DoD's $30M R&D contract for advanced integration processes awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $30,172,289 ($30.2M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-01-29

End Date: 2022-09-30

Contract Duration: 1,705 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED PROCESSES FOR RAPID INTEGRATION (APRI)

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to KBR WYLE SERVICES, LLC for work described as: ADVANCED PROCESSES FOR RAPID INTEGRATION (APRI) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over 1700 days, indicating a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541712 points to research in physical, engineering, and life sciences. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, KBR Wyle Services, LLC, has a significant presence in government contracting. 7. The contract is focused on research and development, a sector often characterized by inherent uncertainty and potential for innovation.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can be efficient for R&D where scope is uncertain, but they carry a risk of cost escalation. Comparing the total award amount to similar R&D contracts within the Department of Defense for advanced integration processes would provide better context on value for money. The fixed fee component offers some cost control, but the primary cost driver is the actual expense incurred by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the actual number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs and ensures the government receives the best possible value by considering a wide array of potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advanced integration processes to enhance operational capabilities. The services delivered are focused on research and development in physical, engineering, and life sciences, aiming to foster innovation and technological advancement. The geographic impact is likely concentrated within the United States, particularly where KBR Wyle Services, LLC and its subcontractors operate and where the research is conducted. Workforce implications include employment opportunities for scientists, engineers, and support staff involved in the research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
The long performance period increases the potential for scope creep or evolving requirements that may impact final costs.
Research and Development projects inherently carry risks of not achieving desired outcomes, potentially impacting the return on investment.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should promote fair pricing.
The contractor, KBR Wyle Services, LLC, is an established entity with experience in government contracts, potentially indicating reliability.
The contract focuses on R&D, which can lead to significant technological advancements and long-term strategic advantages for the DoD.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is characterized by innovation, long development cycles, and often requires specialized expertise. The total award amount of approximately $30 million over a period of nearly five years is moderate for R&D contracts within the defense industry. Comparable spending benchmarks would involve looking at other DoD contracts for similar research areas, such as advanced materials, systems integration, or simulation technologies.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The prime contractor, KBR Wyle Services, LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether KBR Wyle Services, LLC actively seeks out and engages small businesses for subcontracting opportunities related to this R&D effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development
Research and Development Services
Defense Research and Engineering
Systems Integration Research
Aerospace R&D

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not managed properly.
Long performance period increases the risk of scope creep and evolving requirements.
R&D projects inherently carry a risk of not achieving desired outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to KBR WYLE SERVICES, LLC. ADVANCED PROCESSES FOR RAPID INTEGRATION (APRI)

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 $30.2 million.

What is the period of performance?

Start: 2018-01-29. End: 2022-09-30.

What is the track record of KBR Wyle Services, LLC with Department of Defense contracts, particularly in R&D?

KBR Wyle Services, LLC, and its predecessors, have a substantial history of performing contracts for the Department of Defense across various domains, including research and development, engineering services, and logistics support. Their experience often spans complex technical areas and large-scale projects. For R&D contracts specifically, their track record would need to be assessed based on project success rates, adherence to budget and schedule, and the successful transition of research outcomes into practical applications or further development phases. Reviewing past performance evaluations and contract close-out reports would provide a more granular understanding of their capabilities and reliability in the R&D space for the DoD.

How does the $30.17 million award compare to similar R&D contracts for advanced integration processes?

The $30.17 million award for ADVANCED PROCESSES FOR RAPID INTEGRATION (APRI) over approximately 4.6 years (from Jan 2018 to Sep 2022) represents an average annual value of roughly $6.5 million. This figure is within a common range for specialized R&D efforts within the defense sector. However, a precise comparison requires identifying contracts with identical NAICS codes (541712) and similar project objectives (e.g., rapid integration, advanced processes). Factors like the specific technologies involved, the maturity of the research, and the contractor's overhead structure significantly influence contract values. Without access to a detailed database of comparable R&D contracts with specific scope definitions, this $30 million figure serves as a benchmark, but its relative value is context-dependent.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D stem from the inherent uncertainty of research outcomes and the contract structure itself. For the government, the main risk is cost overrun; while the fee is fixed, the 'cost' portion is reimbursable, meaning the contractor is incentivized to incur costs to perform the work, potentially leading to higher total expenditures than initially anticipated if not managed diligently. There's also a risk that the contractor might prioritize activities that maximize cost reimbursement over achieving the most efficient or effective research results. For the contractor, the risk lies in accurately estimating the costs required to complete the R&D, as the fixed fee may not adequately compensate them if unforeseen challenges lead to significantly higher expenses than projected.

How effective are R&D contracts like this in driving technological advancement for the DoD?

R&D contracts are a critical mechanism for the DoD to drive technological advancement, enabling the development of cutting-edge capabilities that maintain a strategic advantage. Contracts like the APRI project, focused on advanced integration processes, aim to solve specific technical challenges or explore novel solutions. The effectiveness hinges on several factors: clear objective setting, robust technical oversight, the contractor's innovative capacity, and the successful transition of research findings into usable technologies or further development. While R&D inherently involves risk and not all projects yield groundbreaking results, successful ones can lead to significant improvements in defense systems, operational efficiency, and warfighter effectiveness. The long-term impact is often realized through subsequent development and procurement phases.

What are the historical spending patterns for R&D contracts under NAICS code 541712 by the Department of Defense?

Historical spending patterns for R&D contracts under NAICS code 541712 by the Department of Defense (DoD) generally show a consistent and significant investment in scientific and engineering research. This code covers a broad spectrum of R&D activities, including those related to physical sciences, engineering, and life sciences (excluding biotechnology). The DoD is a major funder of such research, often through various agencies like DARPA, AFRL, ONR, and Army Research Laboratory. Spending in this category fluctuates based on strategic priorities, technological advancements, and budget allocations, but it typically represents billions of dollars annually across the federal government, with the DoD being a substantial contributor. Analyzing trends over several fiscal years would reveal specific areas of increased or decreased investment within this broad R&D classification.

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: 3

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: $32,388,214

Exercised Options: $32,388,214

Current Obligation: $30,172,289

Actual Outlays: $2,231,261

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $101,147

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