DoD Awards $580M LOGCAP Base Life Support Services to KBR Services, LLC
Contract Overview
Contract Amount: $580,196,693 ($580.2M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2015-08-14
End Date: 2021-09-29
Contract Duration: 2,238 days
Daily Burn Rate: $259.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE EUCOM AREA OF RESPONSIBILITY.
Plain-Language Summary
Department of Defense obligated $580.2 million to KBR SERVICES, LLC for work described as: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE EUCOM AREA OF RESPONSIBILITY. Key points: 1. Contract value of $580.2M for essential life support services. 2. Awarded under full and open competition, indicating market availability. 3. Long duration (2238 days) may present scope creep or price escalation risks. 4. Services fall under Facilities Support Services (NAICS 561210).
Value Assessment
Rating: good
The contract value of $580.2M is substantial for life support services. Benchmarking against similar large-scale support contracts is necessary to fully assess pricing, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting multiple capable vendors were considered. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Competition likely led to a fair price, but the large contract value means significant taxpayer funds are allocated to these services.
Public Impact
Ensures critical life support functions for U.S. military personnel in the EUCOM area. Supports operational readiness and morale of deployed forces. Impacts local economies through subcontractor and vendor engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns and scope creep.
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Geopolitical instability in EUCOM AOR could impact service delivery and costs.
Positive Signals
- Awarded via full and open competition.
- Firm-fixed-price contract type provides cost predictability.
- Essential services supporting military operations.
Sector Analysis
Facilities Support Services are crucial for maintaining operational infrastructure. Spending in this sector can vary significantly based on geographic scope and service complexity, with large contracts like this supporting extensive military operations.
Small Business Impact
While KBR Services, LLC is a large business, the contract may offer subcontracting opportunities for small businesses within the facilities support and logistics sectors.
Oversight & Accountability
Oversight is critical given the contract's duration and geographic scope. Regular performance reviews and audits are necessary to ensure service quality and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 6 years).
- Services provided in a potentially volatile geographic area (EUCOM AOR).
- Potential for scope creep impacting cost and delivery.
- Reliance on a single large contractor for critical services.
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 $580.2 million to KBR SERVICES, LLC. IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE EUCOM AREA OF RESPONSIBILITY.
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 $580.2 million.
What is the period of performance?
Start: 2015-08-14. End: 2021-09-29.
What is the cost per service member or per facility supported by this contract, and how does it compare to industry benchmarks?
Determining the precise cost per service member or facility requires detailed breakdown of services provided and personnel/infrastructure numbers within the EUCOM AOR. Without this granular data, direct comparison to industry benchmarks is difficult. However, the overall contract value suggests a significant investment in maintaining operational readiness and quality of life for deployed forces.
What are the specific performance metrics and penalties outlined in the contract to ensure service quality and mitigate risks?
The contract likely includes Service Level Agreements (SLAs) with defined performance metrics for life support functions. Penalties for non-performance or failure to meet SLAs would be stipulated. Detailed review of the contract's performance work statement and associated clauses is needed to identify specific metrics and consequences for KBR Services, LLC.
How effectively has KBR Services, LLC managed similar large-scale life support contracts in complex environments previously?
KBR Services, LLC has a long history of managing large, complex logistics and support contracts globally, including LOGCAP programs. Their past performance record, available through contract databases and performance evaluations, would indicate their effectiveness in similar environments. Assessing this history is key to understanding their capability for this EUCOM contract.
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: FIRM FIXED PRICE (J)
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: $580,196,693
Exercised Options: $580,196,693
Current Obligation: $580,196,693
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $251,254
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: 2015-08-14
Current End Date: 2021-09-29
Potential End Date: 2021-09-29 00:00:00
Last Modified: 2025-09-29
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