KBR WYLE SERVICES awarded $53M for R&D in physical, engineering, and life sciences by the U.S. Army

Contract Overview

Contract Amount: $53,043,651 ($53.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-12

End Date: 2026-06-13

Contract Duration: 1,827 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROGRAM ANALYSIS FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS)

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to KBR WYLE SERVICES, LLC for work described as: PROGRAM ANALYSIS FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) Key points: 1. Contract focuses on research and development, indicating investment in future capabilities. 2. Full and open competition suggests a robust bidding process. 3. Cost Plus Fixed Fee contract type may incentivize cost control but requires careful oversight. 4. The contract duration of 1827 days (approx. 5 years) allows for sustained research efforts. 5. The specific NAICS code (541715) points to a specialized area of scientific inquiry. 6. The award comes from the Department of the Air Force, supporting PEO Missiles and Space. 7. The base award amount is substantial, reflecting the complexity and scope of the R&D.

Value Assessment

Rating: good

The contract's value of $53 million over approximately five years for R&D services appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale R&D contracts within the Department of Defense is challenging without more granular data on specific research areas. However, the Cost Plus Fixed Fee structure, while common for R&D, necessitates diligent oversight to ensure value for money and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process details would provide a clearer picture of the competition's intensity. A competitive process generally leads to better pricing and innovation.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which is expected to yield a more favorable price and higher quality research outcomes compared to a sole-source or limited competition scenario.

Public Impact

The U.S. Army benefits from advanced research and development capabilities in missiles and space. This contract supports the development of new technologies and scientific advancements. The research is likely to have implications for national security and defense capabilities. The contract supports highly skilled scientific and engineering jobs. The geographic impact is primarily within the contractor's operational areas, but the research outcomes have national implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost increases if not managed tightly.
The specific R&D outcomes and their ultimate application are not detailed, making direct value assessment difficult.
Reliance on a single contractor for this significant R&D effort could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these R&D services.
The contract is with a known entity (KBR WYLE SERVICES, LLC), implying a degree of established capability.
The substantial duration allows for in-depth research and development, fostering innovation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This is a critical area for defense modernization, involving innovation in areas like advanced materials, propulsion, sensors, and space technologies. The market for such specialized R&D services is competitive, with a mix of large defense contractors and specialized research firms. Spending in this category is significant across the federal government, particularly within the Department of Defense, to maintain technological superiority.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While KBR WYLE SERVICES, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities exist and how they are being utilized to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Program Executive Office (PEO) Missiles and Space, with support from the contracting agency, the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous financial and performance monitoring to ensure adherence to the fixed fee and efficient use of cost reimbursement. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency Research Programs
Army Futures Command R&D Initiatives
Air Force Research Laboratory Contracts
Space Force Technology Development
Advanced Weapons Systems Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market.
Specific R&D outcomes are not detailed, making direct performance assessment challenging.
Contract duration is long, requiring sustained monitoring and adaptation to evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to KBR WYLE SERVICES, LLC. PROGRAM ANALYSIS FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) FOR UNITED STATES (U.S.) ARMY PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS)

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 $53.0 million.

What is the period of performance?

Start: 2021-06-12. End: 2026-06-13.

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 has a significant history of performing various services for the Department of Defense, including research and development, engineering support, and technical services. Their experience spans multiple branches of the military and various program executive offices. For R&D contracts specifically, their performance history would need to be reviewed against specific metrics such as on-time delivery, budget adherence, and technical success rates. Past performance evaluations within federal procurement databases would offer more detailed insights into their capabilities and reliability in executing complex research projects similar to the one awarded by PEO Missiles and Space.

How does the $53 million award compare to typical R&D spending for PEO Missiles and Space over a similar timeframe?

The $53 million award for approximately five years represents a significant investment, averaging around $10.6 million per year. To benchmark this, one would need to examine historical spending data for the U.S. Army PEO Missiles and Space. This includes looking at the total budget allocated to R&D within this PEO and the average size and duration of other R&D contracts awarded. If PEO Missiles and Space typically manages multiple large R&D efforts concurrently, this award might be one of several key investments. Conversely, if it represents a substantial portion of their R&D budget, it highlights the importance and scale of this particular research initiative.

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

The primary risks with a CPFF contract for advanced R&D revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the cost reimbursement aspect means the government bears the risk of cost overruns. If the research proves more complex or expensive than initially anticipated, costs can escalate significantly. The contractor's incentive is to complete the work within the estimated costs to maximize their fee, but there's a potential for scope creep or less rigorous cost management if oversight is insufficient. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

What specific types of research and development are likely covered under NAICS code 541715 for PEO Missiles and Space?

NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is broad but for PEO Missiles and Space, it likely encompasses research into areas critical for missile systems, space-based technologies, and related defense applications. This could include advanced materials science for weapon components, propulsion system research, guidance and control systems development, sensor technology, electronic warfare capabilities, space domain awareness, and potentially aspects of directed energy or hypersonic technologies. The 'except Nanotechnology and Biotechnology' clause means the focus is on more traditional engineering and physics-based R&D rather than molecular or biological sciences.

How does the duration of this contract (1827 days) impact the potential for innovation and long-term research goals?

The contract duration of 1827 days, approximately five years, is well-suited for advanced research and development projects. This extended timeframe allows researchers to pursue complex, long-term objectives that may not yield immediate results. It provides stability for the research team, enabling deeper exploration of scientific principles, iterative development of prototypes, and thorough testing and validation. Such durations are crucial for fostering genuine innovation, as they permit the necessary time for experimentation, learning from failures, and adapting research pathways without the pressure of short-term funding cycles that can stifle creativity and ambitious scientific inquiry.

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 › C – National Defense R&D Services

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: $62,054,904

Exercised Options: $62,054,904

Current Obligation: $53,043,651

Actual Outlays: $3,580,123

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,767,914

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