DoD's $47M R&D contract with KBR WYLE SERVICES, LLC awarded in 2005, spanning over 6 years

Contract Overview

Contract Amount: $47,045,872 ($47.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2005-06-02

End Date: 2011-12-31

Contract Duration: 2,403 days

Daily Burn Rate: $19.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $47.0 million to KBR WYLE SERVICES, LLC for work described as: Key points: 1. Contract awarded for R&D services, indicating investment in innovation and future capabilities. 2. Long duration of over 6 years suggests a complex or ongoing research requirement. 3. Awarded as a definitive contract, implying a firm commitment for the specified period. 4. The contract was not competed, raising questions about potential cost efficiencies and market engagement. 5. Cost Plus Fixed Fee pricing structure can incentivize cost control but requires careful oversight. 6. The contract's value of approximately $47 million over its lifespan warrants scrutiny for value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this $47 million R&D contract is challenging due to the lack of competition and the specific nature of research and development. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs if not managed diligently. Without comparable competed contracts for similar R&D efforts, it's difficult to definitively assess if the pricing was optimal. The long duration and lack of competition suggest potential for cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or technology required for the specific research and development effort. However, the absence of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process. This could potentially lead to higher overall expenditure for the government.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, gaining access to specialized R&D capabilities. The services delivered are focused on advancing physical, engineering, and life sciences research. The geographic impact is primarily within Alabama, where the contractor is located, but the research outcomes could have national security implications. Workforce implications include employment for scientists, engineers, and support staff at KBR WYLE SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Long contract duration increases risk of scope creep or evolving requirements not being optimally addressed.
Cost Plus Fixed Fee structure requires robust oversight to prevent cost inefficiencies.

Positive Signals

Contract supports critical R&D for the Department of Defense.
Long-term engagement suggests a stable and potentially productive research partnership.
The contractor, KBR WYLE SERVICES, LLC, is likely a specialized entity with relevant expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market is characterized by innovation, specialized expertise, and often long development cycles. Government spending in this area is crucial for technological advancement and national security. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but significant government investment is typical for advanced research initiatives.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside provisions or subcontracting goals. Therefore, its direct impact on the small business ecosystem is likely minimal unless KBR WYLE SERVICES, LLC voluntarily engages small businesses as subcontractors. Without explicit set-asides, opportunities for small businesses to directly participate in this specific contract are limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of Defense. Given the Cost Plus Fixed Fee structure and sole-source award, rigorous monitoring of costs, performance, and adherence to the research scope would be essential. Transparency would depend on the agency's policies regarding the release of R&D contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Scientific Services Contracts
Life Sciences Research Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.0 million to KBR WYLE SERVICES, LLC. See the official description on USAspending.

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 Army).

What is the total obligated amount?

The obligated amount is $47.0 million.

What is the period of performance?

Start: 2005-06-02. End: 2011-12-31.

What specific research and development activities were undertaken under this contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). However, the specific nature of the R&D activities is not detailed. Typically, such contracts could encompass a wide range of scientific inquiry, from materials science and aerospace engineering to biotechnology and medical research, depending on the Department of Defense's strategic priorities at the time of award. Further details would require access to the contract's statement of work or related documentation.

How does the $47 million value compare to similar R&D contracts awarded by the DoD during that period?

Comparing the $47 million value of this contract to similar R&D contracts awarded by the DoD between 2005 and 2011 requires access to historical contract databases and specific R&D categories. Without knowing the precise R&D focus (e.g., specific engineering discipline, life science area), a direct comparison is difficult. However, R&D contracts of this magnitude are not uncommon for significant, multi-year research initiatives within large organizations like the DoD. The lack of competition makes a direct value-for-money comparison with competed contracts even more challenging.

What are the potential risks associated with a sole-source, Cost Plus Fixed Fee R&D contract of this duration?

Sole-source contracts carry the inherent risk of higher costs due to the absence of competitive pressure. A Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility in R&D where exact costs are uncertain, can incentivize the contractor to incur costs to achieve the fixed fee, potentially leading to inefficiencies if not rigorously managed. The long duration (over 6 years) increases the risk of scope creep, requirement changes that are not optimally addressed, and potential cost overruns if oversight is not consistently strong throughout the contract lifecycle. There's also a risk that the contractor may not maintain the highest level of innovation if market pressures are absent.

What was the track record of KBR WYLE SERVICES, LLC in performing R&D contracts for the government prior to or during this period?

The provided data does not include information on KBR WYLE SERVICES, LLC's prior performance record. To assess their track record, one would need to examine past performance reviews, contract completion history, and any documented issues or successes on previous government contracts. KBR (and its subsidiaries like Wyle) is a large, established government contractor, suggesting they likely have extensive experience. However, specific performance on R&D contracts, especially those involving complex scientific endeavors, would require a deeper dive into their contract history and performance evaluations.

How did the Department of Defense justify the sole-source award for this R&D requirement?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For R&D, justifications often center on unique technical expertise, proprietary technology, or the need for continuity with prior research. The Department of Defense would have had to document the rationale for why KBR WYLE SERVICES, LLC was the only viable option, likely detailing unique capabilities or intellectual property that made competition impractical or detrimental to the research objectives.

What is the significance of the contract being a 'Definitive Contract' awarded in 2005 with an end date in 2011?

A 'Definitive Contract' is a standard type of fixed-price or cost-reimbursement contract that specifies all the terms and conditions, unlike a letter contract or other preliminary agreement. Awarded in 2005 with an end date in 2011, it signifies a firm commitment by the government to procure the specified R&D services over a period of approximately six years. This long duration suggests a substantial, long-term research project rather than a short-term task. The definitive nature implies that the scope, price (or pricing structure), and delivery terms were established upfront, providing a clear framework for the engagement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 100 QUALITY CIRCLE, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $883,304

Exercised Options: $883,304

Current Obligation: $47,045,872

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline