Air Force awards $49.3M contract to KBR WYLE SERVICES for engineering and R&D support

Contract Overview

Contract Amount: $49,343,310 ($49.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-06

End Date: 2027-06-21

Contract Duration: 1,841 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING, SUSTAINMENT, AND OPERATIONS RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PLANS AND PROGRAM DIRECTORATE

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $49.3 million to KBR WYLE SERVICES, LLC for work described as: ENGINEERING, SUSTAINMENT, AND OPERATIONS RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PLANS AND PROGRAM DIRECTORATE Key points: 1. Contract focuses on critical engineering, sustainment, and R&D for Air Force life cycle management. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 4. Performance period spans over five years, indicating a long-term need for these capabilities. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment. 6. This award represents a substantial commitment to advancing Air Force technological capabilities.

Value Assessment

Rating: good

The contract's value of $49.3 million over approximately five years appears reasonable for specialized engineering and R&D services supporting complex Air Force programs. Benchmarking against similar contracts for advanced research and development in the defense sector would provide further context. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, necessitates diligent cost tracking to ensure value for money. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer deeper insights into the effectiveness of the competition in securing optimal terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the U.S. Air Force's Plans and Program Directorate, receiving essential engineering and R&D support. Services delivered include research, development, testing, and evaluation crucial for life cycle management of Air Force systems. The contract's geographic impact is likely concentrated around Air Force facilities and contractor locations, with a national implication for defense readiness. Workforce implications include employment opportunities for highly skilled engineers, scientists, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract requires ongoing monitoring of performance and adherence to scope.
Reliance on a single contractor for critical R&D functions could pose a risk if capabilities are not maintained or expanded.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract supports vital Air Force life cycle management, contributing to national security.
KBR WYLE SERVICES, LLC has a track record in government contracting, suggesting experience in delivering complex services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve analyzing other large-scale engineering and R&D contracts awarded by the Department of Defense to firms specializing in aerospace and defense support. The size of this contract suggests it is a significant award within its niche.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors for specialized services, which would contribute to the small business ecosystem. Further analysis would require examining the contractor's subcontracting plan.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Air Force Life Cycle Management Center's program management office, ensuring adherence to contract terms, cost controls, and performance standards. Accountability measures are typically embedded in the contract through reporting requirements and performance metrics. Transparency is facilitated through contract award databases and public reporting, though detailed operational data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Research and Development Programs
Defense Engineering Services
Life Cycle Management Contracts
Aerospace R&D Support
Systems Engineering Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Performance Monitoring
Contractor Capability Sustainment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.3 million to KBR WYLE SERVICES, LLC. ENGINEERING, SUSTAINMENT, AND OPERATIONS RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PLANS AND PROGRAM DIRECTORATE

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 $49.3 million.

What is the period of performance?

Start: 2022-06-06. End: 2027-06-21.

What is KBR WYLE SERVICES, LLC's track record with similar Air Force R&D contracts?

KBR WYLE SERVICES, LLC, and its predecessors, have a significant history of performing complex engineering, sustainment, and R&D services for the Department of Defense, including the Air Force. Their experience often spans various aspects of weapon system life cycles, from initial research and development through sustainment and modernization. Analyzing their past performance on Cost Plus Fixed Fee contracts, particularly those involving research, development, testing, and evaluation (RDT&E) for aviation or complex systems, would reveal their ability to manage costs, meet technical requirements, and deliver on schedule. Publicly available contract databases and performance reports (like past performance questionnaires) can offer insights into their success rates, any performance issues encountered, and their overall reputation within the defense contracting community for delivering on similar large-scale, technically demanding projects.

How does the $49.3 million value compare to similar Air Force R&D contracts?

The $49.3 million contract value for engineering, sustainment, and R&D services for the Air Force Life Cycle Management Center is a substantial award, but its comparability depends heavily on the specific scope and duration. Contracts for advanced R&D, particularly those involving cutting-edge technologies or complex system integration, can range from tens of millions to billions of dollars. For instance, contracts supporting major aircraft development or advanced simulation technologies might exceed this value significantly. Conversely, smaller, more focused research efforts might be valued in the single-digit millions. To benchmark effectively, one would compare this award against other contracts awarded under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) by the Air Force or DoD over the past few years, considering contract duration, specific deliverables, and the complexity of the research involved. The five-year performance period suggests a moderate annual value, which is typical for sustained R&D support.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the government bears the brunt of these increased costs, while the contractor's fee remains fixed. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. Another risk is the contractor's incentive to control costs, as their profit is fixed regardless of how efficiently they perform. Effective management by the contracting officer and technical team is crucial to mitigate these risks and ensure the government receives good value.

How effective is full and open competition in ensuring value for this type of specialized R&D service?

Full and open competition is generally considered the most effective method for ensuring value in the procurement of specialized R&D services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. For specialized fields like engineering and R&D for the Air Force, this approach ensures that the government can identify contractors with the most relevant expertise and capabilities at the best possible price. The presence of two bidders in this specific case indicates that competition occurred, which is a positive sign. However, the true measure of effectiveness lies in the quality of the proposals received, the rigor of the evaluation process, and whether the final award reflects a strong balance between technical merit and cost.

What are the historical spending patterns for similar engineering and R&D support at the Air Force Life Cycle Management Center?

Historical spending patterns for similar engineering and R&D support at the Air Force Life Cycle Management Center (AFLCMC) would likely show a consistent and significant investment in maintaining and advancing its diverse portfolio of aircraft, weapon systems, and associated technologies. AFLCMC is responsible for the entire life cycle management of many Air Force programs, requiring continuous R&D for upgrades, sustainment, and new capabilities. Spending in this area typically fluctuates based on modernization priorities, threat assessments, and budget allocations. Analyzing past contracts awarded for RDT&E, systems engineering, and sustainment support for AFLCMC programs would reveal trends in contract types (e.g., CPFF, FFP), average contract values, and the key contractors frequently engaged. This contract's $49.3 million value over five years should be viewed within the context of AFLCMC's broader R&D budget and historical expenditure on similar support services.

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: $52,099,279

Exercised Options: $52,099,279

Current Obligation: $49,343,310

Actual Outlays: $134,309

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $13,052,025

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