Army logistics contract for Iraq services awarded to KBR Services, LLC
Contract Overview
Contract Amount: $4,609,561,500 ($4.6B)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2005-06-13
End Date: 2012-12-31
Sector: Defense
Official Description: 200509!001151!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0089 ! !20050613!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* !IRAQ !+000135000000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!R!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $4.61 billion to KBR SERVICES, LLC for work described as: 200509!001151!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0089 ! !20050613!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* … Key points: 1. Significant contract value for logistics support in a complex operational environment. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Contract duration spans multiple years, indicating a long-term need for services. 4. Focus on logistics in Iraq highlights the critical role of support services in military operations.
Value Assessment
Rating: questionable
The contract value is substantial, but the lack of competitive bidding raises concerns about whether the government received the best possible price. Further analysis of performance metrics and cost breakdowns would be needed to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning other qualified companies were not given an opportunity to compete. This can occur for various reasons, but it limits competitive pressure.
Taxpayer Impact: Sole-source awards may result in higher costs for taxpayers if competition is not leveraged.
Public Impact
Ensured continued logistical support for U.S. forces in Iraq. Provided essential services that enabled military operations. Supported employment through contract services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition in sole-source awards.
- Potential for cost overruns in long-term, high-value contracts.
- Geopolitical risks associated with operations in Iraq.
Positive Signals
- Successful delivery of critical logistics services.
- Long-term commitment to supporting military operations.
Sector Analysis
This contract falls within the defense sector, specifically focusing on logistics and support services essential for military operations in a deployed environment like Iraq.
Small Business Impact
The contract was not set aside for small businesses. The awardee, KBR Services, LLC, is a large corporation, indicating no direct benefit to small business participation in this specific award.
Oversight & Accountability
Oversight would typically involve monitoring contract performance, expenditures, and compliance with terms. Given the sole-source nature, scrutiny on pricing and necessity of services is paramount.
Related Government Programs
- Logistics Support Services
- Base Operations Support
- Contingency Contracting
Risk Flags
- Sole Source Justification
- Contingency Operations Risk
- Long-Term Service Agreement
Tags
logistics-support, iraq-operations, department-of-defense, kbr-services, sole-source, delivery-order, army-contracting, contingency-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.61 billion to KBR SERVICES, LLC. 200509!001151!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0089 ! !20050613!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* !IRAQ !+000135000000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! ! !20200
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 $4.61 billion.
What is the period of performance?
Start: 2005-06-13. End: 2012-12-31.
Analysis insight 1
The contract's sole-source nature warrants investigation into the justification for not seeking competitive bids.
Analysis insight 2
Analyzing the cost-effectiveness of KBR's services over the contract's lifespan is crucial.
Analysis insight 3
Understanding the specific logistics challenges in Iraq that necessitated this long-term sole-source award provides important context.