DoD awards $85M R&D contract for engineering, logistics, and reliability analysis to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $85,005,220 ($85.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-01-08

End Date: 2025-01-08

Contract Duration: 1,827 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NAVAL AIR SYSTEMS COMMAND ENGINEERING, LOGISTICS AND RELIABILITY ANALYSIS

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $85.0 million to KBR WYLE SERVICES, LLC for work described as: NAVAL AIR SYSTEMS COMMAND ENGINEERING, LOGISTICS AND RELIABILITY ANALYSIS Key points: 1. Contract focuses on critical R&D services for the Naval Air Systems Command. 2. KBR WYLE SERVICES, LLC, a significant player in government contracting, secured this award. 3. The contract duration of 1827 days indicates a long-term need for these specialized services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 6. The specific NAICS code (541715) points to a focus on physical, engineering, and life sciences research. 7. The contract value of $85M is substantial, reflecting the complexity and importance of the services.

Value Assessment

Rating: good

The contract value of $85M over approximately five years for specialized engineering and logistics analysis appears reasonable given the scope. Benchmarking against similar R&D contracts for the Department of Defense is necessary for a definitive value assessment. The Cost Plus Fixed Fee structure, while common for R&D, necessitates close monitoring of costs to ensure efficiency and prevent overruns. The total award value is a significant figure, suggesting a high level of expertise and service required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is generally expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of market interest and capability.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical research and development services.

Public Impact

The Naval Air Systems Command (NAVAIR) is the primary beneficiary, receiving essential support for its engineering, logistics, and reliability analysis needs. This contract supports the development and maintenance of advanced naval aviation systems. The services provided are crucial for ensuring the operational readiness and effectiveness of naval air assets. The contract likely supports a workforce of specialized engineers, logisticians, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
Long-term contracts require ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for critical analysis could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
KBR WYLE SERVICES, LLC has a significant presence in government contracting, implying experience.
The contract duration suggests a stable and predictable need for these services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering, logistics, and reliability analysis for aerospace applications. The market for such specialized R&D services supporting defense agencies is substantial, with numerous firms capable of providing these expertise. This contract represents a significant investment by the Department of Defense in maintaining and advancing its naval aviation capabilities through advanced analytical support.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, KBR WYLE SERVICES, LLC, as a large prime contractor, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve rigorous monitoring of costs, performance metrics, and adherence to contract terms by NAVAIR. The Department of Defense has established Inspector General offices and contracting oversight bodies to ensure accountability and transparency in such awards. Regular reporting requirements and audits are standard mechanisms to manage these types of contracts effectively.

Related Government Programs

Naval Air Systems Command (NAVAIR) Support Contracts
Department of Defense Research and Development Programs
Aerospace Engineering Services
Logistics and Supply Chain Management Services
Reliability Engineering Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technological obsolescence over contract duration
Need for sustained government oversight and performance management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.0 million to KBR WYLE SERVICES, LLC. NAVAL AIR SYSTEMS COMMAND ENGINEERING, LOGISTICS AND RELIABILITY ANALYSIS

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 $85.0 million.

What is the period of performance?

Start: 2020-01-08. End: 2025-01-08.

What is the historical spending pattern for similar engineering, logistics, and reliability analysis contracts awarded by NAVAIR?

Analyzing historical spending for similar contracts by NAVAIR is crucial for context. While specific data for this exact service category is not provided, NAVAIR consistently awards significant contracts for R&D, engineering support, and logistics analysis. These contracts often range from tens to hundreds of millions of dollars over several years, reflecting the complexity and criticality of naval aviation systems. Past awards may show trends in contractor selection, contract types (e.g., CPFF, FFP), and pricing structures. Understanding these patterns helps in assessing whether the current $85M award is within the expected range for the scope of work and duration, and whether it represents an increase or decrease in overall investment in these capabilities.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure allows the contractor (KBR WYLE SERVICES, LLC) to be reimbursed for allowable costs plus a predetermined fixed fee. This structure is often used for research and development or when the scope of work is not precisely defined at the outset. While it provides flexibility for evolving R&D needs, it can incentivize cost increases as the contractor is guaranteed their fee regardless of cost efficiency. Effective cost control relies heavily on robust government oversight, detailed cost tracking, and negotiation of the fixed fee. For taxpayers, this means the government bears the cost risk, and vigilance is required to ensure that costs remain reasonable and that the fixed fee adequately compensates the contractor for the defined scope, preventing excessive profit.

What is KBR WYLE SERVICES, LLC's track record with similar government contracts, particularly within the Department of Defense?

KBR WYLE SERVICES, LLC, is a well-established entity with a substantial history of performing services for the U.S. government, including extensive work within the Department of Defense. They have a proven track record in areas such as engineering, logistics, technical support, and R&D across various military branches and agencies. Their experience often includes complex projects similar to the one awarded by NAVAIR. A review of their past performance ratings, any past performance issues or awards, and the scale of previous contracts would provide insight into their capability to successfully execute this $85M award. Their longevity and continued success in securing large government contracts suggest a generally positive performance history.

What are the potential risks associated with a long-duration (5-year) contract for R&D services?

Long-duration contracts, like this 5-year award, carry several potential risks. Firstly, the technological landscape in R&D can evolve rapidly; services required at the start might become less relevant or require significant adaptation over the contract's life. Secondly, maintaining consistent performance and innovation from the contractor over an extended period can be challenging. There's a risk of complacency or a decline in the quality of service if oversight is not continuous and rigorous. Thirdly, the government's needs might change, potentially leading to contract modifications or disputes if not managed proactively. Finally, long-term cost projections become more uncertain, increasing the risk of budget overruns if initial estimates do not account for inflation or unforeseen project complexities.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541715 specifically categorizes establishments primarily engaged in conducting research and development in the physical, engineering, and life sciences, with the exclusion of nanotechnology and biotechnology. This implies that the work performed under this contract by KBR WYLE SERVICES, LLC will involve systematic study and experimentation aimed at discovering or interpreting facts, principles, or theories related to physical sciences (e.g., physics, chemistry), engineering disciplines (e.g., mechanical, electrical, aerospace), and life sciences (e.g., biology, medicine, agriculture). The focus on 'engineering, logistics, and reliability analysis' for NAVAIR aligns perfectly with this code, indicating the contract supports advanced scientific and technical problem-solving within these domains to enhance naval aviation capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $88,420,538

Exercised Options: $88,420,538

Current Obligation: $85,005,220

Actual Outlays: $8,371,187

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $48,153,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0015

IDV Type: IDC

Timeline