Army's Search, Track, Acquire, Radiate, Eliminate Project receives $68.6M for R&D services from KBR Wyle Services

Contract Overview

Contract Amount: $68,572,060 ($68.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-30

End Date: 2025-08-31

Contract Duration: 1,462 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL ANALYSIS FOR THE DEPARTMENT OF THE ARMY SEARCH, TRACK, ACQUIRE, RADIATE, ELIMINATE PROJECT OFFICE AND PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $68.6 million to KBR WYLE SERVICES, LLC for work described as: TECHNICAL ANALYSIS FOR THE DEPARTMENT OF THE ARMY SEARCH, TRACK, ACQUIRE, RADIATE, ELIMINATE PROJECT OFFICE AND PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE Key points: 1. Contract awarded for critical research and development in missile and space systems. 2. KBR Wyle Services, LLC, a significant player in defense contracting, secured this award. 3. The contract duration extends over 1462 days, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a robust market for these specialized R&D capabilities. 5. The contract type (Cost Plus Fixed Fee) implies potential for cost overruns if not managed closely. 6. Geographic focus on Alabama (AL) highlights regional concentration of defense R&D activities.

Value Assessment

Rating: fair

The contract value of $68.6 million for a period of approximately four years for specialized R&D services appears within a reasonable range for complex defense projects. However, without specific benchmarks for similar 'Search, Track, Acquire, Radiate, Eliminate' projects or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain aligned with the fixed fee and project objectives, as this structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. This approach generally fosters a competitive environment, encouraging vendors to offer competitive pricing and innovative solutions to win the contract. The presence of full and open competition suggests that the government sought the best possible technical solution and price from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures that the government is receiving services at a competitive market rate, maximizing the value of taxpayer dollars.

Public Impact

The Department of the Army benefits from advanced research and development in missile and space technologies. This contract supports the development of capabilities crucial for national defense and security. The project is located in Alabama, potentially creating or sustaining high-skilled jobs in the region. The services delivered are expected to enhance the effectiveness and efficiency of military operations. The program executive office for Missiles and Space is a key beneficiary, receiving critical support for its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed.
The long duration of the contract (over 4 years) requires sustained oversight to ensure performance remains on track and costs are controlled.
Lack of specific performance metrics or detailed deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
The specialized nature of the R&D may present inherent risks in achieving desired technological outcomes within budget and schedule.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely secured a fair price.
The contractor, KBR Wyle Services, LLC, is an established entity with significant experience in defense contracting.
The contract supports critical national defense objectives, aligning with strategic government priorities.
The project is situated in Alabama, potentially leveraging regional expertise and contributing to the local economy.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The North American Industry Classification System (NAICS) code 541715 categorizes this as 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This is a highly specialized area within the broader defense industrial base, often characterized by long development cycles, significant investment, and the need for highly skilled personnel. Comparable spending in this sector can vary widely depending on the specific technological focus, but defense R&D represents a substantial portion of federal R&D outlays.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, is a large business. Any subcontracting opportunities would be at the discretion of the prime contractor, and information regarding their small business subcontracting plan is not available in this dataset.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices, with potential involvement from the Department of Defense's Inspector General. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates robust financial oversight to scrutinize costs, ensure compliance with the fixed fee, and prevent potential overruns. Transparency would be enhanced through regular reporting requirements mandated by the contract, detailing progress, expenditures, and any identified risks or issues. Accountability measures would be tied to the contractor's adherence to contract terms, performance standards, and delivery schedules.

Related Government Programs

Department of Defense Research and Development Programs
Missile Defense Agency Contracts
Army Aviation and Missile Command R&D
Space and Missile Systems Center Contracts
Advanced Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates sustained performance monitoring and risk management.
Specialized R&D nature carries inherent technical and programmatic risks.
Lack of detailed performance metrics in public data hinders comprehensive assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.6 million to KBR WYLE SERVICES, LLC. TECHNICAL ANALYSIS FOR THE DEPARTMENT OF THE ARMY SEARCH, TRACK, ACQUIRE, RADIATE, ELIMINATE PROJECT OFFICE AND PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE

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 $68.6 million.

What is the period of performance?

Start: 2021-08-30. End: 2025-08-31.

What is the specific nature of the 'Search, Track, Acquire, Radiate, Eliminate' technology being developed under this contract?

The 'Search, Track, Acquire, Radiate, Eliminate' (STARE) project, as indicated by the contract's technical analysis, likely pertains to advanced systems designed for the detection, identification, tracking, targeting, and engagement of various threats, potentially including missiles, aircraft, or other aerial or space-based assets. The 'Radiate' component could refer to active sensing technologies like radar or electronic warfare systems, while 'Eliminate' points towards a capability for neutralization or destruction. This type of R&D is critical for modern defense strategies, aiming to provide layered defense capabilities against sophisticated adversaries. The specific details of the technology are often classified due to national security implications, but the general domain involves sophisticated sensor fusion, advanced algorithms, and potentially directed energy or kinetic engagement systems.

How does the Cost Plus Fixed Fee (CPFF) structure impact the risk profile for this contract compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract structure places a significant portion of the cost risk on the government. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. While the fee is fixed, the total cost to the government can fluctuate based on actual expenses. This structure is often used for R&D or complex projects where the scope or costs are uncertain at the outset. For taxpayers, the risk is that the total project cost could exceed initial estimates if costs are not managed effectively by the contractor and overseen rigorously by the government. This contrasts with fixed-price contracts, where the contractor bears more cost risk, or cost-plus-incentive-fee contracts, which can incentivize cost control.

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

KBR Wyle Services, LLC, is a well-established contractor with extensive experience supporting the Department of Defense (DoD) across various R&D, engineering, and technical services. They have a history of performing complex projects, including those related to aerospace, defense systems, and scientific research. While specific details of their past performance on 'STARE'-like projects are not publicly detailed in this data, their general profile suggests they possess the necessary expertise and infrastructure to handle such demanding R&D efforts. Government contract databases and past performance reviews would provide more granular insights into their specific successes, challenges, and overall reliability in delivering on similar DoD R&D contracts.

What are the potential long-term implications of this R&D investment for the U.S. defense posture?

Investments in R&D for systems like those implied by 'Search, Track, Acquire, Radiate, Eliminate' are crucial for maintaining a technological edge over potential adversaries. Successful development could lead to enhanced capabilities in missile defense, air defense, and space domain awareness, bolstering national security. This could translate into more effective threat detection, faster response times, and improved survivability for U.S. forces and allies. Furthermore, breakthroughs in this area can have dual-use applications and foster innovation within the broader defense industrial base, potentially leading to future technological advancements and economic benefits.

How does the $68.6 million contract value compare to historical spending on similar defense R&D initiatives?

The $68.6 million contract value for approximately four years of R&D services is substantial but falls within the typical range for advanced defense technology development programs. Major defense R&D initiatives, particularly those involving complex systems like missile defense or advanced aerospace technologies, often involve contracts ranging from tens to hundreds of millions of dollars, sometimes even billions over their lifecycle. For instance, programs managed by agencies like the Missile Defense Agency (MDA) or the Space Force frequently see R&D contracts of similar magnitude. Without knowing the precise scope and maturity of the 'STARE' technology, a direct comparison is difficult, but it represents a significant investment in a critical defense capability area.

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: $70,278,306

Exercised Options: $70,278,306

Current Obligation: $68,572,060

Actual Outlays: $178,915

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,185,087

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