DoD's $18.6M R&D contract for technology interoperability awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $18,568,390 ($18.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-05-19
End Date: 2025-06-30
Contract Duration: 1,868 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNOLOGY INTEROPERABILITY, INTEGRATION, SYSTEMS ENGINEERING, AND ANALYSIS
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $18.6 million to KBR WYLE SERVICES, LLC for work described as: TECHNOLOGY INTEROPERABILITY, INTEGRATION, SYSTEMS ENGINEERING, AND ANALYSIS Key points: 1. Contract focuses on critical R&D for technology interoperability and systems engineering. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. Research and Development in Physical, Engineering, and Life Sciences is a key government investment area. 6. The contract's value is moderate within the context of large federal R&D spending.
Value Assessment
Rating: good
The contract value of $18.6 million over approximately 5 years appears reasonable for specialized R&D services in technology interoperability and systems engineering. Benchmarking against similar contracts for R&D in physical and engineering sciences is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure allows for flexibility while providing the contractor with an incentive to manage costs effectively. The government's oversight will be crucial in ensuring value for money.
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 two bidders suggests a degree of competition, though the exact number of proposals received is not specified. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.
Public Impact
The Department of the Air Force benefits from enhanced technology interoperability and systems engineering capabilities. Services delivered are crucial for modernizing and integrating complex defense systems. The contract supports research and development efforts that could have broader implications for national security. Workforce implications include specialized engineering and research roles, likely concentrated in areas with KBR Wyle's presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not closely monitored.
- Scope creep could increase the overall cost beyond initial projections.
- Dependence on a single contractor for critical R&D could pose a risk if performance falters.
Positive Signals
- Award to an established contractor (KBR Wyle Services, LLC) suggests a degree of confidence in their capabilities.
- Full and open competition indicates a structured procurement process aimed at achieving best value.
- Long contract duration allows for sustained focus and development of expertise in a specialized area.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for technology interoperability, integration, and systems engineering is highly specialized, often involving a mix of large defense contractors and niche R&D firms. Federal spending in this area is substantial, driven by the need for advanced technological capabilities and modernization across various agencies, particularly within the Department of Defense.
Small Business Impact
The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a delivery order under a larger IDIQ, the subcontracting opportunities would depend on the terms of the base contract and the specific requirements of this order. Further analysis of the base IDIQ contract would be needed to assess the full impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and technical officers. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent financial oversight to ensure costs remain within projections and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development
- Systems Engineering Services
- Technology Integration Contracts
- Information Technology R&D
- Aerospace Engineering Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Long-Term Project Dependency
Tags
research-and-development, department-of-defense, air-force, technology-interoperability, systems-engineering, full-and-open-competition, cost-plus-fixed-fee, delivery-order, kbr-wyle-services, mid-size-contract, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to KBR WYLE SERVICES, LLC. TECHNOLOGY INTEROPERABILITY, INTEGRATION, SYSTEMS ENGINEERING, AND ANALYSIS
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 $18.6 million.
What is the period of performance?
Start: 2020-05-19. End: 2025-06-30.
What is KBR Wyle Services, LLC's track record with similar Department of Defense R&D contracts?
KBR Wyle Services, LLC, as part of KBR, has a significant history of supporting government R&D and engineering services, particularly within the Department of Defense and NASA. They have been involved in various complex projects related to aerospace, defense systems, and scientific research. Their experience often includes systems engineering, integration, testing, and analysis, aligning well with the scope of this contract. Reviewing their past performance on similar CPFF or cost-reimbursement contracts would provide insight into their ability to manage costs, deliver on technical requirements, and adhere to schedules. Specific contract databases and performance reports would offer a more detailed assessment of their historical success rates and any past issues encountered.
How does the estimated value of this contract compare to similar R&D efforts in technology interoperability?
The $18.6 million value for this 5-year contract, averaging approximately $3.7 million per year, appears to be within a moderate range for specialized R&D in technology interoperability and systems engineering. However, a precise comparison is difficult without knowing the specific technical scope and deliverables. Larger, more complex integration projects or foundational research initiatives could easily exceed this value. Conversely, smaller, more focused studies might cost less. Benchmarking would ideally involve looking at contracts with similar North American Industry Classification System (NAICS) codes (like 541715) and similar agencies, considering factors like contract type (CPFF), duration, and the specific technological domains involved. The competitive nature of the award suggests the pricing was deemed fair by the bidders.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?
The primary risks with a CPFF contract structure revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, the government bears the risk of increased labor and material costs. If the project's scope expands beyond the initial definition without proper change management, the 'cost plus' portion can escalate significantly, potentially exceeding initial budget expectations. Effective government oversight, rigorous monitoring of expenditures, and a clear definition of work are crucial to mitigate these risks. The contractor must also demonstrate efficient resource management to achieve the fixed fee without compromising quality or exceeding the estimated cost.
How effective is the 'full and open competition' approach likely to be for this specific R&D requirement?
The 'full and open competition' approach is generally considered the most effective method for ensuring fair pricing and access to the widest range of qualified contractors for R&D requirements. For technology interoperability and systems engineering, where innovation and specialized expertise are key, this approach allows the government to solicit proposals from a broad spectrum of companies, potentially uncovering novel solutions and competitive pricing. The fact that two bids were received suggests that the requirement was sufficiently defined to attract interest but perhaps not so specialized as to limit the field drastically. The effectiveness hinges on the clarity of the solicitation and the evaluation criteria used to select the best technical and cost proposal.
What historical spending patterns exist for technology interoperability R&D within the Department of the Air Force?
Historical spending patterns for technology interoperability R&D within the Department of the Air Force typically show consistent investment, driven by the constant need to upgrade and integrate complex weapon systems and communication networks. Spending often fluctuates based on major modernization programs, emerging threats, and technological advancements. Contracts in this area can range from small, targeted research efforts to large, multi-year system integration programs. The Air Force, being a technology-intensive service, dedicates significant resources to ensuring its platforms can communicate seamlessly and operate effectively in joint environments. Analyzing past budgets and contract awards for similar NAICS codes and service descriptions would reveal trends in funding levels and the types of R&D prioritized.
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: 2
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: $45,684,586
Exercised Options: $45,684,586
Current Obligation: $18,568,390
Actual Outlays: $2,700,384
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $4,716,243
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
Start Date: 2020-05-19
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-12-10
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