DoD's $39.3M contract for fixed-wing system acquisition and reliability improvement awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $39,317,236 ($39.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-14

End Date: 2025-05-17

Contract Duration: 1,829 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR THE FIXED WING PROJECT OFFICE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to KBR WYLE SERVICES, LLC for work described as: SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR THE FIXED WING PROJECT OFFICE Key points: 1. Contract focuses on research and development for physical, engineering, and life sciences, excluding specialized areas. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of approximately five years indicates a long-term need for these specialized R&D services. 4. The contract type (Cost Plus Fixed Fee) can present cost control challenges if not managed diligently. 5. The specific NAICS code (541715) points to a niche but critical area of scientific research. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more context on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not closely monitored. Comparing the total award amount to similar R&D contracts within the Department of Defense for fixed-wing systems would provide a clearer picture of value for money. The relatively high number of bids (2,149) suggests competitive pricing was likely achieved, but the final cost is dependent on the actual effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The high number of bids received (2,149) suggests significant interest and a competitive marketplace for these specialized R&D services. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A high number of bidders in a full and open competition typically benefits taxpayers by driving down prices and encouraging innovation from multiple contractors.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Air Force, which will receive enhanced system acquisition and reliability for its fixed-wing aircraft. The services delivered will contribute to the advancement of physical, engineering, and life sciences research relevant to aviation. The geographic impact is primarily within Alabama, where the contractor KBR WYLE SERVICES, LLC is located. This contract supports a specialized workforce in research and development, particularly in aerospace engineering and related scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
The broad nature of R&D can make it difficult to precisely define scope and control costs upfront.
Reliability improvements can be complex and may involve unforeseen technical challenges, potentially impacting timelines and budgets.

Positive Signals

Awarded under full and open competition with a high number of bids, indicating a healthy market and potential for competitive pricing.
The contract duration suggests a stable, long-term need and commitment from the agency, providing predictability for the contractor.
KBR WYLE SERVICES, LLC is a known entity in government contracting, potentially bringing established expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense industry is a significant area for R&D spending, with companies investing heavily in innovation to maintain technological superiority. Comparable spending benchmarks for similar R&D efforts in fixed-wing aircraft systems would typically be in the tens to hundreds of millions of dollars, depending on the complexity and duration of the research.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. However, KBR WYLE SERVICES, LLC, as a large prime contractor, may engage small businesses as subcontractors to fulfill parts of the contract requirements, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory Contracts
Department of Defense R&D Programs
Fixed-Wing Aircraft Modernization
Aerospace Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Research and Development projects inherently carry uncertainty regarding outcomes and timelines.
Ensuring long-term reliability improvements can be technically complex and resource-intensive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to KBR WYLE SERVICES, LLC. SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR THE FIXED WING PROJECT OFFICE

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 $39.3 million.

What is the period of performance?

Start: 2020-05-14. End: 2025-05-17.

What is the specific nature of the 'system acquisition and reliability improvement' for the fixed-wing project office?

The contract's description, 'SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR THE FIXED WING PROJECT OFFICE,' suggests a broad scope. It likely encompasses research and development activities aimed at enhancing the acquisition processes for new fixed-wing aircraft systems and improving the reliability of existing or newly developed systems. This could involve areas such as advanced materials research, aerodynamic design improvements, engine efficiency studies, avionics integration, software development for control systems, and testing methodologies to identify and mitigate failure points. The specific deliverables would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data snippet. The NAICS code 541715 confirms the focus is on physical, engineering, and life sciences R&D.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and value?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts much of the cost risk to the government, as the final price can exceed initial estimates if costs escalate. However, it allows for flexibility in R&D projects that may encounter unforeseen challenges. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less price certainty for the government but greater flexibility for the contractor to adapt to evolving research needs. Value is realized if the R&D leads to significant technological advancements or cost savings in the long run, justifying the initial cost uncertainty.

What does the high number of bids (2,149) signify for this contract?

The exceptionally high number of bids (2,149) for this contract signifies a highly competitive market for the specified research and development services. This indicates that many companies possess the capabilities and interest to pursue this type of work. From a taxpayer perspective, a large number of bidders generally leads to more competitive pricing, as contractors vie to win the award by offering favorable terms and costs. It also suggests that the government has a wide pool of potential contractors to choose from, increasing the likelihood of finding a contractor that offers the best combination of technical expertise, performance, and price. This level of competition can also drive innovation as contractors seek to differentiate their offerings.

What are the potential risks associated with KBR WYLE SERVICES, LLC's performance on this contract?

Potential risks associated with KBR WYLE SERVICES, LLC's performance include challenges inherent in the Cost Plus Fixed Fee (CPFF) contract type, such as potential cost overruns if project scope expands or unforeseen technical hurdles arise. As the contract involves R&D for system acquisition and reliability improvement, there's a risk that the research may not yield the desired outcomes within the projected timeframe or budget. Contractor performance could also be impacted by the availability of specialized personnel or resources. Furthermore, ensuring consistent quality and adherence to reliability standards throughout the project lifecycle requires diligent oversight. The complexity of fixed-wing systems and their associated R&D demands a high level of technical expertise and project management proficiency from the contractor.

How does this contract fit into the broader context of Department of Defense spending on R&D?

This $39.3 million contract represents a specific investment within the Department of Defense's (DoD) substantial Research and Development (R&D) budget. The DoD consistently ranks as one of the largest government spenders on R&D, focusing on maintaining technological superiority across various domains, including aerospace. Contracts like this, categorized under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences), are crucial for advancing capabilities in areas such as aircraft design, materials science, propulsion, and system integration. While $39.3 million is a significant sum for a single contract, it is a fraction of the DoD's overall R&D portfolio, which can span billions of dollars annually across numerous projects and agencies aimed at developing next-generation military technologies and ensuring the reliability of existing platforms.

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

Solicitation ID: FA807517R0001

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: $41,408,035

Exercised Options: $41,408,035

Current Obligation: $39,317,236

Actual Outlays: $411

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $23,438,423

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