DoD Awards KBR $595M for Iraq CLSS, TTM & Postal Operations
Contract Overview
Contract Amount: $594,824,815 ($594.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-26
End Date: 2011-12-31
Contract Duration: 673 days
Daily Burn Rate: $883.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IRAQ CLSS, TTM & POSTAL OPERATIONS
Plain-Language Summary
Department of Defense obligated $594.8 million to KBR SERVICES, LLC for work described as: IRAQ CLSS, TTM & POSTAL OPERATIONS Key points: 1. Significant contract value of $595M for essential support services. 2. KBR Services, LLC, a major defense contractor, holds the award. 3. The contract addresses critical logistical and operational needs in Iraq. 4. Services encompass facilities support, TTM, and postal operations.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful oversight to manage costs. The award value of $595M is substantial, and its reasonableness depends on the scope and duration of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive price discovery. The use of a Delivery Order indicates a flexible approach to tasking within the contract's scope.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting efficiency and potentially lower prices through market forces.
Public Impact
Ensures continuity of essential services for military operations in Iraq. Supports logistical and administrative functions critical to mission success. Impacts personnel and operations requiring postal and facility management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not managed diligently.
- Geopolitical instability in Iraq poses inherent operational risks.
- Long duration of contract (673 days) increases exposure to changing conditions.
Positive Signals
- Awarded under full and open competition, indicating a robust market.
- KBR has extensive experience in complex operational environments.
- Essential services support critical military functions.
Sector Analysis
This contract falls under Facilities Support Services, a broad category crucial for maintaining operational readiness. Spending in this sector is often driven by geopolitical demands and the need for robust logistical support in challenging environments.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The CPFF structure necessitates strong government oversight to ensure costs are reasonable and fixed fees are justified. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Operations in a high-risk environment (Iraq).
- Significant contract value ($595M).
- Long contract duration (673 days).
Tags
facilities-support-services, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $594.8 million to KBR SERVICES, LLC. IRAQ CLSS, TTM & POSTAL OPERATIONS
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 $594.8 million.
What is the period of performance?
Start: 2010-02-26. End: 2011-12-31.
What specific metrics were used to assess the value and necessity of these services in the operational context of Iraq?
The necessity of these services is likely tied to maintaining operational readiness and supporting troop presence in Iraq. Value would be assessed against the cost of alternative service providers or the impact of service disruption. Specific metrics would typically include performance standards for facilities maintenance, mail delivery times, and logistical support efficiency, benchmarked against established operational requirements.
What are the primary risks associated with KBR's performance given the operational environment in Iraq?
Primary risks include security threats to personnel and facilities, logistical challenges due to infrastructure limitations or disruptions, and potential for cost escalation due to unforeseen operational requirements or price fluctuations in the local market. Political instability and evolving mission objectives can also impact service delivery and necessitate contract modifications, potentially increasing costs and complexity.
How effectively does the CPFF contract type balance cost control with the need for flexibility in a dynamic operational environment?
The CPFF structure offers flexibility by allowing cost reimbursement plus a fixed fee, which is suitable for uncertain environments where scope may evolve. However, it inherently carries a higher risk of cost overruns compared to fixed-price contracts. Effective balance relies heavily on stringent government oversight, detailed cost tracking, and clear performance metrics to ensure the fixed fee remains appropriate and costs are managed diligently.
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
Address: 601 JEFFERSON ST, HOUSTON, TX, 77002
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $594,824,815
Exercised Options: $594,824,815
Current Obligation: $594,824,815
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: 2010-02-26
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2023-01-27
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