DoD Awards $18.1M Unfunded Labor Contract to KBR Wyle Services for R&D
Contract Overview
Contract Amount: $18,136,607 ($18.1M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-03
End Date: 2026-09-03
Contract Duration: 730 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: UNFUNDED LABOR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $18.1 million to KBR WYLE SERVICES, LLC for work described as: UNFUNDED LABOR Key points: 1. Contract value of $18.1M for unfunded labor. 2. KBR Wyle Services, LLC is the awardee. 3. Department of Defense (Navy) is the agency. 4. Contract type is Cost Plus Fixed Fee. 5. Research and Development in Physical, Engineering, and Life Sciences is the sector.
Value Assessment
Rating: fair
The contract is for unfunded labor, making direct value comparison difficult. The Cost Plus Fixed Fee structure suggests potential for cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the 'unfunded labor' designation may obscure the true cost discovery.
Taxpayer Impact: Taxpayer funds are allocated for research and development services, with the final cost dependent on labor hours and fixed fee.
Public Impact
Supports critical research and development efforts for the Department of Defense. Potential for innovation and technological advancement in physical, engineering, and life sciences. Ensures continued operations and personnel support for ongoing R&D projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unfunded labor designation lacks transparency on true cost.
- Cost Plus Fixed Fee contracts can lead to cost overruns.
- Long duration (730 days) increases exposure to changing requirements.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D for national security.
- Experienced contractor (KBR Wyle Services).
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but can be subject to cost fluctuations.
Small Business Impact
The awardee is KBR Wyle Services, LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The Department of Defense is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring of labor hours and project milestones to ensure cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of clarity on 'unfunded labor' cost justification.
- Long contract duration increases risk exposure.
- Limited visibility into specific R&D project outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to KBR WYLE SERVICES, LLC. UNFUNDED LABOR
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 $18.1 million.
What is the period of performance?
Start: 2024-09-03. End: 2026-09-03.
What is the specific definition and justification for 'unfunded labor' in this contract, and how does it impact the overall cost assessment?
Unfunded labor typically refers to personnel costs that are not directly tied to a specific funded project line item but are necessary for ongoing operations or readiness. In this context, it likely covers essential R&D personnel whose salaries are covered by this contract to ensure continuity. The justification would stem from maintaining a skilled workforce for future projects. Its impact on cost assessment is significant, as it requires careful tracking to ensure these labor costs are appropriately allocated and not inflated.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, and how can they be mitigated?
The primary risks include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, leading to increased labor hours. The fixed fee provides incentive for the contractor to control costs, but the government bears the risk of the actual cost. Mitigation strategies involve robust government oversight, detailed cost tracking, clear performance metrics, and well-defined contract scope to prevent scope creep.
How does this contract contribute to the Department of the Navy's overall R&D objectives and technological advancement?
This contract likely supports specific, ongoing research and development initiatives crucial for the Navy's technological superiority and mission readiness. By securing essential R&D personnel through KBR Wyle Services, the Navy ensures continuity in critical scientific and engineering efforts. This investment aims to foster innovation, develop new capabilities, and maintain a technological edge in areas vital to national security.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042123R0071
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: $33,603,600
Exercised Options: $33,603,600
Current Obligation: $18,136,607
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $5,902,359
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042124D0071
IDV Type: IDC
Timeline
Start Date: 2024-09-03
Current End Date: 2026-09-03
Potential End Date: 2026-09-03 00:00:00
Last Modified: 2026-01-08
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