DoD's $12.1M R&D contract to Wyle Information Systems shows fair value despite limited competition

Contract Overview

Contract Amount: $12,143,186 ($12.1M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2009-11-30

Contract Duration: 791 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: SIDC TASK ORDER 08-05

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to WYLE INFORMATION SYSTEMS, LLC for work described as: SIDC TASK ORDER 08-05 Key points: 1. Contract awarded to Wyle Information Systems, LLC for Research and Development services. 2. The contract duration was 791 days, spanning from October 1, 2007, to November 30, 2009. 3. Awarded under 'Full and Open Competition After Exclusion of Sources' with 3 bidders. 4. The contract type was Cost Plus Award Fee (CPAF), indicating performance-based incentives. 5. The base contract value was $12,143,186. 6. The contract was not set aside for small businesses. 7. The primary NAICS code is 541710 for Research and Development in Physical, Engineering, and Life Sciences. 8. The contract was awarded by the Department of the Air Force, part of the Department of Defense.

Value Assessment

Rating: fair

Assessing the value for this contract requires understanding the specific R&D objectives and outcomes, which are not detailed here. The Cost Plus Award Fee structure suggests that Wyle could earn additional profit based on performance, which can incentivize good work but also potentially inflate costs if not managed tightly. Without comparable contract data for similar R&D efforts within the Air Force or DoD, a precise value-for-money assessment is challenging. However, the presence of multiple bidders indicates some level of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 3 bidders. This indicates that while the competition was open, certain sources may have been excluded prior to the solicitation, or the competition was limited in scope. The presence of 3 bidders suggests a moderate level of competition, which is generally better than a sole-source award but less robust than a broad full-and-open competition with a larger number of participants.

Taxpayer Impact: A moderate number of bidders can lead to a reasonable price, but taxpayers might have received even better value if the competition had been broader, potentially driving prices lower.

Public Impact

This contract supported research and development activities for the Department of the Air Force. The specific beneficiaries of the R&D outcomes are likely military personnel and defense capabilities. The geographic impact is primarily within the United States, where Wyle Information Systems operates. Workforce implications include employment for researchers, engineers, and support staff at Wyle Information Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher costs if performance metrics are not strictly defined and monitored.
The 'After Exclusion of Sources' clause suggests potential limitations on the breadth of competition.
Lack of specific details on the R&D outcomes makes it difficult to fully assess the return on investment.

Positive Signals

The contract was awarded following a competitive process, indicating some level of market validation.
The Cost Plus Award Fee structure incentivizes contractor performance.
The contract was awarded to Wyle Information Systems, LLC, a known entity in the defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The R&D market for defense is substantial, with agencies like the Department of Defense investing heavily in innovation to maintain technological superiority. Comparable spending benchmarks would involve looking at other R&D contracts awarded by the Air Force or DoD for similar scientific disciplines. The size of this contract ($12.1M) is moderate within the broader landscape of defense R&D spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Wyle Information Systems, LLC, may still engage small businesses as subcontractors depending on their own procurement strategies and the nature of the R&D work performed.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Air Force. As a Cost Plus Award Fee contract, performance monitoring and evaluation would be crucial to ensure the award fee was justified. Transparency would depend on the agency's policies regarding the release of R&D contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Engineering and Technical Services Contracts

Risk Flags

Limited competition
Cost-plus contract type
Lack of specific R&D outcome details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to WYLE INFORMATION SYSTEMS, LLC. SIDC TASK ORDER 08-05

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2007-10-01. End: 2009-11-30.

What were the specific research and development objectives of this contract, and what were the key outcomes or deliverables?

The provided data does not specify the exact research and development objectives or the key outcomes and deliverables for SIDC TASK ORDER 08-05. The NAICS code 541710 indicates 'Research and Development in the Physical, Engineering, and Life Sciences,' which is a broad category. To assess the contract's success, one would need to examine project reports, technical documentation, and any final product or technology developed. Without this information, it's impossible to determine if the $12.1 million investment yielded significant advancements or met the Air Force's strategic goals in the physical, engineering, or life sciences domains.

How does the $12.1 million contract value compare to similar R&D contracts awarded by the Air Force for similar research areas during the 2007-2009 period?

Comparing the $12.1 million value requires access to historical contract databases and filtering for R&D contracts within the physical, engineering, and life sciences (NAICS 541710) awarded by the Air Force between October 2007 and November 2009. General market knowledge suggests that R&D contracts can vary significantly in price based on scope, complexity, and duration. A contract of this size is moderate for specific task orders within larger R&D programs. To provide a precise benchmark, one would need to analyze the average, median, and range of contract values for comparable efforts during that timeframe, considering factors like the number of bidders and contract types.

What was the performance of Wyle Information Systems, LLC on this specific contract, particularly concerning the 'Award Fee' component?

The 'Award Fee' component of the Cost Plus Award Fee (CPAF) contract implies that Wyle Information Systems, LLC's performance was evaluated against pre-defined criteria, and they could earn additional fee based on that performance. The data provided does not include details on the specific award fee criteria or the amount of award fee earned. To assess performance, one would need to review performance evaluation reports, contractor performance assessment reporting (CPAR) data, or any agency assessments of Wyle's work on this task order. Without these, it's impossible to determine if they met or exceeded expectations and earned their full potential award fee.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type, and how did it impact the bidding process?

The 'Full and Open Competition After Exclusion of Sources' (often referred to as FAR 6.302-1 or similar justifications) indicates that the agency intended to compete the requirement broadly but had a specific reason to exclude certain sources from the outset, or perhaps after an initial solicitation phase. This suggests that while not a sole-source award, the competition was intentionally narrowed. With 3 bidders participating, it implies that the exclusion criteria did not overly restrict the pool of potential offerors to the point of having only one or two bidders. This type of competition aims to balance the need for specialized capabilities with achieving competitive pricing, though it may not yield the same level of price reduction as unrestricted full and open competition.

How did the duration of 791 days (approximately 2 years) influence the contract's cost and the potential for technological obsolescence in R&D?

A duration of 791 days for an R&D contract is relatively standard, allowing sufficient time for research, development, testing, and potential iteration. For a contract valued at $12.1 million, this duration suggests an average annual value of around $6 million, which is reasonable for specialized R&D efforts. In R&D, longer durations can sometimes increase the risk of technological obsolescence if the field is rapidly evolving. However, it also provides stability for the contractor and allows for deeper exploration of complex problems. The impact on cost is direct; a longer period generally means higher cumulative costs, but the CPAF structure aims to ensure that increased costs are justified by performance and outcomes.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR Wyle Services, LLC (UEI: 878075373)

Address: 1600 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,143,186

Exercised Options: $12,143,186

Current Obligation: $12,143,186

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA255001D0003

IDV Type: IDC

Timeline