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 ServicesFacilities Support ServicesFacilities 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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