DoD's $31.2M Aeronautical Systems Support Contract Awarded to KBR WYLE SERVICES, LLC

Contract Overview

Contract Amount: $31,240,247 ($31.2M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-01-26

End Date: 2022-06-21

Contract Duration: 1,607 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AERONAUTICAL SYSTEMS PRODUCTS SUPPORT FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING COMMUNICATION AND NETWORK BRANCH (AFLCMC/EZAC)

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to KBR WYLE SERVICES, LLC for work described as: AERONAUTICAL SYSTEMS PRODUCTS SUPPORT FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING COMMUNICATION AND NETWORK BRANCH (AFLCMC/EZAC) Key points: 1. Contract focuses on R&D for aeronautical systems, supporting the Air Force Life Cycle Management Center. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. Duration of over 1600 days indicates a long-term need for these specialized engineering services. 5. The North American Industry Classification System (NAICS) code 541712 points to significant research and development activity. 6. The contract was a delivery order under a larger contract vehicle, typical for ongoing support services.

Value Assessment

Rating: good

The total value of $31.2 million over approximately 4.4 years suggests a moderate annual spend. Benchmarking this against similar R&D contracts for complex aeronautical systems is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure implies that the contractor's costs are reimbursed plus a fixed fee, which can be efficient if managed well, but requires robust oversight to ensure costs remain reasonable and the fee is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of multiple bidders, though not explicitly stated, is implied by the 'full and open' designation, which is crucial for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at the most reasonable price, reducing the risk of overpayment and encouraging efficiency from the contractor.

Public Impact

The primary beneficiaries are the U.S. Air Force Life Cycle Management Center (AFLCMC), which receives critical engineering and communication network support. Services delivered likely involve research, development, and technical support for aeronautical systems, enhancing their performance and longevity. The geographic impact is centered around the Air Force's operational and developmental hubs, primarily supporting the AFLCMC's mission. Workforce implications include employment for highly skilled engineers, scientists, and technical professionals within KBR WYLE SERVICES, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent monitoring to prevent cost overruns and ensure the fixed fee remains appropriate for the work performed.
The long duration of the contract necessitates ongoing performance evaluation to ensure continued alignment with evolving Air Force needs.
Reliance on a single delivery order under a larger contract vehicle could concentrate risk if the parent contract has issues.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
KBR WYLE SERVICES, LLC is a known entity in government contracting, suggesting a degree of established capability.
The contract supports critical Air Force R&D, contributing to national defense capabilities.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to aeronautical systems. This is a highly specialized area within the broader aerospace and defense industry. Spending in this sector is driven by the need for technological advancement, system modernization, and maintaining a competitive edge in military aviation. Comparable spending benchmarks would typically involve other large-scale R&D contracts for defense platforms and associated technologies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While KBR WYLE SERVICES, LLC is likely a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on KBR WYLE's own subcontracting plan and the nature of the specialized services required.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Air Force Life Cycle Management Center (AFLCMC) contracting officers and technical representatives. They are responsible for monitoring contractor performance, approving costs, and ensuring compliance with contract terms. Transparency is facilitated through contract reporting mechanisms, and potential issues could be addressed by the agency's Inspector General if fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Research and Development Programs
Aeronautical Systems Engineering Support
Defense Logistics and Sustainment Contracts
Advanced Technology Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep in R&D projects.
Ensuring continued relevance of R&D outcomes.
Dependency on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to KBR WYLE SERVICES, LLC. AERONAUTICAL SYSTEMS PRODUCTS SUPPORT FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING COMMUNICATION AND NETWORK BRANCH (AFLCMC/EZAC)

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 $31.2 million.

What is the period of performance?

Start: 2018-01-26. End: 2022-06-21.

What is the track record of KBR WYLE SERVICES, LLC with the Department of Defense, particularly in R&D contracts?

KBR WYLE SERVICES, LLC, as a significant government contractor, has a substantial history of performing various services for the Department of Defense. Their experience often spans engineering, logistics, scientific research, and technical support across multiple branches. For R&D contracts specifically, their track record would involve assessing their success in delivering innovative solutions, meeting technical milestones, and managing complex projects within budget and schedule constraints. Analyzing past performance reviews, contract awards, and any documented issues or successes related to similar R&D efforts would provide a comprehensive view of their capabilities and reliability in this domain.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D services in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract type is often used for R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. Value for money under CPFF depends heavily on effective oversight. While it reimburses the contractor's allowable costs plus a predetermined fixed fee, it can incentivize cost control as the contractor does not profit from higher costs (only from the fixed fee). However, it carries a risk of cost growth if the scope expands significantly or if cost management is weak. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but potentially less cost certainty for the government. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks direct financial incentives for exceeding performance targets or controlling costs beyond the baseline.

What are the key performance indicators (KPIs) typically used to evaluate success in aeronautical systems R&D contracts?

Key performance indicators for aeronautical systems R&D contracts often include technical performance metrics (e.g., achieving specific performance thresholds, system reliability, efficiency gains), schedule adherence (meeting milestones and final delivery dates), cost control (staying within budget or managing cost variances effectively), and innovation (successful development of new technologies or significant improvements). For contracts like this one, which supports engineering and network branches, KPIs might also involve the quality and timeliness of technical documentation, successful integration of new systems or components, and the effectiveness of communication solutions developed. Regular progress reviews and technical assessments are crucial for monitoring these KPIs.

What is the historical spending trend for similar aeronautical systems R&D support within the Air Force Life Cycle Management Center?

Analyzing historical spending trends for similar aeronautical systems R&D support within AFLCMC requires access to detailed procurement data. Generally, spending in this area fluctuates based on modernization priorities, new platform development, and sustainment needs for existing fleets. AFLCMC manages a vast portfolio, and R&D spending can be significant, especially for advanced programs like next-generation aircraft, unmanned systems, and sophisticated communication/navigation technologies. Trends might show increased investment during periods of major technological shifts or decreased spending during budget austerity. Understanding these patterns helps contextualize the $31.2 million award as part of a larger, ongoing investment strategy in air and space capabilities.

Are there any specific risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712) for government contracts?

Yes, the NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' carries inherent risks for government contracts. R&D is by nature uncertain; outcomes are not guaranteed, and projects can face unforeseen technical challenges, leading to delays or cost overruns. Intellectual property rights can also be a complex issue. Furthermore, the rapid pace of technological advancement means that research conducted today might become obsolete quickly. For the government, risks include investing in research that doesn't yield practical applications, difficulty in defining precise requirements upfront (leading to scope creep), and ensuring the contractor possesses the necessary cutting-edge expertise and facilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

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: $34,163,960

Exercised Options: $34,163,960

Current Obligation: $31,240,247

Actual Outlays: $994,051

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,620,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0025

IDV Type: IDC

Timeline