Air Force awards $37M contract for operational safety engineering to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $36,977,979 ($37.0M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-19

End Date: 2029-08-18

Contract Duration: 1,825 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OPERATIONAL SAFETY, SUITABILITY, AND EFFECTIVENESS ENGINEERING TASKS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $37.0 million to KBR WYLE SERVICES, LLC for work described as: OPERATIONAL SAFETY, SUITABILITY, AND EFFECTIVENESS ENGINEERING TASKS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER Key points: 1. Contract focuses on critical safety, suitability, and effectiveness engineering for Air Force life cycle management. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. KBR WYLE SERVICES, LLC has been awarded this significant contract, indicating a level of trust and past performance. 4. The contract duration of 1825 days (5 years) suggests a long-term need for these specialized engineering services. 5. The primary service area is Utah, indicating a specific geographic focus for these operations. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, often used when scope is not fully defined.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the broader IDIQ contract's scope and pricing. However, the $37 million award over five years suggests an average annual value of approximately $7.4 million. This figure needs to be compared against similar engineering support contracts for defense agencies to assess its competitiveness. The CPFF structure means costs will be scrutinized, but the fixed fee component provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all eligible responsible sources were permitted to submit offers. The data indicates there were 3 bidders for this specific delivery order. A competitive process with multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiaries are the U.S. Air Force Life Cycle Management Center, which will receive essential engineering support. Services delivered include operational safety, suitability, and effectiveness engineering tasks, crucial for maintaining aircraft and system integrity. The geographic impact is concentrated in Utah, where the contractor will likely perform significant work. This contract supports a specialized engineering workforce, potentially creating or sustaining high-skilled jobs in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
Reliance on a single contractor for critical safety engineering over a long period could pose a risk if performance degrades.
The specific nature of 'operational safety, suitability, and effectiveness' requires highly specialized expertise, and any gaps could impact mission readiness.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract is a delivery order under a larger IDIQ, implying a pre-vetted contractor with established capabilities.
The five-year duration indicates a stable, long-term need and commitment from the Air Force, suggesting the services are highly valued.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering services for the aerospace and defense industry. The North American Industry Classification System (NAICS) code 541715 covers R&D in physical, engineering, and life sciences. Spending in this area is critical for maintaining technological superiority and ensuring the safety and effectiveness of military assets. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded to defense contractors for similar specialized services.

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. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses as subcontractors, depending on the specific requirements and their own subcontracting plans. Analysis of their subcontracting performance on this contract would be necessary to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Air Force program management office. Given the nature of the services, quality assurance surveillance plans (QASPs) will be crucial to monitor performance, cost, and adherence to safety standards. Transparency is typically maintained through contract reporting systems, and any significant issues or cost variances would likely be flagged for review. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Life Cycle Management Center Support Contracts
Aerospace Engineering Services
Defense R&D Contracts
Operational Safety and Systems Engineering
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Long-term reliance on a single contractor for critical safety functions.
Potential for cost overruns if project scope is not well-defined or managed.
Dependence on specialized engineering expertise, requiring continuous skill validation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 million to KBR WYLE SERVICES, LLC. OPERATIONAL SAFETY, SUITABILITY, AND EFFECTIVENESS ENGINEERING TASKS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER

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 $37.0 million.

What is the period of performance?

Start: 2024-08-19. End: 2029-08-18.

What is KBR WYLE SERVICES, LLC's track record with the Department of Defense, particularly in providing similar engineering services?

KBR WYLE SERVICES, LLC, is a significant defense contractor with a substantial history of supporting government programs. While specific details on their performance for this exact type of operational safety, suitability, and effectiveness engineering are not provided in this data snippet, their presence as a large entity suggests prior experience. A deeper dive into their contract history with the Air Force and other DoD branches would reveal their performance metrics, past issues, and successes on comparable projects. This would include examining past performance evaluations, any contract disputes, and their ability to deliver on time and within budget for similar complex engineering tasks. Their ability to secure this $37 million delivery order under full and open competition implies a generally positive assessment of their capabilities by the Air Force.

How does the $37 million contract value compare to similar engineering support contracts for the Air Force or other military branches?

Comparing the $37 million contract value requires context regarding the scope and duration of similar services. This contract spans five years, averaging approximately $7.4 million annually. To benchmark effectively, one would need to identify other contracts providing operational safety, suitability, and effectiveness engineering for major weapon systems or aircraft life cycle management within the DoD. Factors like the complexity of the systems supported, the level of R&D involved, and the specific deliverables (e.g., testing, analysis, design modifications) influence cost. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if $7.4 million annually is high or low. However, for specialized engineering services supporting critical defense assets, this annual figure appears within a plausible range for a large, experienced contractor.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The Cost Plus Fixed Fee (CPFF) contract structure, while offering flexibility for evolving requirements, carries inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. While the fixed fee provides some ceiling on profit, the potential for cost overruns remains. Contractors might incur higher costs if they believe it will lead to a larger fee base or if project management is weak. For KBR WYLE SERVICES, LLC, the risk lies in accurately estimating the effort required to achieve the fixed fee, potentially underestimating costs and reducing their effective profit margin. Robust government oversight, including detailed cost audits and performance monitoring, is essential to mitigate these risks and ensure value for taxpayer money.

How effective is the 'full and open competition' process likely to be in ensuring optimal value for this $37 million contract?

The 'full and open competition' process is generally considered the most effective method for ensuring optimal value for government contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In this case, with three bidders vying for the delivery order, the competition likely drove down prices and encouraged KBR WYLE SERVICES, LLC to offer their best value proposition. The effectiveness is further enhanced by the government's ability to evaluate proposals based on a combination of technical merit, past performance, and price. However, the ultimate effectiveness also depends on the clarity of the solicitation requirements and the rigor of the evaluation process.

What are the potential implications of this contract on Air Force readiness and the sustainment of its assets?

This contract is directly linked to Air Force readiness and asset sustainment. By providing essential engineering services for operational safety, suitability, and effectiveness, KBR WYLE SERVICES, LLC plays a critical role in ensuring that Air Force systems—likely including aircraft and associated equipment—are safe, reliable, and perform as intended throughout their life cycle. Effective engineering support can prevent failures, extend the operational life of assets, and ensure compliance with stringent safety regulations. Conversely, any deficiencies in the contractor's performance could lead to delays in maintenance, increased risks of operational incidents, or premature obsolescence of critical systems, thereby negatively impacting the Air Force's ability to execute its missions.

How does the geographic concentration in Utah impact the execution and oversight of this contract?

The geographic concentration in Utah means that a significant portion of the work under this contract will be performed in that state. This can streamline execution by allowing for co-location of contractor personnel with Air Force facilities or program offices in Utah, potentially improving communication and collaboration. Oversight can also be more focused, with government representatives physically present to monitor contractor activities, facilities, and performance. However, it also means that the benefits of this contract, such as job creation and economic impact, are primarily localized to Utah. If the work requires specialized facilities or access unique to Utah, it could also present logistical challenges if personnel or resources need to be frequently moved or coordinated across distances.

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: 3

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: $139,950,410

Exercised Options: $139,950,410

Current Obligation: $36,977,979

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