DoD awards $29M for E3 Systems Engineering and Test Support to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $28,953,487 ($29.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-02-23
End Date: 2026-02-28
Contract Duration: 1,466 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ELECTROMAGNETIC ENVIRONMENTAL EFFECTS (E3) SYSTEMS ENGINEERING AND TEST AND EVALUATION SUPPORT SERVICES
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $29.0 million to KBR WYLE SERVICES, LLC for work described as: ELECTROMAGNETIC ENVIRONMENTAL EFFECTS (E3) SYSTEMS ENGINEERING AND TEST AND EVALUATION SUPPORT SERVICES Key points: 1. Contract focuses on critical Electromagnetic Environmental Effects (E3) systems engineering and test support. 2. KBR Wyle Services, LLC, a significant player in government contracting, secured this award. 3. The contract duration of approximately 4 years suggests a need for sustained support. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The contract type (Cost Plus Fixed Fee) may lead to cost overruns if not managed carefully. 6. The base year value is substantial, requiring close monitoring of performance and costs.
Value Assessment
Rating: good
The contract value of $28.95 million over approximately four years for specialized engineering and test support appears reasonable given the technical complexity of E3 systems. Benchmarking against similar contracts for advanced engineering services in the defense sector suggests this pricing is within expected ranges. However, the Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the defined scope without excessive profit margins.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best technical solutions and pricing. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving best value for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives a wide range of innovative solutions at competitive rates.
Public Impact
The Department of the Navy benefits from enhanced capabilities in ensuring electromagnetic compatibility and performance of its systems. Services delivered include critical engineering, test, and evaluation support for complex defense platforms. The geographic impact is primarily centered around the contractor's facilities and Navy testing sites, likely within Maryland. Workforce implications include the employment of specialized engineers and technical personnel within KBR Wyle Services, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to achieve a higher fee if not properly managed.
- The duration of the contract (over 4 years) requires ongoing vigilance to ensure continued alignment with evolving defense needs.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services definitively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that should yield favorable pricing.
- The contractor, KBR Wyle Services, LLC, has a significant presence and experience in supporting defense contracts.
- The contract addresses a critical need for Electromagnetic Environmental Effects (E3) support, vital for system reliability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications related to Electromagnetic Environmental Effects (E3). The E3 domain is crucial for military systems, ensuring they operate reliably in complex electromagnetic environments without interfering with each other or being susceptible to jamming. Spending in this niche area is driven by the constant evolution of electronic warfare, communication systems, and sensor technologies within the Department of Defense. Comparable spending benchmarks would likely be found within broader defense R&D and systems integration contracts.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, KBR Wyle Services, LLC, may engage small businesses as subcontractors for specialized support, depending on their internal capabilities and subcontracting plans. The overall impact on the small business ecosystem is likely indirect, contingent on KBR Wyle's procurement practices.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy contracting officers and technical representatives. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining deliverables, quality standards, and reporting requirements. Transparency is facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Electromagnetic Compatibility (EMC) Testing
- Systems Engineering Support
- Test and Evaluation Services
- Naval Systems Modernization
Risk Flags
- Cost Plus Fixed Fee contract type requires close monitoring to prevent cost overruns.
- Long contract duration necessitates ongoing performance evaluation and potential for scope creep.
- Reliance on a single contractor could lead to reduced competition over time.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, systems-engineering, test-and-evaluation, electromagnetic-environmental-effects, cost-plus-fixed-fee, full-and-open-competition, kbr-wyle-services, maryland, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to KBR WYLE SERVICES, LLC. ELECTROMAGNETIC ENVIRONMENTAL EFFECTS (E3) SYSTEMS ENGINEERING AND TEST AND EVALUATION SUPPORT 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 $29.0 million.
What is the period of performance?
Start: 2022-02-23. End: 2026-02-28.
What is the historical spending trend for E3 systems engineering and test support services within the Department of the Navy?
Analyzing historical spending trends for E3 systems engineering and test support services within the Department of the Navy requires access to detailed historical contract data. Generally, spending in this area tends to be consistent, driven by the lifecycle needs of naval platforms and the continuous evolution of electronic warfare capabilities. Fluctuations may occur based on major platform development programs, upgrades, or shifts in strategic priorities. Without specific historical data for this particular service category, it's challenging to provide precise figures. However, it's reasonable to assume that the Navy dedicates significant resources to ensuring the electromagnetic compatibility and resilience of its complex systems, making E3 support a recurring and essential expenditure.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar engineering services in terms of cost control?
Cost Plus Fixed Fee (CPFF) contracts are often used for research and development or complex services where the scope is not precisely defined at the outset. While they allow for flexibility, they can pose challenges for cost control. The contractor is reimbursed for allowable costs plus a fixed fee, which represents profit. If costs escalate, the contractor's profit margin remains constant (the fixed fee), but the government pays more. This can incentivize contractors to incur higher costs than necessary if oversight is lax. In contrast, Firm-Fixed-Price (FFP) contracts offer better cost certainty for the government, as the price is set upfront, placing the cost risk on the contractor. Incentive Fee contracts can also be used to align contractor performance with government objectives, rewarding efficiency and cost savings. For well-defined engineering services, FFP is often preferred for cost predictability.
What are the key performance indicators (KPIs) typically used to evaluate the success of E3 systems engineering and test support contracts?
Key Performance Indicators (KPIs) for E3 systems engineering and test support contracts typically focus on technical performance, schedule adherence, and cost management. Technical KPIs might include the successful completion of E3 testing phases, compliance with electromagnetic interference (EMI) and electromagnetic compatibility (EMC) standards, accuracy of test results, and the effectiveness of engineering recommendations. Schedule KPIs would involve meeting project milestones and delivery timelines for reports and analyses. Cost KPIs would monitor the project's adherence to the budget, particularly crucial under a CPFF contract, tracking actual costs against projected expenditures and ensuring the fixed fee is earned appropriately. Contractor responsiveness to technical queries and the quality of documentation are also often evaluated.
What is KBR Wyle Services, LLC's track record with similar Department of Defense contracts, particularly in E3 or related engineering fields?
KBR Wyle Services, LLC has a substantial track record supporting the Department of Defense across various engineering, scientific, and technical services. They have been involved in numerous contracts related to aerospace, defense systems, and space operations. Their expertise often encompasses test and evaluation, systems engineering, and mission support. While specific details on their E3-focused contract history require deeper database analysis, their general profile suggests they possess the necessary experience and infrastructure to handle complex defense engineering requirements. Past performance evaluations on similar contracts would be a critical factor in the government's decision-making process for awarding new agreements.
What are the potential risks associated with relying on a single contractor for critical E3 systems engineering and test support over a multi-year period?
Relying on a single contractor for critical E3 systems engineering and test support over a multi-year period carries several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes overly dependent on the contractor's specific processes, tools, and personnel, making it difficult and costly to switch providers. Secondly, without ongoing competitive pressure, the contractor might become complacent, potentially leading to reduced innovation or less aggressive pricing over time. Thirdly, key personnel turnover within the contractor's organization could disrupt continuity and institutional knowledge. Finally, unforeseen technical challenges or changes in requirements might be more difficult to adapt to if the contractor lacks diverse perspectives or is resistant to change due to established practices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0042121R3016
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: $42,579,374
Exercised Options: $33,599,495
Current Obligation: $28,953,487
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $15,521,392
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7949
IDV Type: IDC
Timeline
Start Date: 2022-02-23
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-01-12
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