Dod's $44.4M Rdt&e Contract for Patriot Ltpo System Engineering Awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $44,442,607 ($44.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-13

End Date: 2022-06-16

Contract Duration: 1,099 days

Daily Burn Rate: $40.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RDT&E PATRIOT LTPO SYSTEM ENGINEERING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $44.4 million to KBR WYLE SERVICES, LLC for work described as: RDT&E PATRIOT LTPO SYSTEM ENGINEERING Key points: 1. Contract awarded to KBR WYLE SERVICES, LLC for RDT&E of the PATRIOT LTPO System. 2. The contract falls under NAICS code 541715 (Research and Development in Physical, Engineering, and Life Sciences). 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Research and Development, a critical area for defense modernization.

Value Assessment

Rating: good

The contract value of $44.4M for system engineering RDT&E appears reasonable given the scope. Benchmarking against similar RDT&E contracts in the defense sector would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development, which is intended to yield future technological advantages and potentially cost savings through improved systems.

Public Impact

Enhances U.S. defense capabilities through advanced system engineering. Supports technological innovation in the physical and engineering sciences. Contributes to the development of sophisticated defense systems like PATRIOT. Potential for long-term cost savings through improved system efficiency and effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration is substantial (1099 days).
  • Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
  • No small business participation noted.

Positive Signals

  • Awarded under full and open competition.
  • Focus on RDT&E for critical defense systems.
  • Contract awarded to a known entity in the defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining a technological edge in defense.

Small Business Impact

There is no indication of small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the work precluded small business involvement.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight would typically involve program management reviews, technical progress reports, and financial audits to ensure contract compliance and effective use of funds.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to CPFF structure.
  • Lack of small business participation.
  • Long contract duration may introduce scope creep risks.
  • Dependence on contractor's R&D capabilities.

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 $44.4 million to KBR WYLE SERVICES, LLC. RDT&E PATRIOT LTPO SYSTEM ENGINEERING

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 $44.4 million.

What is the period of performance?

Start: 2019-06-13. End: 2022-06-16.

What is the expected return on investment for this RDT&E spending?

The return on investment for RDT&E spending is often realized in the long term through enhanced national security, technological superiority, and potential commercial spin-offs. Quantifying a direct ROI is challenging, but the investment aims to improve the effectiveness and survivability of critical defense assets, thereby reducing future operational and replacement costs.

What are the primary risks associated with this Cost Plus Fixed Fee contract?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the contractor's costs exceed estimates, as the government is obligated to pay the actual costs plus a fixed fee. There's also a risk that the contractor may not be sufficiently incentivized to control costs rigorously, as their profit is fixed regardless of the final cost.

How does this RDT&E effort contribute to the overall effectiveness of the PATRIOT system?

This RDT&E effort likely focuses on improving the capabilities, reliability, and maintainability of the PATRIOT system through advanced engineering and research. This could involve upgrades to radar, missile guidance, command and control, or integration with new platforms, ultimately enhancing its effectiveness against evolving threats.

Industry Classification

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

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: $44,595,516

Exercised Options: $44,595,516

Current Obligation: $44,442,607

Actual Outlays: $734,406

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $9,030,717

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0015

IDV Type: IDC

Timeline

Start Date: 2019-06-13

Current End Date: 2022-06-16

Potential End Date: 2022-06-16 00:00:00

Last Modified: 2025-12-10

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