DoD's $40.7M Facilities Support Services Contract with Fluor Intercontinental Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $40,754,588 ($40.8M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2015-08-14
End Date: 2025-09-30
Contract Duration: 3,700 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR SOUTHCOM AREA OF RESPONSIBILITY.
Plain-Language Summary
Department of Defense obligated $40.8 million to FLUOR INTERCONTINENTAL, INC for work described as: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR SOUTHCOM AREA OF RESPONSIBILITY. Key points: 1. The contract's value proposition requires deeper analysis against similar service contracts. 2. Competition dynamics appear robust, potentially driving better pricing, but require validation. 3. Risk indicators are moderate, necessitating close monitoring of performance and cost controls. 4. Performance context is crucial, as this contract spans a decade and multiple delivery orders. 5. The services provided fall within the Facilities Support Services sector, a common area for government contracting. 6. Oversight mechanisms need to be clearly defined to ensure accountability and value for taxpayer funds.
Value Assessment
Rating: fair
Benchmarking this $40.7 million contract against similar facilities support services contracts is essential to determine if the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as contractor incentives are aligned with cost recovery and a fixed profit. Without detailed cost breakdowns and comparisons to industry standards or other government contracts for similar services in the SouthCom AOR, assessing the true value for money is challenging. Further analysis of the fixed fee and indirect cost rates would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of full and open competition is generally a positive sign for price discovery and ensuring a broad range of potential contractors can participate. However, the number of actual bidders and the specific terms of the solicitation would provide a clearer picture of the competitive intensity and its impact on the final negotiated price.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, reducing the risk of overpayment.
Public Impact
The Department of Defense (DoD) benefits through the provision of essential base life support services. Services include facilities maintenance, logistics, and operational support within the SouthCom Area of Responsibility. The geographic impact is concentrated within the SouthCom AOR, supporting military operations and personnel. Workforce implications may involve direct hires by Fluor Intercontinental and its subcontractors, potentially impacting local economies in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
- Long contract duration (over 10 years) increases the risk of scope creep and price escalation without proper management.
- Reliance on a single award for a broad range of services could pose a risk if performance issues arise.
- Limited information on specific performance metrics makes it difficult to assess effectiveness comprehensively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Contractor Fluor Intercontinental has a significant presence in government contracting, implying experience.
- The contract addresses critical base life support services, essential for operational readiness.
- Clear contract end date provides a defined period for service delivery and future re-competition.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. This sector is characterized by numerous providers, ranging from large corporations to smaller specialized firms. Government spending in this area is substantial, driven by the need to maintain infrastructure across various agencies and operational theaters. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by the DoD and other federal agencies.
Small Business Impact
While this contract was awarded through full and open competition and does not appear to have a specific small business set-aside, Fluor Intercontinental, as a large prime contractor, may be required to meet subcontracting goals for small businesses. The extent to which small businesses are utilized as subcontractors will significantly impact the small business ecosystem supporting this contract. Analysis of the subcontracting plan and actual performance would be necessary to assess the impact.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Army contracting and program management offices within the DoD. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance standards, reporting requirements, and the fixed fee earned. Transparency is facilitated through contract award databases, but detailed cost and performance data may be less accessible to the public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- LOGCAP (Logistics Civil Augmentation Program)
- Base Operations Support (BOS)
- Facilities Engineering and Maintenance Services
- Contingency Support Contracts
Risk Flags
- Cost Plus Fixed Fee structure requires vigilant oversight.
- Long contract duration may lead to cost escalation.
- Potential for scope creep over the contract's life.
- Need for clear performance metrics to ensure value.
Tags
defense, department-of-defense, department-of-the-army, facilities-support-services, cost-plus-fixed-fee, full-and-open-competition, southcom, fluor-intercontinental, base-life-support, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.8 million to FLUOR INTERCONTINENTAL, INC. IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR SOUTHCOM AREA OF RESPONSIBILITY.
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 $40.8 million.
What is the period of performance?
Start: 2015-08-14. End: 2025-09-30.
What is Fluor Intercontinental's track record with similar large-scale base support contracts, particularly within the DoD?
Fluor Intercontinental has a substantial history of performing large-scale government contracts, including significant work under the LOGCAP program and other base operations support services for the Department of Defense and other federal agencies. Their experience often involves providing a wide array of services such as construction, maintenance, logistics, and life support in complex and remote environments. While their extensive experience suggests a capacity to manage such contracts, a detailed review of past performance evaluations, any documented disputes, or contract modifications would provide a more nuanced understanding of their reliability and effectiveness in delivering services under similar cost-plus-fixed-fee arrangements.
How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry benchmarks for facilities support services?
The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex or uncertain scope services, can be less cost-effective for the government compared to fixed-price contracts if not managed rigorously. For facilities support services, industry benchmarks often favor performance-based fixed-price contracts where contractor profit is directly tied to achieving specific outcomes and efficiencies. With CPFF, the government bears more cost risk, and the contractor's incentive is to cover costs and earn a fixed fee. To assess value, one would need to compare the negotiated fixed fee percentage, indirect cost rates, and total estimated costs against market data for similar services, considering the specific operational environment and scope.
What are the primary risk indicators associated with this contract, considering its duration and scope?
The primary risk indicators for this contract include the extended duration (over 10 years across multiple delivery orders), the Cost Plus Fixed Fee (CPFF) structure, and the broad scope of "base life support services." The long duration increases the risk of scope creep, potential for cost escalation due to inflation or unforeseen requirements, and contractor complacency. The CPFF structure, as mentioned, shifts cost risk to the government and requires robust oversight to ensure costs are reasonable and allocable. The broad scope necessitates clear performance metrics and diligent management to ensure all essential services are delivered effectively and efficiently without unnecessary expenditures. Contractor performance history and the stability of the operational environment are also key risk factors.
How effective has this contract been in delivering essential base life support services in the SouthCom AOR?
Assessing the effectiveness of this contract requires access to detailed performance reports, user feedback from the SouthCom AOR, and potentially data from the contracting officer's representative (COR). Without this specific performance data, a definitive judgment on effectiveness cannot be made. However, the continued issuance of delivery orders and the contract's longevity suggest a level of satisfaction or necessity for the services provided. Key indicators of effectiveness would include the reliability of services (e.g., uptime of utilities, quality of food services, efficiency of logistical support), adherence to service level agreements, and the overall impact on the operational readiness and morale of personnel in the area of responsibility.
What are the historical spending patterns for facilities support services within the SouthCom AOR, and how does this contract fit?
Historical spending patterns for facilities support services within the SouthCom AOR would typically show a consistent need for such services to maintain military installations and support operational readiness. This contract, valued at approximately $40.7 million over its lifespan, represents a significant but potentially necessary investment given the geographic scope and the nature of base life support. Understanding historical spending would involve examining previous contracts for similar services in the region, their durations, values, and the contractors involved. This contract likely represents a consolidation or continuation of essential services, fitting into a broader pattern of DoD investment in maintaining its presence and operational capabilities within the SouthCom Area of Responsibility.
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: 1
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: $40,754,588
Exercised Options: $40,754,588
Current Obligation: $40,754,588
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $33,227,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2015-08-14
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-09-11
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