KBR Services LLC awarded $12.8M for emergency construction services by the Department of the Navy
Contract Overview
Contract Amount: $12,776,821 ($12.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-21
End Date: 2008-04-01
Contract Duration: 558 days
Daily Burn Rate: $22.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: EMERGENCY CONSTRUCTION
Place of Performance
Location: ADDISON, DALLAS County, TEXAS, 75001
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to KBR SERVICES, LLC for work described as: EMERGENCY CONSTRUCTION Key points: 1. Contract awarded under a cost-plus-award-fee structure, which can incentivize performance but requires robust oversight. 2. The contract duration of 558 days suggests a significant scope of work for emergency construction. 3. Awarded by the Department of the Navy, indicating a focus on military infrastructure needs. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 5. The contract was awarded through full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract's cost-plus-award-fee (CPAF) structure means the final cost could exceed the initial estimate depending on performance. Without specific performance metrics and award fee determinations, it's difficult to benchmark the value for money definitively. However, the total award amount of $12.8 million for emergency construction over approximately 1.5 years suggests a substantial project. Further analysis would require comparing this to similar emergency construction contracts awarded by the Navy or other DoD components for scope, duration, and complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. This method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the use of this procurement method suggests that multiple companies likely vied for the contract, allowing for price discovery and selection of the most advantageous offer.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring the government receives the best value.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational readiness, through the provision of essential emergency construction services. Services delivered likely include rapid repair, stabilization, or construction of facilities damaged by unforeseen events or requiring immediate attention. The geographic impact is likely concentrated at the Navy installation where the emergency construction is required, potentially in Texas given the contract's 'ST' and 'SN' codes. Workforce implications include the potential for direct hires by KBR Services, LLC, and indirect employment through subcontractors, supporting skilled labor in construction trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-award-fee contracts can lead to cost overruns if not managed tightly, as contractor incentives are tied to performance rather than strict cost control.
- Emergency construction can be inherently more expensive due to the urgency and potential for unforeseen site conditions.
- Lack of specific details on the nature of the 'emergency' and the scope of work makes it difficult to assess the true necessity and value.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contract is with KBR Services, LLC, a large and experienced contractor with a significant presence in government services.
- The contract aims to address urgent facility needs, which is critical for maintaining operational capabilities.
Sector Analysis
The facilities support services sector, particularly within government contracting, is a significant market. This contract falls under the broader construction and facilities maintenance industry, which is crucial for maintaining government infrastructure. The NAICS code 561210 covers establishments primarily engaged in operating and maintaining buildings and other facilities, for others. The emergency nature of this contract suggests it is for specialized, rapid-response construction services, often commanding premium pricing due to urgency.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). KBR Services, LLC is a large business. While there is no direct small business set-aside, large prime contractors are often required to meet small business subcontracting goals. The extent to which KBR will utilize small businesses for subcontracting on this emergency construction project will determine the indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Award Fee (CPAF) contract, performance monitoring and the determination of award fees are critical oversight functions. Transparency would be enhanced by public reporting of performance metrics and award fee decisions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Facilities Maintenance Contracts
- Emergency Repair and Construction Services
- Naval Facilities Engineering Command Contracts
- Base Operations Support Contracts
Risk Flags
- Cost-plus-award-fee structure requires careful monitoring to ensure cost efficiency.
- Emergency nature of work may lead to higher costs and unforeseen challenges.
- Scope and specific requirements of 'emergency construction' are not detailed, impacting value assessment.
Tags
construction, emergency-services, department-of-defense, department-of-the-navy, kbr-services-llc, cost-plus-award-fee, full-and-open-competition, facilities-support-services, texas, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to KBR SERVICES, LLC. EMERGENCY CONSTRUCTION
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 Navy).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2006-09-21. End: 2008-04-01.
What is KBR Services, LLC's track record with the Department of the Navy and similar emergency construction contracts?
KBR Services, LLC, is a large, well-established government contractor with extensive experience across various sectors, including defense and facilities support. They have a significant history of performing contracts for the Department of the Navy and other military branches, often involving complex construction, maintenance, and operational support services. While specific details on their 'emergency construction' track record for the Navy require deeper database searches, their overall profile suggests they possess the capacity and experience to handle such requirements. Past performance reviews and contract award data would provide a more granular understanding of their success rates, cost control, and adherence to schedules on similar urgent projects.
How does the $12.8 million award compare to typical costs for emergency construction projects of this duration?
Benchmarking the $12.8 million award for a 558-day emergency construction contract is challenging without knowing the specific scope, location, and nature of the emergency. Emergency projects often incur higher costs due to the need for rapid mobilization, specialized resources, and potential for unforeseen site conditions. However, a rough estimate suggests an average monthly cost of approximately $222,000 ($12.8M / 558 days * ~30 days/month). This figure needs to be compared against similar-sized emergency repair or construction projects undertaken by the Navy or other federal agencies in comparable geographic regions and under similar urgency constraints. Factors like labor rates, material availability, and site accessibility significantly influence costs.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for emergency construction?
The primary risks with a CPAF contract for emergency construction revolve around cost control and defining objective performance metrics. For the government, there's a risk that costs could escalate beyond initial projections if the award fee criteria are not stringent or if the contractor's efficiency is not adequately incentivized. Defining 'emergency' and the scope of work clearly is crucial to prevent scope creep. For the contractor, the risk lies in not meeting the performance targets required to earn the maximum award fee. Robust government oversight is essential to monitor expenditures, validate performance against established metrics, and ensure the award fee structure truly drives value and efficiency rather than simply increasing the final contract price.
What is the significance of the NAICS code 561210 (Facilities Support Services) in the context of this contract?
The NAICS code 561210, Facilities Support Services, indicates that the contract's primary purpose is to provide comprehensive support for the operation and maintenance of buildings and other facilities. This can encompass a wide range of activities, including general maintenance, repair, security, and potentially specialized services like emergency construction. In the context of this $12.8 million award, it suggests that KBR Services, LLC is responsible for ensuring the functionality and integrity of Navy facilities, with the 'emergency construction' aspect being a critical component of that broader support role. This code helps categorize the contract within the federal procurement system and allows for comparison with other contracts offering similar services.
How does the contract duration (558 days) inform the potential scope and complexity of the emergency construction?
A contract duration of 558 days (approximately 1 year and 7 months) suggests that the 'emergency' requiring construction is not a minor, short-term fix but rather a substantial undertaking. This duration implies that the project likely involves significant structural repairs, rebuilding, or the construction of new facilities necessitated by a major event (e.g., natural disaster, significant damage). It indicates a level of complexity that requires sustained effort, planning, and execution over an extended period, moving beyond immediate stabilization to more comprehensive restoration or development.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 1550 WILSON BLVD, ARLINGTON, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,776,821
Exercised Options: $12,776,821
Current Obligation: $12,776,821
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247004D4017
IDV Type: IDC
Timeline
Start Date: 2006-09-21
Current End Date: 2008-04-01
Potential End Date: 2008-04-01 00:00:00
Last Modified: 2011-10-19
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