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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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