DoD Awards $2.2B Facilities Support Contract to KBR Services, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $2,207,263,444 ($2.2B)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2014-12-16
End Date: 2023-09-30
Contract Duration: 3,210 days
Daily Burn Rate: $687.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AWARD TASK ORDER IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $2.21 billion to KBR SERVICES, LLC for work described as: AWARD TASK ORDER IGF::OT::IGF Key points: 1. Contract Value: $2.2 billion over its lifespan. 2. Competition: Awarded via full and open competition, indicating a competitive bidding process. 3. Risk: Cost-plus-fixed-fee contract type can lead to cost overruns if not managed closely. 4. Sector: Facilities Support Services, a critical operational area for the Department of the Army.
Value Assessment
Rating: good
The contract value of $2.2 billion is substantial for facilities support services. Benchmarking against similar large-scale, long-term facilities management contracts is necessary to fully assess value, but the full and open competition suggests a reasonable price discovery process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically fosters competitive pricing and ensures the government receives the best value through a rigorous evaluation process.
Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.
Public Impact
Ensures continued operation and maintenance of critical Army facilities. Supports military readiness by providing essential infrastructure services. Potential for job creation within the facilities management sector. Long-term nature of the contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can incentivize contractor to increase costs.
- Long contract duration (9 years) increases risk of scope creep or changing requirements.
- Potential for performance issues in a large, complex service contract.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- KBR Services, LLC is an established contractor with experience in this domain.
- Contract supports critical Army operations, aligning with strategic objectives.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a broad range of services including maintenance, repair, operations, and management of physical infrastructure. Spending in this sector is significant across government agencies, particularly for entities with large physical footprints like the Department of Defense.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While KBR Services, LLC is a large prime contractor, the extent to which they will subcontract to small businesses is not detailed here and would require further investigation.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight from the Department of the Army to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits will be crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (9 years).
- Potential for performance degradation over time.
- Lack of specific small business subcontracting information.
- Complexity of managing large-scale facilities support services.
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 $2.21 billion to KBR SERVICES, LLC. AWARD TASK ORDER IGF::OT::IGF
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 $2.21 billion.
What is the period of performance?
Start: 2014-12-16. End: 2023-09-30.
What specific facilities and services are included in this $2.2 billion contract, and how do these align with the Army's current and future operational needs?
The contract covers facilities support services, likely encompassing a wide array of maintenance, repair, operations, and management functions for Army installations. A detailed breakdown of included services and facilities is essential to confirm alignment with current needs and future strategic objectives. Understanding the scope helps assess the contract's overall value and necessity.
Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms are in place to prevent cost overruns and ensure efficient resource utilization by KBR Services, LLC?
The CPFF structure requires diligent oversight to manage costs. The Army should implement strict performance metrics, regular financial audits, and clear reporting requirements for KBR. Incentive clauses tied to cost savings or performance improvements could also mitigate the risk of overspending and encourage efficiency.
How will the performance of KBR Services, LLC be measured and evaluated throughout the contract's nine-year duration to ensure effective service delivery?
Effective performance measurement requires clearly defined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) established at the outset. Regular performance reviews, user feedback mechanisms, and independent quality assurance checks are vital. The Army must have a proactive approach to identifying and addressing any performance deficiencies promptly.
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
Solicitation ID: W52P1J15R0024
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $2,207,263,444
Exercised Options: $2,207,263,444
Current Obligation: $2,207,263,444
Subaward Activity
Number of Subawards: 151
Total Subaward Amount: $37,598,533
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: 2014-12-16
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 12:09:00
Last Modified: 2025-06-11
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