DoD's $31.4M Spacecraft R&D Contract Awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $31,370,709 ($31.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-29
End Date: 2021-12-28
Contract Duration: 1,735 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF PR 82-209A-16 SPACECRAFT RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $31.4 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF PR 82-209A-16 SPACECRAFT RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES Key points: 1. Contract awarded for spacecraft research, development, and engineering services. 2. Significant investment in advanced space technologies. 3. Contract duration spans nearly four years. 4. Focus on physical, engineering, and life sciences R&D. 5. Awarded under full and open competition. 6. Potential for follow-on work in space exploration and defense.
Value Assessment
Rating: good
The contract value of $31.4 million for spacecraft R&D over 1735 days appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in the aerospace sector would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) structure allows for flexibility but requires careful oversight to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a competitive environment, which generally leads to better pricing and innovation for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
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 critical research and development.
Public Impact
Benefits the Department of Defense by advancing spacecraft capabilities. Delivers critical research, development, and engineering services for space missions. Geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include specialized engineers and scientists in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
- Reliance on a single contractor for critical R&D could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract duration indicates a long-term commitment to advancing space technology.
- Contractor has experience in R&D services, implying technical capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences related to spacecraft. The aerospace R&D market is highly specialized and capital-intensive, with significant government investment driven by national security and scientific exploration objectives. Comparable spending benchmarks would typically be found within defense and NASA R&D budgets for similar technological advancements.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless KBR Wyle Services, LLC voluntarily engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess broader small business implications.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and adherence to milestones. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.
Related Government Programs
- Space Force R&D Programs
- NASA Advanced Technology Development
- DoD Satellite Technology Initiatives
- Aerospace Engineering Services Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Technical Performance Risk
- Contractor Dependency Risk
Tags
department-of-defense, department-of-the-navy, spacecraft-research, r&d, kbr-wyle-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, district-of-columbia, aerospace, engineering-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF PR 82-209A-16 SPACECRAFT RESEARCH, DEVELOPMENT AND ENGINEERING SERVICES
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 $31.4 million.
What is the period of performance?
Start: 2017-03-29. End: 2021-12-28.
What is KBR Wyle Services, LLC's track record with similar government R&D contracts?
KBR Wyle Services, LLC has a substantial history of performing research, development, and engineering services for various government agencies, including the Department of Defense. Their portfolio often includes complex projects in aerospace, defense, and energy sectors. Analyzing past performance on similar spacecraft R&D contracts would reveal their ability to meet technical requirements, manage budgets, and adhere to schedules. Specific metrics such as past performance ratings, any contract disputes, or awards for exceptional service would provide a clearer picture of their reliability and expertise in this domain. This contract's success will likely depend on their demonstrated capability to innovate and deliver advanced technological solutions within the defined cost and time parameters.
How does the awarded amount compare to the estimated value of similar spacecraft R&D contracts?
The awarded amount of $31.4 million for spacecraft research, development, and engineering services over approximately 4.75 years (1735 days) needs to be benchmarked against similar contracts to assess value for money. Without specific comparable contract data, it's challenging to provide a precise comparison. However, R&D contracts in the aerospace and defense sectors can vary widely based on scope, complexity, and technological innovation required. Factors such as the novelty of the research, the maturity of the technology being developed, and the specific engineering challenges involved significantly influence pricing. A detailed analysis would involve identifying contracts with similar objectives, durations, and agencies, and then comparing their total values and per-year costs. The Cost Plus Fixed Fee (CPFF) pricing structure also implies that the final cost could fluctuate based on actual labor and material expenses, capped by the fixed fee.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk associated with this Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, despite the fixed fee component. While the contractor is incentivized to control costs to maximize their fee, the 'cost-plus' nature means the government bears the risk of increased direct costs (labor, materials, etc.). If the contractor's cost estimates are inaccurate or if unforeseen technical challenges arise, the total expenditure could exceed initial projections. Effective oversight, rigorous progress monitoring, and clear definition of work scope are crucial to mitigate these risks. The fixed fee itself is intended to provide a ceiling for the contractor's profit, but the overall contract cost is still subject to the actual allowable costs incurred by the contractor.
How effective is the competition level in ensuring optimal pricing for taxpayers?
The contract was awarded under 'full and open competition' with two bidders. This level of competition is generally considered adequate to promote price discovery and encourage competitive pricing. Having multiple bidders allows the government to compare proposals and select the most advantageous offer, balancing technical merit with cost. However, the effectiveness is maximized when there is a robust number of bidders, ideally more than two, especially for significant R&D investments. With only two bidders, there's a possibility that the market might be concentrated, potentially limiting the downward pressure on prices compared to a scenario with numerous competitors. Nonetheless, 'full and open' competition is the preferred method, and the presence of two offers suggests a degree of market engagement.
What are the potential long-term implications of this contract for future spacecraft technology development?
This contract represents a significant investment in the research, development, and engineering of spacecraft technologies. The outcomes of this R&D effort could lead to advancements in areas such as satellite capabilities, deep space exploration, or new propulsion systems, depending on the specific focus. Successful completion could position KBR Wyle Services, LLC as a key player in future space initiatives, potentially leading to follow-on contracts. For taxpayers, the long-term implication is the potential for enhanced national security, scientific discovery, and technological leadership in the global space arena. The development of cutting-edge technologies could also spur innovation in the broader commercial space sector.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0017317RSE03
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 DRIVE, 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: $37,195,162
Exercised Options: $37,195,162
Current Obligation: $31,370,709
Actual Outlays: $600,677
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $5,093,611
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU416
IDV Type: IDC
Timeline
Start Date: 2017-03-29
Current End Date: 2021-12-28
Potential End Date: 2021-12-28 00:00:00
Last Modified: 2024-01-22
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