DoD's $56.3M R&D Contract for Naval Air Systems Command Information Systems Modernization Awarded to KBR WYLE SERVICES, LLC
Contract Overview
Contract Amount: $56,344,259 ($56.3M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-04
End Date: 2029-11-03
Contract Duration: 1,825 days
Daily Burn Rate: $30.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INFORMATION SYSTEMS MODERNIZATION RESEARCH AND DEVELOPMENT FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE MANPOWER, LOGISTICS AND BUSINESS SOLUTIONS LOGISTICS INFORMATION TECHNOLOGY AND COMMANDER, FLEET READINESS CENTERS
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $56.3 million to KBR WYLE SERVICES, LLC for work described as: INFORMATION SYSTEMS MODERNIZATION RESEARCH AND DEVELOPMENT FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE MANPOWER, LOGISTICS AND BUSINESS SOLUTIONS LOGISTICS INFORMATION TECHNOLOGY AND COMMANDER, FLEET READINESS CENTERS Key points: 1. This contract focuses on critical R&D for naval aviation IT systems, aiming to enhance logistics and readiness. 2. KBR WYLE SERVICES, LLC, a significant player, secured this award, indicating strong capabilities in the sector. 3. The primary risk lies in the complexity of modernizing legacy systems and ensuring seamless integration. 4. The IT sector, particularly defense-focused R&D, represents a substantial and growing area of government spending.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility in R&D but requires careful cost monitoring. Benchmarking against similar R&D contracts in defense IT is challenging due to unique project scopes, but the awarded amount appears reasonable for the specified duration and objectives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and improves the quality of services received.
Public Impact
Enhances operational efficiency for naval aviation through modernized IT systems. Supports fleet readiness by improving logistics and command capabilities. Invests in advanced research and development crucial for future military technological superiority. Potential for job creation within the defense technology and R&D sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of R&D projects
- Integration challenges with legacy systems
- Potential for cost overruns in CPFF contracts
Positive Signals
- Awarded through full and open competition
- Focus on critical defense modernization
- Long-term contract duration allows for sustained development
Sector Analysis
This contract falls within the IT sector, specifically focusing on research and development for defense applications. Spending in defense IT R&D is substantial, driven by the need for technological superiority and modernization of aging systems.
Small Business Impact
While the prime contractor is KBR WYLE SERVICES, LLC, there is no explicit information provided regarding small business participation in this specific delivery order. Further investigation into subcontracting plans would be necessary to assess SMB involvement.
Oversight & Accountability
The Department of Defense, through the Naval Air Systems Command, is responsible for oversight. The contract's Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and prevent waste.
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
- Potential for scope creep in R&D projects
- Dependency on key personnel at KBR WYLE SERVICES, LLC
- Cybersecurity vulnerabilities in modernized systems
- Challenges in integrating new technology with existing infrastructure
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 $56.3 million to KBR WYLE SERVICES, LLC. INFORMATION SYSTEMS MODERNIZATION RESEARCH AND DEVELOPMENT FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE MANPOWER, LOGISTICS AND BUSINESS SOLUTIONS LOGISTICS INFORMATION TECHNOLOGY AND COMMANDER, FLEET READINESS CENTERS
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 $56.3 million.
What is the period of performance?
Start: 2024-11-04. End: 2029-11-03.
What specific technological advancements are anticipated from this R&D investment?
The R&D is expected to yield advancements in areas such as predictive maintenance analytics, enhanced data integration across logistics platforms, improved cybersecurity for critical information systems, and potentially the development of AI-driven decision support tools for fleet readiness management. The goal is to modernize legacy systems to be more agile, secure, and efficient.
What are the key performance indicators (KPIs) to measure the success of this R&D effort?
Key performance indicators would likely include the successful development and testing of prototype systems, demonstrable improvements in data processing speed and accuracy for logistics information, successful integration with existing naval command and control systems, and adherence to cybersecurity protocols. Measurable reductions in system downtime or maintenance response times could also be KPIs.
How will the effectiveness of the modernized systems be evaluated post-development?
Effectiveness will be evaluated through rigorous testing and validation phases, including operational assessments in simulated and real-world naval environments. Feedback from end-users (e.g., naval personnel) will be crucial, alongside metrics tracking system performance, reliability, security compliance, and the achievement of specific logistics and readiness improvements outlined in the contract's statement of work.
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: 2
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: $229,762,541
Exercised Options: $229,762,541
Current Obligation: $56,344,259
Actual Outlays: $3,665,477
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $43,031,961
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: 2024-11-04
Current End Date: 2029-11-03
Potential End Date: 2029-11-03 00:00:00
Last Modified: 2026-01-15
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