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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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