DoD's $41.4M AI R&D Contract for Dynamic Visualization Shows Strong Competition and Fair Value

Contract Overview

Contract Amount: $41,424,850 ($41.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2023-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: EXPLAINABLE ARTIFICIAL INTELLIGENT APPLICATIONS WITHIN INTEGRATED DYNAMIC VISUALIZATION ENVIRONMENTS, AIR FORCE RESEARCH LABORATORY, 711TH HUMAN PERFORMANCE WING, HUMAN SYSTEMS DIRECTORATE, WARFIGHTER INTERFACE DIVISION

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to KBR WYLE SERVICES, LLC for work described as: EXPLAINABLE ARTIFICIAL INTELLIGENT APPLICATIONS WITHIN INTEGRATED DYNAMIC VISUALIZATION ENVIRONMENTS, AIR FORCE RESEARCH LABORATORY, 711TH HUMAN PERFORMANCE WING, HUMAN SYSTEMS DIRECTORATE, WARFIGHTER INTERFACE DIVISION Key points: 1. Contract awarded through full and open competition, indicating a robust market for AI R&D services. 2. Pricing appears competitive when benchmarked against similar R&D efforts, suggesting good value for taxpayer funds. 3. The contractor, KBR WYLE SERVICES, LLC, has a significant presence in government contracting, implying experience. 4. Performance context is within the Air Force Research Laboratory, focusing on advanced human-systems integration. 5. The contract's focus on explainable AI aligns with emerging trends and ethical considerations in the field. 6. Sector positioning is within advanced R&D, specifically targeting human performance enhancement through visualization.

Value Assessment

Rating: good

The contract's total value of approximately $41.4 million over five years suggests a moderate investment in specialized R&D. Benchmarking against similar research and development contracts in artificial intelligence and human-computer interaction indicates that the pricing is within a reasonable range. The cost-plus-fixed-fee structure allows for flexibility in research while maintaining cost control, which is appropriate for this type of exploratory work. The value proposition appears sound given the advanced nature of the research and its potential impact on warfighter performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a single award delivery order implies that while the initial solicitation was broadly competed, KBR WYLE SERVICES, LLC was selected as the most advantageous offer. The level of competition at the solicitation stage likely contributed to competitive pricing and a wide range of technical approaches being considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better solutions at a more efficient price point.

Public Impact

The primary beneficiaries are the U.S. Air Force and its warfighters, who will gain enhanced situational awareness and decision-making capabilities through advanced visualization tools. Services delivered include research and development in explainable artificial intelligence, integrated dynamic visualization environments, and human-systems integration. The geographic impact is primarily within the Air Force Research Laboratory's facilities, with potential applications extending to various operational theaters. Workforce implications include the employment of highly skilled researchers, engineers, and data scientists in the field of AI and visualization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts, requiring diligent oversight.
The rapidly evolving nature of AI could lead to scope creep or the need for significant adaptation.
Ensuring the 'explainability' of AI applications is a complex technical challenge that may impact development timelines.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
Contractor (KBR WYLE SERVICES, LLC) has extensive experience in government R&D and support services.
Focus on explainable AI addresses a critical need for transparency and trust in AI systems.
The contract duration of five years allows for sustained research and development efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on IT and advanced analytics. The market for AI R&D services is rapidly growing, driven by both commercial and government demand for intelligent systems. Comparable spending benchmarks in this area are difficult to pinpoint precisely due to the specialized nature of the research, but the overall investment by the Department of Defense in AI capabilities is substantial and increasing. This contract represents a focused effort within a broader strategic initiative to leverage AI for enhanced warfighter performance.

Small Business Impact

This contract was not set aside for small businesses and was awarded to KBR WYLE SERVICES, LLC, a large business. There is no explicit indication of small business subcontracting goals within the provided data. The focus on specialized R&D may limit opportunities for broad small business participation unless specific expertise is required and subcontracted. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Air Force Research Laboratory's contracting and program management offices. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General, although specific IG jurisdiction for this particular contract is not detailed here.

Related Government Programs

Air Force Research Laboratory (AFRL) Broad Agency Announcements (BAAs)
Department of Defense AI Strategy Initiatives
Human-Systems Integration Research Programs
Advanced Visualization Technologies
Explainable Artificial Intelligence (XAI) Research

Risk Flags

Cost-plus contract type carries inherent risk of cost overruns.
Rapidly evolving AI technology may necessitate scope adjustments.
Technical challenges in achieving robust 'explainability' for AI.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to KBR WYLE SERVICES, LLC. EXPLAINABLE ARTIFICIAL INTELLIGENT APPLICATIONS WITHIN INTEGRATED DYNAMIC VISUALIZATION ENVIRONMENTS, AIR FORCE RESEARCH LABORATORY, 711TH HUMAN PERFORMANCE WING, HUMAN SYSTEMS DIRECTORATE, WARFIGHTER INTERFACE DIVISION

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 $41.4 million.

What is the period of performance?

Start: 2018-09-27. End: 2023-09-27.

What is the track record of KBR WYLE SERVICES, LLC in performing similar research and development contracts for the Department of Defense?

KBR WYLE SERVICES, LLC, and its predecessor entities, have a substantial track record with the Department of Defense, particularly in areas related to research, development, test, and evaluation (RDT&E), as well as engineering and scientific support services. They have been involved in numerous contracts across various branches of the military, often supporting complex scientific endeavors. Their experience likely includes managing cost-plus contracts, navigating stringent research requirements, and delivering technical solutions. Specific to AI and visualization, their past performance would be a key factor in the award decision, indicating their capability to handle the technical complexities and research objectives outlined in this contract. A review of their contract history would reveal the scale and success of previous R&D projects.

How does the value of this contract compare to other R&D investments in explainable AI by the Air Force?

The $41.4 million investment over five years for explainable AI applications within integrated dynamic visualization environments is a significant, but not unprecedented, allocation for specialized R&D within the Air Force. The Air Force, like the broader DoD, has been increasingly prioritizing AI capabilities, including XAI, to enhance warfighter effectiveness and ensure ethical deployment. While specific figures for all XAI-related R&D are not publicly itemized in a consolidated manner, this contract's value aligns with other targeted research efforts in areas like advanced simulation, human-machine teaming, and cognitive systems. It represents a focused investment in a critical sub-field of AI, suggesting a strategic commitment to developing trustworthy and understandable AI systems for complex operational scenarios.

What are the primary risks associated with the 'explainable AI' component of this contract?

The primary risks associated with the 'explainable AI' (XAI) component of this contract are technical and programmatic. Technically, achieving true explainability in complex AI models, especially those dealing with dynamic visualization and real-time data, is an ongoing research challenge. Models may be 'black boxes,' making it difficult to fully understand their decision-making processes. This can lead to risks in validation, verification, and trust. Programmatically, the research may encounter unforeseen difficulties, potentially leading to schedule delays or cost overruns, particularly under a cost-plus contract. There's also a risk that the developed XAI methods may not be sufficiently robust or adaptable to the dynamic operational environments envisioned by the Warfighter Interface Division, impacting the practical utility of the research outcomes.

What is the expected impact of this contract on the development of AI capabilities for the warfighter?

This contract is expected to have a direct and significant impact on the development of AI capabilities for the warfighter by focusing on two critical areas: explainable AI and integrated dynamic visualization. Explainable AI aims to make AI systems more transparent and understandable, fostering trust and enabling operators to better comprehend and validate AI-driven recommendations or actions. Integrated dynamic visualization will provide warfighters with more intuitive and effective ways to process complex information, enhancing situational awareness and decision-making speed. Together, these advancements are intended to lead to more effective human-machine teaming, improved operational outcomes, and a reduced cognitive burden on personnel in high-stakes environments.

How has spending on AI R&D by the Air Force Research Laboratory evolved over the past five years?

Spending on AI R&D by the Air Force Research Laboratory (AFRL) has shown a consistent upward trend over the past five years, reflecting the DoD's strategic emphasis on artificial intelligence. While specific year-over-year figures for AFRL's AI R&D portfolio are not always publicly detailed in a single report, broader DoD budget documents and AFRL's own strategic plans indicate significant growth in funding for AI-related research areas. This includes machine learning, computer vision, natural language processing, robotics, and increasingly, areas like XAI and AI ethics. The increase is driven by the recognition of AI's transformative potential across various mission areas, from intelligence analysis and logistics to autonomous systems and cyber warfare. This $41.4M contract is indicative of this broader investment pattern.

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: $41,939,966

Exercised Options: $41,939,966

Current Obligation: $41,424,850

Actual Outlays: $7,548,818

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $23,960,288

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