Air Force awards $17.6M contract for graduate research and development support to KBR Wyle Services
Contract Overview
Contract Amount: $17,639,325 ($17.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-01
End Date: 2027-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GRADUATE RESEARCH, ANALYSIS, DEVELOPMENT, AND EVALUATION FOR AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to KBR WYLE SERVICES, LLC for work described as: GRADUATE RESEARCH, ANALYSIS, DEVELOPMENT, AND EVALUATION FOR AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT Key points: 1. Contract provides essential research and development services for the Air Force Institute of Technology. 2. KBR Wyle Services, LLC, a large defense contractor, secured this award. 3. The contract duration of five years suggests a long-term need for specialized expertise. 4. The award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. This contract represents a significant investment in advancing Air Force technological capabilities. 6. The fixed fee structure on a cost-plus basis indicates a focus on managing project scope and costs.
Value Assessment
Rating: good
The contract value of $17.6 million over five years, averaging approximately $3.5 million annually, appears reasonable for specialized graduate research and development support. Benchmarking against similar contracts for R&D services within the Department of Defense is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure suggests that the government aims to control costs while allowing for flexibility in research scope. The fixed fee component provides a degree of cost certainty for the contractor.
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. The presence of three bidders suggests a competitive environment, which typically leads to better pricing and innovative solutions for the government. The full and open competition process is the most robust method for ensuring fair market value and access to the widest range of capabilities.
Taxpayer Impact: Full and open competition maximizes taxpayer value by fostering a competitive environment that drives down costs and encourages the selection of the most capable and cost-effective provider.
Public Impact
Benefits the Air Force Institute of Technology by providing critical research and development support. Enhances the educational and research capabilities of future Air Force engineers and scientists. Contributes to the development of advanced technologies and solutions for national defense. Supports a highly skilled workforce in specialized scientific and engineering fields. Geographic impact is primarily within Ohio, where the Air Force Institute of Technology is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts if not closely managed.
- Reliance on a single large contractor for critical R&D functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Long-term contract duration suggests a stable and valued partnership.
- Focus on graduate-level research implies a commitment to cutting-edge innovation.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market within the defense sector is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks for similar R&D support services can vary widely based on the specific scientific disciplines and the level of research involved. This contract's value of $17.6 million over five years positions it as a mid-sized award within this specialized niche.
Small Business Impact
This contract was not set aside for small businesses and was awarded to KBR Wyle Services, LLC, a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, although the prime contractor may engage small businesses as subcontractors depending on their specific needs and capabilities.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the technical points of contact within the Air Force Institute of Technology. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, and the Department of Defense has established Inspector General offices that can investigate potential fraud, waste, or abuse.
Related Government Programs
- Air Force Institute of Technology Research Programs
- Department of Defense Research and Development Funding
- Advanced Technology Development Contracts
- Scientific and Engineering Support Services
Risk Flags
- Cost Overrun Risk
- Performance Dependency
- Scope Creep Potential
Tags
research-and-development, department-of-defense, air-force, kbr-wyle-services, cost-plus-fixed-fee, full-and-open-competition, graduate-education, ohio, scientific-research, engineering-services, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to KBR WYLE SERVICES, LLC. GRADUATE RESEARCH, ANALYSIS, DEVELOPMENT, AND EVALUATION FOR AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT
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 $17.6 million.
What is the period of performance?
Start: 2022-06-01. End: 2027-05-31.
What is the track record of KBR Wyle Services, LLC with the Department of Defense, particularly in R&D support contracts?
KBR Wyle Services, LLC, is a significant contractor with the Department of Defense, often involved in a wide array of services including research, development, testing, and engineering support. Their track record typically includes numerous awards across various agencies and branches of the military. For R&D support contracts specifically, KBR Wyle has a history of performing complex technical services. A detailed review of their past performance on similar contracts, including any past performance evaluations or disputes, would be necessary for a comprehensive assessment. However, their established presence suggests they possess the necessary infrastructure and expertise to handle such requirements.
How does the annual value of this contract compare to other R&D support contracts awarded by the Air Force?
The annual value of this contract averages approximately $3.5 million ($17.6 million / 5 years). This figure places it in the mid-range for R&D support contracts. Larger, more complex R&D initiatives, especially those involving extensive hardware development or large-scale testing, can command significantly higher annual values, sometimes tens or hundreds of millions of dollars. Conversely, smaller, more focused research tasks or specialized consulting might fall below this annual average. Without specific data on the breadth and depth of services required by the Air Force Institute of Technology, a precise comparison is difficult, but it represents a substantial, ongoing investment in specialized research capabilities.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services revolve around cost control and scope definition. For the government, the risk is that actual costs incurred by the contractor may exceed initial estimates, even though the fee remains fixed. This can lead to a higher overall contract price than anticipated if the 'cost' portion escalates significantly. For the contractor, the risk lies in underestimating the costs required to complete the work, as their profit is capped by the fixed fee. Effective risk mitigation requires robust government oversight to monitor expenditures, ensure efficient performance, and manage any necessary changes to the research scope.
How effective is full and open competition in ensuring value for money for R&D contracts of this nature?
Full and open competition is generally considered the most effective method for ensuring value for money in R&D contracts. By allowing all responsible sources to submit bids, the government maximizes the potential for receiving innovative technical approaches and competitive pricing. The presence of multiple bidders drives down costs as companies vie for the award. In this case, with three bidders, there was a reasonable level of competition. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess the technical merit and cost proposals to select the best overall value, not just the lowest price.
What is the historical spending trend for similar R&D support services by the Air Force Institute of Technology?
Historical spending trends for similar R&D support services by the Air Force Institute of Technology (AFIT) would require access to historical contract databases and procurement records. Without this specific data, it's impossible to provide a precise trend. However, it is reasonable to assume that AFIT, as a key educational and research institution for the Air Force, has consistently required support for its graduate programs in engineering and management. Spending in this area is likely influenced by evolving technological needs, research priorities, and overall defense budget allocations. Fluctuations may occur year-to-year based on specific research projects initiated or completed.
What are the potential implications of this contract on the development of future Air Force technologies?
This contract has significant potential implications for the development of future Air Force technologies. By funding graduate-level research and development, the Air Force is investing in the foundational knowledge and innovative solutions that will underpin future advancements. The research conducted under this contract could lead to breakthroughs in areas such as advanced materials, artificial intelligence, cybersecurity, aerospace engineering, and more. The insights gained and the technologies developed could provide the Air Force with a critical technological edge, enhancing its operational capabilities and ensuring national security in the years to come.
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 › C – National Defense R&D Services
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
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: $35,011,604
Exercised Options: $35,011,604
Current Obligation: $17,639,325
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $6,407,944
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
Start Date: 2022-06-01
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-01-14
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