Air Force awards $50M R&D contract to KBR Wyle Services for aeronautical systems
Contract Overview
Contract Amount: $50,017,498 ($50.0M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-01
End Date: 2027-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AERONAUTICAL SYSTEMS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING DIRECTORATE
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $50.0 million to KBR WYLE SERVICES, LLC for work described as: AERONAUTICAL SYSTEMS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING DIRECTORATE Key points: 1. Significant investment in advanced aeronautical systems research and development. 2. KBR Wyle Services, a large established contractor, secured the award. 3. Potential for long-term technological advancements in aerospace. 4. Contract type (Cost Plus Fixed Fee) may lead to cost overruns if not managed closely.
Value Assessment
Rating: good
The $50M award for R&D appears reasonable given the scope of aeronautical systems research. Benchmarking against similar complex R&D contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The delivery order structure indicates a phased approach to funding and execution.
Taxpayer Impact: Taxpayer funds are being invested in critical defense technology, aiming for future capability and security.
Public Impact
Enhances U.S. Air Force's technological superiority in aeronautical systems. Supports innovation in aerospace engineering and related scientific fields. Potential for job creation within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to control costs.
- Long contract duration (5 years) necessitates ongoing performance monitoring.
Positive Signals
- Awarded through full and open competition.
- Focus on critical R&D for national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining a technological edge, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
The awardee, KBR Wyle Services, LLC, is a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future consideration.
Oversight & Accountability
The Department of the Air Force's Life Cycle Management Center is responsible for this award. Standard oversight mechanisms for R&D contracts, including technical reviews and financial audits, should be in place.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of specific details on research objectives.
- No explicit mention of small business participation.
- Long contract duration requires sustained oversight.
Tags
research-and-development-in-the-physical, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.0 million to KBR WYLE SERVICES, LLC. AERONAUTICAL SYSTEMS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER ENGINEERING DIRECTORATE
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 $50.0 million.
What is the period of performance?
Start: 2022-06-01. End: 2027-05-31.
What specific aeronautical systems are being researched, and how do they align with current and future Air Force modernization priorities?
The provided data lacks specifics on the exact aeronautical systems. A detailed review of the contract's Statement of Work (SOW) is required to understand the research scope and its alignment with Air Force modernization. This information is crucial for assessing the strategic value and potential impact of the R&D investment.
What are the key performance indicators (KPIs) for this Cost Plus Fixed Fee contract, and how will cost overruns be mitigated?
Key performance indicators are not detailed in the summary data. For a CPFF contract, KPIs typically focus on technical milestones and deliverables. Mitigation of cost overruns relies heavily on robust government oversight, clear SOW definition, and proactive management of scope changes to prevent uncontrolled cost escalation.
How will the effectiveness of this R&D investment be measured, particularly given the long-term nature of technological development?
Effectiveness measurement for R&D is challenging due to its inherent uncertainty. Success will likely be evaluated based on achieving defined research objectives, successful testing and validation of prototypes or concepts, and the eventual transition of developed technologies into operational systems. Periodic reviews against program goals will be essential.
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: 2
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: $69,532,214
Exercised Options: $69,532,214
Current Obligation: $50,017,498
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $5,847,272
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: 2022-06-01
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-01-14
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