Army Awards $599.5M for Advanced Tech Development Services to KBR Services, LLC
Contract Overview
Contract Amount: $599,543,585 ($599.5M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2003-07-24
End Date: 2012-09-30
Contract Duration: 3,356 days
Daily Burn Rate: $178.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200311!000841!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0044 !20030724!20120131!016111226!016111226!964409007!N!BROWN & ROOT SERVICES, A DIVIS!4100 CLINTON DRIVE !HOUSTON !TX!77020!35000!201!48!HOUSTON !HARRIS !TEXAS !+000170000000!N!N!000000000000!AD23!RDTE/SERVICES-ADV TECH DEV !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!R!2!003!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $599.5 million to KBR SERVICES, LLC for work described as: 200311!000841!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0044 !20030724!20120131!016111226!016111226!964409007!N!BROWN & ROOT SERVICES, A DIVIS!4100 CLINTON DRIVE !HOUSTON !TX!77020!35000!201!48!HOUSTON !HARRI… Key points: 1. Contract awarded for advanced technology development services. 2. KBR Services, LLC is the primary contractor. 3. Significant value of $599.5 million over its lifecycle. 4. The sector is primarily Research & Development (R&D) and Services.
Value Assessment
Rating: good
The contract value of $599.5 million appears substantial for advanced technology development services. Benchmarking against similar contracts would require more detailed service descriptions.
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 that likely led to a fair price discovery. The specific award mechanism (Delivery Order) indicates it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for advanced technology development.
Public Impact
Supports U.S. Army's advanced technology development initiatives. Potential for innovation and technological advancements in defense. Long-term contract duration of over 9 years indicates sustained need. Economic impact through KBR Services, LLC's operations and potential subcontracts.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Contract duration is long, potentially leading to scope creep or evolving needs.
- Cost Plus Award Fee structure requires careful monitoring of performance and costs.
Positive Signals
- Full and open competition suggests a robust procurement process.
- Award to a known entity (KBR Services) implies established capabilities.
- Long contract term can provide stability for R&D efforts.
Sector Analysis
This contract falls under Facilities Support Services and R&D/Services - Advanced Tech Dev. The value is significant for this sector, indicating a major investment in technological advancement by the Army.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight to ensure contractor performance aligns with award criteria and cost efficiency. The long duration also requires ongoing monitoring.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 9 years).
- Cost Plus Award Fee (CPAF) structure requires diligent oversight.
- Potential for scope creep in advanced technology development.
- Risk of technological obsolescence or changing strategic needs.
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 $599.5 million to KBR SERVICES, LLC. 200311!000841!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0044 !20030724!20120131!016111226!016111226!964409007!N!BROWN & ROOT SERVICES, A DIVIS!4100 CLINTON DRIVE !HOUSTON !TX!77020!35000!201!48!HOUSTON !HARRIS !TEXAS !+000170000000!N!N!000000000000!AD23!RDTE/SERVICES-ADV TECH DEV !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !5!B!S! ! ! !99990909!B
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 $599.5 million.
What is the period of performance?
Start: 2003-07-24. End: 2012-09-30.
What specific advanced technologies are being developed under this contract, and what is the expected return on investment for the Army?
The specific advanced technologies are not detailed in the provided data. However, the contract's purpose is to support the U.S. Army's advanced technology development. The return on investment would be measured by the successful maturation and deployment of these technologies, enhancing military capabilities and potentially creating new operational advantages. Further details on the project's objectives and milestones are needed for a precise ROI assessment.
What are the key performance indicators (KPIs) for the Cost Plus Award Fee structure, and how are they monitored to ensure value for money?
Key performance indicators for a CPAF contract typically revolve around technical performance, schedule adherence, cost control, and management effectiveness. These are usually defined in the contract's Statement of Work and Performance Requirements. The Army's contracting officer and technical representatives would monitor these KPIs through regular progress reports, site visits, and performance reviews. Award fees are then determined based on the contractor's achievement against these predefined metrics, incentivizing high performance.
Given the contract's duration and scope, what are the primary risks associated with technological obsolescence or shifts in strategic priorities?
The primary risks include technological obsolescence if the developed technologies become outdated before deployment, or shifts in strategic priorities rendering the R&D efforts misaligned with current defense needs. Mitigation strategies could involve incorporating flexibility clauses in the contract, regular reviews of technological trends, and close collaboration between the Army and KBR Services to adapt the development path as needed. The long duration also increases the risk of cost overruns if not managed diligently.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
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
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0902D0007
IDV Type: IDC
Timeline
Start Date: 2003-07-24
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 12:09:00
Last Modified: 2024-04-05
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