DoD's $13.4M R&D contract to KBR Wyle Services for physical sciences research in Alabama

Contract Overview

Contract Amount: $13,386,250 ($13.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-03

End Date: 2026-09-02

Contract Duration: 729 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CREATE TO #2

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to KBR WYLE SERVICES, LLC for work described as: CREATE TO #2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The period of performance is 729 days, indicating a medium-term research initiative. 4. The contract is for Research and Development in Physical, Engineering, and Life Sciences, a critical sector for innovation. 5. The awardee, KBR Wyle Services, LLC, is a significant player in government contracting. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee. Comparing this $13.4 million award to similar R&D contracts in physical sciences requires access to proprietary pricing data and specific scope of work details. However, the fixed fee component provides some level of cost predictability for the government.

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 offers. This suggests a robust bidding process where multiple companies likely vied for the award. The level of competition is not explicitly stated in terms of the number of bidders, but the designation implies a market where multiple entities could realistically compete for this type of R&D work.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.

Public Impact

This contract supports advanced research and development in physical, engineering, and life sciences, potentially leading to technological advancements. The research is being conducted in Alabama, potentially creating or sustaining high-skilled jobs in the region. The Department of the Navy is the specific agency, indicating the research likely aligns with naval operational needs or technological superiority. The ultimate beneficiaries are expected to be the U.S. military through improved capabilities and technological edge, and potentially the broader scientific community through published research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The specific nature of R&D can introduce inherent risks, including the possibility of research not yielding expected outcomes.
Without more detail on the scope, it's difficult to assess if the fixed fee adequately incentivizes performance and cost efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better value.
The contract is for R&D, a critical area for national security and technological advancement.
The contractor, KBR Wyle Services, LLC, has a significant presence and experience in government contracting, suggesting capability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715 for Physical, Engineering, and Life Sciences. This sector is characterized by high innovation, significant government investment, and a need for specialized expertise. The total federal spending in R&D is substantial, with defense-related R&D forming a significant portion. This contract represents a specific investment by the Department of the Navy to advance capabilities within this broad scientific domain.

Small Business Impact

The data indicates this contract was awarded under 'FULL AND OPEN COMPETITION' and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans for small businesses. Without specific set-aside provisions or mandated subcontracting goals, the direct impact on the small business ecosystem for this particular contract appears limited.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded in the contract terms, including reporting requirements, performance milestones, and the fixed fee structure itself. Transparency is often limited for specific R&D contracts due to the sensitive nature of the research, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development
Naval Research and Development Programs
Physical Sciences Research Contracts
Engineering Services Contracts
Life Sciences Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Research and Development inherently carries risks of not achieving desired outcomes.
Specific scope of work and deliverables are not detailed, limiting full assessment of value.
Contract is a delivery order, suggesting it's part of a larger IDIQ; performance depends on the overall vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to KBR WYLE SERVICES, LLC. CREATE TO #2

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 $13.4 million.

What is the period of performance?

Start: 2024-09-03. End: 2026-09-02.

What is the track record of KBR Wyle Services, LLC with Cost Plus Fixed Fee (CPFF) contracts, particularly within the Department of Defense?

KBR Wyle Services, LLC has a substantial history of performing on government contracts, including those utilizing Cost Plus Fixed Fee (CPFF) structures. CPFF contracts are common for research and development efforts where the final costs are difficult to predict precisely. Analyzing their past performance on similar CPFF contracts within the DoD would involve reviewing contract databases for on-time delivery, cost overruns or underruns, and any documented performance issues or accolades. Generally, large contractors like KBR Wyle have established processes for managing CPFF awards, but the success of each individual contract depends heavily on the specific project scope, the government's oversight, and the contractor's execution. A detailed review would require examining specific contract histories for adherence to budget, quality of deliverables, and overall mission success.

How does the $13.4 million value of this contract compare to other R&D contracts in physical sciences awarded by the Navy in the last fiscal year?

To benchmark the $13.4 million value, we would need to compare it against a dataset of similar contracts awarded by the Department of the Navy for Research and Development in Physical, Engineering, and Life Sciences (NAICS 541715) within a recent timeframe, such as the last fiscal year. Without access to a comprehensive database of all such awards, a precise comparison is difficult. However, $13.4 million is a moderate-sized award for a specific R&D effort. Larger, multi-year R&D programs can easily reach hundreds of millions or even billions of dollars. Smaller, more focused research tasks might be in the low millions. This contract's value suggests a significant but not massive scope of work, likely focused on a particular research objective or a phase of a larger program. It's crucial to consider the contract type (CPFF) and period of performance (729 days) when making comparisons.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated in this case?

The primary risk with CPFF contracts is that the contractor has less incentive to control costs compared to fixed-price contracts, as they are reimbursed for all allowable expenses plus a predetermined fee. This can lead to cost overruns if not managed diligently. For R&D, there's also the inherent risk that the research may not yield the desired results or breakthroughs. Mitigation strategies typically include robust government oversight, detailed cost monitoring, clear definition of allowable costs, and performance metrics tied to the fixed fee or award fee structure (though this contract specifies a fixed fee). The government's contracting officer and technical representatives play a crucial role in scrutinizing expenditures and ensuring the work aligns with the contract's objectives. The fixed fee itself provides some predictability, but the variable cost component requires vigilant management.

What is the expected impact of this R&D contract on technological advancement within the Navy's mission areas?

The expected impact hinges entirely on the specific research objectives outlined in the contract, which are not detailed here. However, contracts under NAICS 541715 (Research and Development in the Physical, Engineering, and Life Sciences) typically aim to develop new technologies, improve existing systems, or gain a deeper understanding of scientific principles relevant to national security. For the Navy, this could translate into advancements in areas such as materials science for shipbuilding, propulsion systems, sensor technology, electronic warfare, cybersecurity, or even human performance enhancement. Successful R&D outcomes could lead to enhanced operational capabilities, improved platform performance, reduced maintenance costs, or the development of entirely new strategic advantages.

How does historical spending on R&D in physical sciences by the Department of the Navy compare to this specific award?

The Department of the Navy consistently allocates substantial funding towards Research and Development across various scientific disciplines, including physical, engineering, and life sciences. Historical spending data would reveal that the Navy's R&D budget often runs into the billions of dollars annually. This $13.4 million contract represents a single, specific award within that larger R&D portfolio. It is a component of the Navy's broader strategy to maintain technological superiority. Comparing this single award to the total annual R&D spending provides context: it's a focused investment, not a program-defining expenditure on its own, but contributes to the overall R&D effort. Analyzing trends in spending for NAICS 541715 specifically would show whether the Navy is increasing or decreasing its investment in these areas.

What does the 'delivery order' designation imply about the nature of this contract and its relationship to a potential IDIQ contract?

The designation 'DELIVERY ORDER' indicates that this contract is likely a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing the government to issue specific orders (delivery orders or task orders) as needed. This approach provides flexibility for the government to procure services incrementally. For KBR Wyle Services, LLC, it means they have secured a position on a larger contract vehicle, and this specific order represents a defined scope of work with a set value ($13.4 million) and period of performance (729 days). The underlying IDIQ contract would have undergone its own competition, and this delivery order is a subsequent, more specific procurement action.

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: $21,653,000

Exercised Options: $21,653,000

Current Obligation: $13,386,250

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $716,065

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