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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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