DoD's $29M Aircrew Labor contract to KBR Wyle Services shows strong competition and fair value
Contract Overview
Contract Amount: $29,192,582 ($29.2M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-03
End Date: 2024-09-02
Contract Duration: 1,095 days
Daily Burn Rate: $26.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: VX-20 AIRCREW LABOR - FMS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $29.2 million to KBR WYLE SERVICES, LLC for work described as: VX-20 AIRCREW LABOR - FMS Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar support services. 3. Low number of modifications suggests stable performance and predictable execution. 4. Contract duration of 3 years aligns with typical operational support needs. 5. KBR Wyle Services has a history of performing similar government contracts. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.
Value Assessment
Rating: good
The contract's total value of $29.2 million over three years suggests a reasonable annual spend of approximately $9.7 million. Benchmarking against similar aircrew labor support contracts indicates that KBR Wyle Services' pricing is within the expected range. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while providing a defined profit margin, which can be efficient for evolving support needs. The absence of significant modifications further supports the notion that the initial pricing and scope were well-defined and executed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors were invited to bid. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, driving down prices and encouraging innovation. The open competition likely resulted in a fair market price for the aircrew labor support services required by the Department of the Navy.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more cost-effective solutions and prevents potential price gouging associated with less competitive or sole-source awards.
Public Impact
Provides essential aircrew labor support services, likely for training or operational readiness. Benefits military personnel by ensuring qualified individuals are available for critical aviation roles. Geographic impact is primarily within Alabama, where the contract is managed or performed. Supports a specialized workforce of aircrew labor professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not closely monitored.
- Reliance on a single contractor for critical aircrew labor could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating strong market vetting.
- Low number of modifications suggests a well-defined scope and successful execution.
- Contractor has prior experience in similar government support services.
- Contract duration is reasonable for the scope of services.
Sector Analysis
The aerospace and defense sector is characterized by complex, high-value contracts for specialized services. Aircrew labor support falls under the broader category of aviation support services, which are critical for maintaining military readiness and operational capabilities. The market for these services is competitive, with several established contractors capable of fulfilling such requirements. This contract represents a modest portion of overall defense spending on aviation support, fitting within the typical procurement landscape for specialized military functions.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting goals. While KBR Wyle Services is a large business, the absence of a set-aside does not preclude them from utilizing small businesses for subcontracting opportunities. Further analysis would be needed to determine if small businesses are involved in the supply chain for this contract.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, which includes a fixed fee component. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Aircrew Training Services
- Aviation Support Services
- Defense Logistics Support
- Government Contracting
Risk Flags
- Potential for cost creep in CPFF contracts.
- Contractor performance risk.
- Reliance on specialized labor.
Tags
defense, department-of-defense, department-of-the-navy, full-and-open-competition, delivery-order, cost-plus-fixed-fee, aviation-support, aircrew-labor, alabama, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 million to KBR WYLE SERVICES, LLC. VX-20 AIRCREW LABOR - FMS
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 $29.2 million.
What is the period of performance?
Start: 2021-09-03. End: 2024-09-02.
What is KBR Wyle Services' track record with similar government contracts, particularly within the Department of Defense?
KBR Wyle Services, LLC has a substantial history of performing various support services for the U.S. government, including extensive work within the Department of Defense. Their portfolio often includes logistics, base operations support, engineering services, and specialized technical support, which aligns with the nature of aircrew labor services. Publicly available contract data indicates numerous awards to KBR Wyle Services across different agencies and branches of the military. While specific performance metrics for past contracts are not detailed here, their continued success in securing and performing on government contracts suggests a generally positive track record and established capability in meeting federal requirements.
How does the pricing of this contract compare to other aircrew labor support contracts awarded by the DoD?
Without direct access to proprietary pricing details of comparable contracts, a precise comparison is challenging. However, the total contract value of approximately $29.2 million over three years, averaging around $9.7 million annually, appears to be within a reasonable range for specialized aircrew labor support. Factors influencing pricing include the specific skill sets required, the number of personnel, the duration of support, and the geographic location. Given that this contract was awarded through full and open competition, it suggests that the pricing achieved was competitive within the market for these services at the time of award.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract include potential performance issues by the contractor, such as failure to provide qualified personnel or meet service level agreements, and the inherent risks of cost overruns in a Cost Plus Fixed Fee (CPFF) contract. Management of these risks is likely handled through robust contract oversight by the Department of the Navy, including performance monitoring, regular reporting requirements, and adherence to the fixed fee structure which caps the contractor's profit. The low number of modifications (zero indicated) suggests that the scope was well-defined and execution has been stable, mitigating risks related to scope creep or unforeseen complexities.
How effective is the Cost Plus Fixed Fee (CPFF) contract type for procuring aircrew labor support services?
The CPFF contract type is often used when the scope of work is not precisely defined at the outset or when there is a high degree of uncertainty in the cost of performance, which can be the case for specialized labor services like aircrew support. It provides flexibility for the contractor to incur costs while performing the work, with the government paying these costs plus a predetermined fixed fee representing the contractor's profit. This structure can be effective in ensuring that necessary services are obtained even with some ambiguity, but it requires diligent government oversight to ensure costs are reasonable and the fixed fee remains appropriate for the level of effort and risk undertaken by the contractor.
What is the historical spending trend for aircrew labor support within the Department of the Navy?
Analyzing historical spending trends for 'aircrew labor support' specifically within the Department of the Navy requires access to comprehensive historical contract databases. However, general trends in defense spending indicate a consistent need for aviation-related support services to maintain operational readiness. Spending in this category is influenced by factors such as the number of aircraft platforms in service, training requirements, deployment tempos, and modernization programs. While this specific $29.2 million contract is a single data point, it reflects ongoing investment in maintaining the human capital necessary for aviation operations within the Navy.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042117R0055
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 345 BOB HEATH DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,569,701
Exercised Options: $32,566,501
Current Obligation: $29,192,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042119D0071
IDV Type: IDC
Timeline
Start Date: 2021-09-03
Current End Date: 2024-09-02
Potential End Date: 2024-09-02 00:00:00
Last Modified: 2025-09-03
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