Air Force awards $40.78M contract for B-1 bomber sustainment, focusing on R&D for enhanced reliability

Contract Overview

Contract Amount: $40,775,100 ($40.8M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-16

End Date: 2027-06-20

Contract Duration: 1,830 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: UNITED STATES AIR FORCE BOMBER RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER B-1 BOMBER DIVISION B-1 SYSTEM PROGRAM OFFICE

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to KBR WYLE SERVICES, LLC for work described as: UNITED STATES AIR FORCE BOMBER RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER B-1 BOMBER DIVISION B-1 SYSTEM PROGRAM OFFICE Key points: 1. Contract aims to improve the operational readiness and longevity of the B-1 bomber fleet through research and development. 2. The chosen contractor, KBR WYLE SERVICES, LLC, has experience in aerospace engineering and sustainment services. 3. The contract's duration of 1830 days suggests a long-term commitment to addressing complex sustainment challenges. 4. Performance is measured against objectives related to reliability improvements and cost-effectiveness of sustainment activities. 5. This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. 6. The value of the contract, while significant, needs to be benchmarked against similar sustainment programs for strategic aircraft.

Value Assessment

Rating: good

The contract value of $40.78 million over approximately five years appears reasonable for a specialized R&D program focused on a strategic asset like the B-1 bomber. Benchmarking against similar sustainment and modernization contracts for aging aircraft fleets would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility in research but requires careful oversight to manage costs effectively and ensure the fixed fee remains appropriate for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive better pricing and innovative solutions. The presence of multiple bidders suggests a healthy market for these specialized R&D and sustainment services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the United States Air Force, which will receive improved B-1 bomber reliability and sustainment. The contract will deliver research and development services aimed at enhancing the operational capabilities and lifespan of the B-1 bomber fleet. The geographic impact is primarily within the continental United States, supporting Air Force bases and facilities involved in bomber operations and maintenance. Workforce implications include potential employment opportunities for engineers, technicians, and support staff within KBR WYLE SERVICES, LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential risk with Cost Plus Fixed Fee contracts if not managed diligently.
The long duration of the contract necessitates continuous monitoring of performance and adherence to objectives.
Dependence on a single contractor for critical sustainment R&D could pose a risk if performance falters.

Positive Signals

Awarding to a single contractor after full and open competition suggests a strong proposal from KBR WYLE SERVICES, LLC.
The focus on R&D indicates a proactive approach to maintaining the effectiveness of a key strategic asset.
The contract's alignment with Air Force Life Cycle Management Center objectives suggests strategic importance and potential for positive impact.

Sector Analysis

This contract operates within the aerospace and defense sector, specifically focusing on sustainment and research and development for legacy aircraft. The market for aircraft sustainment and modernization is substantial, driven by the need to maintain aging fleets. Comparable spending benchmarks would involve analyzing other contracts for bomber sustainment, avionics upgrades, and structural integrity programs across different branches of the military.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is KBR WYLE SERVICES, LLC, there is potential for subcontracting opportunities for small businesses within the R&D and sustainment ecosystem. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of specialized small business capabilities.

Oversight & Accountability

Oversight will likely be conducted by the Air Force Life Cycle Management Center (AFLCMC) and the B-1 System Program Office. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, performance metrics, and milestone achievements. Transparency is facilitated through contract awards databases and reporting requirements, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

B-1 Bomber Sustainment Programs
Air Force Life Cycle Management Center Contracts
Aerospace R&D Contracts
Strategic Bomber Modernization
Defense Logistics and Maintenance Services

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Long contract duration requires sustained oversight.
Dependence on contractor performance for critical R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to KBR WYLE SERVICES, LLC. UNITED STATES AIR FORCE BOMBER RELIABILITY AND SUSTAINMENT IMPROVEMENT PROGRAM FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER B-1 BOMBER DIVISION B-1 SYSTEM 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 $40.8 million.

What is the period of performance?

Start: 2022-06-16. End: 2027-06-20.

What is the track record of KBR WYLE SERVICES, LLC in performing similar R&D and sustainment contracts for the U.S. Air Force?

KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a significant history of supporting U.S. military operations, including extensive work in aerospace engineering, mission support, and sustainment services. They have been involved in various programs for NASA and the Department of Defense, often focusing on complex technical challenges. While specific details on past B-1 bomber R&D contracts may not be publicly detailed, their broader experience in areas like aircraft maintenance, system integration, and research across multiple platforms suggests a strong capability to undertake this contract. Their performance on previous large-scale government contracts would be a key indicator of their ability to deliver on this new award, with contract databases and performance reports providing further insight into their historical success rates and any past issues.

How does the awarded amount of $40.78 million compare to historical spending on B-1 bomber sustainment and R&D?

Historical spending on B-1 bomber sustainment and R&D can fluctuate significantly based on modernization needs and the lifecycle stage of the aircraft. The $40.78 million awarded for this specific R&D contract over approximately five years represents a focused investment in enhancing reliability. To provide a comparative benchmark, one would need to examine total annual sustainment budgets for the B-1 fleet over the past decade, looking at expenditures for maintenance, upgrades, and research initiatives. For instance, if previous major R&D efforts for the B-1 involved larger sums for significant system overhauls, this contract might appear moderate. Conversely, if it represents a new or expanded R&D focus, its value could be substantial relative to prior, smaller-scale research activities. Analyzing the scope of work against the cost is crucial; a contract focused on specific component reliability might be less expensive than one addressing broader system integration challenges.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for the Air Force in this context is the potential for cost overruns. While the 'cost plus' element allows flexibility for research and development where exact costs may be uncertain, it places the financial risk of cost escalation on the government. If the contractor's actual costs exceed initial estimates, the Air Force will bear these additional expenses, up to the agreed-upon fixed fee. To mitigate this, rigorous oversight, detailed cost tracking, and regular audits are essential. The fixed fee itself is intended to incentivize efficiency, but its appropriateness must be carefully evaluated. Another risk is that the contractor might not be sufficiently motivated to control costs if they are confident that all allowable expenses will be reimbursed, potentially leading to less efficient resource utilization compared to fixed-price contracts.

How will the effectiveness of this R&D program be measured to ensure it meets its objectives for bomber reliability?

The effectiveness of this R&D program will be measured through a combination of technical performance metrics (TPMs), milestone achievements, and the ultimate impact on B-1 bomber operational readiness. Specific TPMs will likely be defined in the contract's Statement of Work (SOW) and could include metrics related to Mean Time Between Failures (MTBF) for critical components, reduction in unscheduled maintenance events, improvements in system uptime, and successful validation of new sustainment procedures or technologies. Milestone achievements, such as the completion of specific research phases, prototype development, or testing protocols, will also serve as key indicators of progress. Ultimately, the program's success will be judged by its contribution to increasing the overall reliability, availability, and maintainability (RAM) of the B-1 bomber fleet, as demonstrated through operational data and reduced sustainment costs over the contract period and beyond.

What is the anticipated impact of this contract on the long-term operational readiness and lifespan of the B-1 bomber fleet?

This contract is anticipated to have a positive impact on the long-term operational readiness and lifespan of the B-1 bomber fleet by addressing critical sustainment challenges through targeted research and development. By focusing on improving reliability, the program aims to reduce the frequency of component failures and unscheduled maintenance, thereby increasing aircraft availability for missions. Enhanced sustainment strategies developed under this contract could also lead to more efficient maintenance practices and potentially extend the service life of the airframes and their systems. Ultimately, the goal is to ensure the B-1 remains a viable and effective component of the U.S. Air Force's strategic deterrent capabilities for as long as it remains in the inventory, mitigating risks associated with aging aircraft and ensuring consistent performance.

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: 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: $51,711,756

Exercised Options: $51,711,756

Current Obligation: $40,775,100

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $5,197,540

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