Air Force awards $28.5M R&D contract to KBR Wyle for ATC/Landing Systems and Weather Systems

Contract Overview

Contract Amount: $28,546,420 ($28.5M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-17

End Date: 2026-03-21

Contract Duration: 1,830 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS AND THE AIR FORCE WEATHER WEAPONS SYSTEM, AIR FORCE MATERIEL COMMAND, AIR FORCE LIFE CYCLE MANAGEMENT CENTER

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to KBR WYLE SERVICES, LLC for work described as: RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS AND THE AIR FORCE WEATHER WEAPONS SYSTEM, AIR FORCE MATERIEL COMMAND, AIR FORCE LIFE CYCLE MANAGEMENT CENTER Key points: 1. Contract focuses on R&D for critical Air Force systems. 2. KBR Wyle Services, LLC is the sole awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be effective for R&D where costs are uncertain, but requires careful oversight to manage spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, though the Cost Plus Fixed Fee structure necessitates vigilance to prevent cost overruns.

Public Impact

Enhances reliability of Air Force's air traffic control and landing systems. Improves sustainment of critical Air Force weather systems. Supports operational readiness and safety for Air Force personnel. Invests in advanced R&D for national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type requires close monitoring for cost control.
  • No small business participation noted.

Positive Signals

  • Full and open competition utilized.
  • Focus on critical infrastructure improvement.

Sector Analysis

This contract falls within the R&D sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and maintaining a competitive edge in defense.

Small Business Impact

The data indicates no small business participation in this contract. While not always feasible for highly specialized R&D, exploring opportunities for small business involvement could foster innovation and economic growth.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Air Force Life Cycle Management Center to ensure costs remain within reasonable bounds and the fixed fee is justified by performance.

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

  • Cost Plus Fixed Fee contract type can lead to cost overruns if not closely managed.
  • No small business participation.
  • Long contract duration (1830 days) increases exposure to potential scope creep or changing requirements.
  • Reliance on a single contractor (KBR Wyle Services, LLC) for critical system improvements.

Tags

research-and-development-in-the-physical, department-of-defense, ok, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to KBR WYLE SERVICES, LLC. RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS AND THE AIR FORCE WEATHER WEAPONS SYSTEM, AIR FORCE MATERIEL COMMAND, AIR FORCE LIFE CYCLE MANAGEMENT CENTER

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 $28.5 million.

What is the period of performance?

Start: 2021-03-17. End: 2026-03-21.

What is the estimated total cost of the project, and how does it compare to similar R&D efforts in air traffic control and weather systems?

The total estimated cost is $28.5 million. Benchmarking this against similar R&D projects is challenging without more specific details on the scope and technological advancements sought. However, for complex system upgrades and sustainment programs, this figure appears within a reasonable range, assuming it covers the full duration and scope of the reliability and sustainment improvements.

What are the key performance indicators (KPIs) for this contract, and how will KBR Wyle Services, LLC's performance be measured to ensure effectiveness?

Specific KPIs are not detailed in the provided data. However, for a reliability and sustainment improvement program, typical KPIs would likely include metrics such as system uptime, reduction in failure rates, mean time between failures (MTBF), and successful implementation of upgrades. Performance will be measured against contract milestones and technical performance requirements.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives good value?

The government's primary mitigation strategy is rigorous oversight of expenditures and performance. The fixed fee component incentivizes the contractor to complete the work efficiently within the estimated cost. Regular audits, progress reviews, and clear contractual limitations on allowable costs are essential to manage risks associated with this contract type.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $58,106,146

Exercised Options: $58,106,146

Current Obligation: $28,546,420

Actual Outlays: $5,749,431

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,992,505

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: 2021-03-17

Current End Date: 2026-03-21

Potential End Date: 2026-03-21 00:00:00

Last Modified: 2025-12-10

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