DoD awards $19.9M for airborne ISR targeting systems, with KBR Wyle Services leading R&D efforts

Contract Overview

Contract Amount: $19,893,683 ($19.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-10

End Date: 2027-06-12

Contract Duration: 1,828 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT OF AIRBORNE MANNED RECONNAISSANCE AIRCRAFT INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, AND TARGETING SYSTEMS FOR NAVAL SURFACE WARFARE CENTER CRANE, NAVAL AIR SYSTEMS COMMAND E2C2 AIRBORNE COMMAND AND CONTROL PROGRAM OFFICE

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to KBR WYLE SERVICES, LLC for work described as: RESEARCH AND DEVELOPMENT OF AIRBORNE MANNED RECONNAISSANCE AIRCRAFT INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, AND TARGETING SYSTEMS FOR NAVAL SURFACE WARFARE CENTER CRANE, NAVAL AIR SYSTEMS COMMAND E2C2 AIRBORNE COMMAND AND CONTROL PROGRAM OFFICE Key points: 1. Contract focuses on advanced intelligence, surveillance, reconnaissance, and targeting systems for naval aviation. 2. Significant investment in R&D for critical defense capabilities. 3. KBR Wyle Services, LLC, a large business, is the prime contractor. 4. Contract duration extends over five years, indicating a long-term need. 5. The award is a delivery order under a larger contract vehicle. 6. Geographic focus is Indiana, suggesting potential regional economic impact.

Value Assessment

Rating: good

The contract value of $19.9 million for R&D in airborne ISR targeting systems appears reasonable given the specialized nature of the work and the five-year duration. Benchmarking against similar R&D contracts for advanced defense systems is challenging due to proprietary information and unique technical requirements. However, the cost-plus-fixed-fee (CPFF) structure suggests that costs are monitored, but the final price is subject to the contractor's efficiency. The award amount is a delivery order, implying it's part of a larger, potentially competitively awarded, indefinite-delivery/indefinite-quantity (IDIQ) contract.

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 offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The fact that it was competed broadly suggests that the government sought the best available solution across the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures the government receives the most advantageous offers.

Public Impact

The primary beneficiaries are the U.S. Navy's airborne command and control programs, enhancing their intelligence and targeting capabilities. Services delivered include research and development of advanced ISR and targeting systems. The geographic impact is primarily in Indiana, where the contractor will perform the work. This contract supports highly skilled jobs in the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently.
Reliance on a single large business prime contractor may limit opportunities for smaller, innovative firms.
The specific technical scope and performance metrics are not detailed, making independent assessment difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract duration indicates a sustained need and potential for stable program development.
Focus on critical R&D for national security enhances defense capabilities.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for airborne intelligence, surveillance, reconnaissance, and targeting systems. The NAICS code 541715 covers R&D in physical, engineering, and life sciences. The market for such advanced defense technologies is highly specialized, with a limited number of large contractors possessing the necessary expertise and security clearances. Spending in this area is driven by evolving geopolitical threats and the need for technological superiority.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, KBR WYLE SERVICES, LLC, is a large business. There is no explicit mention of small business subcontracting goals in the provided data. This suggests that opportunities for small businesses may be limited to direct subcontracting by the prime, rather than a dedicated set-aside program.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Systems Command (NAVAIR) and the Naval Surface Warfare Center Crane. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of expenditures to ensure costs remain within the fixed fee parameters. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Inspector General, depending on specific circumstances and allegations of impropriety.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Airborne Command and Control Programs
Defense Research and Development
Targeting Systems Development

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Feasibility Risk
Schedule Delay Risk
Integration Complexity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to KBR WYLE SERVICES, LLC. RESEARCH AND DEVELOPMENT OF AIRBORNE MANNED RECONNAISSANCE AIRCRAFT INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, AND TARGETING SYSTEMS FOR NAVAL SURFACE WARFARE CENTER CRANE, NAVAL AIR SYSTEMS COMMAND E2C2 AIRBORNE COMMAND AND CONTROL PROGRAM 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 $19.9 million.

What is the period of performance?

Start: 2022-06-10. End: 2027-06-12.

What is the track record of KBR Wyle Services, LLC in performing similar R&D contracts for the Department of Defense?

KBR Wyle Services, LLC has a substantial track record with the Department of Defense, often involved in large-scale engineering, scientific, and technical support services. They have historically secured numerous contracts related to aerospace, research and development, and operational support for various military branches. Their experience often includes complex systems integration, testing, and sustainment. While specific performance metrics for past R&D contracts are not publicly detailed in this context, their continued success in winning significant DoD contracts suggests a generally positive performance history and capability to meet demanding technical requirements. Further analysis would require examining specific past performance evaluations and contract histories.

How does the awarded amount compare to similar R&D contracts for airborne ISR targeting systems?

Direct comparison of the $19.9 million award for airborne ISR targeting systems is difficult without access to proprietary contract databases and specific technical scopes. However, R&D for advanced defense systems, particularly those involving complex hardware, software, and integration for platforms like manned reconnaissance aircraft, typically involves significant investment. Contracts in this domain can range from a few million to tens or even hundreds of millions of dollars, depending on the phase of development, technological maturity, and program scope. The five-year duration of this contract suggests a substantial, multi-phase R&D effort, making the awarded amount appear within a reasonable range for such specialized and critical defense technology development.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include technical challenges in developing cutting-edge ISR and targeting systems, potential cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts, and schedule delays due to the complexity of R&D. Mitigation strategies likely involve rigorous project management, phased development with clear milestones, regular technical reviews by the government, and close financial oversight by Naval Air Systems Command. The CPFF structure itself implies a shared risk between the government and contractor, where the contractor is incentivized to control costs to maximize their fixed fee. The full and open competition also mitigates the risk of selecting a contractor without the best capabilities.

What is the expected effectiveness of the developed systems in enhancing naval aviation capabilities?

The contract aims to develop advanced intelligence, surveillance, reconnaissance, and targeting systems, which are critical for modern naval operations. Enhanced systems are expected to provide naval aviators with improved situational awareness, more precise targeting capabilities, and better real-time intelligence gathering. This directly contributes to mission success, force protection, and potentially reduces collateral damage through more accurate targeting. The effectiveness will ultimately depend on the successful completion of the R&D phases, rigorous testing, and seamless integration into existing or future airborne platforms, such as the E2C2 program mentioned.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) trended in recent years?

Federal spending within NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences,' has generally shown a consistent upward trend over the past decade, particularly within the Department of Defense. This reflects a strategic emphasis on maintaining technological superiority and addressing evolving national security threats. While specific year-over-year fluctuations occur based on budget appropriations and program priorities, the overall trajectory indicates sustained investment in scientific and technological advancement across various government agencies, with defense-related R&D being a significant component. This particular contract aligns with that broader trend of prioritizing advanced research.

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 › C – 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: $69,273,102

Exercised Options: $69,273,102

Current Obligation: $19,893,683

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,472,399

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