DoD's $86.4M Joint Mission Environment Test Capability contract awarded to KBR WYLE SERVICES, LLC for R&D

Contract Overview

Contract Amount: $86,438,340 ($86.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2029-09-24

Contract Duration: 1,825 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOINT MISSION ENVIRONMENT TEST CAPABILITY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE OFFICE OF THE SECRETARY OF DEFENSE TEST RESOURCE MANAGEMENT CENTER

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $86.4 million to KBR WYLE SERVICES, LLC for work described as: JOINT MISSION ENVIRONMENT TEST CAPABILITY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE OFFICE OF THE SECRETARY OF DEFENSE TEST RESOURCE MANAGEMENT CENTER Key points: 1. Contract focuses on critical R&D for the Test Resource Management Center, enhancing mission readiness. 2. The contract's duration of 5 years suggests a long-term need for these specialized services. 3. Awarded under full and open competition, indicating a broad market search for the best value. 4. The 'COST PLUS FIXED FEE' contract type may present cost control challenges if not managed diligently. 5. This contract supports advanced testing and evaluation capabilities essential for national security. 6. The geographic focus on Virginia aligns with significant defense testing infrastructure.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging due to its specialized nature. However, the competitive award process suggests a reasonable price was sought. The contract's value of $86.4 million over five years, with a base of $47.3 million, indicates a significant investment in advanced testing capabilities. Further analysis would require comparing specific R&D deliverables and their associated costs against similar, albeit difficult to find, government-funded research initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple qualified vendors were invited to bid. The presence of two bids indicates a degree of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is relatively low for a contract of this magnitude, which could warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it aims to secure the best possible price and quality by allowing all eligible sources to participate.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, gaining enhanced capabilities for testing and evaluating joint mission environments. Services delivered include research, development, testing, and evaluation crucial for modern military operations. The geographic impact is centered in Virginia, a hub for defense activities and testing facilities. Workforce implications include the potential for highly skilled R&D professionals, engineers, and technicians employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
Limited number of bidders (2) may suggest potential market limitations or high barriers to entry for this specialized R&D area.

Positive Signals

Awarded via full and open competition, maximizing potential for competitive pricing.
Long-term contract duration (5 years) provides stability for critical R&D efforts.
Focus on R&D for Test Resource Management Center addresses a key defense capability need.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is substantial, driven by the need for technological superiority and advanced capabilities. This contract supports the development of integrated testing environments, which are crucial for simulating complex, multi-domain operations. Comparable spending benchmarks would likely be found within other large-scale defense R&D programs focused on simulation, modeling, and advanced systems integration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized expertise from larger, established firms capable of handling complex R&D. The impact on the small business ecosystem is likely minimal for this specific award, though larger prime contractors may engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, acting on behalf of the Office of the Secretary of Defense. Accountability measures would be embedded within the contract's performance work statement, milestones, and reporting requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Research, Development, Test, and Evaluation (RDT&E)
Test and Evaluation Management Agency (TEMA) programs
Joint Mission Environment Test Capability (JMETC)
Defense Advanced Research Projects Agency (DARPA) projects

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Limited Competition Data (2 Bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.4 million to KBR WYLE SERVICES, LLC. JOINT MISSION ENVIRONMENT TEST CAPABILITY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE OFFICE OF THE SECRETARY OF DEFENSE TEST RESOURCE MANAGEMENT CENTER

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 $86.4 million.

What is the period of performance?

Start: 2024-09-25. End: 2029-09-24.

What is the historical spending trend for the Joint Mission Environment Test Capability (JMETC) program?

Historical spending data for the specific Joint Mission Environment Test Capability (JMETC) program is not directly available in the provided data. However, the Department of Defense's overall Research, Development, Test, and Evaluation (RDT&E) budget is substantial, often in the tens of billions of dollars annually. JMETC, as a critical component supporting joint force readiness, likely receives consistent funding. Analyzing past JMETC-related contracts, if publicly accessible, would reveal trends in funding levels, contractor awards, and the evolution of testing requirements over time. Without specific historical JMETC figures, we infer its importance from its inclusion in this significant contract award.

How does KBR WYLE SERVICES, LLC's performance on similar DoD contracts compare?

Assessing KBR WYLE SERVICES, LLC's performance on similar DoD contracts requires access to historical performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and a broader dataset of their past awards. The provided data indicates KBR WYLE SERVICES, LLC is a recipient of this significant R&D contract, suggesting they possess the necessary qualifications and capabilities. To provide a comparative analysis, one would need to examine their track record on other cost-plus-fixed-fee R&D contracts, their on-time delivery rates, budget adherence, and any documented performance issues or commendations from previous government engagements. A comprehensive review would involve cross-referencing their past performance metrics against industry averages for similar contract types and scopes.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The specific Key Performance Indicators (KPIs) for this Joint Mission Environment Test Capability contract are not detailed in the provided summary data. However, for an R&D contract of this nature, success is typically measured against the achievement of defined research objectives, the successful development and testing of prototypes or simulations, adherence to project timelines, and the effective management of costs within the 'fixed fee' component. Performance will likely be evaluated based on the contractor's ability to deliver innovative solutions that enhance the realism and effectiveness of joint mission testing environments, contributing to improved warfighter training and operational readiness. Regular technical reviews and milestone completions would serve as critical checkpoints for measuring progress.

What is the potential for cost overruns given the 'Cost Plus Fixed Fee' (CPFF) contract type?

The 'Cost Plus Fixed Fee' (CPFF) contract type inherently carries a risk of cost overruns, primarily because the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate. If the contractor's actual costs exceed initial estimates, the government bears that increased cost. Effective oversight, stringent cost controls, detailed work breakdown structures, and regular audits by the government are crucial to mitigate this risk. The government's ability to closely monitor expenditures and challenge unallowable costs is paramount in preventing significant cost overruns on CPFF contracts.

Are there any specific technological advancements expected from this R&D effort?

While the provided data does not specify the exact technological advancements expected, the contract's objective – 'JOINT MISSION ENVIRONMENT TEST CAPABILITY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION' – implies a focus on enhancing the fidelity, scope, and realism of simulated environments for military training and testing. This could involve advancements in areas such as artificial intelligence for adversary simulation, high-fidelity sensor modeling, integration of cyber warfare scenarios, development of advanced data analytics for performance assessment, or creation of more immersive virtual and constructive simulation environments. The goal is likely to better prepare forces for complex, multi-domain operational challenges.

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: 2

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: $444,557,705

Exercised Options: $444,557,705

Current Obligation: $86,438,340

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,520,088

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