DoD's $81.9M Avionics R&D Contract Awarded to KBR Wyle Services, LLC for Life Cycle Analysis

Contract Overview

Contract Amount: $81,868,762 ($81.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-02

End Date: 2026-03-02

Contract Duration: 1,826 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AVIONIC PRODUCT AND LIFE CYCLE ANALYSIS

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $81.9 million to KBR WYLE SERVICES, LLC for work described as: AVIONIC PRODUCT AND LIFE CYCLE ANALYSIS Key points: 1. Contract focuses on critical avionics product life cycle analysis, a key area for defense readiness. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1826 days indicates a long-term commitment to avionics R&D. 4. The primary NAICS code (541715) points to significant investment in physical, engineering, and life sciences research. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. The base award amount of $44.8M suggests substantial initial funding for the project. 7. The contract is managed by the Department of the Air Force, highlighting its importance to air operations.

Value Assessment

Rating: good

The base award of $44.8M for a 5-year contract (1826 days) for avionics product and life cycle analysis appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in the aerospace and defense sector is challenging without more specific cost breakdowns. However, the Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, necessitates robust oversight to ensure costs remain aligned with the fixed fee and overall project objectives. The total potential value, if exercised, would be $81.9M, indicating significant scope for growth or additional phases.

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. The presence of 5 bids suggests a healthy level of competition for this specialized R&D requirement. A competitive process like this is generally expected to drive better pricing and value for the government, as contractors vie to offer the most compelling technical solution at a competitive cost.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant investment in avionics research and development, potentially leading to more cost-effective solutions and reduced long-term operational expenses.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader Department of Defense, which will receive enhanced insights into avionics systems. The services delivered include critical research and development focused on the life cycle analysis of avionics products. The geographic impact is primarily within the United States, supporting domestic R&D capabilities. The contract supports a specialized workforce of scientists, engineers, and analysts in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract requires sustained oversight to ensure continued alignment with evolving defense needs.
Reliance on a single contractor for a critical R&D area could pose a long-term risk if capabilities are not maintained or transferred.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract addresses a critical need for avionics life cycle analysis, crucial for system sustainment and modernization.
The base award amount suggests a significant initial commitment to advancing avionics technology.

Sector Analysis

The aerospace and defense sector is characterized by high R&D intensity and long product development cycles. This contract falls squarely within the Research and Development in the Physical, Engineering, and Life Sciences category, specifically focusing on avionics. The market for such specialized R&D services is often dominated by a few key players with deep technical expertise and established relationships with government agencies. The total potential value of $81.9M positions this as a significant contract within its niche.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of avionics R&D and the prime contractor (KBR WYLE SERVICES, LLC), it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of small businesses with the required expertise.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will include regular progress reports, cost tracking, and performance reviews against contract milestones. Transparency is typically maintained through contract databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Avionics Modernization Programs
Aerospace Research and Development Contracts
Defense Science and Technology Programs
Life Cycle Management Contracts
Air Force Research Laboratory Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence over the 5-year contract duration.
Need for sustained government oversight to ensure performance and cost control.
Dependence on a single contractor for critical R&D may limit future options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.9 million to KBR WYLE SERVICES, LLC. AVIONIC PRODUCT AND LIFE CYCLE ANALYSIS

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 $81.9 million.

What is the period of performance?

Start: 2021-03-02. End: 2026-03-02.

What is the historical spending trend for avionics product and life cycle analysis by the Department of Defense?

Analyzing historical spending trends for 'avionics product and life cycle analysis' specifically is challenging without granular data. However, the Department of Defense (DoD) consistently invests billions annually in Research, Development, Test, and Evaluation (R&DTE), with a significant portion allocated to aerospace and avionics systems. For instance, the Air Force's R&D budget alone often exceeds tens of billions of dollars. Contracts like this one, focusing on life cycle analysis, are part of a broader strategy to ensure the longevity, reliability, and cost-effectiveness of critical aviation assets. Over the past decade, there has been a sustained emphasis on modernizing aging aircraft fleets and developing next-generation avionics, suggesting a consistent, if not increasing, demand for such analytical services. The $81.9M ceiling on this specific contract is indicative of the scale of investment required for comprehensive life cycle management in this complex domain.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and value for the government?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work may evolve or is not precisely defined at the outset. For the government, CPFF offers flexibility, allowing the contractor to adapt to unforeseen technical challenges or discoveries during the research process. The 'cost-plus' element means the government reimburses the contractor's allowable costs, while the 'fixed fee' represents the contractor's profit, negotiated upfront. This structure incentivizes the contractor to control costs to protect their fee, but it doesn't provide the same level of cost certainty as a Firm-Fixed-Price (FFP) contract. FFP contracts offer the best cost certainty for the government but can be risky for the contractor if the scope is poorly defined, potentially leading to disputes or contractor withdrawal. Other types like Cost Plus Incentive Fee (CPIF) tie profit more directly to performance metrics. For R&D, CPFF strikes a balance between flexibility and cost control, but requires diligent government oversight to manage the 'cost-plus' aspect effectively.

What is KBR Wyle Services, LLC's track record with similar Department of Defense R&D contracts?

KBR Wyle Services, LLC, a subsidiary of KBR, Inc., has a substantial track record of performing complex engineering, scientific, and technical services for the Department of Defense (DoD) and other government agencies. They have been involved in numerous contracts related to aerospace, aviation systems, space operations, and scientific research. Their experience often includes systems engineering, life cycle support, testing and evaluation, and research and development across various platforms, including aircraft and space systems. Publicly available contract databases show KBR Wyle has held significant contracts with agencies like NASA, the Air Force, and the Navy, often in areas requiring specialized technical expertise similar to avionics life cycle analysis. This history suggests they possess the necessary qualifications, personnel, and infrastructure to successfully execute the current contract.

What are the potential risks associated with the long duration (1826 days) of this contract?

The 1826-day (approximately 5-year) duration of this avionics R&D contract presents several potential risks. Firstly, technology evolves rapidly, especially in avionics. By the end of the contract, the technologies and methodologies being researched might be outdated, or new requirements may emerge that were not anticipated. Secondly, maintaining contractor focus and performance over such an extended period can be challenging. Contractor personnel may change, institutional knowledge could be lost, and motivation might wane if milestones are not clearly defined and achieved. Thirdly, the government's own strategic priorities or budget allocations could shift, potentially impacting the relevance or funding of the research. Effective risk mitigation requires robust program management, regular reviews to adapt to technological advancements, and clear performance metrics throughout the contract's life.

How does the base award amount of $44.8M compare to the total potential value of $81.9M, and what does this imply?

The base award of $44.8M represents the initial funding committed to KBR Wyle Services, LLC for the avionics product and life cycle analysis contract. The total potential value of $81.9M indicates the maximum amount the government could obligate over the contract's duration, including options or task orders for additional work. This significant difference (nearly double the base award) implies that the contract is structured to allow for substantial growth, potential follow-on phases, or the incorporation of evolving research requirements. It suggests a strategic approach by the Department of the Air Force to secure long-term support for avionics R&D, with the flexibility to scale the effort based on project needs and outcomes. This structure is common in R&D where the full scope may not be known at the outset.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $91,831,967

Exercised Options: $91,831,967

Current Obligation: $81,868,762

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $23,669,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0015

IDV Type: IDC

Timeline