DoD's $45.3M R&D contract for aviation readiness and resource analysis awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $45,323,999 ($45.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-29

End Date: 2023-11-30

Contract Duration: 1,707 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4)TACTICAL MAINTENANCE AND OPERATION (TM&O)

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to KBR WYLE SERVICES, LLC for work described as: NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4)TACTICAL MAINTENANCE AND OPERATION (TM&O) Key points: 1. Contract focuses on critical aviation readiness and resource analysis for tactical maintenance. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. Performance period spans nearly four years, indicating a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541712 points to significant R&D activity. 6. The contract was a single award, a Delivery Order under a larger IDIQ or similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific $45.3 million contract is challenging without more detailed cost breakdowns and comparisons to similar R&D services. The Cost Plus Fixed Fee (CPFF) structure means actual costs could vary, making direct price comparisons difficult. However, the duration of the contract suggests a sustained need for these specialized analytical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized R&D services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Naval Air Systems Command (NAVAIR), which will receive enhanced analytical support for aviation readiness. Services delivered include research and development in physical, engineering, and life sciences, focusing on tactical maintenance and operational efficiency. The geographic impact is primarily within the Department of the Air Force's operational domains, supporting readiness across various air assets. Workforce implications may include specialized R&D personnel, analysts, and engineers contributing to national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs and prevent overruns.
Limited information on specific performance metrics makes it difficult to assess the full value delivered.
The contract is a delivery order, suggesting it's part of a larger contracting vehicle, which can sometimes obscure true competition and pricing.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Focus on R&D in a critical defense area (aviation readiness) suggests strategic importance.
Long contract duration implies a sustained and recognized need for the contractor's expertise.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to defense applications. The market for defense R&D services is substantial, driven by the continuous need for technological advancement and operational improvements. Comparable spending benchmarks would typically be found within broader defense R&D budgets, focusing on analytical and engineering support services for aviation platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to KBR WYLE SERVICES, LLC, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus on specialized R&D may also limit the scope for typical small business support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Air Systems Command (NAVAIR 6.8.4). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure cost reasonableness. Transparency is dependent on the reporting requirements within the contract and the agency's public disclosure policies. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Aviation Readiness and Resource Analysis
Tactical Maintenance and Operation (TM&O) Programs
Department of Defense Research and Development Contracts
Aerospace Engineering Services
Defense Logistics and Readiness Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for scope creep in R&D contracts.
Performance metrics not explicitly detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to KBR WYLE SERVICES, LLC. NAVAL AIR SYSTEMS COMMAND AVIATION READINESS AND RESOURCE ANALYSIS DEPARTMENT (NAVAIR 6.8.4)TACTICAL MAINTENANCE AND OPERATION (TM&O)

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 $45.3 million.

What is the period of performance?

Start: 2019-03-29. End: 2023-11-30.

What is the track record of KBR WYLE SERVICES, LLC in performing similar R&D contracts for the Department of Defense?

KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a substantial history of performing complex engineering, scientific, and technical services for the Department of Defense and other government agencies. They are known for their work in areas such as aerospace, defense, and energy. Their experience often includes research and development, systems engineering, and operational support. Specific to aviation readiness and maintenance, KBR has been involved in various programs supporting aircraft sustainment, modernization, and operational efficiency. A review of their past performance on similar contracts, including contract awards, performance evaluations (e.g., CPARS), and any past disputes or challenges, would provide a clearer picture of their capabilities and reliability in executing contracts like this one. Their extensive portfolio suggests a strong capacity to handle the technical demands of this NAVAIR contract.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry standards for similar R&D services?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D and complex service contracts where the scope of work may evolve or is difficult to define precisely upfront. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed. Compared to other contract types like Firm-Fixed-Price (FFP), CPFF shifts more cost risk to the government. However, for R&D where innovation and exploration are key, and precise cost estimation is challenging, CPFF is often considered appropriate. Industry standards suggest that the fixed fee percentage should be negotiated carefully, typically ranging from 7-15% of the estimated cost, depending on the contract's complexity, risk, and duration. Without specific cost data and the negotiated fee percentage for this $45.3M contract, a precise benchmark is difficult, but the use of CPFF itself is standard practice for this type of work.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns due to the CPFF structure, scope creep if the R&D objectives are not clearly defined or managed, and performance risks if the contractor fails to deliver the expected analytical insights or research outcomes. Mitigation strategies typically involve robust government oversight, including regular reviews of contractor expenditures, progress reports, and performance metrics. Clear definition and management of the Statement of Work (SOW) are crucial to prevent scope creep. The government's ability to monitor contractor performance through technical representatives and potentially through independent verification of results helps mitigate performance risks. Furthermore, the full and open competition award process itself can mitigate risks by selecting a contractor with a proven track record and competitive pricing.

What is the historical spending pattern for aviation readiness and resource analysis within NAVAIR or the Department of the Air Force?

Historical spending patterns for aviation readiness and resource analysis within NAVAIR and the Department of the Air Force are generally substantial and consistent, reflecting the critical nature of maintaining operational aircraft. These expenditures are often embedded within larger R&D, sustainment, and operational support budgets. Contracts in this domain typically focus on areas like predictive maintenance, logistics optimization, performance analysis, and simulation modeling. While specific historical dollar amounts for 'aviation readiness and resource analysis' as a distinct category are not readily available in public databases without deeper analysis, it's understood that NAVAIR alone manages billions of dollars annually in aviation-related contracts. Spending in this specific R&D area would fluctuate based on modernization programs, new platform introductions, and evolving threats, but the underlying need for analytical support remains a constant driver of federal investment.

How does the North American Industry Classification System (NAICS) code 541712 inform our understanding of the contract's objectives and the contractor's expertise?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' provides a crucial classification for this contract. It signifies that the core work involves scientific inquiry and experimentation to expand knowledge and understanding in fields like physics, chemistry, engineering disciplines, and earth sciences. For this specific contract, it points towards R&D activities related to the physical and engineering aspects of aviation readiness and tactical maintenance. This implies the contractor, KBR WYLE SERVICES, LLC, must possess expertise in areas such as materials science, structural engineering, aerodynamics, propulsion systems, or advanced manufacturing techniques as they apply to aircraft. The code helps align the contract's objectives with the contractor's demonstrated capabilities in scientific research and engineering problem-solving, distinguishing it from purely operational or acquisition-focused contracts.

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

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: $45,865,910

Exercised Options: $45,865,910

Current Obligation: $45,323,999

Actual Outlays: $6,854,355

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $10,325,780

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