Army Air Soldier Modernization Upgrades Contract Awarded to KBR WYLE for $41.2M

Contract Overview

Contract Amount: $41,191,651 ($41.2M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-22

End Date: 2027-06-22

Contract Duration: 1,826 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYSIS, TESTING, AND DEVELOPMENT OF AIR SOLDIER RECAPITALIZATION AND MODERNIZATION UPGRADES FOR THE UNITED STATES ARMY AVIATION AND MISSILE COMMAND PROGRAM EXECUTIVE OFFICE SOLDIER, PROJECT MANAGER AIR WARRIOR

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to KBR WYLE SERVICES, LLC for work described as: ANALYSIS, TESTING, AND DEVELOPMENT OF AIR SOLDIER RECAPITALIZATION AND MODERNIZATION UPGRADES FOR THE UNITED STATES ARMY AVIATION AND MISSILE COMMAND PROGRAM EXECUTIVE OFFICE SOLDIER, PROJECT MANAGER AIR WARRIOR Key points: 1. Contract focuses on R&D for soldier modernization, a critical area for military effectiveness. 2. KBR WYLE, a known entity, secured the award, suggesting established capabilities. 3. The contract's R&D nature carries inherent risks related to technological feasibility and cost overruns. 4. Spending falls within the 'Research and Development' sector, specifically physical, engineering, and life sciences.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult due to unique project scopes, but the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is ideal for price discovery and ensuring the best value. This method allows multiple qualified contractors to bid, fostering a competitive environment.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers compared to sole-source or limited competition contracts.

Public Impact

Enhances soldier capabilities through advanced technology, potentially improving mission success rates. Investments in R&D signal a commitment to maintaining a technological edge in defense. Modernization efforts could lead to improved soldier safety and survivability in combat zones. Long-term benefits include potential spin-off technologies for civilian applications. The project duration of five years allows for thorough development and testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overruns are a risk in CPFF R&D contracts.
  • Technological obsolescence could occur during the long development cycle.
  • Integration challenges with existing systems may arise.

Positive Signals

  • Addresses critical soldier modernization needs.
  • Utilizes full and open competition for best value.
  • Long-term contract duration allows for comprehensive development.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but often involves higher risk and less predictable outcomes compared to procurement of existing technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, KBR WYLE SERVICES, LLC, is a large business. There is no indication of small business subcontracting goals within the provided data.

Oversight & Accountability

The Department of Defense, specifically the Air Force, is the awarding agency. Oversight will likely involve program managers ensuring milestones are met and costs are controlled within the CPFF structure. Accountability rests with KBR WYLE to deliver on R&D objectives.

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 overrun potential in CPFF R&D.
  • Risk of technological obsolescence during development.
  • Potential for integration issues with existing Army systems.
  • Lack of specific details on modernization goals and expected outcomes.
  • Long contract duration increases exposure to changing threats and technologies.

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 $41.2 million to KBR WYLE SERVICES, LLC. ANALYSIS, TESTING, AND DEVELOPMENT OF AIR SOLDIER RECAPITALIZATION AND MODERNIZATION UPGRADES FOR THE UNITED STATES ARMY AVIATION AND MISSILE COMMAND PROGRAM EXECUTIVE OFFICE SOLDIER, PROJECT MANAGER AIR WARRIOR

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 $41.2 million.

What is the period of performance?

Start: 2022-06-22. End: 2027-06-22.

What specific modernization capabilities are being developed, and how will they directly enhance soldier effectiveness?

The contract aims to develop and modernize air soldier systems for the Army Aviation and Missile Command. Specific capabilities are not detailed, but the goal is to improve soldier performance, survivability, and mission readiness through advanced technology integration. The effectiveness will be measured by the successful implementation and field testing of these upgraded systems.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) structure for this R&D project?

The primary risk with CPFF for R&D is that the contractor is incentivized to incur costs to maximize their fee, potentially leading to cost overruns if not rigorously managed. While the fixed fee provides some ceiling, the government bears the risk of cost increases beyond the initial estimates, especially if scope creep or unforeseen technical challenges arise during development.

How will the success of this R&D investment be measured to ensure taxpayer value?

Success will be measured through a combination of technical performance metrics, successful completion of development milestones, and rigorous testing of the modernized systems. Ultimately, the value to taxpayers will be determined by the extent to which these upgrades enhance soldier capabilities, improve operational effectiveness, and contribute to national security objectives, justifying the 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: 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: $53,178,929

Exercised Options: $53,178,929

Current Obligation: $41,191,651

Actual Outlays: $2,353,736

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $13,243,118

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: 2022-06-22

Current End Date: 2027-06-22

Potential End Date: 2027-06-22 00:00:00

Last Modified: 2025-12-10

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