DoD's $115M R&D Contract for PEO Digital Services Leverages Full and Open Competition
Contract Overview
Contract Amount: $11,545,182 ($11.5M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-08-12
End Date: 2029-08-11
Contract Duration: 1,825 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TRANSFORMATIONAL IMPROVEMENT FORCE PILOTS FOR PROGRAM EXECUTIVE OFFICE DIGITAL AND ENTERPRISE SERVICES TECHNICAL DIRECTORS OFFICE
Place of Performance
Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.5 million to KBR WYLE SERVICES, LLC for work described as: TRANSFORMATIONAL IMPROVEMENT FORCE PILOTS FOR PROGRAM EXECUTIVE OFFICE DIGITAL AND ENTERPRISE SERVICES TECHNICAL DIRECTORS OFFICE Key points: 1. The contract focuses on R&D in physical, engineering, and life sciences, excluding nano/biotech. 2. KBR WYLE SERVICES, LLC secured the award through full and open competition. 3. The contract has a significant duration of 1825 days (5 years). 4. This award represents a substantial investment in digital and enterprise services transformation.
Value Assessment
Rating: good
The Cost Plus Fixed Fee contract type allows for flexibility in R&D while managing costs. The fixed fee component provides a degree of cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery and achieving a competitive price. This method allows all eligible contractors to bid, fostering a competitive environment.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most advantageous offers.
Public Impact
Enhances digital capabilities within the Department of Defense. Supports research and development in critical scientific and engineering fields. Potential for advancements in enterprise services impacting military operations. Long-term contract duration suggests a sustained focus on these R&D efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
- The specific R&D outcomes and their direct impact on program goals require ongoing evaluation.
Positive Signals
- Awarded through full and open competition.
- Long contract duration indicates strategic importance.
- Focus on transformational improvements.
Sector Analysis
This contract falls under NAICS code 541715, Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement and national security, with significant government investment.
Small Business Impact
The contract was awarded to KBR WYLE SERVICES, LLC, a large business. There is no explicit indication of small business participation in the provided data, which could be a missed opportunity for subcontracting.
Oversight & Accountability
The Department of the Air Force, under the DoD, is responsible for oversight. The contract type and duration necessitate robust program management and financial oversight to ensure objectives are met efficiently.
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
- Long contract duration (5 years) increases exposure to changing requirements or technological obsolescence.
- Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost escalations.
- Lack of explicit small business participation noted.
- R&D outcomes can be inherently uncertain and may not always yield desired results.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to KBR WYLE SERVICES, LLC. TRANSFORMATIONAL IMPROVEMENT FORCE PILOTS FOR PROGRAM EXECUTIVE OFFICE DIGITAL AND ENTERPRISE SERVICES TECHNICAL DIRECTORS 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 $11.5 million.
What is the period of performance?
Start: 2024-08-12. End: 2029-08-11.
What specific technological advancements are anticipated from this R&D effort, and how will they be measured?
The contract aims for 'transformational improvement,' suggesting a focus on significant advancements rather than incremental changes. Specific metrics for success would typically be defined in the contract's statement of work, detailing expected technological capabilities, performance improvements, or new methodologies developed. Regular progress reviews and milestone achievements would be key to tracking these advancements and ensuring alignment with the program's strategic goals.
What are the primary risks associated with a Cost Plus Fixed Fee R&D contract of this magnitude and duration?
Key risks include potential cost overruns if R&D efforts prove more complex or time-consuming than initially estimated, leading to the fixed fee becoming disproportionately high relative to the work performed. Scope creep is another risk, where the project's objectives expand beyond the initial agreement without corresponding adjustments to the fee or timeline. Ensuring the contractor maintains focus and efficiency throughout the five-year period requires diligent oversight to mitigate these inherent R&D uncertainties.
How will the effectiveness of the 'transformational improvements' be assessed post-contract to ensure taxpayer value?
Effectiveness will likely be assessed through a combination of technical performance metrics, operational impact studies, and user feedback once the developed technologies are implemented. Post-contract evaluations could involve comparing key performance indicators before and after the implementation of the new systems or processes. Demonstrating tangible benefits, such as increased efficiency, reduced costs, or enhanced mission capabilities, will be crucial in validating the long-term value delivered to the taxpayer.
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: 5
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: $199,678,307
Exercised Options: $199,678,307
Current Obligation: $11,545,182
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $3,015,484
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: 2024-08-12
Current End Date: 2029-08-11
Potential End Date: 2029-08-11 00:00:00
Last Modified: 2025-12-10
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