DoD's $24.7M Cyber Security Systems Engineering Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $24,723,710 ($24.7M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-08-16
End Date: 2023-11-30
Contract Duration: 1,567 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CYBER SECURITY SYSTEMS ENGINEERING PRODUCT SUPPORT
Place of Performance
Location: DAYTON, MONTGOMERY County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to KBR WYLE SERVICES, LLC for work described as: CYBER SECURITY SYSTEMS ENGINEERING PRODUCT SUPPORT Key points: 1. Contract focuses on critical cyber security systems engineering and product support for the Air Force. 2. KBR Wyle Services, LLC, a significant player in government contracting, secured this award. 3. The contract duration of over four years suggests a substantial and ongoing need for these services. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. Performance is concentrated in Ohio, potentially impacting the local tech and defense workforce.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or comparable service rates. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. While the total value is significant, its efficiency depends heavily on the execution and management of the project by both the contractor and the agency. Further analysis of the fixed fee component and the contractor's performance history would be needed for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of three bidders indicates a competitive landscape for these specialized cyber security engineering services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The Department of the Air Force benefits from enhanced cyber security capabilities and product support. The contract supports the development and maintenance of critical cyber security systems. Geographic impact is concentrated in Ohio, where the contractor's performance is likely based. Potential workforce implications include employment opportunities for skilled cyber security engineers and technical staff in Ohio.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost escalation if not rigorously monitored.
- The long duration of the contract requires sustained oversight to ensure continued value.
- Specific performance metrics and deliverables are not detailed, making outcome assessment difficult.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- KBR Wyle Services, LLC has a significant presence in government contracting, implying experience.
- The contract addresses a critical need for cyber security systems engineering.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on cyber security systems. The market for cyber security services is robust and growing, driven by increasing digital threats. Comparable spending in this sector often involves significant investments in advanced technology and specialized expertise. This contract represents a portion of the Department of Defense's broader investment in maintaining a secure digital infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless KBR Wyle Services, LLC actively engages small businesses in its subcontracting efforts. Further investigation into subcontracting plans would be necessary to assess the full impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Cyber Security Services
- Systems Engineering
- Product Support Contracts
- Department of Defense IT Spending
- Air Force Research and Development
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
- Long contract duration increases risk of technological obsolescence and sustained performance management challenges.
- Lack of specific performance metrics in the provided data makes outcome assessment difficult.
Tags
cyber-security, systems-engineering, product-support, department-of-defense, air-force, kbr-wyle-services, cost-plus-fixed-fee, full-and-open-competition, research-and-development, ohio, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to KBR WYLE SERVICES, LLC. CYBER SECURITY SYSTEMS ENGINEERING PRODUCT SUPPORT
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 Air Force).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2019-08-16. End: 2023-11-30.
What is the track record of KBR Wyle Services, LLC with similar Department of Defense contracts?
KBR Wyle Services, LLC, a subsidiary of KBR, Inc., has a substantial history of performing complex engineering, scientific, and technical services for the Department of Defense and other federal agencies. They have been involved in numerous large-scale contracts related to aerospace, defense, and intelligence, often providing systems engineering, integration, and sustainment support. Their experience typically spans various military branches and includes work on advanced technological systems. While specific performance metrics for past contracts are not detailed here, their continued success in securing significant awards suggests a generally positive track record and established capabilities in meeting government requirements. However, a deeper dive into past performance reviews and any documented issues would provide a more comprehensive understanding of their reliability and effectiveness.
How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?
The Cost Plus Fixed Fee (CPFF) contract structure is designed to provide flexibility for projects where the scope or costs are not precisely defined at the outset, such as research and development. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. While this allows for adaptation to evolving requirements, it carries inherent risks for value for money. The 'cost-plus' element can incentivize higher spending, as the contractor is guaranteed reimbursement for incurred costs. The 'fixed fee' provides some incentive for efficiency, as the fee does not increase with costs, but the primary driver for cost control often relies heavily on robust government oversight and management. Without stringent monitoring of allowable costs and effective negotiation of the fixed fee, there is a risk that the total contract cost could exceed what might be achieved under a fixed-price arrangement, potentially diminishing the overall value for money.
What are the potential risks associated with the duration and scope of this cyber security contract?
The contract's duration of approximately four years (1567 days) and its focus on cyber security systems engineering and product support present several potential risks. Firstly, the extended timeline increases the risk of technological obsolescence; cyber threats and defense technologies evolve rapidly, and a four-year-old system or approach might be less effective by the end of the contract. Secondly, the CPFF structure, as mentioned, carries risks of cost escalation over such a long period if not managed meticulously. Thirdly, maintaining consistent performance and contractor engagement over several years can be challenging; key personnel might leave, or institutional knowledge could be diluted. Finally, the complexity of cyber security means that unforeseen challenges or scope creep are highly probable, potentially leading to budget overruns or delays if not managed proactively through change control processes.
How does this contract align with the Department of Defense's broader cyber security strategy?
This contract directly supports the Department of Defense's (DoD) overarching strategy to maintain a secure and resilient cyber infrastructure. The DoD consistently prioritizes cyber security due to the increasing sophistication of threats from nation-states and non-state actors. Contracts like this, focusing on systems engineering and product support for cyber security, are crucial for developing, implementing, and sustaining the technologies and processes needed to defend military networks, systems, and data. It likely contributes to efforts in areas such as threat detection, vulnerability management, network defense, and secure system design. The investment in specialized engineering and product support indicates a commitment to ensuring the operational effectiveness and longevity of critical cyber defense capabilities.
What is the historical spending trend for cyber security systems engineering and product support within the Department of the Air Force?
Historical spending trends for cyber security systems engineering and product support within the Department of the Air Force (and the DoD broadly) have shown a consistent and significant upward trajectory over the past decade. This is driven by the escalating cyber threat landscape, the increasing reliance on digital systems for all aspects of military operations, and evolving technological requirements. While specific figures for this exact contract category are not provided, overall DoD spending on cyber security capabilities, including R&D, procurement, and sustainment, has grown substantially. The Air Force, with its vast network infrastructure and reliance on advanced technology, is a major contributor to this spending. Contracts for specialized engineering and product support are essential components of this investment, ensuring that cyber defenses remain robust and up-to-date.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,857,198
Exercised Options: $26,857,198
Current Obligation: $24,723,710
Actual Outlays: $606,525
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,964,580
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA807516D0010
IDV Type: IDC
Timeline
Start Date: 2019-08-16
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2024-09-10
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