DoD's $32.1M Engineering Support Contract for Naval Air Station Patuxent River Awarded to KBR Wyle Services

Contract Overview

Contract Amount: $32,131,752 ($32.1M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-01

End Date: 2022-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES TO AIR-4.1 AT PATUXENT RIVER NAVAL AIR STATION (NAS), PATUXENT RIVER, MD.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES TO AIR-4.1 AT PATUXENT RIVER NAVAL AIR STATION (NAS), PATUXENT RIVER, MD. Key points: 1. Contract provides essential engineering and technical support services for Air-4.1 at NAS Patuxent River. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The award was a single delivery order, suggesting this is part of a larger indefinite delivery/indefinite quantity (IDIQ) vehicle or a standalone award. 6. The small business set-aside status is false, meaning it was not specifically targeted for small businesses. 7. The primary NAICS code (541330) points to Engineering Services, a critical sector for defense operations.

Value Assessment

Rating: fair

The contract's value of $32.1 million over five years for engineering services at a major naval air station appears reasonable given the scope. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. Without detailed breakdowns of labor categories, overhead rates, and the fixed fee percentage, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale engineering support contracts for naval aviation facilities would provide better context on pricing efficiency.

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 suggests a robust bidding environment. While the data indicates one award (delivery order), the underlying contract vehicle may have had multiple bidders. The level of competition for the specific delivery order is not detailed, but the initial award mechanism implies a competitive landscape that should theoretically drive better pricing and service quality.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging contractors to offer their best value propositions, potentially leading to cost savings compared to sole-source or limited competition scenarios.

Public Impact

Naval Air Station Patuxent River personnel and operations benefit from continuous engineering and technical support. The contract supports critical functions within Air-4.1, likely related to aircraft research, development, testing, and evaluation. The geographic impact is localized to Patuxent River, Maryland, a key hub for naval aviation. The contract sustains jobs within the engineering and technical services sector, particularly for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can incentivize contractor to increase costs to increase fee.
  • Lack of specific performance metrics makes it difficult to assess service quality.
  • Potential for scope creep given the nature of engineering support services.

Positive Signals

  • Awarded under full and open competition, suggesting competitive pricing.
  • Long-term contract (5 years) provides stability for critical support functions.
  • Contractor (KBR Wyle Services) likely has a track record in similar defense contracts.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for research, development, testing, and sustainment of complex military platforms. Spending in this area is often characterized by long-term contracts, specialized expertise, and significant government oversight. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the Department of Defense to similar facilities.

Small Business Impact

The contract was not awarded as a small business set-aside (SS is false, SB is false). This means that large businesses were eligible to compete and potentially win. While there's no direct set-aside, the prime contractor, KBR Wyle Services, may engage small businesses as subcontractors to fulfill specific requirements. The extent of small business subcontracting is not detailed here, but it's a common practice in larger federal contracts to meet socio-economic goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers at NAS Patuxent River. The CPFF structure necessitates close monitoring of costs and contractor performance to ensure value. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal.

Related Government Programs

  • Naval Air Systems Command (NAVAIR) Support Contracts
  • Engineering and Technical Services Contracts
  • Department of Defense Facilities Support Contracts
  • Cost Plus Fixed Fee Contracts

Risk Flags

  • Cost Plus Fixed Fee contract type requires close monitoring.
  • Potential for scope creep in engineering services.
  • Difficulty in objectively measuring technical service quality.

Tags

defense, department-of-defense, department-of-the-navy, naval-air-station-patuxent-river, engineering-services, cost-plus-fixed-fee, full-and-open-competition, kbr-wyle-services, delivery-order, maryland, technical-support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES TO AIR-4.1 AT PATUXENT RIVER NAVAL AIR STATION (NAS), PATUXENT RIVER, MD.

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 $32.1 million.

What is the period of performance?

Start: 2017-03-01. End: 2022-02-28.

What is the specific nature of the 'Engineering Services' provided under this contract to Air-4.1 at NAS Patuxent River?

The contract provides 'Engineering and Technical Support Services' to Air-4.1 at NAS Patuxent River. While the specific tasks are not detailed in the provided data, Air-4.1 typically refers to the Naval Air Warfare Center Aircraft Division (NAWCAD) at Patuxent River, which is involved in the research, development, acquisition, test, and evaluation of naval aircraft and related systems. Therefore, the services likely encompass a broad range of engineering disciplines, including systems engineering, test engineering, software engineering, aeronautical engineering, and program management support, crucial for advancing naval aviation technology and readiness.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar engineering services, and what are the implications for cost control?

The CPFF contract type is common for research and development or complex services where the scope is not precisely defined at the outset. It allows the contractor to recover all allowable costs plus a fixed amount of profit (fee). Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government when requirements are uncertain, but it carries a higher risk of cost growth as the contractor is incentivized to incur costs to earn their fee. FFP contracts provide greater cost certainty for the government but require a well-defined scope. For engineering services, CPFF can be appropriate if innovation and adaptation are key, but it demands rigorous government oversight to manage costs effectively and prevent contractor inefficiencies from inflating the final price.

What is KBR Wyle Services' track record with similar Department of Defense engineering support contracts?

KBR Wyle Services, LLC, is a significant government contractor with a substantial history of providing engineering, scientific, and technical support services to various Department of Defense agencies, including the Navy and Air Force. They have held numerous contracts involving aircraft systems, space operations, and base support. Their experience often includes large-scale, long-duration contracts similar to this one. A deeper dive into their contract history would reveal specific performance ratings, past performance evaluations, and any significant issues or successes on comparable projects, which are crucial for assessing their capability and reliability for this specific requirement.

What is the historical spending trend for engineering services at NAS Patuxent River or for similar Naval Air Systems Command (NAVAIR) functions?

Historical spending on engineering services at NAS Patuxent River and for NAVAIR functions is generally substantial and consistent, reflecting the base's role as a premier hub for naval aviation RDT&E. While specific figures for this exact contract's predecessors are not provided, annual spending on engineering and technical support across NAVAIR commands often runs into hundreds of millions or even billions of dollars. This spending fluctuates based on program priorities, defense budgets, and the lifecycle stage of various aircraft programs. The $32.1 million awarded here represents a portion of that broader investment in maintaining and advancing naval air capabilities.

Are there any specific performance risks or indicators associated with this type of engineering support contract that warrant attention?

Key performance risks for this type of engineering support contract include potential scope creep, where the contractor undertakes work beyond the initially defined requirements without proper modification, leading to cost overruns. Another risk is the difficulty in measuring and ensuring the quality of highly technical engineering work, especially under a CPFF structure. Contractor performance issues, such as delays, failure to meet technical specifications, or inadequate staffing, are also risks. The reliance on a single delivery order under a potentially larger IDIQ could also pose a risk if the underlying IDIQ vehicle itself had limited competition or if the contractor's performance on previous orders was subpar.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002415R3146

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,854,983

Exercised Options: $36,480,760

Current Obligation: $32,131,752

Actual Outlays: $1,921,626

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,475,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D8000

IDV Type: IDC

Timeline

Start Date: 2017-03-01

Current End Date: 2022-02-28

Potential End Date: 2022-02-28 00:00:00

Last Modified: 2025-11-17

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