DoD Awards $335.6M for Arabian Peninsula Life Support Services to KBR Services, LLC
Contract Overview
Contract Amount: $335,619,284 ($335.6M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2015-04-17
End Date: 2022-09-30
Contract Duration: 2,723 days
Daily Burn Rate: $123.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF PROVIDE BASE LIFE SUPPORT SERVICES IN THE ARABIAN PENINSULA.
Plain-Language Summary
Department of Defense obligated $335.6 million to KBR SERVICES, LLC for work described as: IGF::OT::IGF PROVIDE BASE LIFE SUPPORT SERVICES IN THE ARABIAN PENINSULA. Key points: 1. Significant contract value of $335.6M over 7+ years. 2. KBR Services, LLC is the sole awardee for this delivery order. 3. Potential risk associated with long-term service contracts in complex regions. 4. Facilities Support Services sector, NAICS 561210.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar long-term base support contracts is difficult without more detailed cost breakdowns.
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. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where initial competition occurred.
Taxpayer Impact: Taxpayer funds are utilized for essential life support services in a critical operational theater, aiming for efficient service delivery through competition.
Public Impact
Ensures essential life support services for military personnel in the Arabian Peninsula. Supports operational readiness and morale of deployed forces. Impacts local economies through service provision and potential subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration
- Cost-plus contract type
- Geopolitical risks in the region
Positive Signals
- Full and open competition
- Essential service provision
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of facilities. Spending in this sector is substantial across government agencies, particularly for overseas operations.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and services meet requirements. The Department of Defense's Inspector General and relevant contracting command are responsible for monitoring performance and expenditures.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Geopolitical instability in the Arabian Peninsula could impact service delivery and costs.
- Long contract duration may limit adaptability to evolving needs or technologies.
- Lack of detailed cost breakdown hinders comprehensive value assessment.
- Sole awardee for this delivery order warrants scrutiny of initial competition fairness.
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 $335.6 million to KBR SERVICES, LLC. IGF::OT::IGF PROVIDE BASE LIFE SUPPORT SERVICES IN THE ARABIAN PENINSULA.
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 $335.6 million.
What is the period of performance?
Start: 2015-04-17. End: 2022-09-30.
What is the breakdown of costs within the Cost Plus Fixed Fee structure, and how does it compare to industry benchmarks for similar services?
A detailed breakdown of costs, including direct costs, indirect costs, and the fixed fee, is essential for evaluating the value of this contract. Without this granular data, it's challenging to benchmark against industry standards for life support services in similar operational environments. The fixed fee component should reflect the contractor's profit and risk, but its reasonableness requires scrutiny against market rates and contract complexity.
What are the specific performance metrics and key performance indicators (KPIs) used to assess KBR Services, LLC's delivery of base life support services?
Effective oversight relies on clearly defined performance metrics and KPIs tied to the contract's Statement of Work. These should encompass areas like food services, housing maintenance, laundry, transportation, and waste management. Regular performance reviews and audits by the contracting officer's representative (COR) are necessary to ensure KBR meets or exceeds these standards, mitigating risks associated with service quality and operational disruptions.
How does the long-term nature of this contract (over 7 years) impact the government's ability to adapt to changing requirements or leverage new technologies in life support services?
Long-term contracts can offer stability and predictability but may also reduce flexibility. The government's ability to adapt depends on contract clauses allowing for modifications or incorporating mechanisms for technological upgrades. If the contract lacks such provisions, the DoD might face challenges in adopting more efficient or cost-effective solutions that emerge during the contract period, potentially leading to suboptimal value over time.
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: W52P1J14R0086
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $335,619,284
Exercised Options: $335,619,284
Current Obligation: $335,619,284
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $910,210
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: 2015-04-17
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 12:09:00
Last Modified: 2025-09-25
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