Air Force R&D contract for enterprise product support awarded to KBR WYLE SERVICES, LLC for over $47M
Contract Overview
Contract Amount: $47,036,506 ($47.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-01-18
End Date: 2022-06-21
Contract Duration: 1,250 days
Daily Burn Rate: $37.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: UNITED STATES AIR FORCE ENTERPRISE PRODUCT SUPPORT, AFLCMC/OZ
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $47.0 million to KBR WYLE SERVICES, LLC for work described as: UNITED STATES AIR FORCE ENTERPRISE PRODUCT SUPPORT, AFLCMC/OZ Key points: 1. Contract value appears reasonable for the scope of R&D services provided. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Performance context is within the Department of the Air Force's enterprise product support needs. 5. Sector positioning is within Research and Development, specifically physical, engineering, and life sciences. 6. The contract duration of over three years indicates a significant, ongoing requirement.
Value Assessment
Rating: good
The contract value of approximately $47 million over its period of performance is within a reasonable range for complex R&D services. Benchmarking against similar contracts for enterprise product support and R&D in the aerospace sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost escalation if not managed diligently. However, the fixed fee component provides some cost certainty for the contractor.
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 offers. The presence of 3 bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more aggressive pricing and a wider range of innovative solutions, but three bidders still provide a basis for price discovery and selection of a qualified contractor.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.
Public Impact
The primary beneficiary is the United States Air Force, which receives critical enterprise product support services. Services delivered likely include research, development, testing, and evaluation related to complex aerospace products. The geographic impact is primarily within Ohio, where the contractor is located, but the benefits extend to Air Force operations nationwide. Workforce implications include employment opportunities for scientists, engineers, and technical personnel within KBR WYLE SERVICES, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending if not closely monitored.
- The duration of the contract (over 3 years) requires sustained oversight to ensure continued value.
- Reliance on a single awardee for this critical support function could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contractor, KBR WYLE SERVICES, LLC, likely possesses specialized expertise in R&D and aerospace support.
- The contract addresses a specific need for enterprise product support within the Air Force.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation, long development cycles, and significant government investment, particularly in defense and aerospace. The market size for R&D services supporting the Department of Defense is substantial, with numerous large and small businesses competing for contracts. This specific contract likely supports the Air Force's efforts to maintain and improve its complex product lines through advanced research and engineering.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, KBR WYLE SERVICES, LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the requirement was deemed to be best fulfilled by large business capabilities, or that competition among large businesses was sufficient. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract's performance.
Oversight & Accountability
Oversight for this contract would typically be managed by the Air Force Life Cycle Management Center (AFLCMC) or a designated contracting officer's representative (COR). Accountability measures are embedded within the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Air Force Research and Development Programs
- Aerospace Engineering Services Contracts
- Product Lifecycle Management Contracts
- Department of Defense Science and Technology Investments
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- The duration of the contract necessitates ongoing monitoring of performance and value.
- Lack of specific small business subcontracting information requires further inquiry.
Tags
research-and-development, department-of-defense, us-air-force, enterprise-product-support, cost-plus-fixed-fee, full-and-open-competition, large-business, delivery-order, kbr-wyle-services, ohio
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.0 million to KBR WYLE SERVICES, LLC. UNITED STATES AIR FORCE ENTERPRISE PRODUCT SUPPORT, AFLCMC/OZ
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 $47.0 million.
What is the period of performance?
Start: 2019-01-18. End: 2022-06-21.
What is the track record of KBR WYLE SERVICES, LLC in performing similar R&D contracts for the Department of Defense?
KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a significant history of performing complex engineering, scientific, and technical services for the Department of Defense and other government agencies. Their expertise spans various domains, including aerospace, defense, and space exploration. They have been involved in numerous large-scale contracts related to research, development, testing, and sustainment of military systems and platforms. While specific performance metrics for this particular contract are not detailed here, KBR's overall track record suggests a capacity to handle demanding R&D requirements. Past performance evaluations and contract award histories would provide more granular insights into their reliability and effectiveness in similar engagements.
How does the awarded amount of $47 million compare to the estimated value or budget for this type of R&D support?
The awarded amount of $47,036,505.70 represents the total obligated amount for this delivery order under a larger contract vehicle. Without knowing the original ceiling of the parent contract or the specific budget allocated for this particular task order, a direct comparison is challenging. However, for a multi-year R&D effort focused on enterprise product support within the Air Force, this figure appears to be within a plausible range. Comparable contracts for similar services often run into tens or hundreds of millions of dollars, depending on the scope, duration, and complexity. The Cost Plus Fixed Fee structure also implies that the final cost could vary, but the awarded amount provides a baseline for the initial funding.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract type for R&D is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This can incentivize the contractor to incur costs to complete the work, as their fee is not directly tied to cost efficiency. For the government, the risk is that the total cost of the contract could exceed initial estimates if not managed effectively. Robust oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. Scope creep, if not managed through contract modifications, can also lead to increased costs.
What specific R&D activities are encompassed by 'enterprise product support' in the context of the Air Force?
'Enterprise product support' in the context of the Air Force likely refers to a broad range of R&D activities aimed at ensuring the sustainment, modernization, and operational effectiveness of major Air Force systems and platforms throughout their lifecycle. This could include research into advanced diagnostics and prognostics for predictive maintenance, development of improved repair and overhaul techniques, engineering analysis for obsolescence management, research into alternative materials or components, and the development of integrated support systems. The goal is to enhance readiness, reduce operational costs, and extend the service life of critical assets through applied research and engineering solutions.
How has spending on R&D for enterprise product support evolved within the Air Force over the past five years?
Analyzing historical spending trends for 'enterprise product support' R&D within the Air Force requires access to detailed budget data and contract databases. Generally, spending in this area tends to be relatively stable, reflecting the ongoing need to maintain and modernize aging fleets and complex systems. However, specific R&D investments can fluctuate based on emerging technological needs, strategic priorities, and the lifecycle stage of major weapon systems. Periods of significant modernization or the introduction of new platforms often see increased R&D spending related to their support infrastructure. Without specific data for this contract category, it's difficult to provide precise figures, but the overall trend likely reflects a sustained commitment to ensuring the long-term viability of Air Force assets.
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
Offers Received: 3
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: $54,650,029
Exercised Options: $54,650,029
Current Obligation: $47,036,506
Actual Outlays: $4,388,755
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $6,588,339
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
Start Date: 2019-01-18
Current End Date: 2022-06-21
Potential End Date: 2022-06-21 00:00:00
Last Modified: 2025-09-22
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