KBR Services awarded $14.17M for facilities support, with a 6-year performance period
Contract Overview
Contract Amount: $14,168,602 ($14.2M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2007-06-27
End Date: 2021-04-02
Contract Duration: 5,028 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROGRAM MANAGEMENT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77077
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to KBR SERVICES, LLC for work described as: PROGRAM MANAGEMENT Key points: 1. Value for money appears reasonable given the long-term nature of the contract and the breadth of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration potentially introducing performance risks. 4. Performance context is within facilities support, a critical but often complex service area. 5. Sector positioning is within defense facilities management, a significant area of government spending.
Value Assessment
Rating: good
The contract value of $14.17 million over approximately 13.7 years (from June 2007 to April 2021) suggests an average annual spend of roughly $1.03 million. This appears to be a competitive rate for comprehensive facilities support services, especially considering the firm-fixed-price structure which shifts risk to the contractor. Benchmarking against similar large-scale facilities management contracts for military installations would provide a more precise value assessment, but initial indications suggest fair pricing.
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 offers. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.
Taxpayer Impact: A full and open competition benefits taxpayers by driving down costs through competitive bidding and ensuring the government receives the best value for its investment.
Public Impact
The primary beneficiaries are the Department of the Army and its personnel, who receive essential facilities support services. Services delivered include a wide range of facility maintenance, operations, and management functions. The geographic impact is concentrated in Texas, where the contractor is located and services are likely performed. Workforce implications include the creation or maintenance of jobs within the facilities management sector, potentially benefiting local economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 13 years) may lead to scope creep or evolving needs not fully captured in the initial award.
- Firm-fixed-price contracts can sometimes lead to contractor pressure to cut corners if not adequately monitored.
- Reliance on a single contractor for extensive facilities support could pose a risk if performance degrades significantly.
Positive Signals
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- The firm-fixed-price contract structure transfers cost overrun risk to the contractor.
- The contract was awarded to KBR Services, LLC, a known entity in government contracting, suggesting a degree of established capability.
Sector Analysis
Facilities Support Services represent a significant segment of the government contracting market, encompassing a broad range of maintenance, repair, and operational support for government-owned or leased facilities. This sector is characterized by a mix of large, established players and smaller specialized firms. The total addressable market for facilities management within the federal government is in the tens of billions of dollars annually, covering everything from janitorial services to complex building systems management. This contract fits within the broader defense facilities maintenance landscape, a critical component of military readiness and operations.
Small Business Impact
This contract does not appear to have a small business set-aside component (ss: false, sb: false). While KBR Services, LLC is a large business, the analysis does not provide information on their subcontracting plans for small businesses. Without specific subcontracting goals or reporting, it's difficult to assess the direct impact on the small business ecosystem for this particular award. However, large prime contractors often utilize small businesses for specialized services within larger contracts.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded within the contract's performance standards and deliverables, tied to the firm-fixed-price structure. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Support Services
- Facilities Maintenance Contracts
- Government Property Management
- Construction and Engineering Services
Risk Flags
- Long contract duration may increase risk of cost escalation or scope misalignment.
- Firm-fixed-price contracts require diligent oversight to ensure quality and prevent corner-cutting.
- Performance data over the full contract lifecycle is needed for a complete value assessment.
Tags
facilities-support, department-of-defense, department-of-the-army, kbr-services-llc, firm-fixed-price, full-and-open-competition, delivery-order, texas, facilities-management, long-term-contract, defense-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to KBR SERVICES, LLC. PROGRAM MANAGEMENT
Who is the contractor on this award?
The obligated recipient is KBR SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 2007-06-27. End: 2021-04-02.
What is KBR Services, LLC's track record with similar federal contracts, particularly in facilities support?
KBR Services, LLC, and its parent company Kellogg Brown & Root, have a long and extensive history of performing large-scale government contracts, including significant work in facilities support, base operations, and logistics, particularly for the Department of Defense. They have managed complex projects in challenging environments globally. While their track record is generally extensive, specific performance metrics for this particular contract (Award ID: 561210) over its long duration would require deeper analysis of performance reports and any documented issues or commendations. Their experience suggests a capacity to handle such requirements, but the success of any large contract hinges on effective execution and oversight specific to the task.
How does the $1.03 million average annual spend compare to similar facilities support contracts awarded by the Department of the Army?
An average annual spend of approximately $1.03 million for facilities support services, based on the $14.17 million total value over roughly 13.7 years, appears to be within a reasonable range for a contract of this nature, especially considering it was awarded under full and open competition. However, a precise comparison requires benchmarking against contracts with similar scope, geographic location, and service complexity. Factors like the specific types of facilities managed (e.g., barracks, administrative buildings, specialized technical facilities), the level of service required (e.g., preventative maintenance, emergency repairs, groundskeeping), and the prevailing labor costs in Texas would influence the benchmark. Without detailed comparative data on similar Army facilities support contracts, it's difficult to definitively state if this represents exceptional value, but it does not immediately appear to be an outlier.
What are the primary risks associated with a firm-fixed-price contract of this duration (over 13 years)?
The primary risks associated with a firm-fixed-price (FFP) contract of this extended duration (over 13 years) revolve around potential misalignment between the fixed price and the evolving needs or costs over time. For the government, the risk is that the fixed price may become uncompetitive if market rates increase significantly or if the scope of work needs to change substantially, potentially requiring costly modifications or a new procurement. For the contractor, the risk lies in underestimating future costs, inflation, or unforeseen challenges, which could erode profit margins. Additionally, over such a long period, there's a risk of contractor complacency or a decline in service quality if performance monitoring is not rigorous, despite the FFP structure aiming to incentivize efficiency. Scope creep, if not managed through formal change orders, can also become a significant issue.
What does the number of bidders (6) suggest about the market for facilities support services in this region?
The fact that six bidders competed for this facilities support contract suggests a moderately competitive market for these services, at least among the types of companies capable of undertaking a contract of this scale. A higher number of bidders typically indicates greater market interest and potentially more robust competition, which can lead to better pricing and service offerings for the government. Six bidders represent a reasonable level of engagement, implying that the requirement was attractive enough to draw multiple qualified companies. It suggests that the barriers to entry for large-scale facilities support contracts are not prohibitively high for established players, and that there are several firms with the capacity and interest to compete for Department of the Army contracts in Texas.
How has federal spending on facilities support services evolved over the period this contract was active (2007-2021)?
Federal spending on facilities support services generally remained a substantial category throughout the 2007-2021 period, reflecting the government's vast real estate portfolio. While specific trends fluctuate based on defense spending levels, infrastructure investment priorities, and economic conditions, the overall demand for maintenance, operations, and management of facilities remained consistently high. During this timeframe, there were periods of increased focus on efficiency and cost-saving measures within government contracting, alongside significant investments in military infrastructure. Budgetary constraints in later years may have put pressure on contract values or durations, while earlier years might have seen larger investments. This contract's long duration spans various fiscal climates, potentially experiencing adjustments or reviews based on prevailing budget realities.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 601 JEFFERSON ST, HOUSTON, TX, 77002
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,168,602
Exercised Options: $14,168,602
Current Obligation: $14,168,602
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J07D0009
IDV Type: IDC
Timeline
Start Date: 2007-06-27
Current End Date: 2021-04-02
Potential End Date: 2021-04-02 12:04:00
Last Modified: 2025-12-09
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