DoD awards $15.9M R&D contract to KBR Wyle for Naval Air Warfare training systems
Contract Overview
Contract Amount: $15,876,538 ($15.9M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-20
End Date: 2028-09-19
Contract Duration: 1,826 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MODERNIZATION RESEARCH AND ANALYSIS FOR NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION (NAWCTSD)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to KBR WYLE SERVICES, LLC for work described as: MODERNIZATION RESEARCH AND ANALYSIS FOR NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION (NAWCTSD) Key points: 1. Contract focuses on R&D for naval air warfare training systems. 2. KBR Wyle Services, LLC is the sole awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the specific award type (Delivery Order) suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, aiming to improve naval training capabilities. The effectiveness of this spending will depend on the successful outcomes of the research.
Public Impact
Enhances training capabilities for naval air warfare personnel. Supports technological advancements in military simulation and training. Potential for improved operational readiness and effectiveness of naval forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- R&D projects inherently carry risk of not achieving desired outcomes.
- Long contract duration (5 years) increases exposure to changing requirements and economic factors.
Positive Signals
- Full and open competition suggests a robust market search.
- Focus on R&D aligns with modernization efforts.
- Awardee has experience in related defense sectors.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes. Benchmarks are difficult due to the specialized nature of R&D.
Small Business Impact
The data indicates the awardee is KBR Wyle Services, LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale R&D contracts.
Oversight & Accountability
Oversight will be critical for the Department of Defense to ensure KBR Wyle Services, LLC meets research objectives and manages costs effectively under the Cost Plus Fixed Fee structure. Regular performance reviews and milestone tracking are essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- R&D inherently carries technical and outcome risks.
- Potential for scope creep in research projects.
Tags
research-and-development-in-the-physical, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to KBR WYLE SERVICES, LLC. MODERNIZATION RESEARCH AND ANALYSIS FOR NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION (NAWCTSD)
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 $15.9 million.
What is the period of performance?
Start: 2023-09-20. End: 2028-09-19.
What specific advancements in naval air warfare training are expected from this R&D investment?
The expected advancements are not detailed in the provided data. However, R&D in this area typically aims to develop more realistic simulation environments, incorporate artificial intelligence for adaptive training, create advanced virtual and augmented reality training modules, and improve data analytics for performance feedback. The ultimate goal is to enhance pilot proficiency and reduce training costs through more effective methods.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?
The primary risk with CPFF for R&D is that the contractor has less incentive to control costs, as the government agrees to pay all allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, increasing the final price beyond initial expectations. Effective government oversight is crucial to mitigate this risk.
How will the effectiveness of this R&D spending be measured and ensured?
Effectiveness will be measured through predefined research milestones, deliverables, and performance metrics outlined in the contract. The Department of Defense will likely conduct regular reviews of research progress, technical feasibility, and the potential for the developed technologies to be integrated into actual training systems. Successful demonstration of prototypes or validated research findings will be key indicators of effectiveness.
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: $88,646,364
Exercised Options: $88,646,364
Current Obligation: $15,876,538
Actual Outlays: $2,092,365
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $5,279,046
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: 2023-09-20
Current End Date: 2028-09-19
Potential End Date: 2028-09-19 00:00:00
Last Modified: 2026-01-15
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