KBR WYLE SERVICES awarded $20.8M for Naval Air Systems Command Unmanned Aviation Integration, Demonstration, and Prototyping

Contract Overview

Contract Amount: $20,852,904 ($20.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-21

End Date: 2029-10-20

Contract Duration: 1,825 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: P1 23-2513, NAVAL AIR SYSTEMS COMMAND UNMANNED AVIATION INTEGRATION, DEMONSTRATION, AND PROTOTYPING FOR THE NAVAIR PROGRAM EXECUTIVE OFFICE, UNMANNED AVIATION AND STRIKE WEAPONS

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to KBR WYLE SERVICES, LLC for work described as: P1 23-2513, NAVAL AIR SYSTEMS COMMAND UNMANNED AVIATION INTEGRATION, DEMONSTRATION, AND PROTOTYPING FOR THE NAVAIR PROGRAM EXECUTIVE OFFICE, UNMANNED AVIATION AND STRIKE WEAPONS Key points: 1. Contract focuses on critical R&D for unmanned aviation systems, aligning with strategic defense modernization goals. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. The contract duration of 5 years indicates a long-term commitment to developing advanced capabilities. 4. Performance is tied to the NAVAIR Program Executive Office, Unmanned Aviation and Strike Weapons, highlighting its strategic importance. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in research and development while managing costs. 6. This award falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.

Value Assessment

Rating: good

Benchmarking this specific contract's value is challenging without more granular data on comparable R&D efforts in unmanned aviation. However, the $20.8 million award over five years for specialized integration, demonstration, and prototyping suggests a reasonable investment for advanced defense technology development. The Cost Plus Fixed Fee structure is typical for R&D where exact costs are difficult to predict, but it requires careful oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. With 3 bidders identified, this suggests a healthy level of competition for this specialized R&D requirement. The presence of multiple bidders generally leads to more competitive pricing and a wider range of technical solutions being considered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible value for its investment in advanced defense technologies.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who will receive advanced unmanned aviation capabilities. Services delivered include integration, demonstration, and prototyping of unmanned aerial systems. The geographic impact is primarily within the Naval Air Systems Command's operational and research facilities, likely in Maryland. This contract supports a highly skilled workforce in aerospace engineering, research, and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of R&D means that success is not guaranteed, posing a programmatic risk.
Reliance on a single awardee for this critical capability could create future dependency.

Positive Signals

Awarded under full and open competition, indicating strong market interest and potential for competitive pricing.
The contract supports a critical area of defense modernization (unmanned aviation).
Long-term duration suggests a stable and committed partnership for developing advanced technologies.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for unmanned aerial systems (UAS). The market for UAS technology is rapidly expanding, driven by both military and commercial applications. Spending in this area is critical for maintaining technological superiority. Comparable spending benchmarks would typically be found within R&D budgets for advanced platforms and systems integration, often involving significant investment in specialized engineering and testing.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort, it is likely that the prime contractor, KBR WYLE SERVICES, will engage subcontractors. There is potential for small businesses to participate in subcontracting opportunities, particularly those with specialized expertise in components, testing, or specific technological areas within unmanned aviation. Further analysis would be needed to determine the extent of small business subcontracting planned.

Oversight & Accountability

Oversight for this contract will primarily be conducted by the Naval Air Systems Command (NAVAIR). As a Cost Plus Fixed Fee contract, rigorous financial and performance monitoring will be essential to ensure that costs remain within the fixed fee parameters and that the research and development objectives are met. Transparency will be facilitated through regular reporting requirements from the contractor and potential reviews by the Department of Defense's Inspector General if specific concerns arise.

Related Government Programs

Naval Air Systems Command (NAVAIR) Research and Development Programs
Unmanned Aerial Systems (UAS) Procurement and Development
Department of Defense Advanced Technology Initiatives
Aerospace Engineering and Prototyping Contracts

Risk Flags

Cost Overruns Risk (CPFF)
Technical Feasibility Risk (R&D)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to KBR WYLE SERVICES, LLC. P1 23-2513, NAVAL AIR SYSTEMS COMMAND UNMANNED AVIATION INTEGRATION, DEMONSTRATION, AND PROTOTYPING FOR THE NAVAIR PROGRAM EXECUTIVE OFFICE, UNMANNED AVIATION AND STRIKE WEAPONS

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 $20.9 million.

What is the period of performance?

Start: 2024-10-21. End: 2029-10-20.

What is KBR WYLE SERVICES' track record with similar R&D contracts for the Department of Defense?

KBR WYLE SERVICES, LLC has a significant history of performing complex technical services for the Department of Defense, including extensive work in research, development, testing, and evaluation. They have been involved in various aerospace and defense programs, often providing engineering support, system integration, and operational analysis. While specific details on past unmanned aviation R&D contracts would require deeper data mining, their established presence and broad capabilities suggest a strong foundation for undertaking this NAVAIR initiative. Their experience likely encompasses managing cost-plus contracts and delivering on demanding technical specifications within the defense sector.

How does the $20.8 million value compare to similar unmanned aviation R&D contracts?

Directly comparing the $20.8 million value requires access to a database of similar, concurrently awarded R&D contracts for unmanned aviation integration, demonstration, and prototyping. However, this figure appears to be a moderate investment for a five-year R&D effort in a cutting-edge field like unmanned aviation. Larger, platform-specific development programs can easily reach hundreds of millions or billions. Smaller, more focused research tasks might be in the low millions. This award suggests a significant but not program-defining scope, likely focusing on specific system integrations or advanced demonstrations rather than the development of entirely new airframes.

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

The primary risks with a CPFF contract for R&D revolve around cost control and scope creep. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of actual costs exceeding estimates. If the R&D effort encounters unforeseen technical challenges or requires significant changes in direction, the total cost to the government could escalate. Effective oversight is crucial to monitor expenditures, ensure efficient resource allocation, and prevent unnecessary scope expansion. The contractor must demonstrate diligent management of resources and adherence to the research objectives to mitigate these risks.

How effective is the 'full and open competition' strategy likely to be in ensuring value for this specific R&D contract?

The 'full and open competition' strategy is generally effective in ensuring value for R&D contracts by fostering a competitive environment among multiple capable vendors. In this case, with three bidders, it suggests that the market has several players equipped to handle complex unmanned aviation R&D. This competition should drive innovation and encourage bidders to offer competitive pricing and robust technical approaches to win the contract. The government benefits from a wider array of solutions and potentially lower overall costs compared to a sole-source or limited competition scenario. However, the ultimate value realization depends on the government's ability to clearly define requirements and effectively evaluate the technical merit and cost proposals.

What are the historical spending patterns for unmanned aviation R&D within NAVAIR?

Historical spending patterns for unmanned aviation R&D within NAVAIR have shown a consistent and increasing trend over the past decade, reflecting the growing strategic importance of these systems. Early investments focused on basic research and proof-of-concept demonstrations, while more recent spending has shifted towards system integration, advanced sensor payloads, autonomous capabilities, and operational testing. NAVAIR has consistently allocated significant portions of its research and development budget to advancing UAS technology across various platforms, from small tactical drones to larger intelligence, surveillance, and reconnaissance (ISR) assets. This $20.8 million award aligns with this established pattern of sustained investment in the field.

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: 3

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: $87,624,559

Exercised Options: $87,624,559

Current Obligation: $20,852,904

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $24,678,506

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