DoD Awards $74M F/A-18 Engineering Services Contract to KBR WYLE SERVICES, LLC
Contract Overview
Contract Amount: $74,283,971 ($74.3M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-21
End Date: 2025-08-31
Contract Duration: 1,836 days
Daily Burn Rate: $40.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LABOR - KUWAIT F/A-18 - BASE YEAR
Place of Performance
Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $74.3 million to KBR WYLE SERVICES, LLC for work described as: LABOR - KUWAIT F/A-18 - BASE YEAR Key points: 1. Contract value of $74.3M for engineering services related to F/A-18 aircraft. 2. Awarded to KBR WYLE SERVICES, LLC, a significant player in defense contracting. 3. The contract is for a duration of 1836 days, spanning from August 2020 to August 2025. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The North American Industry Classification System (NAICS) code 541330 indicates Engineering Services.
Value Assessment
Rating: fair
The contract value of $74.3M for engineering services is substantial. Benchmarking against similar F/A-18 support contracts is difficult without more specific scope details. However, the Cost Plus Fixed Fee structure warrants close monitoring for potential cost escalations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition scenario. This method may not yield the most competitive pricing, as potential bidders were restricted.
Taxpayer Impact: Limited competition can result in higher costs for taxpayers compared to full and open competition, as the government may not secure the lowest possible price.
Public Impact
Supports the readiness and sustainment of the F/A-18 aircraft fleet. Ensures continued engineering expertise for critical defense platforms. Impacts the operational capabilities of naval aviation units. Contributes to the defense industrial base and associated workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Cost Plus Fixed Fee contracts require diligent oversight to control costs.
- Contract duration is long, increasing exposure to potential scope creep or changing requirements.
Positive Signals
- Secures essential engineering services for a key defense asset.
- Awarded to an established contractor with relevant experience.
- Long-term contract provides stability for program execution.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense platforms. Spending in this sector is crucial for maintaining military readiness and technological superiority. Benchmarks for similar large-scale engineering support contracts can vary widely based on platform complexity and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, KBR WYLE SERVICES, LLC, is a large business, suggesting that subcontracting opportunities may exist for small businesses within the engineering services domain.
Oversight & Accountability
The contract is a Definitive Contract awarded by the Department of the Navy. Oversight will be critical to ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs and that the engineering services provided meet the required standards for the F/A-18 program.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may result in higher costs.
- Cost Plus Fixed Fee contracts are susceptible to cost overruns.
- Long contract duration increases risk of scope creep.
- Lack of specific performance metrics in provided data.
- Potential for contractor performance issues impacting program timelines.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.3 million to KBR WYLE SERVICES, LLC. LABOR - KUWAIT F/A-18 - BASE YEAR
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 Navy).
What is the total obligated amount?
The obligated amount is $74.3 million.
What is the period of performance?
Start: 2020-08-21. End: 2025-08-31.
What specific engineering services are included in this contract, and how do they align with the F/A-18's lifecycle needs?
The contract details are limited, but it falls under NAICS code 541330 (Engineering Services). These services likely encompass design, analysis, testing, and technical support for the F/A-18 aircraft. A deeper dive into the contract's Statement of Work (SOW) would clarify the exact services and their alignment with the F/A-18's sustainment and modernization requirements.
Given the 'NOT AVAILABLE FOR COMPETITION' status, what justification was provided, and what is the potential impact on cost-effectiveness?
The justification for limited competition is not provided in the data. Typically, such justifications cite reasons like urgency, specialized capabilities, or lack of market research. This limited competition raises concerns about achieving the best possible price for taxpayers, as a broader range of potential bidders were not considered.
How will the performance of KBR WYLE SERVICES, LLC be monitored to ensure effective delivery of engineering services and control costs under the CPFF structure?
Effective oversight by the Department of the Navy is crucial. This includes regular performance reviews, monitoring of cost expenditures against the fixed fee, ensuring adherence to the SOW, and potentially utilizing Earned Value Management (EVM) techniques. Proactive management of risks and changes will be key to ensuring value and controlling costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042120R0133
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: $90,879,967
Exercised Options: $90,879,967
Current Obligation: $74,283,971
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $12,965,295
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-21
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-08-04
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