DoD's $24.5M Army R&D contract for materiel fielding and training awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $24,463,017 ($24.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-20

End Date: 2028-06-19

Contract Duration: 1,826 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND ANALYSIS FOR MATERIEL FIELDING AND TRAINING UNITED STATES ARMY TANK AUTOMOTIVE AND ARMAMENTS COMMAND- LIFE CYCLE MANAGEMENT COMMAND

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48088

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to KBR WYLE SERVICES, LLC for work described as: RESEARCH AND ANALYSIS FOR MATERIEL FIELDING AND TRAINING UNITED STATES ARMY TANK AUTOMOTIVE AND ARMAMENTS COMMAND- LIFE CYCLE MANAGEMENT COMMAND Key points: 1. Contract focuses on research and development for Army materiel fielding and training. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 5 years indicates a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The specific NAICS code (541715) points to R&D in physical, engineering, and life sciences. 6. The contract is a delivery order under a larger indefinite-delivery contract. 7. The base value is approximately $13.4M, with potential for growth to $24.5M.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. Comparing the per-project cost to similar Army R&D efforts in materiel fielding and training would provide better insight into value for money. The awarded amount of $24.5M over five years suggests a moderate investment in this area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and multiple bidders were likely considered. The specific number of bidders is not provided, but this approach generally fosters price discovery and allows the government to select from a wide range of qualified contractors. The competitive nature should theoretically lead to a more favorable price for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and prevent inflated pricing. Full and open competition increases the likelihood that the government is not overpaying for specialized R&D services.

Public Impact

The U.S. Army benefits directly through enhanced materiel fielding and training capabilities. This contract supports the development and refinement of technologies and processes for Army equipment. The primary geographic impact is within the United States, supporting Army operations and readiness. Workforce implications include specialized R&D personnel, engineers, and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize fee.
Lack of specific performance metrics makes it difficult to assess R&D effectiveness.
Long contract duration may not adapt well to rapidly changing technological landscapes in R&D.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract supports critical Army materiel fielding and training, enhancing national defense.
Experienced contractor (KBR WYLE SERVICES, LLC) likely brings valuable expertise to the R&D effort.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services, particularly those related to military equipment development and operational readiness.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature of advanced R&D, it is possible that subcontracting opportunities may arise for specialized small businesses. However, without explicit set-aside goals or subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the U.S. Army Tank Automotive and Armaments Command - Life Cycle Management Command. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases, though specific R&D details may be sensitive.

Related Government Programs

Army Materiel Command Research and Development
Defense Research and Engineering
Military Training Systems Development
Logistics and Fielding Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence Risk (Long Duration R&D)
Performance Measurement Difficulty (R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to KBR WYLE SERVICES, LLC. RESEARCH AND ANALYSIS FOR MATERIEL FIELDING AND TRAINING UNITED STATES ARMY TANK AUTOMOTIVE AND ARMAMENTS COMMAND- LIFE CYCLE MANAGEMENT COMMAND

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 $24.5 million.

What is the period of performance?

Start: 2023-06-20. End: 2028-06-19.

What is the track record of KBR WYLE SERVICES, LLC with similar R&D contracts for the U.S. Army?

KBR WYLE SERVICES, LLC has a significant history of performing contracts for the U.S. Department of Defense, including extensive work in research and development, engineering services, and technical support. While specific details on prior Army R&D contracts related to materiel fielding and training require deeper database analysis, their broad experience suggests a capacity to handle complex R&D requirements. Reviewing past performance evaluations and contract awards for KBR WYLE SERVICES, LLC within the Army's R&D portfolio would provide a clearer picture of their success rate, adherence to schedule, and cost control on similar projects. Their established presence indicates a familiarity with DoD acquisition processes and requirements.

How does the $24.5M ceiling compare to similar Army R&D contracts for materiel fielding and training?

Comparing the $24.5 million ceiling for this contract requires a benchmark against similar R&D efforts within the U.S. Army focused on materiel fielding and training. Without access to a comprehensive database of comparable contracts, a precise benchmark is difficult. However, this figure represents a moderate investment for a five-year R&D initiative. Larger, more complex R&D programs, especially those involving advanced technology development or large-scale system integration, could easily exceed this amount. Conversely, smaller, more focused research tasks might fall below this ceiling. The value is relative to the scope and complexity of the specific R&D objectives outlined in the contract.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract type for R&D is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the R&D effort proves more complex or time-consuming than initially estimated, the total cost to the government can increase significantly. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of those costs (though in CPFF, the fee is fixed, the risk is more about scope creep and less efficient performance). Effective oversight, stringent cost controls, and clear definition of work are crucial to mitigate these risks.

How effective is the 'full and open competition' approach likely to be in ensuring value for this specific R&D contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in government contracting, including for R&D. It maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. For this specific R&D contract, it means that numerous qualified firms had the opportunity to propose solutions, theoretically leading to the selection of the best technical approach at a reasonable cost. The effectiveness hinges on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess the proposals. While competition is a strong indicator of potential value, ongoing performance monitoring remains essential.

What are the potential implications of the 5-year duration on the relevance of the R&D outcomes?

A 5-year duration for an R&D contract presents both opportunities and challenges regarding the relevance of its outcomes. On the positive side, it allows for in-depth research, development, and testing, which is often necessary for complex technological advancements. This extended period can lead to more robust and thoroughly vetted solutions. However, the rapid pace of technological change, particularly in physical and engineering sciences, means that R&D initiated today might be partially or fully superseded by emerging technologies by the time the contract concludes. The contract's success in maintaining relevance will depend on built-in flexibility, adaptive management, and a clear focus on foundational principles rather than overly specific, rapidly evolving technologies.

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: 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: $70,120,197

Exercised Options: $70,120,197

Current Obligation: $24,463,017

Actual Outlays: $1,314,348

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $15,814,112

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