DoD's $154.6M contract for tank-automotive applied research awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $14,006,085 ($14.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2004-04-06

End Date: 2005-04-30

Contract Duration: 389 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: 200407!004639!2100!W56HZV!TACOM - WARREN !DAAE0798DT061 !A!N! !N!0057 ! !20040406!20050430!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000005715511!N!N!000000000000!AC42!RDTE/TANK - AUTOMOTIVE-APPLIED RESEARCH !A4B!NON-COMBAT VEHICLES !000 !* !541330!E! !5!A!S! ! ! !99990909!B! ! !A! !A!N!Y!2!002!N!1G!Z!N!Z! ! !N!C!N! ! ! !A!B!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to KBR WYLE SERVICES, LLC for work described as: 200407!004639!2100!W56HZV!TACOM - WARREN !DAAE0798DT061 !A!N! !N!0057 ! !20040406!20050430!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's value of $154.6 million over approximately 1.3 years indicates significant investment in defense research. 3. The primary contractor, KBR WYLE SERVICES, LLC, has a substantial presence in the defense sector. 4. The contract focuses on applied research for non-combat vehicles, a niche within defense R&D. 5. The use of Time and Materials pricing may introduce cost variability if not carefully managed. 6. The contract was awarded by the Defense Contract Management Agency, a key oversight body.

Value Assessment

Rating: fair

The contract value of $154.6 million for a duration of approximately 1.3 years suggests a significant investment in applied research. Benchmarking this against similar contracts for defense R&D is challenging without more specific details on the scope of work. However, the total value indicates a substantial commitment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Further analysis would be needed to compare per-unit costs or labor rates against industry standards.

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 data shows 6 bidders participated in this procurement. A competitive environment with multiple bidders generally fosters price discovery and can lead to more favorable pricing for the government. The presence of 6 bidders suggests a healthy level of interest and competition for this type of defense research contract.

Taxpayer Impact: The full and open competition with 6 bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the Department of Defense, specifically units requiring advanced non-combat vehicle technology. The contract supports applied research and development in the area of tank and automotive systems. The geographic impact is likely concentrated around the contractor's facilities and relevant military testing grounds. The contract supports a specialized workforce in defense research and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as the government pays for actual labor and material costs plus a fee.
The duration of the contract (approx. 1.3 years) might be short for complex R&D, potentially leading to follow-on contracts with less competitive pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the research conducted.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contract is managed by the Defense Contract Management Agency (DCMA), suggesting established oversight procedures.
The contractor, KBR WYLE SERVICES, LLC, is a known entity in the defense sector, implying experience and capability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on applied research for defense applications. The market for defense R&D is substantial, driven by continuous technological advancements and evolving geopolitical landscapes. Contracts like this are crucial for maintaining a technological edge. Comparable spending benchmarks would typically involve analyzing other applied research contracts within the Department of Defense for similar vehicle platforms or technological areas.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss=false, sb=false). Therefore, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to KBR WYLE SERVICES, LLC, depending on the subcontracting plan negotiated for this award. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting roles.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The 'full and open competition' award type suggests adherence to procurement regulations. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight mechanisms are not detailed in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Military Vehicle Technology Development
Applied Science and Engineering Contracts
Defense Logistics Agency Contracts
Army Combat Systems Development

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope definition and management challenges inherent in R&D contracts.
Dependence on contractor's specialized expertise and innovation.
Potential for follow-on contracts with less competitive pricing if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to KBR WYLE SERVICES, LLC. 200407!004639!2100!W56HZV!TACOM - WARREN !DAAE0798DT061 !A!N! !N!0057 ! !20040406!20050430!154593065!154593065!154593065!N!DIMENSIONS INTERNATIONAL, INC !2800 EISENHOWER AVENUE !ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000005715511!N!N!000000000000!AC42!RDTE/TANK - AUTOMOTIVE-APPLIED RESEARCH !A4B!NON-COMBAT VEHICLES !000 !* !541330!E! !5!A!S! ! ! !999

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2004-04-06. End: 2005-04-30.

What is the specific nature of the 'applied research' for non-combat vehicles under this contract?

The provided data identifies the contract's purpose as 'RDTE/TANK - AUTOMOTIVE-APPLIED RESEARCH' and the product service code as 'AC42' (Ordnance, Bomb, and Other Weapon Systems). While the specific research objectives are not detailed, it implies work focused on enhancing the capabilities, efficiency, or survivability of non-combat military vehicles through scientific and engineering principles. This could encompass areas like improved propulsion systems, advanced materials, enhanced mobility, or integrated technologies for logistics and support vehicles. The 'NON-COMBAT VEHICLES' designation suggests a focus on platforms used for transport, logistics, engineering, or medical support rather than direct combat roles.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar R&D efforts?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which can be common in research and development. Under T&M, the government pays for the direct labor hours at specified hourly rates and the cost of materials. This offers flexibility but carries a higher risk of cost overruns if not managed meticulously, as the total cost is not predetermined. Fixed-price contracts, conversely, establish a set price for a defined scope, shifting more risk to the contractor. For R&D, T&M can be advantageous for exploratory work, while fixed-price is preferred for well-defined development tasks. The government's ability to control costs under T&M heavily relies on robust oversight, including monitoring labor hours, rates, and material expenditures.

What is KBR WYLE SERVICES, LLC's track record with similar Department of Defense applied research contracts?

KBR WYLE SERVICES, LLC (and its predecessors/related entities) has a significant history of performing work for the Department of Defense across various domains, including research, development, engineering, and technical support. While specific details on their track record for 'tank-automotive applied research' would require a deeper dive into their contract history, their established presence suggests considerable experience. Analyzing their past performance on similar contracts, including contract values, performance ratings, and any past performance issues, would provide a clearer picture of their capabilities and reliability in this specific niche. Their ability to win a contract through full and open competition with multiple bidders also suggests a competitive standing.

What are the potential risks associated with the 'AC42' Product Service Code and 'RDTE/TANK - AUTOMOTIVE-APPLIED RESEARCH' classification?

The 'AC42' Product Service Code relates to 'Ordnance, Bomb, and Other Weapon Systems,' while the classification is 'RDTE/TANK - AUTOMOTIVE-APPLIED RESEARCH.' Potential risks include the inherent complexities of defense research and development, where technological breakthroughs are uncertain and timelines can shift. Specifically for automotive applied research, risks might involve integration challenges with existing platforms, unexpected material science issues, or difficulties in scaling prototypes. Furthermore, the classification implies work related to military hardware, which can be subject to stringent security requirements and evolving defense strategies. The Time and Materials pricing also introduces financial risk if not managed properly, potentially leading to costs exceeding initial estimates.

How does the $154.6 million contract value compare to historical spending on similar defense R&D initiatives?

The $154.6 million contract value represents a substantial investment in applied research for non-combat vehicles. To contextualize this, one would need to compare it against historical spending trends for similar R&D programs within the Department of Defense, particularly those focused on ground vehicle technology or logistics support systems. Analyzing annual budgets allocated to defense R&D, specifically within the Army or Marine Corps for vehicle modernization, and identifying comparable contracts awarded over the past 5-10 years would provide a benchmark. Without such comparative data, it's difficult to definitively state whether this contract is high, low, or average relative to historical spending patterns for this specific niche.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0798DT061

IDV Type: IDC

Timeline