NASA awards $117.4M R&D contract to KBR Wyle Services for specialized engineering support
Contract Overview
Contract Amount: $117,449,655 ($117.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-09-02
End Date: 2026-09-30
Contract Duration: 393 days
Daily Burn Rate: $298.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: HHPC2 TO
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $117.4 million to KBR WYLE SERVICES, LLC for work described as: HHPC2 TO Key points: 1. Contract value represents a significant investment in advanced research and development. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and innovation. 3. Performance risk is moderate, given the specialized nature of the services required. 4. This contract supports critical NASA missions requiring deep technical expertise. 5. The R&D sector is highly competitive, with specialized firms vying for significant awards. 6. Contract duration of over a year suggests a sustained need for these services.
Value Assessment
Rating: good
The contract value of $117.4 million over approximately 1.3 years appears reasonable for specialized R&D services. Benchmarking against similar contracts for advanced engineering and scientific support within NASA and other federal agencies would provide a more precise value-for-money assessment. The Cost Plus Award Fee (CPAF) structure incentivizes performance, but requires careful oversight to manage costs effectively. Without specific performance metrics and comparable contract data, a definitive value assessment is challenging, but the award to a known entity suggests a degree of confidence in their capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and achieving the best value for the government. The number of bidders and the specific evaluation criteria would further illuminate the intensity of the competition. A robust competitive process suggests that the pricing and technical solutions offered were deemed superior among the participants.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of innovative solutions, ultimately leading to more efficient use of public funds.
Public Impact
This contract directly benefits NASA's research and development initiatives, advancing scientific and technological capabilities. It will provide specialized engineering and scientific support services essential for mission success. The geographic impact is primarily centered around NASA facilities, likely in Texas where the contractor is based. The contract will support a workforce of skilled engineers, scientists, and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Award Fee contracts if not rigorously managed.
- Dependence on a single contractor for critical R&D support could pose a risk if performance falters.
- Ensuring fair and equitable distribution of work, especially if subcontracts are involved.
Positive Signals
- Award to an established contractor (KBR Wyle Services) suggests a track record of capability.
- Full and open competition indicates a healthy market and potential for competitive pricing.
- The contract's focus on R&D aligns with strategic national priorities for technological advancement.
Sector Analysis
The Research and Development in the Physical, Engineering, and Life Sciences sector is a critical area for government investment, driving innovation and technological progress. This contract falls under NAICS code 541715, which encompasses a broad range of scientific research and development services. The market for such services is characterized by specialized firms with deep technical expertise. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by agencies like NASA, DoD, and DOE for similar scientific disciplines and support services.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, the direct impact on small business set-asides appears minimal. However, the prime contractor, KBR Wyle Services, may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing to the broader small business ecosystem. Analysis of subcontracting plans would be necessary to fully assess the impact on small businesses.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract will likely be managed by NASA's contracting officers and technical representatives, who will monitor performance against established award fee criteria. Accountability measures are built into the award fee structure, incentivizing the contractor to meet or exceed performance expectations. Transparency is typically maintained through contract award notices and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Research and Technology Development
- Aerospace Engineering Services
- Scientific Research and Development Services
- Federal R&D Spending
Risk Flags
- Cost Overrun Risk
- Performance Dependency
- Contract Oversight Intensity
Tags
nasa, research-and-development, kbr-wyle-services, cost-plus-award-fee, full-and-open-competition, engineering-services, scientific-research, texas, federal-contract, large-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $117.4 million to KBR WYLE SERVICES, LLC. HHPC2 TO
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 $117.4 million.
What is the period of performance?
Start: 2025-09-02. End: 2026-09-30.
What is KBR Wyle Services' track record with NASA and other federal agencies for similar R&D contracts?
KBR Wyle Services, LLC has a significant history of performing contracts for NASA and other federal agencies, often in areas related to aerospace engineering, scientific research, and technical support. Their experience typically spans complex R&D projects, mission operations, and systems engineering. Reviewing past performance evaluations and contract histories with agencies like NASA, the Department of Defense, and the FAA would provide insight into their reliability, technical proficiency, and ability to manage large-scale, complex projects. Specific details on past performance, including any awards or penalties, would be crucial for a comprehensive assessment of their suitability for this new R&D contract.
How does the awarded amount of $117.4 million compare to similar R&D contracts for specialized engineering support?
The $117.4 million award for specialized engineering support over approximately 1.3 years places this contract in the mid-to-large range for federal R&D procurements. To benchmark its value, one would compare it to contracts with similar scope, duration, and technical requirements awarded by NASA, DoD, or other science-focused agencies. For instance, contracts for systems engineering, advanced materials research, or specialized propulsion development could serve as comparators. Factors like the level of competition, the specific technical challenges, and the required expertise influence pricing. Without access to a detailed database of comparable contract values and performance metrics, it's difficult to definitively state if this represents excellent or fair value, but it signifies a substantial investment in critical R&D capabilities.
What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract structure?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure revolve around cost control and the potential for contractor inefficiency if not managed properly. While CPAF incentivizes performance through award fees, it also allows the contractor to recover allowable costs. This can lead to cost overruns if the government's oversight is insufficient or if the contractor inflates costs. The 'award fee' component requires clear, objective, and measurable performance criteria to prevent subjective assessments and potential disputes. Ensuring that the government's technical team rigorously monitors expenditures, progress, and adherence to the statement of work is paramount to mitigating these risks and ensuring the government receives good value for its investment.
How effective is the 'full and open competition' approach likely to be in ensuring optimal pricing and innovation for this R&D contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring optimal pricing and fostering innovation in federal contracting. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing competitive pressure on pricing. This also encourages a wider range of innovative technical solutions as contractors vie to differentiate themselves. For this R&D contract, full and open competition suggests that NASA sought the best possible technical approach and cost-effectiveness from the market. The success of this approach hinges on the clarity of the solicitation requirements and the rigor of the evaluation process in selecting the most advantageous offer for the government.
What are the potential long-term implications of this contract on NASA's research capabilities and technological advancement?
This contract has the potential to significantly bolster NASA's research capabilities and drive technological advancement by securing specialized expertise for critical R&D efforts. By investing in areas like physical, engineering, and life sciences research, NASA aims to push the boundaries of scientific knowledge and develop technologies applicable to space exploration, Earth science, and aeronautics. The outcomes of this contract could lead to breakthroughs in materials science, propulsion systems, life support, or data analysis, contributing to future missions and broader scientific understanding. Furthermore, it supports the development of a skilled scientific and engineering workforce, essential for maintaining U.S. leadership in space and technology.
Are there any specific performance indicators or metrics that will be used to evaluate KBR Wyle Services' success under this contract?
While the provided data does not detail specific performance indicators, Cost Plus Award Fee (CPAF) contracts typically rely on a set of predefined metrics and criteria outlined in the contract's Performance Work Statement (PWS) and the Award Fee Plan. These metrics are designed to be objective and measurable, covering aspects such as technical performance, schedule adherence, cost control, and quality of deliverables. For an R&D contract like this, indicators might include the successful completion of research milestones, the development of prototypes, the accuracy of scientific findings, the efficiency of experimental processes, and the timely submission of reports and analyses. NASA's technical monitors and contracting officers will assess the contractor's performance against these criteria to determine the level of award fee earned.
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: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
Address: 8120 MAPLE LAWN BLVD, FULTON, MD, 20759
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: $1,291,262,400
Exercised Options: $1,291,262,400
Current Obligation: $117,449,655
Actual Outlays: $35,731,367
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $4,528,435
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 80JSC025D0068
IDV Type: GWAC
Timeline
Start Date: 2025-09-02
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-13
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