NASA's $364.7M R&D Contract with KBR Wyle Services Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $364,698,204 ($364.7M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2014-08-01

End Date: 2024-11-30

Contract Duration: 3,774 days

Daily Burn Rate: $96.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF OTHER FUNCTIONS FILMSS WILL PROVIDE SUPPORT FOR MULTIPLE SUSTAINED PROJECT MANAGEMENT, RESEARCH, AND TECHNOLOGY DEVELOPMENT CAPABILITIES THAT ENCOMPASS ALL PHASES OF MISSION AND PROJECT LIFECYCLES FOR FLIGHT PROGRAMS AND PROJECTS, AS WELL AS SUPPORT FOR VARIOUS OTHER PROGRAMS AND FUNCTIONAL OFFICES AT AMES. THIS CONTRACT WILL PROVIDE PROGRAM AND PROJECT MANAGEMENT SUPPORT FOR SUCH EFFORTS AS INTERNATIONAL SPACE STATION (ISS) BIOSCIENCES FLIGHT DEVELOPMENT PROJECTS (E.G., MISSION IMPLEMENTATION, INSTRUMENT DEVELOPMENT, AND TECHNOLOGY ADVANCEMENT EFFORTS), COLLABORATIVE SCIENCE PROGRAMS (E.G., ASTROBIOLOGY, VIRTUAL INSTITUTES), AERONAUTICS RESEARCH PROJECTS, AND VARIOUS AMES OFFICES.

Place of Performance

Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $364.7 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF OTHER FUNCTIONS FILMSS WILL PROVIDE SUPPORT FOR MULTIPLE SUSTAINED PROJECT MANAGEMENT, RESEARCH, AND TECHNOLOGY DEVELOPMENT CAPABILITIES THAT ENCOMPASS ALL PHASES OF MISSION AND PROJECT LIFECYCLES FOR FLIGHT PROGRAMS AND PROJECTS, AS WELL AS SUPPORT FOR VARIOUS OTHER… Key points: 1. The contract supports diverse R&D efforts, including ISS biosciences and aeronautics research. 2. KBR Wyle Services, LLC holds the contract awarded under full and open competition. 3. Potential risks include cost overruns and ensuring continued value for taxpayer investment. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: questionable

With a Cost Plus Fixed Fee structure and a significant value of $364.7M over 10 years, the pricing assessment requires closer examination to ensure it aligns with market benchmarks for similar R&D support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and cost-plus structure warrant ongoing monitoring to ensure sustained price discovery and prevent potential cost creep.

Taxpayer Impact: Taxpayer funds are being utilized for extensive research and development activities. Ensuring cost-effectiveness and demonstrable project success is crucial for maximizing the return on this investment.

Public Impact

Supports critical NASA missions in space exploration and aeronautics research. Facilitates advancements in biosciences and technology development for flight programs. Potential for groundbreaking discoveries and technological innovations. Long-term commitment of significant federal funds requires robust oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure can incentivize higher spending.
  • Long contract duration may lead to scope creep or reduced agility.
  • Limited visibility into specific R&D project outcomes and ROI.
  • Potential for contractor performance issues over a decade.

Positive Signals

  • Awarded through full and open competition.
  • Supports diverse and important NASA research initiatives.
  • Long-term engagement allows for sustained project development.
  • Contractor has a history of supporting government projects.

Sector Analysis

This contract falls within the Research and Development in Physical, Engineering, and Life Sciences sector, a critical area for national innovation. Benchmarks for similar large-scale, long-term R&D support contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small businesses were not a primary focus for this contract, as it was awarded to KBR Wyle Services, LLC. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract's long duration and significant value necessitate robust oversight from NASA to ensure adherence to scope, budget, and performance standards. Regular reviews and audits are crucial for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost Plus Fixed Fee structure.
  • Long contract duration (10 years).
  • Broad scope across multiple NASA programs.
  • Potential for R&D outcomes to be intangible or long-term.
  • Lack of specific small business subcontracting noted.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $364.7 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF OTHER FUNCTIONS FILMSS WILL PROVIDE SUPPORT FOR MULTIPLE SUSTAINED PROJECT MANAGEMENT, RESEARCH, AND TECHNOLOGY DEVELOPMENT CAPABILITIES THAT ENCOMPASS ALL PHASES OF MISSION AND PROJECT LIFECYCLES FOR FLIGHT PROGRAMS AND PROJECTS, AS WELL AS SUPPORT FOR VARIOUS OTHER PROGRAMS AND FUNCTIONAL OFFICES AT AMES. THIS CONTRACT WILL PROVIDE PROGRAM AND PROJECT MANAGEMENT SUPPORT FOR SUCH EFFORTS AS INTERNATIONAL SPACE STATION (ISS) BIOSCIENCES FLIGHT DEVELOPMENT PROJECTS (E.G., MISSION IMP

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $364.7 million.

What is the period of performance?

Start: 2014-08-01. End: 2024-11-30.

How does the cost-plus-fixed-fee structure ensure cost efficiency for long-term R&D projects, and what mechanisms are in place to prevent contractor overspending?

The cost-plus-fixed-fee structure aims to provide flexibility for R&D projects with uncertain costs by reimbursing allowable costs plus a fixed fee. However, it can incentivize higher spending. NASA's oversight mechanisms, including regular audits, performance reviews, and strict adherence to the contract's defined allowable costs, are critical to mitigate overspending risks and ensure the contractor remains efficient.

What specific metrics are used to evaluate the success and value of the research and technology development outcomes achieved under this contract?

Evaluating R&D success often involves a mix of quantitative and qualitative metrics. These can include the number of patents filed, successful technology transfers, peer-reviewed publications, successful mission implementations, and the achievement of specific project milestones. NASA likely has internal performance metrics tied to the contract's Statement of Work to assess the value and impact of the R&D efforts.

Given the contract's broad scope across multiple NASA programs, how is performance managed to ensure consistent quality and prevent potential conflicts or resource misallocation?

Effective performance management for such a broad contract relies on a detailed Work Breakdown Structure (WBS) and clear task orders. NASA likely assigns dedicated contract officers and technical representatives to oversee specific project areas. Regular progress meetings, performance reporting, and milestone tracking are essential to ensure consistent quality, manage resources effectively, and address any potential conflicts promptly.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNA12412481R

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 2400 NASA PKWY, HOUSTON, TX, 77058

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

Financial Breakdown

Contract Ceiling: $386,356,546

Exercised Options: $386,356,546

Current Obligation: $364,698,204

Actual Outlays: $186,569,953

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $20,504,418

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2014-08-01

Current End Date: 2024-11-30

Potential End Date: 2024-11-30 00:00:00

Last Modified: 2025-07-18

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