DoD's $41.5M Counter-RAM System Support Contract Awarded to KBR WYLE Services

Contract Overview

Contract Amount: $41,501,973 ($41.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2021-09-27

Contract Duration: 1,096 days

Daily Burn Rate: $37.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEM SUSTAINMENT, INTEGRATION AND ANALYSIS COUNTER-ROCKETS, ARTILLERY, AND MORTAR PROGRAM DIRECTORATE PEO MISSILE AND SPACE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to KBR WYLE SERVICES, LLC for work described as: SYSTEM SUSTAINMENT, INTEGRATION AND ANALYSIS COUNTER-ROCKETS, ARTILLERY, AND MORTAR PROGRAM DIRECTORATE PEO MISSILE AND SPACE Key points: 1. The contract supports the Counter-Rockets, Artillery, and Mortar (C-RAM) program, a critical defense capability. 2. KBR WYLE Services, LLC, a large business, secured the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The Research and Development sector (NAICS 541712) is characterized by innovation and high upfront costs.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The awarded amount of $41.5M for a 3-year duration needs further analysis against similar R&D support contracts to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing, but the CPFF structure requires diligent oversight to ensure cost efficiency.

Taxpayer Impact: Taxpayer funds are being used for critical defense system sustainment and analysis, aiming to enhance national security.

Public Impact

Enhances national security by supporting the C-RAM program, protecting personnel and assets from indirect fire threats. Supports technological advancement in defense systems through research, development, and analysis. The contract contributes to the defense industrial base and specialized R&D services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher spending.
  • Lack of specific performance metrics in the provided data.
  • Potential for scope creep in R&D contracts.

Positive Signals

  • Awarded under full and open competition.
  • Supports a critical defense capability (C-RAM).
  • Long-term sustainment and analysis are vital for program success.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this sector is often characterized by high innovation, long development cycles, and significant investment in intellectual property and specialized expertise.

Small Business Impact

The contract was awarded to KBR WYLE Services, LLC, a large business. There is no indication of small business participation in this specific award based on the provided data.

Oversight & Accountability

The Department of Defense, specifically the PEO Missile and Space Directorate, is responsible for oversight. The CPFF contract type necessitates robust financial and performance monitoring to ensure accountability and prevent cost overruns.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for cost overruns.
  • Reliance on a single large business contractor.
  • R&D contracts inherently have uncertain outcomes.
  • Limited visibility into specific performance metrics.

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 $41.5 million to KBR WYLE SERVICES, LLC. SYSTEM SUSTAINMENT, INTEGRATION AND ANALYSIS COUNTER-ROCKETS, ARTILLERY, AND MORTAR PROGRAM DIRECTORATE PEO MISSILE AND SPACE

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 Air Force).

What is the total obligated amount?

The obligated amount is $41.5 million.

What is the period of performance?

Start: 2018-09-27. End: 2021-09-27.

What is the estimated cost efficiency of this CPFF contract given the R&D nature of the work?

Assessing cost efficiency for a CPFF contract in R&D is challenging without detailed performance metrics and cost breakdowns. While CPFF provides flexibility for evolving research needs, it carries inherent risks of cost escalation. Effective oversight, including rigorous review of incurred costs and justification for fixed fees, is crucial to ensure taxpayer value. Benchmarking against similar R&D support contracts could provide further insight into whether the $41.5M award is competitive.

What are the primary risks associated with the sustainment and analysis of the C-RAM program under this contract?

Key risks include technological obsolescence of C-RAM components, potential integration challenges with evolving defense systems, and the difficulty in accurately predicting R&D outcomes. Furthermore, reliance on a single contractor for critical sustainment and analysis could pose a risk if the contractor faces financial instability or performance issues. Ensuring robust knowledge transfer and contingency planning is vital.

How effectively does this contract contribute to the overall mission readiness and technological advancement of the C-RAM program?

This contract is designed to ensure the continued operational effectiveness and technological relevance of the C-RAM program through sustainment and analysis. By providing ongoing support, it aims to maintain system performance, address emerging threats, and potentially incorporate upgrades. The success hinges on the contractor's ability to deliver high-quality analysis and support that directly translates into improved system capabilities and readiness.

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: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, 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: $42,147,168

Exercised Options: $42,147,168

Current Obligation: $41,501,973

Actual Outlays: $4,745,214

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $7,081,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0025

IDV Type: IDC

Timeline

Start Date: 2018-09-27

Current End Date: 2021-09-27

Potential End Date: 2021-09-27 00:00:00

Last Modified: 2025-05-06

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