DoD's $80M IT contract for aviation logistics systems development awarded to KBR WYLE SERVICES, LLC
Contract Overview
Contract Amount: $80,218,967 ($80.2M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-22
End Date: 2027-06-21
Contract Duration: 1,825 days
Daily Burn Rate: $44.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AVIATION LOGISTICS ENVIRONMENT LOGISTICS INFORMATION TECHNOLOGY SYSTEM DEVELOPMENT AND MODIFICATION FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE, AVIATION COMMON SYSTEMS AND COMMERCIAL SERVICES LOG-IT
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $80.2 million to KBR WYLE SERVICES, LLC for work described as: AVIATION LOGISTICS ENVIRONMENT LOGISTICS INFORMATION TECHNOLOGY SYSTEM DEVELOPMENT AND MODIFICATION FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE, AVIATION COMMON SYSTEMS AND COMMERCIAL SERVICES LOG-IT Key points: 1. Contract focuses on R&D for physical and engineering sciences, specifically aviation logistics IT. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 5 years indicates a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The base award amount is substantial, requiring close monitoring of performance and costs. 6. This contract falls under the Research and Development sector, specifically IT for aviation.
Value Assessment
Rating: fair
The base award of $80.2 million over five years for IT system development and modification in aviation logistics appears to be within a reasonable range for complex R&D projects. However, without specific benchmarks for similar aviation logistics IT development contracts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates if not rigorously controlled. Future task orders and modifications will be critical for ongoing value assessment.
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 4 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the specific number of bidders (4) might suggest that the market for highly specialized aviation logistics IT development is somewhat concentrated.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open process. However, the moderate number of bidders means that the full cost-saving potential of a highly competitive market may not have been realized.
Public Impact
The primary beneficiaries are the Naval Air Systems Command (NAVAIR) and the broader Department of Defense, which will receive enhanced aviation logistics IT capabilities. Services delivered include system development and modification, crucial for modernizing and improving the efficiency of military aviation logistics. The geographic impact is likely centered around naval air facilities and command centers, with potential ripple effects across the global U.S. military aviation network. Workforce implications may include specialized IT developers, engineers, and logistics experts, both within the contractor's organization and potentially within government oversight roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit, requiring stringent oversight.
- The R&D nature of the contract introduces inherent uncertainty in project scope and final costs.
- Dependence on a single contractor for a critical IT system could pose a risk if performance issues arise.
- The duration of the contract (5 years) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving needs.
Positive Signals
- Awarded through full and open competition, indicating a broad search for qualified contractors.
- The contract specifies system development and modification, addressing a clear need for technological advancement in aviation logistics.
- The base award amount suggests a significant investment in improving critical military operations.
- The contractor, KBR WYLE SERVICES, LLC, likely possesses relevant expertise in aerospace and IT services.
Sector Analysis
This contract falls within the Information Technology (IT) and Research and Development (R&D) sectors, specifically focusing on specialized applications for aviation logistics. The market for defense IT and logistics solutions is substantial, driven by the need for advanced capabilities to support complex military operations. Comparable spending benchmarks in this niche would involve analyzing other large-scale IT development contracts for defense agencies, particularly those focused on supply chain, maintenance, and operational support systems. The R&D component suggests innovation and the development of novel solutions rather than off-the-shelf procurement.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false) and did not involve significant small business subcontracting (sb: false). This suggests that the primary contractor, KBR WYLE SERVICES, LLC, is likely a large business, and the nature of the work may not have been conducive to small business participation as prime contractors or major subcontractors. Consequently, the direct impact on the small business ecosystem for this specific award appears minimal, though large prime contractors often engage small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract will primarily reside with the Naval Air Systems Command (NAVAIR) and the Department of the Air Force, as indicated by the awarding agency. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor costs and ensure they remain reasonable and allocable to the contract's objectives. Performance metrics and regular progress reviews will be crucial accountability measures. Transparency will be facilitated through contract reporting requirements and potentially through the Defense Contract Audit Agency (DCAA) for financial audits. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Naval Air Systems Command (NAVAIR) IT Modernization Programs
- Department of Defense Logistics IT Systems
- Aviation Maintenance and Supply Chain IT Solutions
- Defense Research and Development Contracts
- Air Force Logistics Command Systems
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Scope Creep in R&D
- Technical Performance Uncertainty
- Contractor Dependency
- Cybersecurity Vulnerabilities
Tags
it, defense, research-and-development, aviation-logistics, naval-air-systems-command, kbr-wyle-services-llc, cost-plus-fixed-fee, full-and-open-competition, system-development, maryland, department-of-defense, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.2 million to KBR WYLE SERVICES, LLC. AVIATION LOGISTICS ENVIRONMENT LOGISTICS INFORMATION TECHNOLOGY SYSTEM DEVELOPMENT AND MODIFICATION FOR NAVAL AIR SYSTEMS COMMAND PROGRAM EXECUTIVE OFFICE, AVIATION COMMON SYSTEMS AND COMMERCIAL SERVICES LOG-IT
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 $80.2 million.
What is the period of performance?
Start: 2022-06-22. End: 2027-06-21.
What is the track record of KBR WYLE SERVICES, LLC in delivering similar aviation logistics IT systems?
KBR WYLE SERVICES, LLC, a subsidiary of KBR, Inc., has a significant history of supporting defense and aerospace clients, including the Department of Defense. Their expertise spans various domains, including engineering, IT, and logistics support. While specific details on past performance for identical aviation logistics IT systems are not provided in this data, KBR's broader portfolio includes work on complex systems integration, software development, and lifecycle support for military platforms. Assessing their track record would involve reviewing past performance evaluations (e.g., CPARS reports) for similar contracts, focusing on their ability to meet cost, schedule, and technical performance requirements in defense IT and aviation-related projects. Their experience with large-scale government contracts suggests a capacity to manage complex R&D efforts.
How does the awarded amount of $80.2 million compare to similar R&D contracts for aviation logistics IT?
The awarded amount of approximately $80.2 million over five years for R&D in aviation logistics IT is substantial, reflecting the complexity and specialized nature of the work. Benchmarking this against similar contracts requires access to detailed contract databases and market intelligence. However, large-scale IT development and modification projects for defense applications, especially those involving R&D, often range from tens to hundreds of millions of dollars over their lifecycle. Factors influencing this amount include the scope of system development, integration requirements, cybersecurity needs, and the level of innovation sought. Without specific comparable contract data, it's difficult to definitively state if this is high or low, but it aligns with the typical investment scale for advanced defense IT R&D.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in this sector?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed estimates, the government bears the burden, while the contractor's profit remains fixed. For R&D, where the scope and technical challenges are often uncertain, cost estimation is inherently difficult. This can incentivize contractors to be less cost-conscious, as their profit is not directly tied to cost savings. Effective oversight, rigorous cost tracking, and clear definition of milestones and deliverables are crucial to mitigate these risks and ensure the government receives good value.
How effective are current oversight mechanisms likely to be for this specific contract?
The effectiveness of oversight for this contract will depend heavily on the resources and diligence applied by the Naval Air Systems Command (NAVAIR) and the Department of the Air Force. Given the CPFF structure and the R&D nature, robust oversight is critical. This includes detailed monitoring of incurred costs, regular reviews of technical progress against milestones, and proactive management of any scope changes. The presence of a dedicated Program Executive Office (PEO) for Aviation Common Systems and Commercial Services suggests a structured approach to program management. However, the effectiveness can be challenged by the complexity of the technology, the potential for evolving requirements in R&D, and the availability of skilled government personnel to oversee specialized IT and engineering efforts.
What are the historical spending patterns for aviation logistics IT systems within the Department of Defense?
Historical spending patterns for aviation logistics IT systems within the Department of Defense have generally shown a consistent and significant investment. Agencies like NAVAIR continuously seek to modernize their IT infrastructure to enhance operational efficiency, improve data management, and support advanced capabilities such as predictive maintenance and real-time asset tracking. Spending in this area often involves large, multi-year contracts for system development, integration, sustainment, and upgrades. Trends indicate a move towards cloud-based solutions, data analytics, and cybersecurity enhancements. The total spending can fluctuate based on strategic priorities, budget allocations, and the lifecycle of existing systems, but the overall trend is towards increased investment in sophisticated IT to support complex aviation operations.
What is the potential impact of this contract on the broader aviation logistics IT market?
This contract, awarded to KBR WYLE SERVICES, LLC, has the potential to influence the broader aviation logistics IT market by driving innovation and setting performance standards. As a significant R&D effort, successful outcomes could lead to new technologies or methodologies that are adopted by other defense branches or even commercial aviation sectors. The focus on system development and modification suggests a push towards more integrated and data-driven logistics solutions. The competitive nature of the award, even with four bidders, indicates a market where specialized expertise is valued. The success or challenges encountered under this contract could shape future procurement strategies and investment priorities for similar systems across the government and potentially influence commercial best practices.
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: 4
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: $95,574,682
Exercised Options: $95,574,682
Current Obligation: $80,218,967
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $28,037,491
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: 2022-06-22
Current End Date: 2027-06-21
Potential End Date: 2027-06-21 00:00:00
Last Modified: 2026-01-08
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