Army's $324M Patriot Upgrade Awarded to KBR Wyle for R&D in Missile Systems
Contract Overview
Contract Amount: $32,401,488 ($32.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2025-07-07
Contract Duration: 1,832 days
Daily Burn Rate: $17.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PATRIOT RECAPITALIZATION AND MODERNIZATION UPGRADE EFFORT US ARMY AVIATION AND MISSILE LIFE CYCLE MANAGEMENT COMMAND (AMCOM) PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE, LOWER TIER PROJECT OFFICE/LOGISTICS
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17202
Plain-Language Summary
Department of Defense obligated $32.4 million to KBR WYLE SERVICES, LLC for work described as: PATRIOT RECAPITALIZATION AND MODERNIZATION UPGRADE EFFORT US ARMY AVIATION AND MISSILE LIFE CYCLE MANAGEMENT COMMAND (AMCOM) PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE, LOWER TIER PROJECT OFFICE/LOGISTICS Key points: 1. Significant investment in advanced missile technology. 2. KBR Wyle, a large contractor, secured the award. 3. Potential for long-term sustainment and modernization needs. 4. Focus on R&D in physical and engineering sciences.
Value Assessment
Rating: good
The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Pricing for this specific order is based on Cost Plus Fixed Fee, which allows for flexibility but requires careful monitoring of costs to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Taxpayer funds are being used for critical defense modernization, aiming to enhance national security capabilities.
Public Impact
Enhances U.S. air and missile defense capabilities. Supports technological advancement in defense systems. Contributes to the readiness of Army aviation and missile command.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun risk with Cost Plus Fixed Fee contracts.
- Long-term sustainment costs may exceed initial projections.
Positive Signals
- Awarded through full and open competition.
- Addresses critical modernization needs.
- Supports advanced R&D efforts.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining a technological edge in defense, with benchmarks varying widely based on the specific research area and project scope.
Small Business Impact
The contract was awarded to KBR Wyle Services, LLC, a large business. There is no indication of specific small business subcontracting goals or participation in this particular delivery order, suggesting limited direct impact on small businesses.
Oversight & Accountability
The contract is managed by the Army Aviation and Missile Life Cycle Management Command (AMCOM) Program Executive Office (PEO) Missiles and Space. Oversight will focus on cost control, schedule adherence, and technical performance to ensure successful modernization.
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.
- Dependency on contractor's technical expertise.
- Long-term sustainment costs are not fully detailed.
- Risk of technological obsolescence if modernization pace falters.
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.4 million to KBR WYLE SERVICES, LLC. PATRIOT RECAPITALIZATION AND MODERNIZATION UPGRADE EFFORT US ARMY AVIATION AND MISSILE LIFE CYCLE MANAGEMENT COMMAND (AMCOM) PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE, LOWER TIER PROJECT OFFICE/LOGISTICS
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 $32.4 million.
What is the period of performance?
Start: 2020-07-01. End: 2025-07-07.
What is the projected return on investment for this modernization effort in terms of enhanced threat deterrence?
Quantifying the exact return on investment for defense modernization is complex, involving strategic deterrence value and avoided costs from potential conflicts. This upgrade aims to ensure the Patriot system remains effective against evolving threats, thereby maintaining a high level of deterrence and reducing the likelihood of costly engagements. The long-term strategic benefit is considered substantial, though not easily expressed in purely financial terms.
What are the key performance indicators (KPIs) being used to measure the success of the R&D and modernization?
Key performance indicators likely include successful integration of new technologies, improved system reliability and availability, enhanced target engagement capabilities, and adherence to modernization timelines. Performance metrics will also track the effectiveness of the system against simulated and actual threats, ensuring it meets or exceeds the operational requirements set forth by the U.S. Army.
How will the effectiveness of the upgraded Patriot system be validated against emerging adversarial technologies?
Validation will involve rigorous testing and evaluation phases, including live-fire exercises, simulated threat scenarios, and integration with other defense assets. The program office will likely conduct comparative analyses against known and projected adversarial capabilities to ensure the modernized Patriot system provides a decisive advantage and maintains its effectiveness in a rapidly evolving threat landscape.
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: $44,431,478
Exercised Options: $44,431,478
Current Obligation: $32,401,488
Actual Outlays: $349,607
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $4,933,831
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: 2020-07-01
Current End Date: 2025-07-07
Potential End Date: 2025-07-07 00:00:00
Last Modified: 2025-12-10
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