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 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 › OTHER 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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