DoD's $49.8M R&D contract for CH-47 cargo helicopter systems awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $49,766,679 ($49.8M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-16

End Date: 2025-09-16

Contract Duration: 1,826 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SYSTEM ACQUISITION RELIABILITY IMPROVEMENT FOR CARGO HELICOPTER (CH)-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE (PMO) AND FIXED WING (FW) PROJECT OFFICE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $49.8 million to KBR WYLE SERVICES, LLC for work described as: SYSTEM ACQUISITION RELIABILITY IMPROVEMENT FOR CARGO HELICOPTER (CH)-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE (PMO) AND FIXED WING (FW) PROJECT OFFICE Key points: 1. Contract focuses on R&D for critical cargo helicopter systems, indicating a need for advanced technological solutions. 2. Awarded to KBR WYLE SERVICES, LLC, a significant player in government contracting, suggesting established capabilities. 3. The contract duration of five years points to a long-term investment in system reliability and improvement. 4. The 'Cost Plus Fixed Fee' pricing structure may incentivize cost control while ensuring contractor profit. 5. This contract falls under Research and Development in Physical, Engineering, and Life Sciences, a high-value sector. 6. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of approximately $49.8 million over five years for R&D services appears reasonable given the specialized nature of helicopter systems. Benchmarking against similar R&D contracts for complex aerospace systems would provide a more precise value-for-money assessment. The 'Cost Plus Fixed Fee' (CPFF) structure is common for R&D where costs can be unpredictable, but it requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on investment for this critical defense spending.

Public Impact

The primary beneficiaries are the U.S. Army's cargo helicopter operations, particularly the CH-47 fleet, through improved system reliability and performance. Services delivered include research and development aimed at enhancing the operational effectiveness and longevity of critical helicopter components. The geographic impact is primarily within the Department of Defense's aviation and logistics sectors, with potential benefits extending to operational readiness worldwide. Workforce implications may include specialized engineering, research, and technical roles within KBR WYLE SERVICES, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Reliance on a single contractor for critical R&D could pose a risk if performance falters.
The specialized nature of the R&D may limit the pool of qualified personnel, impacting scalability.
Long-term sustainment and integration challenges of developed technologies are not detailed.
The specific performance metrics and success criteria for the R&D are not publicly detailed.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield value.
KBR WYLE SERVICES, LLC has a significant track record in government contracting, implying experience and capability.
The five-year duration indicates a commitment to long-term system improvement and reliability.
Focus on R&D for a critical asset like the CH-47 highlights strategic investment in defense capabilities.
The contract aims to improve system reliability, a key factor in operational readiness and safety.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on research and development for military aircraft systems. The NAICS code 541715 points to R&D in physical sciences. The market for defense R&D is substantial, driven by the need for technological superiority and operational effectiveness. Comparable spending often involves significant investments in avionics, propulsion, and structural integrity for complex platforms like helicopters.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While KBR WYLE SERVICES, LLC is likely a large business, the contract may still offer subcontracting opportunities for small businesses within specialized R&D areas. The extent of small business participation will depend on KBR WYLE's subcontracting plan and the specific technical requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force's contracting and program management offices, given the awarding agency. The 'Cost Plus Fixed Fee' structure necessitates close monitoring of costs and progress. Transparency is typically maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Inspector General, depending on the nature of any issues.

Related Government Programs

CH-47 Chinook Helicopter Modernization Programs
Department of Defense Research and Development Budgets
Aerospace Engineering Services Contracts
Military Aviation Systems Support
Logistics and Cargo Aircraft Sustainment

Risk Flags

Cost Overrun Potential (CPFF)
Contractor Performance Risk
R&D Scope Definition Clarity
Long-Term Technology Integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.8 million to KBR WYLE SERVICES, LLC. SYSTEM ACQUISITION RELIABILITY IMPROVEMENT FOR CARGO HELICOPTER (CH)-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE (PMO) AND FIXED WING (FW) 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 $49.8 million.

What is the period of performance?

Start: 2020-09-16. End: 2025-09-16.

What is KBR WYLE SERVICES, LLC's track record with similar R&D contracts for military aviation?

KBR WYLE SERVICES, LLC, and its predecessors, have a substantial history of performing complex R&D and technical services for the U.S. military, including extensive work on aviation platforms. Their portfolio often includes systems engineering, integration, testing, and sustainment support for various aircraft. While specific details on past CH-47 related R&D are not provided here, their general experience suggests a strong capability to handle the technical demands of this contract. Past performance evaluations from similar contracts would offer deeper insight into their reliability, cost control, and innovation in previous R&D endeavors for the Department of Defense.

How does the $49.8 million value compare to similar R&D efforts for cargo helicopters?

The $49.8 million value for a five-year R&D contract focused on system reliability for a major platform like the CH-47 appears to be within a reasonable range for specialized aerospace research. However, direct comparisons are challenging without knowing the specific scope of work, technological advancements sought, and the maturity of the systems being addressed. Larger modernization programs or entirely new aircraft development contracts would naturally be significantly higher. This figure suggests a focused effort on improving existing capabilities rather than a complete overhaul or new platform development. Benchmarking against other R&D contracts for specific components (e.g., avionics upgrades, structural enhancements) within similar helicopter classes would provide more granular context.

What are the primary risks associated with this 'Cost Plus Fixed Fee' contract structure for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the 'cost-plus' nature means the government ultimately bears the direct costs incurred. If the R&D proves more complex or time-consuming than initially estimated, costs can escalate. Effective oversight is crucial to scrutinize expenditures, ensure efficiency, and prevent scope creep. Another risk is that the contractor might prioritize activities that maximize cost recovery over the most innovative or impactful R&D solutions if not carefully managed and incentivized through performance metrics.

How effective is the 'full and open competition' in ensuring value for this specific R&D contract?

Full and open competition is generally the most effective method for ensuring value in government contracting, as it allows the widest possible range of qualified vendors to compete, driving innovation and competitive pricing. For this R&D contract, it suggests that multiple companies possessed the necessary technical expertise in aerospace engineering and systems reliability. The effectiveness in ensuring value hinges on the clarity of the solicitation's requirements, the evaluation criteria used, and the robustness of the bidding process. A well-executed full and open competition should lead to a technically superior solution at a fair and reasonable price, maximizing the return on the $49.8 million investment for the taxpayer.

What are the historical spending patterns for CH-47 system reliability R&D within the DoD?

Historical spending on CH-47 system reliability R&D within the DoD likely fluctuates based on the platform's age, operational tempo, and evolving threats or technological opportunities. Major upgrades or modernization efforts typically see significant R&D investment. The CH-47, being a long-serving and critical asset, has likely undergone numerous R&D cycles over its lifespan, focusing on areas like engine efficiency, avionics upgrades, structural integrity, and survivability. Annual spending can vary widely, with peaks occurring during specific upgrade programs or when addressing identified systemic issues. This $49.8 million contract represents a specific, ongoing investment within that broader historical context.

What are the potential implications of this contract on future CH-47 operational readiness?

This contract has the potential to significantly enhance future CH-47 operational readiness by addressing system reliability. Improved reliability translates directly to fewer maintenance downtimes, increased aircraft availability for missions, and potentially reduced operational costs associated with unscheduled repairs. By investing in R&D now, the DoD aims to preempt future failures, extend the service life of the aircraft, and ensure the CH-47 fleet can continue to meet demanding mission requirements effectively and safely. The success of the R&D will directly impact the fleet's ability to perform its vital cargo and troop transport roles.

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: $50,010,442

Exercised Options: $50,010,442

Current Obligation: $49,766,679

Actual Outlays: $1,229,245

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $25,255,683

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