DoD's $28.2M contract for logistics support in Bosnia awarded to Kellogg Brown & Root Services

Contract Overview

Contract Amount: $28,227,431 ($28.2M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2011-08-24

Contract Duration: 2,153 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200601!600305!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0055 ! !20051001!20060430!133469119!133469119!964409007!N!KELLOGG BROWN & ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !BK! ! !BOSNIA !+000003124525!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!B!S! ! !D!20070131!B! ! !A! !D!U!R!1!001!N!2A!Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $28.2 million to BROWN & ROOT SERVICES for work described as: 200601!600305!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0055 ! !20051001!20060430!133469119!133469119!964409007!N!KELLOGG BROWN & ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !BK! ! … Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed carefully. 3. The duration of the contract is 2153 days, indicating a long-term need for these services. 4. The contract was awarded to Kellogg Brown & Root Services, a known entity in government contracting. 5. The primary service category is logistics support, essential for military operations. 6. The contract was awarded by the Department of the Army, part of the Department of Defense.

Value Assessment

Rating: fair

The total value of $28.2 million over approximately 6 years represents a significant investment. Benchmarking this against similar long-term logistics support contracts in overseas contingency operations is crucial. The Cost Plus Award Fee structure introduces variability in the final cost, making direct price comparisons challenging without understanding the award fee criteria and achieved performance. However, the relatively long duration suggests a stable, albeit potentially high, unit cost for services rendered.

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 and considered. The presence of a competitive process is generally positive for price discovery and ensuring the government receives fair market value. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality, leading to better value for public funds.

Public Impact

This contract directly benefits military personnel and operations in Bosnia by ensuring the provision of essential logistics support. Services delivered include a broad range of logistics support, crucial for maintaining operational readiness. The geographic impact is focused on Bosnia, supporting U.S. military presence and operations in that region. Workforce implications may include the employment of personnel both by the contractor and potentially through local hiring in the operational area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance incentives are not tightly managed.
Long-term contracts of this nature require continuous oversight to ensure ongoing value and prevent complacency.
The specific nature of 'logistics support' can be broad, requiring clear performance metrics to avoid scope creep or underperformance.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract addresses a critical need for logistics support in a deployed environment.
The contractor, Kellogg Brown & Root Services, has experience in providing similar services to the government.

Sector Analysis

This contract falls within the Defense sector, specifically supporting military operations through logistics services. The market for defense logistics is substantial, with numerous large and small companies competing for government contracts. This specific award represents a portion of the broader spending on operational support for overseas missions, where reliable logistics are paramount for mission success.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, for a contract of this magnitude and nature, it is common for prime contractors to engage small businesses for specialized services or supplies as subcontractors, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, financial audits, and compliance checks are standard oversight mechanisms. Transparency is usually facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Contingency Contracting
Base Operations Support (BOS)
Theater Support Contracts

Risk Flags

Cost Plus Award Fee contract type requires careful monitoring to control costs.
Long contract duration necessitates sustained oversight to ensure value.
Overseas operations carry inherent security and logistical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to BROWN & ROOT SERVICES. 200601!600305!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0055 ! !20051001!20060430!133469119!133469119!964409007!N!KELLOGG BROWN & ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !BK! ! !BOSNIA !+000003124525!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !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 $28.2 million.

What is the period of performance?

Start: 2005-10-01. End: 2011-08-24.

What was the specific performance history of Kellogg Brown & Root Services on similar logistics contracts prior to this award?

Kellogg Brown & Root Services (KBR) has a long and extensive history of performing large-scale logistics and base support services for the U.S. military, particularly in overseas contingency operations. Prior to this specific Bosnia contract, KBR had been involved in significant support roles in various theaters, including the Balkans and later in Iraq and Afghanistan. Their track record generally includes managing complex supply chains, facility maintenance, transportation, and personnel support. While KBR has been a consistent performer, like many large contractors, they have also faced scrutiny and investigations regarding contract performance and pricing on certain high-profile contracts. A detailed review of their performance on contracts immediately preceding this award would be necessary to fully assess their suitability and risk profile for this particular $28.2 million commitment.

How does the awarded amount of $28.2 million compare to the estimated value or budget for similar logistics support contracts in the region during that period?

Benchmarking the $28.2 million award against similar contracts requires careful consideration of the contract's duration (over 5 years) and the specific scope of 'logistics support' in Bosnia during the mid-2000s. Contracts for overseas logistics can vary significantly based on the operational tempo, security environment, and the specific services required (e.g., transportation, maintenance, supply, base operations). Without access to a detailed breakdown of services and unit costs, a direct comparison is difficult. However, given the extended period, the total value suggests a substantial, ongoing requirement. It's plausible that this figure falls within the expected range for long-term, comprehensive support in a deployed military environment, but a more granular analysis comparing unit prices for specific services (like fuel, rations, vehicle maintenance) against market rates or other government contracts would be needed for a definitive value assessment.

What were the primary risks identified for this contract, and what mitigation strategies were employed?

Primary risks for a contract of this nature in Bosnia likely included geopolitical instability, logistical challenges in a potentially austere environment, security threats to personnel and assets, and the potential for cost overruns inherent in Cost Plus Award Fee (CPA) contracts. Mitigation strategies would typically involve robust security protocols for personnel and equipment, detailed logistical planning and contingency measures, strict performance monitoring by the contracting officer's representative (COR), and clear definition of award fee criteria tied to measurable performance objectives. Furthermore, KBR's established presence and experience in similar environments would have been considered a mitigating factor. Regular audits and performance reviews would be crucial to manage financial and operational risks throughout the contract's lifecycle.

What was the overall effectiveness of the logistics support provided under this contract in achieving its intended military objectives?

Assessing the overall effectiveness requires detailed performance reports, end-user feedback from military units, and potentially after-action reviews related to the operations supported in Bosnia during the contract period (2005-2011). As a logistics support contract, its effectiveness is measured by the reliability, timeliness, and cost-efficiency of the services provided, directly impacting the operational readiness and mission accomplishment of deployed forces. Positive indicators would include consistent availability of supplies, well-maintained equipment, efficient transportation, and minimal disruptions to military operations attributed to logistical failures. Conversely, negative indicators could involve delays, shortages, or cost overruns that impacted mission objectives. Without specific performance metrics and evaluations, a definitive judgment on effectiveness remains elusive, though the contract's renewal or continuation implies a level of satisfaction.

How has federal spending on logistics support services in the European Command (EUCOM) area of responsibility evolved since this contract was awarded?

Federal spending on logistics support services within the European Command (EUCOM) area of responsibility has likely seen fluctuations influenced by geopolitical events, changes in military posture, and evolving operational requirements. Following the period of this contract (2005-2011), which coincided with significant operations in the Balkans and the broader global war on terror, spending patterns may have shifted. Factors such as the drawdown in Iraq, the intervention in Libya, and increased focus on Eastern European deterrence could have redirected resources and altered the nature of logistics needs. While specific figures require detailed analysis of subsequent contracts and budget allocations, it's reasonable to assume that spending remains substantial, adapting to new strategic priorities and technological advancements in logistics management.

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

Parent Contract

Parent Award PIID: DACA7899D0003

IDV Type: IDC

Timeline