DoD's $29.4M Space Systems Contract Awarded to KBR Wyle Services, LLC for R&D
Contract Overview
Contract Amount: $29,421,405 ($29.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2026-12-23
Contract Duration: 1,848 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: EO14042 - SPACE & SPACECRAFT SYSTEMS DESIGN (SPADE)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $29.4 million to KBR WYLE SERVICES, LLC for work described as: EO14042 - SPACE & SPACECRAFT SYSTEMS DESIGN (SPADE) Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 4. Duration of 1848 days indicates a long-term commitment to the research objectives. 5. The contract's value of approximately $29.4 million positions it as a significant investment in space and spacecraft systems. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract requires detailed cost breakdowns and comparison to similar R&D efforts. Without specific performance metrics or detailed cost data, it's challenging to definitively assess value for money. The fixed fee component provides some cost certainty, but the overall cost-plus nature necessitates careful oversight to ensure efficiency and prevent overruns. Compared to other large-scale R&D contracts, the $29.4 million figure is substantial but not extraordinary for advanced systems development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the open competition suggests a robust selection process. The level of competition is a positive indicator for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible value for the research and development services rendered. Full and open competition increases the likelihood that the awarded price reflects market rates and that the chosen contractor offers the most advantageous solution.
Public Impact
The primary beneficiaries are the Department of Defense and potentially national security interests through advancements in space and spacecraft systems. Services delivered include research and development in physical, engineering, and life sciences related to space technology. The geographic impact is likely concentrated around the contractor's facilities and relevant research institutions, with broader implications for national space capabilities. Workforce implications include employment for scientists, engineers, and technical staff involved in advanced R&D projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The long duration of the contract requires sustained oversight to ensure continued alignment with evolving research goals.
- Lack of specific performance metrics in the provided data makes it difficult to assess the efficiency of R&D progress.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and potentially cost-effective selection process.
- The contract supports critical research and development in a strategically important sector (space systems).
- KBR Wyle Services, LLC's involvement suggests leveraging established expertise in the field.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This area is crucial for technological advancement and national security. The market for space and spacecraft systems R&D is highly specialized, involving a limited number of firms with the requisite expertise and security clearances. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts within the defense and aerospace industries, particularly those focused on advanced technology development.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) is false, suggesting this contract was not set aside for small businesses and there is no explicit indication of subcontracting goals for small businesses. This means the primary award went to a large business, and the impact on the small business ecosystem would depend on whether KBR Wyle Services, LLC engages small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers. Accountability measures would be tied to the fixed fee, performance milestones (if defined), and adherence to research objectives. Transparency is generally maintained through contract reporting requirements, though detailed R&D progress might be sensitive. Inspector General jurisdiction would apply to ensure the integrity of the contracting process and prevent fraud, waste, and abuse.
Related Government Programs
- Space Systems Development Contracts
- Department of Defense Research and Development Programs
- Aerospace Engineering Services
- Advanced Technology Research Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates sustained monitoring of progress and objectives.
- Limited public information on specific performance metrics and deliverables.
Tags
department-of-defense, department-of-the-navy, research-and-development, space-systems, kbr-wyle-services, cost-plus-fixed-fee, full-and-open-competition, definitive-contract, district-of-columbia, naics-541715
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to KBR WYLE SERVICES, LLC. EO14042 - SPACE & SPACECRAFT SYSTEMS DESIGN (SPADE)
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 $29.4 million.
What is the period of performance?
Start: 2021-12-01. End: 2026-12-23.
What is KBR Wyle Services, LLC's track record with similar government R&D contracts?
KBR Wyle Services, LLC has a significant history of performing government contracts, particularly within the defense and aerospace sectors. They have been involved in various research, development, testing, and engineering support services for agencies like NASA and the Department of Defense. Their experience often includes complex scientific and technical projects, space exploration support, and systems engineering. Analyzing their past performance on Cost Plus Fixed Fee contracts, specifically those related to R&D, would provide insight into their ability to manage costs, meet technical objectives, and deliver value. A review of their contract history, including any past performance evaluations or awards, would be necessary for a comprehensive assessment.
How does the $29.4 million contract value compare to similar space systems R&D efforts?
The $29.4 million contract value for space and spacecraft systems design (SPADE) falls within a moderate range for specialized R&D projects. Larger, more complex space system development programs can easily reach hundreds of millions or even billions of dollars. However, for a specific R&D focus like this, $29.4 million represents a substantial investment. To benchmark effectively, one would compare it against contracts with similar scopes of work, durations, and technological objectives awarded by the Department of Defense or other space-faring agencies. Factors such as the novelty of the research, the maturity of the technology being developed, and the specific deliverables will influence what constitutes a 'fair' price.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks with a CPFF contract for R&D revolve around cost control and efficiency. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If R&D efforts prove more complex or expensive than initially anticipated, costs can escalate significantly. The contractor may have less incentive to control costs aggressively compared to fixed-price contracts, as their allowable costs are reimbursed. For the government, the risk is paying higher-than-expected costs without a commensurate increase in value or progress, especially if oversight is insufficient. Ensuring robust cost tracking, regular reviews of expenditures, and clear definition of allowable costs are critical mitigation strategies.
What are the potential program effectiveness indicators for this R&D contract?
Potential program effectiveness indicators for this R&D contract would focus on the successful achievement of research objectives and the transition of developed technologies. Key indicators could include the timely completion of research phases, the successful validation of new designs or technologies through testing and simulation, the generation of intellectual property (patents, publications), and the potential for the developed systems to enhance operational capabilities for the Department of Defense. Ultimately, the long-term effectiveness will be measured by how well the R&D outcomes contribute to future space and spacecraft system advancements and meet strategic defense needs. Metrics related to technical performance, innovation, and potential for future application would be crucial.
How has the Department of the Navy's spending on space systems R&D evolved over recent years?
Analyzing the Department of the Navy's spending on space systems R&D requires access to historical budget data and contract awards. Generally, spending in this area tends to increase during periods of heightened geopolitical competition or rapid technological advancement in space capabilities. The Navy, like other branches of the military, relies heavily on space-based assets for communication, navigation, intelligence, surveillance, and reconnaissance. Therefore, sustained investment in R&D is crucial to maintain technological superiority and adapt to evolving threats. Trends might show shifts towards areas like satellite resilience, advanced sensor technology, space-based electronic warfare, and counter-space capabilities. Specific figures would necessitate a deep dive into DoD budget documents and contract databases.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017321RWR01
Offers Received: 1
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: $48,194,314
Exercised Options: $48,194,314
Current Obligation: $29,421,405
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $5,993,165
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-01
Current End Date: 2026-12-23
Potential End Date: 2026-12-23 00:00:00
Last Modified: 2025-12-15
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