DoD's $38.6M R&D Contract with KBR Wyle Services Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $38,647,741 ($38.6M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2000-03-18
End Date: 2011-08-11
Contract Duration: 4,163 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 82-112L-02 INCREMENT
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $38.6 million to KBR WYLE SERVICES, LLC for work described as: 82-112L-02 INCREMENT Key points: 1. The contract awarded to KBR Wyle Services for R&D in physical, engineering, and life sciences represents a significant investment. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. However, the long duration and cost-plus-fixed-fee structure warrant a closer look at cost control and value for money. 4. The sector is critical for national security and technological advancement, making efficient spending paramount.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not managed tightly. Without specific performance metrics or benchmarks for this type of research, assessing the value for the $38.6 million spent is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for achieving a fair market price. This method allows multiple bidders to compete, theoretically driving down costs and ensuring the government receives the best value.
Taxpayer Impact: While competition was employed, the CPFF structure necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for the intended research outcomes.
Public Impact
Taxpayers are funding advanced research and development that could have long-term implications for national security and technological innovation. The long contract duration (over 11 years) means sustained investment and potential for evolving research needs. The specific nature of R&D makes direct comparison difficult, but the scale of investment warrants transparency in outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Lack of specific performance benchmarks for R&D value
Positive Signals
- Full and open competition utilized
- Contract supports critical R&D sector
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 innovation but can be complex to benchmark due to the unique nature of research projects and the difficulty in predicting outcomes.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Analysis of subcontracting opportunities for small businesses would be necessary to determine their involvement and benefit from this large federal award.
Oversight & Accountability
The long duration and CPFF structure of this contract necessitate robust oversight from the Department of the Navy to ensure cost control, adherence to research objectives, and accountability for the significant federal investment.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Difficulty in benchmarking R&D value
- Lack of small business participation indicated
- Extended contract duration may obscure initial objectives
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to KBR WYLE SERVICES, LLC. 82-112L-02 INCREMENT
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 Navy).
What is the total obligated amount?
The obligated amount is $38.6 million.
What is the period of performance?
Start: 2000-03-18. End: 2011-08-11.
What specific research milestones or deliverables were achieved throughout the contract's 11-year duration to justify the $38.6 million expenditure?
Assessing the value requires examining the documented research outcomes, publications, patents, or technological advancements resulting from the contract. Without these specifics, it's difficult to definitively state whether the $38.6 million yielded commensurate returns in terms of scientific progress or operational improvements for the Department of Defense.
How effectively did the full and open competition process mitigate potential cost escalations inherent in a Cost Plus Fixed Fee R&D contract?
While full and open competition is designed to foster competitive pricing, the CPFF structure inherently shifts some cost risk to the government. Effective mitigation would depend on stringent contract management, clear performance expectations, and rigorous review of incurred costs by the agency to ensure the fixed fee remained appropriate and costs were controlled.
What is the long-term strategic impact of the research funded by this contract on the Department of Defense's capabilities?
The long-term impact hinges on the nature of the R&D conducted. If the research led to breakthroughs in critical areas like materials science, propulsion, or advanced computing, it could significantly enhance future defense capabilities. However, without detailed knowledge of the research focus, its strategic value remains speculative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,680,981
Exercised Options: $39,680,981
Current Obligation: $38,647,741
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-03-18
Current End Date: 2011-08-11
Potential End Date: 2011-08-11 00:00:00
Last Modified: 2019-01-07
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