DoD's $31M Naval Aviation Logistics IT Contract with KBR Wyle Faces Scrutiny for R&D Spending
Contract Overview
Contract Amount: $30,956,719 ($31.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-16
End Date: 2022-03-19
Contract Duration: 1,829 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF NAVAL AVIATION LOGISTICS IT SOLUTIONS NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4) TACTICAL MAINTENANCE AND OPERATION
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF NAVAL AVIATION LOGISTICS IT SOLUTIONS NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4) TACTICAL MAINTENANCE AND OPERATION Key points: 1. Contract awarded to KBR Wyle Services, LLC for IT solutions in naval aviation logistics. 2. Significant portion of spending allocated to Research and Development in Physical, Engineering, and Life Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Contract duration spans over five years, indicating a long-term commitment. 5. The contract's primary focus is on tactical maintenance and operations support.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to inherent variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is positive for price discovery. However, the CPFF pricing structure may limit the direct impact of competition on final cost savings.
Taxpayer Impact: Taxpayer funds are committed to a long-term R&D effort. Oversight is crucial to ensure value for money and prevent unnecessary cost escalation.
Public Impact
Impacts naval aviation readiness and tactical maintenance operations. Supports research and development in critical physical and engineering sciences. Funds a significant IT services contract within the Department of Defense. Potential for technological advancements in aviation logistics and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) pricing can incentivize higher spending.
- R&D contracts are inherently complex and prone to scope creep.
- Long contract duration may mask inefficiencies over time.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Full and open competition utilized.
- Supports critical naval aviation readiness.
- Focus on R&D may yield technological advancements.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to IT solutions for naval aviation. Spending benchmarks for R&D can vary widely based on the specific technological advancements sought.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, KBR Wyle Services, LLC, is a large business, suggesting limited direct opportunities for small businesses unless through subcontracting.
Oversight & Accountability
The contract is managed by NAVAL AIR SYSTEMS COMMAND (NAVAIR). Oversight effectiveness will depend on rigorous monitoring of cost, performance, and adherence to R&D objectives under the CPFF structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Difficulty in benchmarking R&D contract costs.
- Lack of specific performance metrics.
- Long contract duration may obscure long-term value.
- Limited visibility into subcontracting opportunities for small businesses.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF NAVAL AVIATION LOGISTICS IT SOLUTIONS NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4) TACTICAL MAINTENANCE AND OPERATION
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 $31.0 million.
What is the period of performance?
Start: 2017-03-16. End: 2022-03-19.
How effectively is the CPFF structure being managed to ensure cost efficiency in this R&D contract?
The effectiveness of CPFF management hinges on robust oversight by NAVAIR. This includes detailed cost tracking, regular performance reviews, and strict change control processes to prevent scope creep and ensure that the fixed fee remains appropriate for the effort. Without transparent reporting and proactive risk mitigation, CPFF contracts can lead to cost overruns, diminishing the overall value delivered to taxpayers.
What are the key performance indicators (KPIs) used to measure the success of this R&D effort?
Specific KPIs for this R&D contract are not detailed in the provided data. Typically, R&D KPIs might include milestones for technological development, successful prototype testing, integration into existing systems, or achievement of specific performance improvements. The absence of clearly defined and measurable KPIs makes it challenging to objectively assess the contract's success and the return on investment for the government.
To what extent does this contract contribute to tangible improvements in naval aviation readiness and tactical maintenance?
The contract's stated purpose is to support aviation readiness and tactical maintenance through IT solutions and R&D. The tangible impact depends on the successful development and implementation of the technologies or processes resulting from the R&D. Without specific project outcomes or post-implementation reviews, it's difficult to quantify the direct contribution to readiness improvements beyond the contract's intended scope.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA807515R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,163,604
Exercised Options: $31,163,604
Current Obligation: $30,956,719
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,523,710
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA807516D0010
IDV Type: IDC
Timeline
Start Date: 2017-03-16
Current End Date: 2022-03-19
Potential End Date: 2022-03-19 00:00:00
Last Modified: 2025-04-26
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