DoD's $11.7M facility repair contract for Ernesto recovery efforts awarded to KBR Services, LLC

Contract Overview

Contract Amount: $11,670,145 ($11.7M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2007-09-20

Contract Duration: 356 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: FACILITY REPAIR FOR RECOVERY EFFORS FROM ERNESTO

Place of Performance

Location: PATUXENT RIVER, ST. MARY'S County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to KBR SERVICES, LLC for work described as: FACILITY REPAIR FOR RECOVERY EFFORS FROM ERNESTO Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 356 days indicates a focused, short-term recovery effort. 3. Award type 'DO' suggests a priority rating, potentially impacting delivery timelines. 4. The contract's purpose is facility repair following a specific event (Ernesto), highlighting disaster response capabilities. 5. The contractor, KBR Services, LLC, is a significant player in government contracting, particularly in support services. 6. The absence of small business set-aside indicates the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated by this award.

Value Assessment

Rating: fair

The contract value of $11.7 million for facility repair services over approximately one year appears reasonable for disaster recovery efforts. Benchmarking against similar large-scale recovery contracts would provide a more precise value-for-money assessment. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs without an additional fee, which can be cost-effective in situations where the full scope of work is uncertain, but it requires robust cost oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the competition type implies multiple offers were likely considered.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider range of potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Navy, whose facilities are being repaired. The services delivered are critical facility repairs to recover from damage caused by 'Ernesto'. The geographic impact is likely localized to the Navy facilities affected by the event. The contract supports the operational readiness of military infrastructure by restoring damaged facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'COST NO FEE' structure is not tightly managed.
Dependence on a single large contractor for critical recovery operations.
Scope creep could extend the project beyond the initial 356-day duration without proper oversight.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor has experience in large-scale support services, indicating capability.
Focus on facility repair addresses immediate operational needs and infrastructure resilience.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing maintenance, repair, and operational support for government and commercial properties. The market for these services is substantial, driven by the government's extensive real estate portfolio. This specific award is tied to disaster recovery, a niche but critical segment within facilities management, often requiring rapid response and specialized capabilities. Comparable spending benchmarks would typically be found within broader facilities maintenance and construction categories, adjusted for the scale and urgency of disaster recovery.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the primary award went to a large business, KBR SERVICES, LLC. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem through this specific award appears limited, though KBR may engage small businesses as subcontractors independently.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The 'COST NO FEE' award type necessitates rigorous financial oversight to ensure that reimbursed costs are allowable, allocable, and reasonable. Transparency would be facilitated through contract reporting mechanisms, and accountability would be managed through performance reviews and adherence to contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Disaster Recovery Services
Base Operations Support
Emergency Repair Contracts
Naval Facilities Engineering Command Contracts

Risk Flags

Cost Control Risk (Cost-reimbursable contract)
Timeliness of Recovery Operations
Scope Definition and Management
Supplier Lead Times for Materials

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to KBR SERVICES, LLC. FACILITY REPAIR FOR RECOVERY EFFORS FROM ERNESTO

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 $11.7 million.

What is the period of performance?

Start: 2006-09-29. End: 2007-09-20.

What is the track record of KBR Services, LLC in performing similar facility repair and disaster recovery contracts for the Department of Defense?

KBR Services, LLC, a subsidiary of Kellogg Brown & Root, has a long and extensive history of performing large-scale support services, including facility maintenance, construction, and disaster recovery, for the U.S. military and other government agencies worldwide. They have been involved in major contingency operations and reconstruction efforts in various theaters. Their experience often includes managing complex logistics, large workforces, and diverse technical requirements. While specific performance metrics for this particular $11.7 million contract are not detailed here, KBR's general track record suggests a high capacity for undertaking such recovery efforts. However, like many large government contractors, they have also faced scrutiny and contract disputes on various projects over the years, underscoring the importance of diligent oversight and performance management by the contracting agency.

How does the $11.7 million contract value compare to other facility repair contracts awarded by the Department of the Navy for disaster recovery?

The $11.7 million value for this facility repair contract, awarded in 2006 for recovery efforts from 'Ernesto,' falls within a moderate range for disaster response actions. Larger-scale natural disasters or widespread damage can trigger contracts significantly exceeding this amount, sometimes reaching hundreds of millions or even billions of dollars for comprehensive rebuilding and long-term recovery. Conversely, smaller, localized damage might be handled with contracts in the low millions or even less. Without specific details on the extent of damage caused by 'Ernesto' to Navy facilities, it's challenging to definitively benchmark this contract's value. However, it represents a substantial investment indicative of significant damage requiring professional repair services over an extended period (356 days).

What are the primary risks associated with a 'COST NO FEE' contract type in a disaster recovery scenario?

The 'COST NO FEE' (CNF) contract type, while potentially beneficial in uncertain disaster recovery situations, carries inherent risks. The primary risk for the government is the potential for cost escalation, as the contractor is reimbursed for all allowable costs incurred. Without a fixed fee or profit margin tied to performance, there can be less incentive for the contractor to control costs aggressively. This necessitates robust government oversight to scrutinize every expense, ensuring it is reasonable, allocable, and necessary for the recovery effort. Another risk is the potential for scope creep, where the definition of 'necessary' repairs might expand, leading to unforeseen cost increases. For the contractor, the risk lies in the possibility that incurred costs might not be deemed allowable or reasonable by the government, leading to disputes and non-payment.

What does the 'DO' award type signify, and how might it impact the execution of this facility repair contract?

The 'DO' award type typically signifies a priority rating under the Defense Priorities and Allocations System (DPAS). This means the contract is considered essential for national defense purposes, and the contractor is empowered to place rated orders with their suppliers for necessary materials and equipment. Consequently, suppliers must accept and fulfill these rated orders ahead of unrated orders. For this facility repair contract, a 'DO' rating would likely expedite the procurement of critical materials, equipment, and potentially specialized labor needed for the recovery efforts. This is crucial in disaster recovery scenarios where timely restoration of facilities is paramount for resuming operations. The 'DO' rating helps mitigate delays caused by supply chain issues, ensuring the recovery project stays on schedule.

Given the contract's focus on facility repair post-disaster, what are the implications for the contractor's performance monitoring and accountability?

Monitoring and accountability for a facility repair contract following a disaster, especially one using a 'COST NO FEE' structure, require heightened diligence. The Department of the Navy would need to closely track the contractor's expenditures against the approved budget and scope of work. Performance metrics should focus on the quality of repairs, adherence to safety standards, timely completion of milestones, and efficient use of resources. Regular site inspections, progress reports, and cost audits are essential. Accountability is enforced through the contract's terms: the government can disallow costs deemed unreasonable or unnecessary, potentially withhold payments, and, in cases of significant performance failures, exercise contract termination clauses. The contractor's ability to provide detailed documentation for all costs incurred is critical for demonstrating accountability.

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 NO FEE (S)

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: $11,670,145

Exercised Options: $11,670,145

Current Obligation: $11,670,145

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247004D4017

IDV Type: IDC

Timeline