KBR WYLE SERVICES awarded $35.4M for Army Transportation Systems analysis, focusing on R&D in Michigan

Contract Overview

Contract Amount: $35,445,383 ($35.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-28

End Date: 2025-06-01

Contract Duration: 1,830 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS) FAMILY OF VEHICLES (FOV) ANALYSIS FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (PEO CS&CSS), PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48093

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $35.4 million to KBR WYLE SERVICES, LLC for work described as: PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS) FAMILY OF VEHICLES (FOV) ANALYSIS FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (PEO CS&CSS), PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS) Key points: 1. Contract focuses on research and development for transportation systems, indicating a need for advanced solutions. 2. The contract's duration of 1830 days suggests a long-term commitment to the project's objectives. 3. Awarded by the Department of the Air Force, but for Army PEO CS&CSS, highlighting inter-service collaboration. 4. The cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight of costs. 5. The absence of small business set-asides suggests the scope may not have been tailored for smaller entities. 6. The contract is a delivery order under a larger IDIQ, indicating a phased approach to fulfilling requirements.

Value Assessment

Rating: good

The contract value of $35.4 million over approximately five years appears reasonable for specialized R&D services in transportation systems. Benchmarking against similar R&D contracts within the Department of Defense for complex systems analysis would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure necessitates diligent monitoring to ensure costs remain within expected parameters while incentivizing efficient 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 specific number of bidders is not provided, but the full and open nature generally promotes competitive pricing and encourages a wider range of innovative solutions. This approach is typically favored for complex R&D requirements where diverse expertise is valuable.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a greater likelihood of obtaining the best value for the government's investment.

Public Impact

The U.S. Army benefits from advanced research and development in transportation systems, potentially leading to improved logistics and combat readiness. Services delivered include analysis and research, contributing to the modernization of military transportation capabilities. The contract has a geographic impact in Michigan, where the contractor's services will be performed. Workforce implications include employment opportunities for researchers, engineers, and technical staff within KBR WYLE SERVICES.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed rigorously.
The duration of the contract (1830 days) requires sustained oversight to ensure continued alignment with evolving Army needs.
The specific R&D focus means outcomes may be uncertain, requiring careful management of expectations and deliverables.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
The contract is a delivery order under a larger IDIQ, indicating a structured and managed approach to requirements fulfillment.
KBR WYLE SERVICES is a known entity in government contracting, suggesting a degree of established capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other R&D contracts for complex systems within the Department of Defense, particularly those related to logistics, engineering, and combat support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no indication of specific subcontracting requirements for small businesses (ss: false). This suggests that the primary contractor, KBR WYLE SERVICES, will likely handle the majority of the work, and opportunities for small businesses may be limited unless they are direct subcontractors to KBR WYLE SERVICES. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Army Program Executive Office Combat Support and Combat Service Support (PEO CS&CSS) and Project Manager Transportation Systems (PM TS). The cost-plus-fixed-fee structure necessitates close monitoring of expenditures and performance against milestones. Transparency is typically maintained through contract reporting requirements, and the Department of Defense's Inspector General would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Army PEO CS&CSS Contracts
Transportation Systems R&D
Defense Logistics Modernization
KBR WYLE SERVICES Contracts
Air Force Contracting Vehicles

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-Term Project Management
R&D Outcome Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to KBR WYLE SERVICES, LLC. PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS) FAMILY OF VEHICLES (FOV) ANALYSIS FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT (PEO CS&CSS), PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS)

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 $35.4 million.

What is the period of performance?

Start: 2020-05-28. End: 2025-06-01.

What is KBR WYLE SERVICES' track record with similar Department of Defense R&D contracts?

KBR WYLE SERVICES, LLC has a significant history of performing contracts for the Department of Defense, including those involving research and development, engineering services, and technical support. Their experience often spans complex systems analysis, testing, and integration across various military branches. While specific details on past performance for transportation systems R&D would require a deeper dive into contract databases, their general profile suggests they possess the requisite expertise and infrastructure to handle projects like the PM TS FOV analysis. Reviewing past performance evaluations and any reported issues on similar contracts would provide a more granular understanding of their reliability and effectiveness in delivering on R&D objectives.

How does the $35.4 million value compare to similar transportation systems R&D contracts within the DoD?

The $35.4 million contract value for the PROJECT MANAGER TRANSPORTATION SYSTEMS (PM TS) FAMILY OF VEHICLES (FOV) ANALYSIS is within a typical range for specialized R&D efforts within the Department of Defense. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and technical complexity. Factors such as the specific systems being analyzed (e.g., ground vehicles, support equipment), the depth of research required, and the level of innovation sought can significantly influence contract value. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents exceptional value. Generally, R&D contracts can vary widely, and this figure suggests a substantial, multi-year effort.

What are the primary risks associated with this cost-plus-fixed-fee contract type for R&D?

The primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract for R&D, like this one, revolve around cost control and scope creep. For the government, the risk is that the contractor may incur higher costs than anticipated, potentially exceeding the initial budget if not managed effectively, even with a fixed fee. The contractor's incentive is to complete the work for the agreed-upon fee, but the cost-reimbursement aspect can sometimes lead to less stringent cost management than in fixed-price contracts. For R&D, where the path to a solution is often uncertain, CPFF allows flexibility but requires robust government oversight to ensure costs are reasonable and allocable to the contract objectives. Scope creep is also a risk, where evolving requirements might lead to increased costs without a corresponding adjustment to the fee or a clear renegotiation.

How effective is the 'full and open competition' approach for specialized R&D like transportation systems analysis?

The 'full and open competition' approach is generally considered highly effective for specialized R&D contracts, including transportation systems analysis. This method maximizes the pool of potential offerors, increasing the likelihood of finding contractors with the most innovative solutions and relevant expertise. By allowing any responsible source to submit a bid, the government benefits from a wider range of technical approaches and potentially more competitive pricing. This broad competition can drive down costs and improve the quality of the research outcomes. For complex R&D, where novel approaches are often needed, full and open competition ensures that the government isn't limited to a pre-selected group of vendors and can access the best available talent and ideas in the market.

What are the historical spending patterns for transportation systems analysis within the Army PEO CS&CSS?

Analyzing historical spending patterns for transportation systems analysis within the Army PEO CS&CSS (Project Manager Transportation Systems) would reveal trends in investment in this critical area. Such analysis typically shows a consistent need for research and development to modernize vehicle fleets, improve logistics, and enhance operational efficiency. Spending may fluctuate based on strategic priorities, technological advancements, and budget allocations. For instance, periods of increased focus on readiness or new platform development might correlate with higher spending. Understanding these patterns helps in assessing whether the current $35.4 million award represents a significant increase, decrease, or continuation of previous investment levels, providing context for the contract's importance and scale within the PEO's overall budget.

What are the implications of this contract being a delivery order under a larger IDIQ?

This contract being a delivery order (aw: DELIVERY ORDER) under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies a structured approach to fulfilling ongoing or evolving requirements. An IDIQ provides a framework for services over a period, and delivery orders are specific taskings issued against that framework. This method allows the government flexibility to order services as needed, up to a certain ceiling, without needing to re-compete the basic contract each time. For taxpayers, this can mean more efficient procurement and potentially better pricing due to pre-negotiated terms. For the contractor, it offers a stream of work but requires careful management of multiple orders. The specific value of $35.4 million represents the funding allocated to this particular delivery order, not necessarily the total value of the underlying IDIQ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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

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: $41,474,716

Exercised Options: $41,474,716

Current Obligation: $35,445,383

Actual Outlays: $9,573,943

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,606,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0015

IDV Type: IDC

Timeline