DoD's $115.8M R&D contract for missile systems awarded to KBR WYLE SERVICES, LLC
Contract Overview
Contract Amount: $115,852,664 ($115.9M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-31
End Date: 2028-12-30
Contract Duration: 1,826 days
Daily Burn Rate: $63.4K/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 $115.9 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 focuses on research and development for missile systems, indicating a need for advanced technological solutions. 2. The award to KBR WYLE SERVICES, LLC suggests a competitive process, though specific bidder numbers are not detailed. 3. A Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not closely managed. 4. The contract duration of approximately five years allows for sustained development and testing. 5. This award falls under the broader category of R&D in physical, engineering, and life sciences. 6. The contract is managed by the Department of the Air Force for the Army's Project Office.
Value Assessment
Rating: good
Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and comparable R&D projects. However, the total award ceiling of $115.8 million over five years suggests a significant investment in advanced missile technology. The fixed fee component provides some cost certainty for the government, but the cost-plus nature requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Compared to other large-scale R&D efforts in defense, this amount appears within a reasonable range for specialized missile system development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. While the specific number of bidders is not provided, this approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The government's commitment to full and open competition suggests they sought the best value from the widest possible pool of contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that government funds are used efficiently by selecting the most capable and cost-effective contractor.
Public Impact
The primary beneficiaries are the Department of the Army's missile defense capabilities, enhancing national security. Services delivered include research, development, and potentially testing of advanced missile systems. The contract is geographically focused on Alabama (AL), where the contractor is located. This contract supports specialized R&D roles within the defense sector, potentially impacting the highly skilled scientific and engineering workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require robust oversight to manage potential cost escalations.
- The complexity of missile systems R&D inherently carries technical and schedule risks.
- Reliance on a single contractor for a significant R&D effort could limit future competitive options if knowledge transfer is not managed.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded good value.
- The contract duration allows for sustained focus and development of critical missile technologies.
- The contractor, KBR WYLE SERVICES, LLC, likely possesses specialized expertise required for this advanced R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The defense R&D market is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks for advanced missile system development can vary widely based on technological complexity and program scope, but a ceiling of over $100 million for a five-year effort is substantial and indicative of a critical national security program.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the focus was on securing the most capable large-scale R&D provider. There is no explicit mention of subcontracting requirements for small businesses within this data, which could be detailed in the full contract. Without this information, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, acting on behalf of the Army's Project Office. Accountability measures are inherent in the CPFF structure, requiring the contractor to justify costs against the fixed fee. Transparency will depend on the reporting requirements stipulated in the contract and the agency's policies regarding the release of R&D information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Advanced Weapons Research
- Department of Defense Research and Development Programs
- Army Aviation and Missile Command (AMCOM) Contracts
- Air Force Research Laboratory (AFRL) Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Technological Obsolescence Risk (Long Duration R&D)
- Scope Creep Potential (R&D Flexibility)
- Dependency on Contractor Expertise
Tags
research-and-development, missile-systems, department-of-defense, department-of-the-air-force, department-of-the-army, cost-plus-fixed-fee, full-and-open-competition, kbr-wyle-services, alabama, defense-contracting, advanced-technology, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $115.9 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 $115.9 million.
What is the period of performance?
Start: 2023-12-31. End: 2028-12-30.
What is the specific nature of the 'Search, Track, Acquire, Radiate, Eliminate' project and its technological goals?
The 'Search, Track, Acquire, Radiate, Eliminate' (STARE) project, managed by the Program Executive Office Missiles and Space, likely focuses on developing integrated systems for detecting, identifying, tracking, targeting, and neutralizing missile threats. This involves advanced sensor technology for search and track, sophisticated algorithms for acquisition and engagement, and potentially directed energy or kinetic effectors for elimination. The specific technological goals would involve enhancing the speed, accuracy, and effectiveness of missile defense systems against evolving threats, potentially including hypersonic or advanced maneuvering missiles. The R&D effort aims to push the boundaries of current capabilities in these critical areas.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and contractor incentive in this R&D contract?
The Cost Plus Fixed Fee (CPFF) contract structure means the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for R&D where the final costs are uncertain. For cost control, it places the burden of managing expenses on the contractor, as they are reimbursed for actual costs. However, it incentivizes the contractor to incur costs to ensure the project progresses, as their profit (the fixed fee) is constant regardless of the final cost. Effective government oversight is crucial to scrutinize allowable costs and ensure the contractor exercises prudent fiscal management to avoid unnecessary expenditures. The fixed fee provides a ceiling on profit, but not on total project cost.
What is KBR WYLE SERVICES, LLC's track record in defense R&D, particularly in missile systems?
KBR WYLE SERVICES, LLC, and its predecessors, have a significant history of supporting U.S. defense agencies, including the Department of Defense, in various R&D and technical services capacities. While specific details on their involvement in 'Search, Track, Acquire, Radiate, Eliminate' missile systems prior to this award are not immediately available in summary data, the company has extensive experience in areas such as aerospace engineering, test and evaluation, and scientific research. Their portfolio often includes work on complex systems, simulation, and analysis, which are foundational to advanced missile development. A deeper dive into their contract history and specific project involvements would provide a more precise understanding of their expertise directly relevant to this program.
Are there any comparable R&D contracts for similar missile system development programs, and how does this award's value compare?
Directly comparable R&D contracts for highly specific missile system development programs like 'Search, Track, Acquire, Radiate, Eliminate' are often classified or not publicly detailed to the same extent. However, major defense R&D initiatives, particularly those involving advanced missile technology, frequently involve contract values in the tens to hundreds of millions of dollars over several years. For instance, contracts for developing next-generation fighter jet avionics, advanced radar systems, or strategic missile components can reach similar or higher ceilings. The $115.8 million ceiling over five years for this project appears consistent with the substantial investment required for cutting-edge defense technology development, suggesting it is within the expected range for such critical R&D.
What are the potential risks associated with the five-year duration and the CPFF contract type for this R&D effort?
The five-year duration for this R&D contract presents risks related to evolving technological landscapes and potential shifts in strategic priorities. Technologies developed early in the contract might become outdated or less relevant by its conclusion. Furthermore, the CPFF structure carries inherent risks. While it allows flexibility for R&D, it can lead to cost overruns if not meticulously managed, as the contractor is reimbursed for actual costs. There's also a risk that the fixed fee might not adequately incentivize cost efficiency if the contractor focuses solely on completing tasks rather than optimizing resource use. Robust government oversight, clear performance metrics, and regular reviews are essential to mitigate these risks.
How does this contract align with the Department of Defense's broader strategic goals for missile defense and technological superiority?
This contract directly aligns with the Department of Defense's (DoD) overarching strategic goals, which consistently emphasize maintaining technological superiority and enhancing missile defense capabilities. The 'Search, Track, Acquire, Radiate, Eliminate' project addresses critical aspects of countering current and future missile threats, including those from peer or near-peer adversaries. Investing in advanced R&D for missile systems is crucial for ensuring the effectiveness of U.S. and allied forces, deterring aggression, and protecting national interests. The focus on integrated systems suggests a move towards more comprehensive and responsive defense architectures, reflecting the DoD's strategic imperative to adapt to a rapidly changing threat environment.
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: $188,685,612
Exercised Options: $188,685,612
Current Obligation: $115,852,664
Actual Outlays: $11,797,143
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $69,851,848
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: 2023-12-31
Current End Date: 2028-12-30
Potential End Date: 2028-12-30 00:00:00
Last Modified: 2025-12-23
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