Air Force awards $28.3M for B-52 bomber sustainment, focusing on R&D for enhanced reliability

Contract Overview

Contract Amount: $28,289,912 ($28.3M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2029-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $15.5K/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 FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER, B-52 SYSTEM PROGRAM OFFICEP1-22-2367

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to KBR WYLE SERVICES, LLC for work described as: UNITED STATES AIR FORCE BOMBER RELIABILITY AND SUSTAINMENT IMPROVEMENT FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER, B-52 SYSTEM PROGRAM OFFICEP1-22-2367 Key points: 1. Contract aims to improve the long-term operational readiness of the B-52 fleet through research and development. 2. Focus on reliability and sustainment suggests a proactive approach to mitigating potential future operational disruptions. 3. The R&D nature of the contract implies potential for innovation in aircraft maintenance and support. 4. A 5-year duration indicates a commitment to addressing complex, long-term sustainment challenges. 5. The contract's value, while significant, should be viewed in the context of maintaining a critical strategic asset.

Value Assessment

Rating: good

The contract value of $28.3 million over five years for B-52 bomber sustainment appears reasonable given the complexity of maintaining aging strategic aircraft. Benchmarking against similar sustainment contracts for large, legacy platforms would provide further context, but the focus on R&D suggests a forward-looking investment rather than routine maintenance. The cost-plus-fixed-fee structure allows for flexibility in research while providing cost controls.

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 specific number of bidders is not provided, but this competitive process is expected to drive fair pricing and encourage innovative solutions from the market. The Air Force's decision to use full and open competition suggests confidence in the availability of capable contractors for this specialized R&D effort.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better value and lower overall costs for the government.

Public Impact

The primary beneficiaries are the United States Air Force and its strategic bomber fleet, ensuring continued operational capability. Services delivered include research and development aimed at improving the reliability and sustainment of the B-52 bomber. The geographic impact is primarily within the United States, supporting Air Force bases and maintenance facilities. Workforce implications may include specialized engineering, technical, and maintenance personnel required for R&D and sustainment activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee R&D contracts if scope or technical challenges are underestimated.
Reliance on a single contractor for critical R&D may limit alternative solutions or future competitive opportunities if not managed carefully.
The long duration of the contract could lead to evolving requirements that may not be fully captured in the initial scope.

Positive Signals

Awarding under full and open competition suggests a robust market exists for these services, potentially leading to better value.
Focus on reliability and sustainment for a critical asset like the B-52 demonstrates strategic planning and long-term asset management.
The fixed-fee component of the contract provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and physical sciences related to aerospace. The B-52 bomber is a legacy platform, and contracts for its sustainment and modernization are crucial for maintaining strategic deterrence. Spending in this area is often characterized by long-term investments in specialized knowledge and technology to ensure the continued viability of aging, but critical, military assets. Comparable spending benchmarks would likely involve other major aircraft sustainment and upgrade programs within the Department of Defense.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors for specialized services or materials, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Air Force Life Cycle Management Center (AFLCMC) and the B-52 System Program Office. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award notices and potential reporting requirements. The Inspector General's office within the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

B-52 Bomber Modernization Programs
Air Force Sustainment and Maintenance Contracts
Aerospace Research and Development
Aircraft Reliability Engineering
Defense Logistics and Support Services

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
Long contract duration (5 years) increases risk of scope creep or evolving requirements.
R&D nature introduces inherent technical uncertainty and potential for unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to KBR WYLE SERVICES, LLC. UNITED STATES AIR FORCE BOMBER RELIABILITY AND SUSTAINMENT IMPROVEMENT FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER, B-52 SYSTEM PROGRAM OFFICEP1-22-2367

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 $28.3 million.

What is the period of performance?

Start: 2024-06-01. End: 2029-05-31.

What is the track record of KBR WYLE SERVICES, LLC in performing similar R&D and sustainment contracts for the Department of Defense?

KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a significant history of supporting Department of Defense programs, including extensive work in aerospace engineering, sustainment, and research and development. They have been involved in various aspects of aircraft maintenance, testing, and system integration for numerous platforms. Their experience often includes providing technical expertise, logistics support, and lifecycle management services. While specific performance metrics for past R&D contracts are not detailed here, their long-standing presence and broad capabilities suggest a substantial capacity to undertake complex projects like the B-52 sustainment initiative. Further analysis would involve reviewing past performance evaluations and contract histories for similar scope and complexity.

How does the $28.3 million contract value compare to historical spending on B-52 sustainment and R&D?

The $28.3 million awarded for this 5-year contract represents an average annual expenditure of approximately $5.66 million. This figure needs to be contextualized within the broader historical spending on the B-52 fleet, which includes major modernization efforts, depot maintenance, and operational support. Historically, sustainment and upgrade programs for strategic assets like the B-52 can run into hundreds of millions or even billions of dollars over their lifecycle. This specific contract appears to focus on a targeted R&D effort for reliability and sustainment improvement, rather than a comprehensive overhaul or modernization. Therefore, its value should be assessed relative to the specific scope of R&D activities rather than total fleet sustainment costs.

What are the primary risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' classification for this contract?

The primary risks associated with R&D contracts, particularly in the physical and engineering sciences, often revolve around technical uncertainty and scope creep. There's a risk that the research objectives may prove more challenging to achieve than initially anticipated, leading to schedule delays and cost overruns. The 'cost-plus-fixed-fee' (CPFF) contract type, while allowing flexibility, means that the contractor is reimbursed for allowable costs plus a fixed fee, which can escalate if costs increase significantly. Another risk is the potential for the research to yield results that are not immediately applicable or require further, unfunded development. Ensuring clear definition of success metrics and robust project management is crucial to mitigate these R&D-specific risks.

What is the expected program effectiveness and impact of this R&D contract on the B-52 fleet's operational readiness?

The expected program effectiveness hinges on the successful outcomes of the research and development efforts aimed at enhancing B-52 bomber reliability and sustainment. If the R&D yields innovative solutions for maintenance, component longevity, or system diagnostics, it could significantly improve the fleet's operational readiness by reducing downtime and unscheduled maintenance. This, in turn, would ensure a higher percentage of aircraft are available for missions, thereby strengthening strategic deterrence capabilities. The 5-year duration suggests a commitment to achieving tangible improvements. The ultimate impact will be measured by metrics such as Mean Time Between Failures (MTBF), reduction in maintenance hours, and overall aircraft availability rates.

How does this contract align with broader trends in defense spending on legacy aircraft sustainment and modernization?

This contract aligns with a broader trend in defense spending where significant resources are allocated to sustaining and modernizing legacy platforms, such as the B-52, rather than solely focusing on acquiring new systems. As major weapon systems age, their maintenance and upgrade costs increase, necessitating dedicated R&D efforts to ensure continued operational viability and cost-effectiveness. The focus on reliability and sustainment reflects a strategic approach to maximizing the lifespan and performance of existing assets, which is often more economical than complete replacement. This contract is indicative of the ongoing investment required to maintain the readiness of the U.S. Air Force's strategic bomber fleet in a cost-conscious environment.

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: $82,551,866

Exercised Options: $82,551,866

Current Obligation: $28,289,912

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,752,875

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