DoD's $7.37M R&D contract for KBR Wyle Services, LLC in Alabama, focused on physical sciences

Contract Overview

Contract Amount: $7,369,334 ($7.4M)

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: $10.1K/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 $7.4 million to KBR WYLE SERVICES, LLC for work described as: UNFUNDED LABOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Performance period spans two years, indicating a medium-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The base contract value is $1.01M, with significant unfunded labor, suggesting potential for future task orders and spending. 7. The contractor, KBR Wyle Services, LLC, is a significant player in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the base IDIQ contract and the specific services rendered. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to higher overall costs compared to fixed-price contracts if not managed tightly. However, for complex R&D where costs are uncertain, CPFF can be appropriate. The unfunded labor amount suggests significant future potential spending, which warrants close monitoring for value realization.

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 typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the open competition suggests a healthy level of interest from qualified contractors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

This contract supports research and development activities within the physical, engineering, and life sciences, potentially leading to advancements in defense technologies. The primary beneficiary is the Department of the Navy, which will receive the outcomes of the R&D efforts. The contract is geographically located in Alabama, suggesting potential for local economic impact and workforce utilization in that state. The R&D focus implies a contribution to the nation's scientific and technological base, with potential long-term benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not meticulously managed.
Significant unfunded labor indicates potential for substantial future spending that needs careful oversight.
The nature of R&D contracts inherently involves uncertainty in outcomes and cost projections.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, KBR Wyle Services, LLC, likely possesses specialized expertise required for R&D in physical sciences.
The two-year performance period allows for focused development and testing.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market within the federal government is substantial, with significant investment in areas critical to national security and technological advancement. Contracts like this are essential for maintaining a technological edge and exploring innovative solutions. Comparable spending benchmarks would typically be assessed against other R&D contracts within the Department of Defense or similar agencies for scientific research services.

Small Business Impact

The data indicates 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 small business set-aside. The primary contractor, KBR Wyle Services, LLC, is a large business. Analysis of subcontracting plans would be necessary to determine if small businesses are expected to participate in fulfilling this contract's requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency would be assessed through contract reporting mechanisms and potential public disclosures related to the base IDIQ contract. 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
Scientific and Technical Services
Engineering Services
Physical Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Significant unfunded labor component necessitates careful monitoring of future funding and scope.
R&D contracts inherently carry technical and performance risks due to uncertainty.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 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 $7.4 million.

What is the period of performance?

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

What is the historical performance record of KBR Wyle Services, LLC with the Department of Defense, particularly in R&D contracts?

KBR Wyle Services, LLC, a subsidiary of KBR, Inc., has a substantial history of performing contracts for the Department of Defense across various domains, including R&D, engineering, and technical support. Their track record often involves complex projects requiring specialized scientific and technical expertise. A detailed review of their past performance ratings, any past performance issues, and the successful completion of similar R&D endeavors would be necessary for a comprehensive assessment. Analyzing their performance on previous contracts of a similar scope and value, especially those involving Cost Plus Fixed Fee structures, would provide insight into their ability to manage costs and deliver results effectively within the DoD environment.

How does the estimated cost structure (Cost Plus Fixed Fee with unfunded labor) compare to similar R&D contracts in the physical sciences?

The Cost Plus Fixed Fee (CPFF) structure is common for R&D contracts where the final costs are difficult to predict. It allows the contractor to recover allowable costs plus a predetermined fixed fee. The presence of significant 'unfunded labor' ($7.37M) alongside a base award of $1.01M suggests this delivery order is part of a larger IDIQ contract and anticipates substantial future work or labor costs that are not yet funded. Benchmarking this requires comparing the fixed fee percentage and the overall cost-to-benefit ratio against similar R&D efforts. If the fixed fee is within industry norms (typically 5-15% of total estimated cost) and the unfunded labor aligns with the anticipated scope and duration of future tasks, it could represent fair value. However, CPFF contracts inherently carry a risk of cost escalation if not managed diligently, making close monitoring essential.

What are the primary risks associated with this specific R&D contract, and how are they being mitigated?

The primary risks associated with this R&D contract include technical uncertainty (the research may not yield the desired results), cost overruns due to the CPFF structure, and potential schedule delays. The significant unfunded labor also presents a risk of future cost growth if not properly managed and justified. Mitigation strategies likely involve robust project management, regular technical reviews, stringent financial oversight of expenditures, and clear performance metrics defined within the contract. The contractor's expertise and past performance are also critical risk mitigation factors. The Department of the Navy's program office would be responsible for actively managing these risks throughout the contract's lifecycle.

What is the expected impact of this contract on technological advancement within the Department of the Navy?

This contract is intended to advance technological capabilities within the Department of the Navy by funding research and development in the physical, engineering, and life sciences. The specific outcomes will depend on the research objectives, but potential impacts could include the development of new materials, improved sensor technologies, enhanced computational models, or novel operational methodologies. These advancements could translate into improved performance, increased efficiency, or new operational paradigms for naval assets and personnel. The success of the R&D effort will ultimately determine the extent of its technological impact.

How does the current spending on this contract compare to historical spending patterns for similar R&D services within the Department of the Navy?

The current awarded amount for this delivery order is $1.01M, with a substantial unfunded labor component of $7.37M, indicating significant potential future spending. To compare this to historical patterns, one would need to analyze the average value and duration of similar R&D contracts awarded by the Department of the Navy under NAICS code 541715. Factors such as the specific research area (physical, engineering, life sciences), contract type (CPFF), and competition level would need to be considered. Without access to historical spending databases and specific contract details, a precise comparison is difficult. However, the presence of a large unfunded labor amount suggests this could be a significant investment if fully realized.

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: $9,239,652

Exercised Options: $9,239,652

Current Obligation: $7,369,334

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,981,901

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