DoD's $6B Facilities Support Contract to KBR Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $6,062,897,263 ($6.1B)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2003-08-12
End Date: 2014-09-30
Contract Duration: 4,067 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $6.06 billion to KBR SERVICES, LLC for work described as: Key points: 1. The contract represents a significant investment in maintaining critical infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The long duration of the contract (over 11 years) warrants scrutiny of performance and cost over time. 4. Facilities support services are essential for operational readiness across military installations. 5. The contract's value places it among major service procurements within the Department of Defense. 6. Performance metrics and oversight will be key to ensuring value for taxpayer dollars.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging without specific service details and performance data. However, the substantial dollar amount indicates a large-scale, long-term commitment. Given it was awarded through full and open competition, it suggests that the pricing was deemed competitive at the time of award. Ongoing performance reviews and cost analysis would be necessary to confirm sustained value for money over its extensive duration.
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 approach typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The presence of multiple bidders, implied by this competition type, allows for price discovery and selection of the most advantageous offer.
Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve service quality through competitive pressures.
Public Impact
Military personnel and their families benefit from well-maintained facilities, ensuring operational readiness and quality of life. The contract delivers essential facilities support services, including maintenance, repair, and potentially operations, across various DoD installations. Geographic impact is likely widespread, covering multiple military bases where KBR Services operates. Workforce implications include job creation and sustainment for skilled trades and support personnel employed by KBR Services and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns or performance degradation if not actively managed.
- Potential for scope creep over the 11+ year period without rigorous change control.
- Reliance on a single contractor for critical facilities support could pose risks if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process and potentially fair pricing.
- The substantial value indicates a recognized need and a significant commitment to infrastructure maintenance.
- The contract type (Cost No Fee) implies the government bears the cost risk, but requires strong oversight to prevent excessive spending.
Sector Analysis
Facilities Support Services fall under the broader Professional, Scientific, and Technical Services sector. This sector is characterized by a mix of large, established firms and smaller specialized companies. The market size for government facilities management is substantial, driven by the extensive real estate holdings of federal agencies. This contract represents a significant portion of spending within this niche, likely involving complex logistical and maintenance operations.
Small Business Impact
While the data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false), large prime contracts often include subcontracting opportunities. The extent to which KBR Services engages small businesses as subcontractors will impact the small business ecosystem. Analysis of subcontracting plans and actual performance would reveal the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives (CORs) within the Department of the Army. Performance metrics, regular reporting, and site inspections are standard accountability measures. Transparency is usually maintained through contract databases and reporting requirements, though specific operational details may be sensitive. Inspector General involvement is possible for investigations into fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Supply Chain Management Services
- Construction and Facilities Maintenance
- Information Technology Support Services (if integrated)
Risk Flags
- Significant contract value increase over time
- Long contract duration requires sustained oversight
- Cost No Fee contract type necessitates rigorous cost monitoring
Tags
defense, department-of-defense, department-of-the-army, facilities-support-services, large-contract, full-and-open-competition, cost-plus-fixed-fee, service-contract, long-term-contract, kbr-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.06 billion to KBR SERVICES, LLC. See the official description on USAspending.
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 $6.06 billion.
What is the period of performance?
Start: 2003-08-12. End: 2014-09-30.
What is the historical spending trend for facilities support services by the Department of the Army?
Historical spending on facilities support services by the Department of the Army has generally been substantial, reflecting the vast infrastructure footprint of the service branch. While specific year-over-year figures fluctuate based on budget allocations, modernization efforts, and operational tempo, there's a consistent and significant demand for these services. Contracts like the one awarded to KBR Services, LLC, often span multiple years and represent a considerable portion of the Army's non-personnel operating expenses. Analyzing trends requires looking at aggregated spending across various contract vehicles and task orders within the Facilities Support Services NAICS code (561210) and related categories over several fiscal years to identify patterns, increases, or decreases in investment.
How does the per-unit cost of services under this contract compare to industry benchmarks?
Determining the precise per-unit cost for services under this contract is complex without detailed breakdowns of the services provided and their associated pricing structures (e.g., labor rates, material costs, overhead). The contract type 'Cost No Fee' (CNF) means the government reimburses allowable costs but does not pay a fee, which shifts cost risk to the government. Benchmarking would require comparing specific line items (e.g., cost per square foot for maintenance, hourly rates for specialized technicians) against publicly available industry data, similar government contracts, or independent cost estimates. Given the contract's age and scale, variations from current market rates are probable, necessitating a thorough review of KBR's cost submissions and performance reports to assess value.
What is KBR Services, LLC's track record with similar large-scale government contracts?
KBR Services, LLC has a long and extensive history of performing large-scale government contracts, particularly within the defense and energy sectors. They have been a significant contractor for the Department of Defense, NASA, and other federal agencies, often managing complex logistics, base operations, and facilities support services globally. Their track record includes managing substantial budgets and workforces across diverse geographic locations. While generally considered experienced, like any large contractor, they have faced scrutiny and performance reviews on various contracts over the years. A detailed review of past performance evaluations, contract awards, and any disputes or corrective actions related to similar facilities support contracts would provide a comprehensive understanding of their capabilities and reliability.
What are the key performance indicators (KPIs) used to measure the success of this facilities support contract?
Key Performance Indicators (KPIs) for a facilities support contract of this magnitude typically focus on service availability, response times, quality of maintenance and repair, cost control, safety compliance, and customer satisfaction. For a 'Cost No Fee' contract, KPIs are crucial for ensuring the government receives value and that costs remain within reasonable bounds. Examples might include: percentage of preventive maintenance tasks completed on schedule, average response time for emergency repairs, number of safety incidents, energy efficiency targets met, and compliance with environmental regulations. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and monitored through regular government inspections and contractor reporting.
How has the total value of this contract evolved since its initial award?
The provided data shows an initial award value ('br': 1490754) and a total obligated amount ('a': 6062897262.53), indicating significant growth from the initial award. This substantial increase from approximately $1.5 million to over $6 billion over the contract's life (2003-2014) suggests numerous modifications, task orders, and potentially scope expansions. Such growth often occurs through contract option periods, additional work requirements, or adjustments to service levels. Analyzing the modification history and the nature of added work is essential to understand the drivers behind this dramatic increase and to assess whether the expanded scope represented continued value or potential cost creep.
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 NO FEE (S)
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: 2003-08-12
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 12:09:00
Last Modified: 2025-07-31
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