Army awards $49.9M contract for afloat prepositioned stock logistics support to KBR Wyle Services

Contract Overview

Contract Amount: $49,900,223 ($49.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-12

End Date: 2016-04-15

Contract Duration: 581 days

Daily Burn Rate: $85.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COST PLUS FIXED FEE UNDEFINITIZED CONTRACT ACTION (UCA) WITH HONEYWELL TECHNOLOGY SOLUTIONS INC. (HTSI) FOR SUPPLY, MAINTENANCE AND LOGISTICS SUPPORT SERVICES IN SUPPORT OF THE ARMY PREPOSITIONED STOCKS-3 (APS-3) AFLOAT PROGRAM. IGF::CL,CT::IGF

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29418

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $49.9 million to KBR WYLE SERVICES, LLC for work described as: COST PLUS FIXED FEE UNDEFINITIZED CONTRACT ACTION (UCA) WITH HONEYWELL TECHNOLOGY SOLUTIONS INC. (HTSI) FOR SUPPLY, MAINTENANCE AND LOGISTICS SUPPORT SERVICES IN SUPPORT OF THE ARMY PREPOSITIONED STOCKS-3 (APS-3) AFLOAT PROGRAM. IGF::CL,CT::IGF Key points: 1. Contract awarded for essential logistics and maintenance services for Army Prepositioned Stocks-3 Afloat. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns if not managed closely. 3. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 4. The contract duration is 581 days, providing a defined period for service delivery. 5. The awarded amount is $49.9 million, representing significant investment in supply chain readiness. 6. The contract is a definitive contract, implying a clear scope of work and terms. 7. The contractor, KBR Wyle Services, LLC, has a track record in supporting defense logistics. 8. Services are to be performed in South Carolina, indicating a specific geographic focus.

Value Assessment

Rating: fair

The contract value of $49.9 million for 581 days of service appears reasonable for complex logistics support. However, without specific details on the scope of services and the number of units supported, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for Army Prepositioned Stocks or other afloat logistics programs would provide better context. The Cost Plus Fixed Fee structure necessitates careful oversight to ensure costs remain within reasonable bounds and do not escalate unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on certain criteria, which warrants further investigation. The number of bidders is not specified, but the 'full and open' nature suggests a competitive environment that should theoretically drive favorable pricing for the government.

Taxpayer Impact: A competitive bidding process generally leads to better price discovery and potentially lower costs for taxpayers. However, the exclusion of certain sources could limit the full benefit of open competition.

Public Impact

The primary beneficiaries are the U.S. Army, ensuring readiness of its afloat prepositioned stocks. Services delivered include supply, maintenance, and logistics support critical for military operations. The geographic impact is focused on South Carolina, where the services will be performed. The contract supports a specialized segment of the defense logistics workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize contractor to increase costs to increase fee.
Potential for scope creep in undefined contract actions (UCA) if not managed tightly.
Dependence on a single contractor for critical logistics support could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor has experience in defense logistics, implying familiarity with requirements.
Services directly support Army readiness and operational capability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense logistics and supply chain management. The market for defense logistics services is substantial, with numerous companies competing for government contracts. This particular award contributes to the broader ecosystem of companies that enable military readiness through specialized support functions. Comparable spending benchmarks would involve analyzing other contracts for similar logistics support for prepositioned assets or deployed forces.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract action. There is no explicit mention of subcontracting plans for small businesses in the summary data. This suggests that the primary contractor, KBR Wyle Services, LLC, will likely handle the majority of the work, with potential for subcontracting opportunities not being specifically mandated or highlighted in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Army contracting command. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure value for money. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible.

Related Government Programs

Army Prepositioned Stocks (APS)
Defense Logistics Agency (DLA) Contracts
Military Sealift Command (MSC) Support Contracts
Global Logistics Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring to prevent cost overruns.
Potential for scope creep in undefined contract actions (UCA) if not managed tightly.
Exclusion of sources in competition may limit price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 million to KBR WYLE SERVICES, LLC. COST PLUS FIXED FEE UNDEFINITIZED CONTRACT ACTION (UCA) WITH HONEYWELL TECHNOLOGY SOLUTIONS INC. (HTSI) FOR SUPPLY, MAINTENANCE AND LOGISTICS SUPPORT SERVICES IN SUPPORT OF THE ARMY PREPOSITIONED STOCKS-3 (APS-3) AFLOAT PROGRAM. IGF::CL,CT::IGF

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 $49.9 million.

What is the period of performance?

Start: 2014-09-12. End: 2016-04-15.

What is the historical spending pattern for Army Prepositioned Stocks-3 Afloat logistics support?

Analyzing historical spending for the APS-3 Afloat program is crucial for understanding cost trends and identifying potential anomalies. Without specific historical data for this exact contract or program, we can infer general patterns in defense logistics spending. Defense logistics contracts often span multiple years and can involve significant sums due to the complexity of maintaining readiness for global deployment. Spending can fluctuate based on geopolitical events, changes in military strategy, and modernization efforts. For APS-3 Afloat, consistent funding is expected to maintain the readiness of equipment stored on vessels. A review of past contract awards for similar services, potentially from the Department of the Army or Defense Logistics Agency, would reveal trends in contract values, durations, and the types of services procured. This historical context helps in evaluating whether the current $49.9 million award is in line with previous investments or represents a significant deviation.

How does KBR Wyle Services, LLC's performance on similar contracts compare?

KBR Wyle Services, LLC, is a significant player in the government contracting space, particularly in defense and aerospace. Assessing their performance on similar contracts is key to understanding their capability and reliability for this APS-3 Afloat logistics support. A review of their past performance evaluations, available through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS), would provide insights into their track record. This includes data on past performance ratings, any disputes, claims, or contract terminations. For logistics support contracts, key performance indicators often include on-time delivery, inventory accuracy, maintenance effectiveness, and cost control. Positive performance on comparable contracts, especially those involving complex supply chain management or maintenance of critical assets, would suggest a lower risk for this new award. Conversely, any history of significant performance issues would raise concerns about the government's ability to achieve its objectives under this contract.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for logistics support?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to KBR Wyle Services, LLC, present specific risks that require careful management. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure can incentivize contractors to increase costs, as the fee is a percentage of the costs (though fixed in absolute terms for this contract type). If the fixed fee is calculated based on an inaccurate cost estimate, the government might end up paying more than anticipated. Furthermore, CPFF contracts require robust government oversight to ensure that all costs claimed by the contractor are reasonable, allocable, and allowable. Without stringent monitoring, there's a risk of cost overruns and reduced value for money. For logistics support, risks also include potential delays in supply, inadequate maintenance, or inventory discrepancies, which could be exacerbated if cost-saving measures are implemented without regard to performance standards.

What is the estimated value of the market for afloat prepositioned stock logistics and maintenance?

Estimating the precise market value for afloat prepositioned stock (APS) logistics and maintenance is complex, as it's a specialized niche within the broader defense logistics sector. However, the U.S. military maintains significant APS globally, including afloat components, requiring continuous support. This market is characterized by long-term contracts awarded to a limited number of large defense contractors capable of handling the scale and complexity. Factors influencing market size include the number of APS sites, the types of equipment stored, the required readiness levels, and the geopolitical environment necessitating such stockpiles. While specific figures for the APS afloat segment are not readily available in public databases, the overall defense logistics and support services market is valued in the tens of billions of dollars annually. Contracts like this $49.9 million award represent a portion of that larger market, driven by the strategic need for rapid power projection capabilities.

How does the 'Full and Open Competition After Exclusion of Sources' clause impact price discovery?

The 'Full and Open Competition After Exclusion of Sources' clause presents a nuanced approach to competition. While it aims for broad participation, the explicit exclusion of certain sources suggests that the agency had specific reasons for limiting the pool of potential bidders. These reasons could range from national security concerns, past performance issues with excluded entities, or the need for specialized capabilities possessed by only a subset of potential offerors. The impact on price discovery is that it might be less robust than true 'full and open' competition where all responsible sources are considered. If the excluded sources were significant competitors, their absence could lead to less aggressive bidding and potentially higher prices. Conversely, if the exclusions were justified and the remaining pool of bidders was still sufficiently competitive, the price discovery could still be effective. Understanding the rationale behind the exclusions is critical to fully assessing the impact on taxpayer value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,900,223

Exercised Options: $49,900,223

Current Obligation: $49,900,223

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline