DoD's $41.7M R&D contract with KBR WYLE SERVICES, LLC shows fair value despite limited competition
Contract Overview
Contract Amount: $41,718,873 ($41.7M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-26
End Date: 2026-03-30
Contract Duration: 3,016 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ALPHA PRIME - SBIR III
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.7 million to KBR WYLE SERVICES, LLC for work described as: ALPHA PRIME - SBIR III Key points: 1. Contract awarded to KBR WYLE SERVICES, LLC for R&D services. 2. The contract has a duration of 3016 days, indicating a long-term engagement. 3. Awarded under full and open competition after exclusion of sources, suggesting a competitive process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 5. Virginia is the primary state for performance, impacting the local economy. 6. The NAICS code 541715 points to R&D in physical, engineering, and life sciences. 7. This contract represents a significant investment in research and development for the Department of Defense.
Value Assessment
Rating: fair
The contract's value of $41.7 million over approximately 8 years suggests a moderate annual spend. Benchmarking against similar R&D contracts is challenging without more specific service details. However, the CPFF structure, while common for R&D, requires careful oversight to ensure cost efficiency. The total award value appears reasonable for the scope of research and development activities typically undertaken by the Department of Defense in this sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, which could limit the pool of potential bidders. The specific reasons for exclusion are not detailed, but it suggests a structured procurement process that aimed for competition.
Taxpayer Impact: While the competition was intended to be open, the exclusion of sources may have limited the number of bids received, potentially impacting the most competitive pricing for taxpayers.
Public Impact
The Department of Defense benefits from advanced research and development capabilities. Services delivered likely contribute to technological advancements in physical, engineering, and life sciences. Performance is concentrated in Virginia, potentially creating or sustaining jobs in the region. The contract supports specialized R&D activities, requiring a skilled scientific and technical workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
- The 'exclusion of sources' clause warrants further investigation to ensure maximum competition was achieved.
- Long contract duration (3016 days) increases the risk of scope creep or evolving requirements not being optimally addressed.
Positive Signals
- Awarded under a full and open competition framework, indicating an effort to solicit broad interest.
- The CPFF contract type can provide flexibility for R&D projects with evolving technical challenges.
- KBR WYLE SERVICES, LLC is a known entity in government contracting, suggesting a level of established capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological superiority. The market for R&D services is highly specialized, with a mix of large corporations and niche firms. Spending in this area is often driven by strategic national security objectives and the need to stay ahead of potential adversaries.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless KBR WYLE SERVICES, LLC voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures and ensure compliance with the fixed fee. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- SBIR/STTR Programs (though this is not one)
- Advanced Technology Development Contracts
- Engineering and Technical Services Contracts
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost overruns in CPFF contract.
- Lack of explicit small business subcontracting requirements.
Tags
research-and-development, department-of-defense, air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, virginia, large-contract, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.7 million to KBR WYLE SERVICES, LLC. ALPHA PRIME - SBIR III
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 $41.7 million.
What is the period of performance?
Start: 2017-12-26. End: 2026-03-30.
What is the historical spending trend for KBR WYLE SERVICES, LLC with the Department of Defense?
Analyzing historical spending for KBR WYLE SERVICES, LLC with the Department of Defense requires access to comprehensive federal procurement databases. Generally, KBR has been a significant contractor across various agencies, including DoD, often securing large contracts for services ranging from logistics and engineering to R&D and base operations. Their awards often span multiple years and cover diverse requirements. Without specific data on this contractor's portfolio, it's difficult to pinpoint exact trends, but their presence suggests a consistent demand for their capabilities within the defense sector. Further analysis would involve examining the volume, value, and types of contracts awarded to KBR over time to identify patterns and assess their overall contribution to DoD's mission.
How does the annual value of this contract compare to similar R&D contracts in the physical, engineering, and life sciences sector?
The annual value of this contract, approximately $5.2 million ($41.7M / 8 years), needs to be benchmarked against comparable R&D contracts. The physical, engineering, and life sciences sector within DoD is vast, encompassing everything from basic research to applied engineering. Contracts can range from a few million dollars for specialized studies to hundreds of millions for large-scale development programs. Given the 'definitive contract' nature and CPFF structure, this appears to be a substantial, long-term project. To assess value, one would compare it to other contracts for similar R&D scope, duration, and complexity awarded by DoD or other agencies like DARPA or ONR. If similar projects are valued significantly higher or lower, it could indicate issues with pricing or scope definition for this specific contract.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. If not managed diligently, this can lead to cost overruns, as the contractor may have less incentive to minimize expenses compared to fixed-price contracts. For R&D, where outcomes can be uncertain and requirements may evolve, CPFF offers flexibility but requires robust government oversight to scrutinize costs, ensure efficiency, and prevent scope creep. The government bears the financial risk of cost increases, while the contractor is incentivized to complete the work within the estimated cost to protect their fee.
What specific R&D areas does NAICS code 541715 cover, and how does this contract align with DoD priorities?
NAICS code 541715 covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This broad category includes fundamental research, applied research, and experimental development across disciplines like physics, chemistry, materials science, mechanical and electrical engineering, computer science (excluding software development as a primary focus), and various biological sciences. For the DoD, R&D in these areas is crucial for developing next-generation military technologies, improving existing systems, enhancing soldier performance, and maintaining a technological edge. Contracts under this code often support efforts in areas such as advanced materials, propulsion systems, sensor technology, cybersecurity research, and biomedical advancements relevant to military personnel.
What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the procurement process and potential savings?
The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a procurement process that initially aimed for broad competition but subsequently excluded certain potential offerors based on specific criteria. This exclusion could be due to reasons like national security, prior performance issues, or specific technological requirements that only a limited number of entities possess. While it aims to ensure qualified sources are considered, the exclusion inherently limits the number of bidders compared to unrestricted full and open competition. This reduction in competition could potentially lead to higher prices for the government, as fewer bidders might mean less pressure to offer the most competitive pricing. The justification for excluding sources is critical for understanding the impact on taxpayer value.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 15020 CONFERENCE CENTER DR STE 100, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,037,035
Exercised Options: $43,792,576
Current Obligation: $41,718,873
Actual Outlays: $1,738,754
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $816
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-12-26
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 00:00:00
Last Modified: 2025-11-18
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