DoD awards $25.8M for CH-47 cargo helicopter life cycle research and analysis to KBR WYLE SERVICES, LLC
Contract Overview
Contract Amount: $25,830,902 ($25.8M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-03-07
End Date: 2030-03-06
Contract Duration: 1,825 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LIFE CYCLE RESEARCH AND ANALYSIS FOR CARGO HELICOPTER SYSTEMS FOR CARGO HELICOPTER CH-47 PROJECT MANAGEMENT OFFICE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to KBR WYLE SERVICES, LLC for work described as: LIFE CYCLE RESEARCH AND ANALYSIS FOR CARGO HELICOPTER SYSTEMS FOR CARGO HELICOPTER CH-47 PROJECT MANAGEMENT OFFICE Key points: 1. Contract focuses on critical research and analysis for the CH-47 cargo helicopter program. 2. KBR WYLE SERVICES, LLC, a significant player in aerospace and defense services, secured this award. 3. The contract duration of 1825 days suggests a long-term commitment to the CH-47's lifecycle support. 4. Awarded by the Department of the Air Force, it aligns with broader Department of Defense aviation modernization efforts. 5. The contract type (Cost Plus Fixed Fee) indicates potential for cost overruns if not managed closely. 6. Research and Development in Physical, Engineering, and Life Sciences is a key area for technological advancement.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not carefully managed. However, for complex R&D efforts where scope can evolve, CPFF can be appropriate. Further analysis would require comparing the proposed labor rates and overhead to industry standards for similar R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield a fair market price and encourage innovation. The number of bidders and the specific evaluation criteria used would provide further insight into the strength of the competition.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and encourages a wider pool of contractors to offer their best value proposals.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the CH-47 Project Management Office, ensuring continued operational readiness and modernization of a key cargo helicopter. The services delivered will include vital research and analysis to support the entire lifecycle of the CH-47 cargo helicopter. The contract is geographically focused on Alabama, where the contractor's operations are likely situated, but the impact is national for DoD aviation capabilities. This contract will likely support a workforce of researchers, engineers, and analysts, contributing to specialized job creation within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve a larger fee, requiring robust oversight.
- The long contract duration (5 years) necessitates ongoing monitoring to ensure continued relevance and value.
- The specific nature of R&D can lead to unforeseen challenges and cost increases, requiring agile management.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The contractor, KBR WYLE SERVICES, LLC, has a significant presence and experience in aerospace and defense.
- The contract supports a critical platform (CH-47) for the Department of Defense, ensuring mission readiness.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense industry is a significant market for R&D services, with substantial government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other R&D contracts for aviation platforms within the DoD.
Small Business Impact
There is no indication that this contract includes a small business set-aside. Given the specialized nature of R&D for complex aviation systems, it is likely that the prime contractor will subcontract to other specialized firms, which may include small businesses. However, the primary awardee is a large business, and the direct impact on small business set-asides is not evident from the provided data.
Oversight & Accountability
Oversight will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the performance requirements outlined in the contract and the Cost Plus Fixed Fee structure. Transparency will depend on the DoD's reporting practices for R&D contracts and any specific clauses related to public disclosure.
Related Government Programs
- CH-47 Chinook Program
- DoD Aviation Modernization Programs
- Aerospace R&D Contracts
- Logistics and Support Services for Military Aircraft
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep in R&D
- Long-Term Contract Management
Tags
department-of-defense, department-of-the-air-force, r&d, aerospace, helicopter, ch-47, kbr-wyle-services, full-and-open-competition, cost-plus-fixed-fee, lifecycle-support, alabama, research-and-development-in-the-physical-engineering-and-life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to KBR WYLE SERVICES, LLC. LIFE CYCLE RESEARCH AND ANALYSIS FOR CARGO HELICOPTER SYSTEMS FOR CARGO HELICOPTER CH-47 PROJECT MANAGEMENT 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 $25.8 million.
What is the period of performance?
Start: 2025-03-07. End: 2030-03-06.
What is KBR WYLE SERVICES, LLC's track record with similar DoD R&D contracts?
KBR WYLE SERVICES, LLC has a substantial history of performing complex R&D and technical services for the Department of Defense and other government agencies. They are known for their expertise in areas such as aerospace engineering, systems analysis, and lifecycle support. While specific details on past CH-47 related R&D contracts would require deeper database searches, their general profile suggests they are well-equipped to handle this type of work. Past performance evaluations and contract awards in similar domains would be key indicators of their reliability and capability in executing this specific contract effectively.
How does the $25.8 million lifecycle cost compare to similar helicopter R&D contracts?
Directly comparing the $25.8 million lifecycle cost to other helicopter R&D contracts is difficult without knowing the specific scope, duration, and complexity of those other contracts. R&D costs can vary dramatically based on the technology being developed, the maturity of the platform, and the specific research questions being addressed. However, for a five-year research and analysis effort on a major platform like the CH-47, this figure appears within a reasonable range for specialized engineering and scientific services. A more precise benchmark would require analyzing contracts for similar phases of development or sustainment for other heavy-lift or transport helicopters.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is paid their actual costs plus a fixed fee, there's less incentive for them to control costs compared to fixed-price contracts. If the research encounters unforeseen technical challenges or scope creep occurs, costs can escalate beyond initial estimates. The fixed fee, however, limits the contractor's profit margin, providing some control. Effective risk mitigation relies heavily on robust government oversight, clear definition of work, and diligent monitoring of expenditures to ensure the contractor remains efficient and within projected budgetary boundaries.
How effective is the CH-47 cargo helicopter program, and how does this contract contribute to its effectiveness?
The CH-47 Chinook is a highly effective and versatile heavy-lift cargo helicopter, crucial for troop transport, equipment movement, and humanitarian aid missions across various terrains and climates. Its effectiveness is well-established in military operations worldwide. This contract directly contributes to the CH-47's continued effectiveness by ensuring its lifecycle is supported through ongoing research and analysis. This includes identifying potential improvements, addressing obsolescence, enhancing performance, and ensuring the platform remains safe and operationally relevant for decades to come, thereby sustaining its critical role in military logistics and support.
What are the historical spending patterns for CH-47 lifecycle support and R&D?
Historical spending on the CH-47 program, including lifecycle support and R&D, has been substantial over its many decades of service. The CH-47 is a mature platform, meaning much of its initial R&D investment occurred decades ago. However, continuous upgrades, modernization efforts, and sustainment activities require ongoing funding. Annual spending can fluctuate based on specific modernization initiatives, depot maintenance cycles, and research into new capabilities or addressing emerging threats. This $25.8 million award represents a portion of the sustained investment needed to keep this vital asset operationally effective throughout its extended service life.
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: $228,085,051
Exercised Options: $228,085,051
Current Obligation: $25,830,902
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $42,748,392
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
Start Date: 2025-03-07
Current End Date: 2030-03-06
Potential End Date: 2030-03-06 00:00:00
Last Modified: 2025-12-10
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