DoD's $125M R&D contract for helicopter capabilities awarded to KBR Wyle Services, LLC
Contract Overview
Contract Amount: $125,374,564 ($125.4M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-13
End Date: 2027-09-14
Contract Duration: 1,827 days
Daily Burn Rate: $68.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CAPABILITIES ASSESSMENT AND ENHANCEMENTS (60V) FOR PROGRAM EXECUTIVE OFFICE (PEO) AVIATION, UTILITY HELICOPTER PROJECT OFFICE (UHPO)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $125.4 million to KBR WYLE SERVICES, LLC for work described as: CAPABILITIES ASSESSMENT AND ENHANCEMENTS (60V) FOR PROGRAM EXECUTIVE OFFICE (PEO) AVIATION, UTILITY HELICOPTER PROJECT OFFICE (UHPO) Key points: 1. Contract focuses on research and development for aviation program executive offices. 2. Significant investment in enhancing utility helicopter project office capabilities. 3. Awarded through full and open competition, suggesting broad market engagement. 4. Long duration of 1827 days indicates a substantial, multi-year effort. 5. Cost-plus-fixed-fee structure may incentivize cost management by the contractor. 6. Potential for innovation in physical, engineering, and life sciences related to aviation.
Value Assessment
Rating: good
The contract value of $125.4 million over approximately five years appears reasonable for specialized R&D in aviation systems. Benchmarking against similar large-scale engineering and R&D contracts within the Department of Defense suggests this is within expected parameters for complex system enhancements. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, requires careful oversight to ensure value for money and prevent cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders suggests a competitive environment, which typically leads to better pricing and innovation. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions for the required R&D services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage the development of more efficient solutions.
Public Impact
Benefits the Department of Defense, specifically the PEO Aviation and UHPO, by advancing helicopter technology. Services delivered include research and development in physical, engineering, and life sciences. Geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include skilled R&D professionals in aerospace and related engineering fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can sometimes lead to higher costs if not managed diligently.
- Long contract durations may present challenges in adapting to rapidly evolving technologies.
- Reliance on a single contractor for a significant R&D effort could limit alternative perspectives.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contractor KBR Wyle Services, LLC has a track record in government contracting.
- Focus on R&D suggests a commitment to future technological advancements in aviation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences applied to aviation. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks for large-scale aerospace R&D contracts often run into hundreds of millions of dollars over several years, making this award size consistent with industry norms for advanced development projects.
Small Business Impact
This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless KBR Wyle Services, LLC voluntarily engages small businesses for specialized support. Further analysis would be needed to determine any indirect benefits or subcontracting plans.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Defense's contracting officers and program managers within PEO Aviation. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract databases and performance reviews, though specific oversight mechanisms for R&D projects can vary.
Related Government Programs
- PEO Aviation Programs
- Utility Helicopter Programs
- Aerospace Research and Development
- Defense Science and Technology
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- R&D projects carry inherent uncertainty and risk of technical challenges.
- Long contract duration may require adaptation to evolving requirements.
Tags
department-of-defense, research-and-development, aviation, helicopter, kbr-wyle-services, full-and-open-competition, cost-plus-fixed-fee, alabama, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.4 million to KBR WYLE SERVICES, LLC. CAPABILITIES ASSESSMENT AND ENHANCEMENTS (60V) FOR PROGRAM EXECUTIVE OFFICE (PEO) AVIATION, UTILITY HELICOPTER PROJECT OFFICE (UHPO)
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 $125.4 million.
What is the period of performance?
Start: 2022-09-13. End: 2027-09-14.
What is KBR Wyle Services, LLC's track record with similar R&D contracts for the Department of Defense?
KBR Wyle Services, LLC, as a subsidiary of KBR, Inc., has a significant history of performing complex engineering, scientific, and technical services for various government agencies, including the Department of Defense. They have been involved in numerous contracts related to aerospace, aviation systems, and research and development. While specific R&D contract values and performance details for UHPO are not immediately available in this summary, KBR's broader portfolio indicates substantial experience in managing large-scale, technically demanding projects. Their past performance would be a key factor in the DoD's decision-making process for awarding this contract, likely involving reviews of their technical capabilities, project management, and cost control on previous similar endeavors.
How does the value of this contract compare to other R&D efforts in utility helicopter modernization?
The $125.4 million value for this 5-year R&D contract for utility helicopter capabilities is substantial but falls within the expected range for significant technological advancement programs within the DoD. Modernizing complex systems like helicopters involves extensive research into areas such as materials science, propulsion, avionics, and survivability. Comparable R&D efforts for major defense platforms can easily reach hundreds of millions or even billions of dollars over their lifecycle. This specific award suggests a focused effort on specific enhancements for the UHPO, rather than a complete platform overhaul, making its value proportionate to the defined scope of research and development.
What are the primary risks associated with this cost-plus-fixed-fee R&D contract?
The primary risks associated with this Cost-Plus-Fixed-Fee (CPFF) R&D contract include potential cost overruns if the scope of work expands or unforeseen technical challenges arise, as the contractor is reimbursed for allowable costs plus a fixed fee. There's also a risk of schedule delays due to the inherent uncertainties in research and development. Another risk is ensuring the developed technologies are effectively integrated and meet the evolving operational requirements of the UHPO. Contractor performance and the ability to deliver innovative solutions within the defined objectives are critical risk factors that require diligent government oversight.
How effective is the full and open competition process likely to be in ensuring value for money for this contract?
The full and open competition process is generally effective in ensuring value for money for R&D contracts by allowing a wide range of qualified contractors to compete. This broad competition can drive innovation and encourage more competitive pricing. With 6 bidders, the agency had a good selection pool. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to accurately assess the technical merit and proposed costs. For R&D, value for money is not solely about the lowest price but also about the potential for groundbreaking solutions and long-term technological advantage, which a competitive process aims to uncover.
What are the historical spending patterns for R&D related to utility helicopters within the Department of Defense?
Historical spending patterns for R&D related to utility helicopters within the DoD show a consistent and significant investment aimed at maintaining and enhancing the capabilities of these critical assets. Funding fluctuates based on modernization cycles, emerging threats, and technological advancements. Over the past decade, the DoD has allocated billions towards helicopter R&D, covering areas like improved performance, enhanced survivability, reduced maintenance, and new mission capabilities. Contracts for specific R&D efforts, like this one, are part of a larger, ongoing strategy to ensure the U.S. maintains a technological edge in rotary-wing aviation.
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: 6
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: $156,762,711
Exercised Options: $156,762,711
Current Obligation: $125,374,564
Actual Outlays: $3,373,441
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $64,631,214
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: 2022-09-13
Current End Date: 2027-09-14
Potential End Date: 2027-09-14 00:00:00
Last Modified: 2025-12-10
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