DoD's $760M Iraq Facilities Support Contract Awarded to KBR Services, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $760,677,582 ($760.7M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2011-08-01
End Date: 2017-05-31
Contract Duration: 2,130 days
Daily Burn Rate: $357.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IRAQ POST 2011 BLS
Plain-Language Summary
Department of Defense obligated $760.7 million to KBR SERVICES, LLC for work described as: IRAQ POST 2011 BLS Key points: 1. Contract awarded through full and open competition, suggesting a robust market search. 2. Significant contract value indicates a large-scale, long-term service requirement. 3. Facilities support services are critical for operational readiness and infrastructure maintenance. 4. The duration of the contract (2130 days) points to sustained operational needs. 5. Awarded by the Department of the Army, highlighting a major defense infrastructure commitment. 6. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful cost oversight.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, the substantial dollar amount ($760.7 million) over a nearly six-year period suggests a significant investment in facilities support. The CPFF structure, while common for complex services, can sometimes lead to higher costs if not managed diligently. Further analysis would require comparing unit costs for specific services against industry benchmarks and other government contracts for similar support in contingency environments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and achieving the best value for the government. The presence of 3 bids suggests a competitive landscape, though the specific number of bidders can vary widely depending on the complexity and scope of the services required.
Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers by encouraging multiple companies to vie for the contract, potentially driving down costs through market forces.
Public Impact
Provides essential facilities support services to U.S. military operations in Iraq. Ensures the operational readiness and sustainment of critical infrastructure. Supports the U.S. Department of Defense's mission in a key geopolitical region. Likely involves a significant workforce, including local nationals and potentially U.S. personnel, contributing to employment in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not rigorously managed.
- Operating in a contingency environment like Iraq presents inherent logistical and security risks.
- The long duration of the contract may not fully account for evolving operational requirements or geopolitical shifts.
Positive Signals
- Awarded through full and open competition, indicating a broad search for qualified contractors.
- Facilities support is a core competency for KBR Services, LLC, suggesting established expertise.
- The contract's substantial value reflects a significant commitment to supporting military operations.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services essential for the operation and maintenance of buildings and grounds. This sector includes services like maintenance, repair, janitorial, security, and logistics support. Government contracts in this area are substantial, reflecting the extensive infrastructure managed by federal agencies. The market is competitive, with both large and small businesses offering specialized services. This particular contract falls within the defense sector's need for robust operational support in complex environments.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, KBR Services, LLC, may still engage small businesses as subcontractors to fulfill specific aspects of the facilities support services, depending on their subcontracting plan and the availability of qualified small business vendors.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Given the CPFF structure and the operational environment, rigorous oversight would be expected to manage costs, ensure performance standards are met, and mitigate risks. Inspector General (IG) jurisdiction would likely apply, with potential audits and investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency would be facilitated through contract reporting mechanisms, though specific details of performance and cost management might be considered sensitive.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Support Services
- Contingency Operations Support
- Facilities Maintenance and Repair
- Defense Infrastructure Management
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Operating environment in Iraq presents inherent security and logistical risks.
- Long contract duration may require adjustments for evolving operational needs.
Tags
defense, department-of-defense, department-of-the-army, iraq, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, large-contract, contingency-operations, kbr-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $760.7 million to KBR SERVICES, LLC. IRAQ POST 2011 BLS
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 $760.7 million.
What is the period of performance?
Start: 2011-08-01. End: 2017-05-31.
What is the historical spending trend for KBR Services, LLC with the Department of Defense for facilities support?
Analyzing KBR Services, LLC's historical spending with the Department of Defense (DoD) for facilities support requires access to comprehensive federal procurement data beyond this single contract. However, KBR has a long-standing presence as a major contractor for the DoD, particularly in logistics, base operations, and facilities support, often in complex overseas environments. Their involvement in Iraq and Afghanistan has been extensive. To provide a precise trend, one would need to aggregate data on all facilities support contracts awarded to KBR by the DoD over several fiscal years, looking at total award values, contract types, and performance periods. This would reveal patterns of consistent or fluctuating reliance on KBR for these services, potentially highlighting periods of increased activity tied to specific military campaigns or drawdowns.
How does the per-unit cost of services under this contract compare to similar contracts awarded by the Army in other regions?
A direct per-unit cost comparison is difficult without granular data on the specific services rendered (e.g., cost per square foot maintained, cost per guard hour, cost per meal served) and the exact pricing structure within the Cost Plus Fixed Fee (CPFF) agreement. However, contracts in contingency operations environments like Iraq often incur higher costs due to increased logistical challenges, security requirements, and risk premiums compared to stateside contracts. Benchmarking would involve identifying comparable Army facilities support contracts in different regions (e.g., Europe, Asia, CONUS) with similar scopes of work and contract types. If KBR's unit costs for equivalent services in this Iraq contract are significantly higher than benchmarks, it could indicate potential inefficiencies, higher risk factors, or less competitive pricing, warranting further investigation into the specific cost drivers.
What are the key performance indicators (KPIs) used to measure KBR's performance on this contract, and how have they historically performed against them?
Key Performance Indicators (KPIs) for a facilities support contract of this nature typically include metrics related to response times for maintenance requests, uptime of critical infrastructure (e.g., power, water), quality of janitorial and groundskeeping services, security incident response, and adherence to safety protocols. Performance against these KPIs is usually documented in Contractor Performance Assessment Reporting System (CPARS) reports. While specific KPIs and historical performance data for this exact contract are not provided, KBR's CPARS history across various contracts would offer insights. Generally, large, long-term contracts require robust performance management systems. Any significant underperformance against critical KPIs could lead to contract modifications, penalties, or impact future award decisions. Conversely, consistent high performance would be a positive indicator.
What is the risk assessment associated with KBR Services, LLC as a contractor for this type of service in a post-conflict zone?
The risk assessment for KBR Services, LLC on this contract involves several factors. KBR has extensive experience in complex, high-risk environments, which mitigates some operational risks. However, operating in Iraq post-2011 still presented significant security challenges, potential for political instability, and logistical complexities that could impact service delivery and cost. Financial risks include potential cost overruns inherent in CPFF contracts, especially if unforeseen issues arise. Reputational risks are always present in such high-visibility operations. The DoD's due diligence process, including past performance reviews and financial health assessments, would have informed the decision to award to KBR. Continuous monitoring by the government is crucial to manage these ongoing risks throughout the contract's life.
How has the total spending on facilities support services by the Department of the Army evolved over the period of this contract (2011-2017)?
To assess the evolution of total spending on facilities support services by the Department of the Army between 2011 and 2017, one would need to analyze aggregate federal procurement data, specifically focusing on contracts categorized under NAICS code 561210 (Facilities Support Services) awarded by the Army. This period coincided with the drawdown of U.S. forces in Iraq and Afghanistan, which likely influenced spending patterns. Initially, spending might have remained high to maintain existing infrastructure and support residual operations. As operations wound down and forces drew down, spending on certain types of support services may have decreased, while spending on base closure, sustainment, or transition services might have increased. A detailed analysis would reveal fluctuations tied to strategic shifts and operational tempo.
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: $760,677,582
Exercised Options: $760,677,582
Current Obligation: $760,677,582
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: 2011-08-01
Current End Date: 2017-05-31
Potential End Date: 2017-05-31 00:00:00
Last Modified: 2023-01-27
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