DoD's $29.3M R&D contract with KBR Wyle Services, LLC for physical sciences research

Contract Overview

Contract Amount: $29,286,275 ($29.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-06-07

End Date: 2022-06-05

Contract Duration: 1,824 days

Daily Burn Rate: $16.1K/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 LABOR AND MATERIALS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF LABOR AND MATERIALS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for innovation. 3. The contract duration of 1824 days indicates a long-term commitment to the research objectives. 4. Awarded as a Delivery Order, suggesting it's part of a larger contract vehicle. 5. The Cost Plus Fixed Fee pricing structure can incentivize cost control while ensuring contractor profit. 6. The contract was awarded to a single entity, KBR Wyle Services, LLC.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more detailed cost breakdowns and comparison to similar research projects. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, making direct price comparisons difficult. However, the fixed fee component provides some predictability for the government's overall expenditure on contractor profit. Further analysis would require understanding the specific deliverables and the market rates for the specialized R&D services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process as multiple companies vie for the contract. The number of bidders is not specified, but the competitive nature suggests the government sought the best value proposition from the market.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The Department of the Air Force benefits from advanced research and development in physical sciences. This contract supports innovation and technological advancement within the defense sector. The research outcomes could lead to new technologies or improved existing ones, enhancing national security. Workforce implications may include specialized scientific and engineering roles within KBR Wyle Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D.
The CPFF contract type can sometimes lead to cost overruns if not closely monitored.
Limited information on the specific research areas may obscure potential risks or redundancies with other government R&D efforts.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contract is for Research and Development, a critical area for future technological superiority.
The fixed fee component in the CPFF structure provides a degree of cost certainty for contractor profit.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a broad category encompassing fundamental and applied research aimed at discovering new knowledge and developing new technologies. The market for R&D services is highly specialized, with a mix of large corporations and smaller research firms. Government spending in this area is crucial for maintaining a technological edge and driving innovation across various industries.

Small Business Impact

The 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 set-aside provision. However, the prime contractor, KBR Wyle Services, LLC, may engage small businesses as subcontractors depending on their own procurement strategies and the specific needs of the research project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific R&D project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Science and Technology Programs
Physical Sciences Research Grants
Engineering Research and Development
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Overrun Potential (CPFF)
Unclear R&D Deliverables
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF LABOR AND MATERIALS

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 $29.3 million.

What is the period of performance?

Start: 2017-06-07. End: 2022-06-05.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' being conducted under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code 541712, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' However, it does not specify the precise research topics or objectives. This broad category can encompass a wide range of activities, from fundamental scientific inquiry to applied engineering solutions. Without further details from the contract's statement of work or associated documentation, it is impossible to determine the exact nature of the R&D. Such information is often classified or proprietary, especially in defense-related contracts, to protect intellectual property and national security interests.

How does the total contract value of approximately $29.3 million compare to similar R&D contracts in the physical sciences sector?

Comparing the $29.3 million value requires context regarding the scope, duration, and specific R&D focus. Contracts in the physical sciences can range from small, targeted research grants to massive, multi-year programs. For instance, a contract for basic materials science research might be significantly smaller than one for developing advanced aerospace propulsion systems. KBR Wyle Services, LLC is a large entity capable of handling substantial contracts. To benchmark effectively, one would need to identify comparable contracts awarded by the Department of Defense or other agencies for R&D in similar physical science domains, considering factors like the number of researchers involved, required facilities, and expected technological outcomes. Without such specific comparative data, it's difficult to definitively state if $29.3 million represents a high, low, or average investment for this type of R&D.

What are the key performance indicators (KPIs) used to measure the success of this R&D contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. For Research and Development contracts, success is often measured by milestones such as the successful completion of research phases, the development of prototypes, the publication of findings, the filing of patents, or the successful transition of technology to operational use. The Cost Plus Fixed Fee (CPFF) structure implies that performance is monitored against the agreed-upon scope of work and the fixed fee, but the specific metrics for R&D success are typically detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without access to these documents, assessing the contract's success against defined KPIs is not possible.

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

KBR Wyle Services, LLC, as part of KBR, has a significant history of performing government contracts, including those in research and development. While specific details on their track record for contracts precisely matching the 'Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code 541712 are not provided here, KBR has extensive experience in areas such as aerospace, defense, engineering, and scientific support. Their past performance on similar large-scale R&D projects, including their ability to manage complex technical challenges, adhere to budgets, and deliver results, would be a key factor considered during the 'full and open competition' bidding process. A thorough assessment would involve reviewing their past performance evaluations and contract history.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government, primarily related to cost control. While the 'fixed fee' component ensures the contractor's profit margin is predetermined, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the total contract value can increase significantly, provided the costs are deemed allowable and reasonable. This risk is amplified in R&D where the scope and challenges can be unpredictable. Effective oversight, stringent cost accounting standards, and clear definitions of allowable costs are crucial to mitigate the risk of cost overruns and ensure the government receives good 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 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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

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: $32,522,423

Exercised Options: $32,522,423

Current Obligation: $29,286,275

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $19,787,338

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