NASA's $338.6M engineering services contract for space missions awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $338,605,801 ($338.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-06-01

End Date: 2016-12-31

Contract Duration: 1,674 days

Daily Burn Rate: $202.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF OTHER FUNCTIONS MSES IIA BRIDGE. THE PURPOSE OF THIS CONTRACT IS TO ACQUIRE ENGINEERING SERVICES AND RELATED SERVICES TO MSD AND RELATED ORGANIZATIONS THROUGHOUT GSFC, AS REQUIRED, FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACE FLIGHT AND GROUND SYSTEM HARDWARE AND SOFTWARE, INCLUDING DEVELOPMENT AND VALIDATION OF NEW TECHNOLOGIES TO ENABLE FUTURE SPACE AND SCIENCE MISSIONS. THE ENGINEERING AREAS OF EMPHASIS ARE MULTIDISCIPLINARY WITH CONCENTRATION IN THE MECHANICAL ENGINEERING AREAS OF MATERIALS, STRUCTURAL ANALYSIS AND LOADS, MECHANICAL DESIGN, ELECTROMECHANICAL DESIGN, THERMAL, CONTAMINATION AND COATINGS, MANUFACTURING AND INTEGRATION AND TEST. TO THIS END, THE CONTRACTOR SHALL PROVIDE ON/OFF-SITE MULTIDISCIPLINARY ENGINEERING SERVICES, PURSUANT TO TASK ASSIGNMENTS ISSUED BY THE CONTRACTING OFFICER. THESE SERVICES SHALL INCLUDE THE PERSONNEL, FACILITIES, AND MATERIALS (UNLESS OTHERWISE PROVIDED BY THE GOVERNMENT) TO ACCOMPLISH THE TASKS.

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $338.6 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF OTHER FUNCTIONS MSES IIA BRIDGE. THE PURPOSE OF THIS CONTRACT IS TO ACQUIRE ENGINEERING SERVICES AND RELATED SERVICES TO MSD AND RELATED ORGANIZATIONS THROUGHOUT GSFC, AS REQUIRED, FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICAT… Key points: 1. Contract provides critical engineering and technical services for space flight and ground systems. 2. Focus on multidisciplinary engineering, particularly in mechanical areas like materials, structural analysis, and thermal. 3. Services span the entire lifecycle from formulation and design to testing and operations. 4. Contract duration of approximately 4.6 years. 5. Significant investment in enabling future space and science missions. 6. Contract type is Cost Plus Fixed Fee, indicating shared risk between government and contractor.

Value Assessment

Rating: fair

The contract's total value is $338.6 million over approximately 4.6 years. Without specific benchmarks for similar engineering services contracts at NASA or other agencies, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can incentivize cost control but also carries inherent risks if not managed diligently. The provided data does not allow for a direct comparison of per-unit costs or labor rates against market averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The rationale for a sole-source award is not detailed in the provided data, but it typically implies that only one responsible source was available or that the circumstances justified a non-competitive procurement. The lack of competition means that the government did not benefit from a range of proposals and potentially lower pricing that could have resulted from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not achieve the most favorable pricing achievable through open competition.

Public Impact

Benefits NASA's Goddard Space Flight Center (GSFC) and related organizations by providing essential engineering expertise. Supports the development and validation of new technologies for future space and science missions. Enables the successful formulation, design, integration, testing, and operation of space flight hardware and software. Impacts the aerospace engineering workforce by providing employment opportunities for skilled professionals. Geographic impact is primarily centered around GSFC facilities, likely in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' categorizes this spending. The aerospace engineering services market is a significant segment within the broader R&D and professional services industry, driven by government and commercial space exploration initiatives. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by NASA and other federal agencies for similar space-related projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, is likely a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside provision. This means the direct impact on the small business ecosystem through this specific contract's set-aside mechanism is nil.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily fall under NASA's contracting officer and administrative contracting officer. Given the nature of the services and the agency, the NASA Office of Inspector General (OIG) would likely have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases and reporting requirements, but specific details on day-to-day oversight mechanisms and performance reviews are not provided.

Related Government Programs

Risk Flags

Tags

nasa, engineering-services, research-and-development, space-exploration, cost-plus-fixed-fee, sole-source, kbr-wyle-services, goddard-space-flight-center, maryland, large-contract, technology-development

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $338.6 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF OTHER FUNCTIONS MSES IIA BRIDGE. THE PURPOSE OF THIS CONTRACT IS TO ACQUIRE ENGINEERING SERVICES AND RELATED SERVICES TO MSD AND RELATED ORGANIZATIONS THROUGHOUT GSFC, AS REQUIRED, FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACE FLIGHT AND GROUND SYSTEM HARDWARE AND SOFTWARE, INCLUDING DEVELOPMENT AND VALIDATION OF NEW TECHNOLOGIES TO ENABLE FUTURE SPACE AND SCIENCE MISSIONS. THE ENGINEERING AREAS OF EMPHASIS ARE MUL

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $338.6 million.

What is the period of performance?

Start: 2012-06-01. End: 2016-12-31.

What is the historical spending pattern for KBR Wyle Services, LLC with NASA for similar engineering services?

Analyzing historical spending patterns for KBR Wyle Services, LLC with NASA for similar engineering services would require access to historical contract databases beyond the scope of this single data point. However, the fact that they were awarded this significant sole-source contract suggests a prior relationship or demonstrated capability that NASA deemed essential. Without specific historical data, it's difficult to ascertain trends, but large sole-source awards often follow periods of successful performance on previous contracts or unique capabilities possessed by the contractor. Further investigation into NASA's contract archives would be needed to identify previous awards to KBR Wyle Services, LLC for engineering support and compare their value, duration, and scope to this current contract.

How does the fixed fee component of this contract compare to industry standards for similar R&D engineering services?

Determining whether the fixed fee component of this Cost Plus Fixed Fee (CPFF) contract aligns with industry standards requires detailed benchmarking data that is not publicly available in this dataset. Fixed fees in CPFF contracts are typically negotiated based on the perceived risk, complexity, and duration of the effort. For R&D engineering services, fees can vary significantly. A common range might be between 5% and 15% of the estimated cost, but this is highly dependent on the specific nature of the work and the contractor's overhead structure. Without knowing the total estimated cost and the negotiated fixed fee amount, a direct comparison is impossible. Industry best practices suggest that fees should reflect the level of contractor risk and the value added, while ensuring fair profit for the contractor.

What specific risks were identified by NASA that justified a sole-source award for these critical engineering services?

The provided data does not specify the risks identified by NASA that justified a sole-source award. Sole-source procurements are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is capable of providing the required services, or in cases of urgent and compelling need where competition is not feasible. For complex engineering services related to space missions, potential justifications could include the unique expertise or proprietary technology held by KBR Wyle Services, LLC, or the need for continuity of services on an ongoing project where switching contractors would be detrimental. A thorough review of NASA's justification for other than full and open competition (JOFOC) documentation would be necessary to understand the specific risks and rationale.

What are the key performance indicators (KPIs) used to measure the success of KBR Wyle Services, LLC under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) used to measure the success of KBR Wyle Services, LLC under this contract. In contracts of this nature, KPIs typically focus on technical performance (e.g., meeting design specifications, successful testing outcomes), schedule adherence (e.g., timely completion of milestones), cost control (e.g., managing costs within estimates), and quality of deliverables (e.g., accuracy and completeness of engineering reports and designs). NASA contracting officers would establish these metrics in the contract's performance work statement (PWS) or statement of work (SOW), and performance would be monitored throughout the contract's duration. Regular performance reviews would assess the contractor's achievement against these defined KPIs.

How does the total contract value of $338.6 million compare to NASA's overall annual spending on engineering and technical services?

To compare the total contract value of $338.6 million to NASA's overall annual spending on engineering and technical services, one would need access to NASA's comprehensive budget and contract spending reports for the relevant fiscal years (2012-2016). This single contract represents a significant investment, but its proportion within NASA's total engineering support expenditure is unknown without broader financial context. NASA's budget is substantial, encompassing numerous large-scale projects and research initiatives. This contract likely represents a portion of the funding allocated to the Goddard Space Flight Center (GSFC) for specific mission support, rather than NASA's entire engineering services budget. A full analysis would require comparing this value against NASA's total outlays for similar services across all its centers and programs during the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: NNG12423896R

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 7701 GREENBELT RD STE 400, GREENBELT, MD, 20770

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: $430,000,000

Exercised Options: $430,000,000

Current Obligation: $338,605,801

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $1,386,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-06-01

Current End Date: 2016-12-31

Potential End Date: 2016-12-31 00:00:00

Last Modified: 2022-10-04

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