DoD's LOGCAP IV Afghanistan Contract Reaches $12.57 Billion, Awarded to Fluor Intercontinental
Contract Overview
Contract Amount: $12,568,636,131 ($12.6B)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2009-07-07
End Date: 2025-09-30
Contract Duration: 5,929 days
Daily Burn Rate: $2.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOGCAP IV SERVICES AFGHANISTAN
Plain-Language Summary
Department of Defense obligated $12.57 billion to FLUOR INTERCONTINENTAL, INC for work described as: LOGCAP IV SERVICES AFGHANISTAN Key points: 1. Significant spending on facilities support services in Afghanistan. 2. Fluor Intercontinental is the sole awardee for this large contract. 3. Long contract duration raises questions about sustained need and cost-effectiveness. 4. The contract falls under facilities support services, a broad category.
Value Assessment
Rating: questionable
The total award value of $12.57 billion over a long period suggests a substantial investment. Benchmarking this against similar large-scale, long-term support contracts in austere environments is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract was initially awarded under full and open competition, the nature of LOGCAP implies potential for follow-on work and modifications that could impact future price discovery.
Taxpayer Impact: The substantial expenditure of over $12.5 billion represents a significant allocation of taxpayer funds for logistical support in a complex operational environment.
Public Impact
Impacts military readiness and operational capabilities by providing essential support services. Contributes to the economic landscape through contractor employment and resource utilization. Raises questions about long-term U.S. commitment and resource allocation in Afghanistan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration
- High total award value
- Services in a complex operational environment
Positive Signals
- Awarded under full and open competition
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing a wide range of operational and maintenance activities. Benchmarking against similar large-scale, long-term contracts in defense or contingency operations is necessary for a comprehensive assessment.
Small Business Impact
The data indicates that Fluor Intercontinental, Inc. is the awardee. There is no explicit information provided regarding small business participation or subcontracting within this specific award.
Oversight & Accountability
Oversight of such a large and long-duration contract is critical. The Department of the Army's role suggests established oversight mechanisms, but the scale necessitates rigorous monitoring of performance, costs, and adherence to contract terms.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High total contract value
- Long contract duration
- Services in a complex operational environment
- Potential for cost overruns with CPFF structure
Tags
facilities-support-services, department-of-defense, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.57 billion to FLUOR INTERCONTINENTAL, INC. LOGCAP IV SERVICES AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.57 billion.
What is the period of performance?
Start: 2009-07-07. End: 2025-09-30.
What is the breakdown of services provided under LOGCAP IV in Afghanistan and how do these align with current strategic objectives?
LOGCAP IV provides a wide range of services including logistics, maintenance, construction, and base support. The alignment with current strategic objectives requires an analysis of the evolving U.S. military presence and mission in Afghanistan. Without specific details on service allocation, it's difficult to definitively assess if spending remains optimized for current needs.
What are the key performance indicators and risk mitigation strategies employed for this contract given its duration and operational environment?
Key performance indicators likely focus on service delivery, cost control, and safety. Risk mitigation strategies would address geopolitical instability, logistical challenges, and potential security threats inherent in Afghanistan. Specific details on these KPIs and strategies are not publicly available but are crucial for assessing contract effectiveness and accountability.
How has the cost-plus-fixed-fee (CPFF) contract structure influenced the total award value and potential for cost overruns?
The CPFF structure allows for cost reimbursement plus a fixed fee, which can be beneficial in uncertain environments but also carries a risk of cost overruns if not tightly managed. The substantial $12.57 billion award suggests significant costs incurred, necessitating close scrutiny of the fixed fee and the efficiency of cost management by Fluor Intercontinental.
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: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,568,636,131
Exercised Options: $12,568,636,131
Current Obligation: $12,568,636,131
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2009-07-07
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-29
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