Dod's $32M Amcom Samd Support Contract Awarded to KBR Wyle Services, LLC for R&D

Contract Overview

Contract Amount: $32,095,530 ($32.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2022-06-21

Contract Duration: 1,726 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF US ARMY AVIATION&MISSILE COMMAND (AMCOM), SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF US ARMY AVIATION&MISSILE COMMAND (AMCOM), SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) SUPPORT Key points: 1. Contract awarded for research and development services, indicating a focus on innovation and technical advancement. 2. The contract duration of 1726 days suggests a long-term need for these specialized support services. 3. Awarded under full and open competition, implying a robust bidding process and potential for competitive pricing. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 5. The primary agency is the US Army Aviation & Missile Command (AMCOM), highlighting its importance in aviation and missile systems. 6. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences category. 7. The contractor, KBR WYLE SERVICES, LLC, has experience in government contracting, suggesting a degree of reliability. 8. The contract was issued as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract value of $32.1 million over approximately 4.7 years represents a significant investment in R&D support. Benchmarking this specific contract's value is challenging without knowing the exact scope of services and comparable contracts within AMCOM's SAMD. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if not meticulously managed and monitored by the government. The absence of detailed performance metrics in the provided data makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple bidders were likely solicited and evaluated. This method is generally preferred as it allows for the widest possible range of potential contractors to compete, theoretically driving down prices and improving service quality. The presence of two bids (no: 2) indicates some level of competition, but the exact number of proposals received and the specific evaluation criteria are not detailed here.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and innovation from a broad base of qualified vendors.

Public Impact

The primary beneficiaries are the US Army Aviation & Missile Command (AMCOM) and its Security Assistance Management Directorate (SAMD), receiving critical R&D support. Services delivered likely include technical analysis, research, engineering support, and program management related to aviation and missile systems. The geographic impact is primarily within Alabama, where the contract is managed, but the ultimate impact extends to national defense capabilities. Workforce implications include employment opportunities for scientists, engineers, and support staff within KBR WYLE SERVICES, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Limited information on specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The number of bids (2) might indicate limited competition, potentially impacting price discovery.
The contract duration is substantial, requiring ongoing government oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, suggesting a fair and broad solicitation process.
Contractor KBR WYLE SERVICES, LLC has experience in government contracting, implying a level of established capability.
The contract supports critical R&D functions for the Army Aviation & Missile Command, indicating strategic importance.
The delivery order format suggests it may be part of a larger, established contracting vehicle.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services supporting defense agencies is substantial, with numerous firms specializing in areas like aerospace, missile technology, and advanced materials. AMCOM's role in aviation and missile systems places this contract within a niche but critical segment of the defense R&D market. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by DoD components for similar services.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, KBR WYLE SERVICES, LLC, as a large prime contractor, may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of small business subcontracting opportunities would depend on KBR WYLE's subcontracting plan and the specific needs of the R&D services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the US Army Aviation & Missile Command (AMCOM) and the Department of the Air Force (as the awarding agency). Mechanisms likely include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General (IG) of the Department of Defense would have jurisdiction over any investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

Army Aviation and Missile Research, Development and Engineering Center (AMRDEC) Support Contracts
Missile Defense Agency (MDA) R&D Contracts
Air Force Research Laboratory (AFRL) Contracts
Department of Defense Science and Technology Programs
Security Assistance Program Support Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited number of bidders may reduce competitive pressure.
Lack of detailed performance metrics hinders value assessment.
Scope of R&D services not fully specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF US ARMY AVIATION&MISSILE COMMAND (AMCOM), SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) SUPPORT

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 $32.1 million.

What is the period of performance?

Start: 2017-09-29. End: 2022-06-21.

What is the specific nature of the R&D services provided under this contract?

The provided data classifies the contract under NAICS code 541712: Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). While the specific R&D services are not detailed, given the awarding agency (US Army Aviation & Missile Command - AMCOM) and its Security Assistance Management Directorate (SAMD), the research likely pertains to advancements in aviation technology, missile systems, related engineering challenges, and potentially the logistical or security aspects of transferring such technologies internationally. This could encompass areas like materials science, propulsion systems, guidance and control, survivability, and testing methodologies.

How does the $32.1 million contract value compare to similar R&D support contracts for AMCOM?

Direct comparison of the $32.1 million value is difficult without access to a comprehensive database of AMCOM's specific R&D support contracts, including their scope, duration, and performance period. However, for a contract spanning approximately 4.7 years (1726 days) and awarded under full and open competition, this value appears within a reasonable range for specialized R&D support services for a major defense command. Larger, multi-year R&D programs can easily reach hundreds of millions or billions. This specific contract's value suggests a focused scope of work rather than a broad, enterprise-wide R&D initiative.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the 'fixed fee' component is predetermined. If the contractor's costs exceed projections significantly, they may still achieve their target profit margin, but the government bears the brunt of the increased expenses. This necessitates robust government oversight to ensure costs are reasonable, allocable, and necessary. Without stringent monitoring, contractors may have less incentive to control costs compared to fixed-price contracts, potentially leading to a higher overall expenditure for the government than initially anticipated.

What does the 'full and open competition' with only two bids imply for value and efficiency?

Awarding a contract under 'full and open competition' signifies that the solicitation was made available to all responsible sources. However, receiving only two bids suggests that the pool of qualified and interested contractors might have been limited for this specific requirement, or perhaps the solicitation process itself deterred broader participation. While competition is generally positive, a low number of bids can sometimes indicate less aggressive pricing than might be achieved with more bidders. It implies that the government selected the best value from the two proposals received, but it raises a question about whether a more competitive environment could have yielded even better terms for the taxpayer.

What is KBR WYLE SERVICES, LLC's track record with similar government R&D contracts?

KBR WYLE SERVICES, LLC, is a significant government contractor with a history of performing various services, including R&D support, logistics, and engineering, across multiple federal agencies, particularly within the Department of Defense. While specific details of their past performance on contracts identical in scope to AMCOM's SAMD support are not provided here, their continued success in securing large government contracts suggests a generally positive track record. Performance evaluations and past performance questionnaires submitted during the bidding process would offer more granular insights into their reliability, quality of work, and adherence to schedules and budgets on previous R&D-related endeavors.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541712) has historically been substantial, driven primarily by defense and health agencies. Over the past decade, spending in this area has fluctuated based on national priorities, budget cycles, and specific technological advancements. Defense R&D, in particular, often sees significant investment during periods of geopolitical tension or rapid technological change in areas like AI, cybersecurity, and advanced materials. While overall trends show consistent, significant federal investment, specific sub-sectors like aerospace and missile technology, relevant to this contract, are subject to cyclical funding based on program needs and strategic objectives.

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: FA807513R0001

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: $131,038,479

Exercised Options: $131,038,479

Current Obligation: $32,095,530

Actual Outlays: $1,501,047

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $6,224,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0025

IDV Type: IDC

Timeline