DoD awards $5.5M R&D contract for counter-improvised threat systems to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $5,498,405 ($5.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2029-06-27

Contract Duration: 1,825 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COUNTER IMPROVISED THREAT SYSTEMS TEST AND EVALUATION FOR THE NAVAL AIR WAR CENTER WEAPONS DIVISION QUICK REACTION CAPABILITY OFFICE

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to KBR WYLE SERVICES, LLC for work described as: COUNTER IMPROVISED THREAT SYSTEMS TEST AND EVALUATION FOR THE NAVAL AIR WAR CENTER WEAPONS DIVISION QUICK REACTION CAPABILITY OFFICE Key points: 1. Contract focuses on critical research and development for naval air warfare. 2. KBR Wyle Services, LLC, a significant player in government contracting, secured this award. 3. The contract duration of 5 years suggests a long-term need for these specialized services. 4. Awarded under full and open competition, indicating a broad search for qualified bidders. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in research projects. 6. This award falls under the R&D sector, specifically focusing on physical and engineering sciences.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature. However, the award amount of approximately $5.5 million over five years appears reasonable for targeted research and development in a critical defense area. The Cost Plus Fixed Fee structure, while potentially leading to cost overruns if not managed carefully, is common for R&D where the scope can evolve. Further analysis would require comparing this to similar R&D efforts for counter-improvised threat systems, which are often highly customized and not directly comparable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of Defense actively sought proposals from all responsible sources. The number of bidders is not specified, but the 'full and open' designation implies a competitive process designed to solicit the best technical solutions and pricing. This approach generally leads to better price discovery and a wider range of innovative approaches.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective and cost-efficient solution for a critical defense need, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the Naval Air Warfare Center Weapons Division Quick Reaction Capability Office, which will receive advanced counter-improvised threat systems. This contract will deliver crucial research and development services to enhance military capabilities. The geographic impact is primarily within California, where the Naval Air Weapons Station China Lake is located, the likely base for the Naval Air Warfare Center Weapons Division. Workforce implications include potential employment for scientists, engineers, and technical staff involved in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict budgetary controls, potentially leading to cost overruns if not closely monitored.
The specialized nature of R&D means that the final deliverables and their exact costs may be difficult to predict upfront, posing a risk to budget adherence.
Reliance on a single contractor for a critical capability like counter-improvised threat systems could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process that likely identified a highly qualified contractor.
The contractor, KBR Wyle Services, LLC, has a significant track record with government contracts, suggesting experience and capability.
The five-year duration indicates a stable, long-term commitment to addressing a critical defense need, allowing for sustained development and testing.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation, specialized expertise, and often long development cycles. Federal spending in R&D is crucial for maintaining technological superiority and addressing emerging threats. Comparable spending benchmarks would involve looking at other DoD contracts for similar advanced technology development, which can vary widely based on complexity and scope.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, KBR Wyle Services, LLC, will likely be responsible for managing subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses will participate in fulfilling this contract. Without specific set-asides, the direct impact on the small business ecosystem is limited unless KBR Wyle actively engages them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Air Warfare Center Weapons Division Quick Reaction Capability Office, under the purview of the Department of the Air Force and the broader Department of Defense. Accountability measures are inherent in the Cost Plus Fixed Fee contract structure, which requires detailed reporting of costs and progress. Transparency is typically maintained through contract databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Research and Development Programs
Counter-Improvised Explosive Device (C-IED) Initiatives
Quick Reaction Capability (QRC) Programs

Risk Flags

Cost Overrun Risk (CPFF Contract)
Scope Creep in R&D
Long-term Sustainment Planning
Integration with Existing Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to KBR WYLE SERVICES, LLC. COUNTER IMPROVISED THREAT SYSTEMS TEST AND EVALUATION FOR THE NAVAL AIR WAR CENTER WEAPONS DIVISION QUICK REACTION CAPABILITY OFFICE

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 $5.5 million.

What is the period of performance?

Start: 2024-06-28. End: 2029-06-27.

What is KBR Wyle Services, LLC's track record with similar R&D contracts for the Department of Defense?

KBR Wyle Services, LLC, has a substantial history of performing R&D and technical services for the Department of Defense across various branches. They have been involved in numerous contracts related to aerospace, engineering, testing, and simulation. While specific data on their performance for counter-improvised threat systems R&D is not detailed here, their extensive experience with complex government projects suggests a strong capability. Past performance reviews and contract databases would provide a more granular understanding of their success rates, on-time delivery, and budget adherence on similar, albeit not identical, R&D endeavors. Their broad portfolio indicates a capacity to manage the technical and logistical challenges inherent in defense-related research.

How does the $5.5 million award compare to other federal spending on counter-improvised threat systems R&D?

Directly comparing this $5.5 million award to other federal spending on counter-improvised threat systems R&D is complex due to the highly specialized and often classified nature of such research. However, this figure represents a moderate investment for a five-year R&D effort focused on a specific capability. Larger, multi-year programs addressing broader threat landscapes or involving extensive hardware development could easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused research tasks might be awarded for less. This contract's value suggests a targeted effort, likely addressing a specific gap or emerging threat identified by the Naval Air Warfare Center Weapons Division Quick Reaction Capability Office, rather than a comprehensive, large-scale program.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like the one awarded to KBR Wyle Services, LLC, revolve around cost control and scope creep. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fixed fee incentivizes efficiency, the 'cost-plus' element can lead to less stringent cost management by the contractor compared to fixed-price contracts. If the R&D effort encounters unforeseen technical challenges or requires significant adjustments to the original scope, costs can escalate. Effective oversight by the government is crucial to monitor expenditures, ensure costs are reasonable and allocable, and manage any necessary scope changes to prevent budget overruns beyond the anticipated fixed fee.

How effective are Quick Reaction Capability (QRC) offices in delivering needed technology to the warfighter?

Quick Reaction Capability (QRC) offices are designed to rapidly develop and field technologies that address urgent warfighter needs, often in response to emerging threats or operational gaps. Their effectiveness stems from streamlined processes, dedicated funding, and a focus on rapid prototyping and deployment, bypassing some of the slower, more bureaucratic acquisition pathways. While QRCs can be highly effective in delivering specific solutions quickly, their success often depends on clear requirements, strong government-program management, and the ability to integrate new technologies into existing platforms. Challenges can include ensuring long-term sustainment, scalability, and interoperability of the fielded solutions, as well as managing the transition from rapid development to standard acquisition programs.

What is the historical spending trend for NAICS code 541715 (R&D in Physical, Engineering, and Life Sciences) within the Department of Defense?

Historical spending trends for NAICS code 541715 within the Department of Defense (DoD) generally show a consistent and significant investment in research and development. The DoD is a major driver of federal R&D spending, particularly in areas related to defense technologies, aerospace, materials science, and engineering. While specific annual figures fluctuate based on strategic priorities, budget allocations, and global security environments, the overall trend indicates a sustained commitment to advancing scientific and technological capabilities. Spending in this category often increases during periods of heightened geopolitical tension or when rapid technological advancements are deemed critical for national security. Analyzing multi-year trends would reveal patterns of investment in specific sub-fields within physical and engineering sciences.

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: $51,780,663

Exercised Options: $51,780,663

Current Obligation: $5,498,405

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,923,316

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