DoD's $62.9M C-130 Hercules modernization contract awarded to KBR WYLE SERVICES, LLC for R&D
Contract Overview
Contract Amount: $62,940,007 ($62.9M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-01
End Date: 2026-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-130 HERCULES MODERNIZATION AND SUSTAINMENT
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $62.9 million to KBR WYLE SERVICES, LLC for work described as: C-130 HERCULES MODERNIZATION AND SUSTAINMENT Key points: 1. Contract focuses on research and development for aircraft modernization and sustainment. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 5 years indicates a long-term commitment to the program. 4. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 5. The specific NAICS code (541715) points to specialized R&D services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
The total contract value of $62.9 million over five years for R&D services related to a major aircraft platform like the C-130 Hercules appears reasonable. Benchmarking against similar large-scale aerospace R&D contracts is challenging without more specific details on the scope of work. However, the cost-plus-fixed-fee structure, while common for R&D, requires careful oversight to ensure value for money and prevent cost overruns. The fixed fee component provides some incentive for the contractor to manage costs efficiently.
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 a single award (no=1) suggests that KBR WYLE SERVICES, LLC was selected as the best value offeror among potentially multiple bidders. The level of competition is not explicitly stated, but the 'full and open' designation implies a robust process designed to foster price discovery and identify the most capable contractor.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, leading to potentially better value for the government's investment.
Public Impact
The U.S. Air Force and potentially other branches operating C-130 aircraft will benefit from modernized and sustained platforms. Services delivered include research and development aimed at improving the capabilities and lifespan of the C-130 Hercules fleet. The geographic impact is likely national, supporting military operations and readiness across various bases. Workforce implications include employment for specialized R&D personnel, engineers, and technicians within KBR WYLE SERVICES, LLC and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher final costs if not managed diligently.
- The long duration of the contract requires sustained oversight to ensure performance remains aligned with objectives.
- Dependence on a single contractor for critical R&D could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive selection process.
- The contract aims to modernize a critical military asset, enhancing national defense capabilities.
- KBR WYLE SERVICES, LLC is a known entity in government contracting, suggesting established capabilities.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on research and development for military aircraft sustainment and modernization. The market for aerospace R&D is highly specialized, involving significant investment in engineering, testing, and technological innovation. Comparable spending benchmarks would typically be found within large defense procurement programs for aircraft upgrades and lifecycle support, often running into hundreds of millions or billions of dollars over extended periods.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (sb=false, ss=false). While KBR WYLE SERVICES, LLC may engage small businesses as subcontractors, there is no explicit requirement or set-aside noted in the provided data. This suggests that the primary focus was on securing the best technical and price solution from the broader market, rather than specifically targeting small business prime contractors for this particular R&D effort.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract reporting systems and potential audits. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- C-130 Hercules Sustainment Programs
- Military Aircraft Modernization Contracts
- Aerospace Research and Development Contracts
- Department of Defense R&D Spending
Risk Flags
- Cost Overruns Risk (CPFF)
- Performance Risk (Long-term R&D)
- Dependency Risk (Single Award)
Tags
defense, department-of-defense, department-of-the-air-force, kbr-wyle-services-llc, c-130-hercules, modernization, sustainment, research-and-development, full-and-open-competition, delivery-order, cost-plus-fixed-fee, ohio
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.9 million to KBR WYLE SERVICES, LLC. C-130 HERCULES MODERNIZATION AND SUSTAINMENT
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 $62.9 million.
What is the period of performance?
Start: 2021-09-01. End: 2026-08-31.
What is the specific scope of 'modernization and sustainment' for the C-130 Hercules under this contract?
The provided data does not detail the specific modernization and sustainment tasks. However, for a platform like the C-130 Hercules, 'modernization' typically involves upgrades to avionics, communication systems, structural integrity, and potentially propulsion to extend its service life and enhance capabilities. 'Sustainment' refers to the ongoing maintenance, repair, and logistical support required to keep the aircraft operational. This contract likely covers research into new technologies, integration challenges, and the development of improved sustainment strategies for the fleet.
How does the $62.9 million contract value compare to historical spending on C-130 sustainment and modernization?
Without specific historical spending data for C-130 sustainment and modernization, a direct comparison is difficult. However, $62.9 million over five years for R&D related to a major aircraft platform represents a significant investment. Large-scale sustainment and modernization programs for military aircraft often involve multi-billion dollar commitments over decades. This particular contract appears to be focused on the research and development phase, which is typically a smaller portion of the overall lifecycle cost compared to full-scale production or extensive fleet-wide retrofits.
What are the key performance indicators (KPIs) used to measure the success of KBR WYLE SERVICES, LLC under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for R&D contracts, success is typically measured by the achievement of specific research objectives, the successful development and testing of prototypes or technologies, adherence to project timelines, and the cost-effectiveness of the research conducted. For sustainment aspects, KPIs might include reliability improvements, reduction in maintenance downtime, or the successful implementation of new maintenance procedures derived from the R&D.
What is KBR WYLE SERVICES, LLC's track record with similar Department of Defense R&D contracts, particularly for aviation platforms?
KBR WYLE SERVICES, LLC has a substantial history of performing services for the Department of Defense, including in areas related to research, engineering, and technical support for various platforms. While specific details on their track record with C-130 modernization R&D are not in the provided snippet, their general experience in aerospace and defense suggests they possess the necessary expertise. A deeper dive into their contract history would reveal the scale and nature of their previous R&D contributions to aviation programs.
What are the potential 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 is that the government may end up paying more than anticipated if the contractor's costs are higher than estimated, although the fee remains fixed. This structure can sometimes reduce the contractor's incentive to control costs aggressively compared to fixed-price contracts. Effective oversight, detailed cost reporting, and robust negotiation of the initial estimate are crucial to mitigate these risks and ensure the government receives good value for its investment in R&D.
How does this contract align with the Air Force's broader strategy for its C-130 fleet modernization and sustainment?
This contract likely aligns with the Air Force's strategy to maintain the operational readiness and extend the service life of its aging C-130 fleet. Modernization efforts are crucial to ensure the C-130s can continue to meet evolving mission requirements, incorporate new technologies (like improved navigation and communication systems), and comply with future airspace regulations. Sustainment ensures the fleet remains available for critical airlift missions. This R&D contract suggests a proactive approach to identifying and developing solutions for future challenges.
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: 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: $65,198,966
Exercised Options: $65,198,966
Current Obligation: $62,940,007
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,668,020
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
Start Date: 2021-09-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-10
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