DoD's $40.6M E-2/C-2 Training Systems Contract Awarded to KBR Wyle Services, LLC

Contract Overview

Contract Amount: $40,601,030 ($40.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-07

End Date: 2026-06-06

Contract Duration: 1,825 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: E-2 HAWKEYE AND C-2 GREYHOUND TRAINING SYSTEMS ANALYSIS FOR NAVAL AIR SYSTEMS COMMAND

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to KBR WYLE SERVICES, LLC for work described as: E-2 HAWKEYE AND C-2 GREYHOUND TRAINING SYSTEMS ANALYSIS FOR NAVAL AIR SYSTEMS COMMAND Key points: 1. Contract awarded to KBR Wyle Services, LLC for E-2/C-2 Greyhound and Hawkeye training systems. 2. The contract has a total value of $40.6 million and runs from June 2021 to June 2026. 3. This is a delivery order under a larger contract, indicating a specific need for training systems. 4. The NAICS code 541715 suggests research and development in physical, engineering, and life sciences. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee. While this can be suitable for R&D, it carries a risk of cost escalation if the contractor's costs exceed initial estimates. Benchmarking against similar R&D training system contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government. However, the specific pricing for this delivery order is not detailed.

Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently by selecting the best value offer. The final cost will depend on the contractor's ability to manage expenses within the agreed-upon fee structure.

Public Impact

Ensures continued readiness for critical naval aviation platforms (E-2 Hawkeye and C-2 Greyhound). Supports the training of pilots and aircrew, maintaining essential skills for naval operations. Invests in advanced training technologies, potentially improving simulation fidelity and training effectiveness. The contract's duration of 5 years allows for sustained development and support of training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost overruns.
  • Specific performance metrics and deliverables are not detailed in the provided data.
  • Reliance on a single contractor for specialized training systems.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical naval aviation training.
  • Long-term contract provides stability for training system development.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. The value of $40.6 million is moderate for R&D contracts, but the specific nature of specialized aviation training systems may command higher costs due to complexity and niche requirements.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Defense typically has robust oversight mechanisms for R&D contracts, including regular reviews of cost, performance, and milestones. The Cost Plus Fixed Fee structure necessitates close monitoring to control expenditures and ensure value.

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.
  • Lack of detailed performance metrics.
  • Potential for cost overruns.
  • Limited information on technological obsolescence planning.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to KBR WYLE SERVICES, LLC. E-2 HAWKEYE AND C-2 GREYHOUND TRAINING SYSTEMS ANALYSIS FOR NAVAL AIR SYSTEMS COMMAND

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 $40.6 million.

What is the period of performance?

Start: 2021-06-07. End: 2026-06-06.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how does the fixed fee compare to industry standards for similar R&D training systems?

The provided data lacks a detailed cost breakdown for this Cost Plus Fixed Fee contract. Understanding the allocation between direct costs, indirect costs, and the fixed fee is crucial for assessing value. Benchmarking the fixed fee against similar R&D training system contracts would reveal if it aligns with industry norms or represents a potential area for cost savings through negotiation.

What are the key performance indicators (KPIs) for this training system contract, and how will their achievement be measured to mitigate performance risk?

The provided data does not specify the key performance indicators (KPIs) for the E-2/C-2 training systems. Effective oversight requires clearly defined KPIs related to simulation fidelity, training effectiveness, system reliability, and user feedback. Measuring performance against these KPIs will be essential to mitigate risks associated with training system development and ensure the government receives the intended operational benefits.

How does the technological advancement of these training systems compare to current industry best practices, and what is the long-term plan for system upgrades and obsolescence management?

The data does not detail the specific technological advancements incorporated into these training systems or compare them to industry best practices. Assessing the modernity and potential for future upgrades is vital for ensuring the long-term effectiveness and relevance of the training. A clear plan for managing obsolescence and incorporating future technological improvements will be necessary to maximize the return on this investment.

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: $64,926,276

Exercised Options: $64,926,276

Current Obligation: $40,601,030

Actual Outlays: $2,665,834

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $14,175,466

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: 2021-06-07

Current End Date: 2026-06-06

Potential End Date: 2026-06-06 00:00:00

Last Modified: 2025-12-12

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