DoD's $133M Logistics Support Contract Awarded to Kellogg Brown & Root Services

Contract Overview

Contract Amount: $42,418,646 ($42.4M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2004-11-04

End Date: 2010-08-06

Contract Duration: 2,101 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200502!500043!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0050 ! !20041104!20041022!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !BK!* !* !BOSNIA !+000004800000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! !D!20040930!B! ! !A! !A!U!R!1!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $42.4 million to BROWN & ROOT SERVICES for work described as: 200502!500043!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0050 ! !20041104!20041022!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !BK!* !* … Key points: 1. The contract, valued at $133,468,954, was awarded by the Department of the Army. 2. Kellogg Brown & Root Services secured the contract through full and open competition. 3. The contract is for logistics support services, indicating a need for operational assistance. 4. The duration of the contract is 2101 days, spanning from November 2004 to August 2010. 5. The contract type is Cost Plus Award Fee, suggesting performance-based incentives.

Value Assessment

Rating: good

The contract value of $133,468,954 appears reasonable for a multi-year logistics support service contract. Benchmarking against similar large-scale DoD logistics contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The specific pricing discovery mechanisms within this competitive process are not detailed.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently, though the exact cost savings from competition are not quantifiable from this data alone.

Public Impact

Ensures continued logistical support for military operations, potentially in overseas locations like Bosnia. Supports the Department of Defense's operational readiness by providing essential services. Creates jobs and economic activity through the contractor, Kellogg Brown & Root Services. The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts.
Long contract duration may lead to evolving requirements not fully captured at award.
Geopolitical risks associated with operations in regions like Bosnia.

Positive Signals

Awarded through full and open competition, suggesting a competitive price.
Contractor has a history of providing similar services.
Incentive structure in the contract type promotes performance.

Sector Analysis

This contract falls within the professional services sector, specifically logistics support. Spending in this area is critical for military readiness and often involves complex, long-term engagements. Benchmarks for similar large-scale logistics contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Large contracts like this often involve significant subcontracting opportunities, but the primary awardee is a large corporation.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms. Further details on specific oversight activities for this contract are not provided.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Award Fee structure can lead to cost overruns.
Long contract duration may not adapt well to changing requirements.
Operations in potentially unstable regions introduce security and logistical risks.
Lack of specific detail on performance metrics and award fee criteria.
Potential for contractor consolidation impacting future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to BROWN & ROOT SERVICES. 200502!500043!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0050 ! !20041104!20041022!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !BK!* !* !BOSNIA !+000004800000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is BROWN & ROOT SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 2004-11-04. End: 2010-08-06.

What specific logistics services are included under this contract, and how do they align with current operational needs?

The contract is for 'LOGISTICS SUPPORT SERVICES'. While the exact scope is not detailed, this typically encompasses a range of activities such as supply chain management, transportation, maintenance, and base operations support. The alignment with current operational needs would depend on the specific deployment or mission requirements at the time of award and throughout the contract's life.

What are the potential risks associated with a Cost Plus Award Fee contract for logistics support in a potentially unstable region?

Cost Plus Award Fee contracts carry inherent risks of cost overruns if not managed tightly, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. In an unstable region, unforeseen operational challenges, security costs, and logistical complexities can significantly increase costs, potentially impacting the award fee and overall expenditure.

How effectively does the 'full and open competition' process ensure value for money for this extensive logistics support contract?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should drive down prices and improve service quality. For a contract of this magnitude, it suggests that multiple capable firms vied for the award, increasing the likelihood that the government secured a favorable price and terms. However, the ultimate effectiveness depends on the clarity of the requirements and the evaluation criteria used.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4100 CLINTON DR, HOUSTON, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA7899D0003

IDV Type: IDC

Timeline