However, the absence of detailed cost breakdowns makes it difficult to ascertain if the pricing is competitive or if there are opportunities for cost savings. The contract's focus on consulting services within logistics suggests a need for specialized expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market for these services. Full and open competition generally leads to better price discovery and potentially lower costs for the government compared to less competitive procurement methods.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered. This process helps ensure that government funds are used efficiently.
Public Impact
The U.S. Army is the primary beneficiary, receiving critical logistics support services. Services delivered likely include process improvement, distribution, and general logistics consulting. The contract is geographically tied to Alexandria, Virginia, where the contractor is located, but the services may support operations globally. The contract supports specialized professional services, potentially impacting a skilled workforce in logistics and consulting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the effectiveness of the services provided.
- The duration of the contract (883 days) could lead to vendor lock-in if not managed carefully.
- Limited transparency on the specific deliverables and outcomes achieved under this contract.
Positive Signals
- Awarded through full and open competition, suggesting a competitive marketplace.
- The contract value is substantial, indicating a significant need and potential for impactful service delivery.
- The contractor, KBR Wyle Services, LLC, is likely experienced in providing these types of services.
Sector Analysis
The contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. This sector is crucial for government operations, enabling efficient supply chain management and operational readiness. The market for logistics support services is competitive, with numerous firms offering specialized expertise. The $39.6 million award is a significant sum, reflecting the complexity and importance of the services required by the Army.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a full and open competition, it's possible that small businesses could have participated directly or indirectly. Further analysis would be needed to determine the extent of small business involvement and its impact on the broader small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability is ensured through contract terms, performance reviews, and payment schedules tied to deliverables. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal.
Related Government Programs
- Logistics Support Services
- Management and Technical Consulting Services
- Defense Logistics Agency Contracts
- Army Materiel Command Contracts
Risk Flags
- Potential for scope creep
- Performance variability risk
- Reliance on contractor expertise
Tags
department-of-defense, department-of-the-army, logistics-support-services, consulting-services, full-and-open-competition, delivery-order, professional-services, kbr-wyle-services, virginia, naics-541614
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 million to KBR WYLE SERVICES, LLC. TAS::21 2020::TAS 200411!001841!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0385K !C!N! !Y!W52P1J04F0021! !20040831!20050831!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!00000! !KU!* !* !KUWAIT !+000019051442!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !541614!E
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 Army).
What is the total obligated amount?
The obligated amount is $39.6 million.
What is the period of performance?
Start: 2004-08-31. End: 2007-01-31.
What specific logistics challenges is the U.S. Army attempting to address with this contract?
The provided data indicates the contract is for 'Logistics Support Services' under NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services). While the specific challenges are not detailed, such contracts typically aim to improve efficiency in supply chain management, optimize distribution networks, enhance inventory control, streamline transportation, and provide strategic advice on logistical operations. Given the Department of the Army's global mission, these services could be related to operational readiness, deployment support, or the management of complex logistical infrastructures.
How does the contract value of $39.6 million compare to similar logistics support contracts awarded by the Department of Defense?
A comprehensive comparison requires access to a broader dataset of similar contracts. However, $39.6 million over approximately two years (883 days) suggests a substantial investment. Contracts for large-scale logistics support, especially those involving strategic consulting and process optimization for a major military branch like the Army, can range from tens to hundreds of millions of dollars. The value appears within a plausible range for specialized consulting services supporting significant operational needs, but a direct benchmark against contracts with identical scopes and durations would be necessary for a definitive assessment of value.
What is the track record of KBR Wyle Services, LLC in performing logistics support services for the federal government?
KBR Wyle Services, LLC (and its predecessors/related entities) has a long history of performing services for the federal government, including extensive work in logistics, engineering, and technical support, particularly for the Department of Defense. While specific performance details for this particular contract are not provided, the company's sustained presence and numerous contract awards suggest a generally positive track record. A deeper dive into past performance reviews, contract modifications, and any past disputes or terminations would offer a more granular view of their reliability and effectiveness in this domain.
What are the potential risks associated with a contract of this nature and duration?
Potential risks include scope creep, where the requirements expand beyond the original agreement, leading to cost overruns. There's also the risk of vendor performance not meeting expectations, impacting the Army's logistical capabilities. Given the consulting nature, ensuring the recommendations are practical and effectively implemented is crucial. Long-term contracts can also pose risks related to technological obsolescence or changes in strategic priorities. Furthermore, reliance on a single contractor for critical support functions can create vulnerabilities if that contractor faces financial or operational difficulties.
How has federal spending on logistics support services evolved over the past decade?
Federal spending on logistics support services has generally remained robust, particularly within the Department of Defense, reflecting the ongoing need for efficient supply chain and operational support. While specific figures fluctuate based on global events, technological advancements, and budget priorities, the overall trend indicates a consistent demand. Spending in this area often increases during periods of heightened military activity or significant force modernization. The increasing complexity of global logistics and the emphasis on data-driven decision-making also contribute to sustained or growing investment in advanced logistics consulting and support services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0385K
IDV Type: FSS
Timeline
Start Date: 2004-08-31
Current End Date: 2007-01-31
Potential End Date: 2007-01-31 00:00:00
Last Modified: 2017-09-21
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