Army Awards $444.8M for Logistics Support in Iraq to KBR Services, LLC
Contract Overview
Contract Amount: $444,882,088 ($444.9M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-11-05
End Date: 2006-04-07
Contract Duration: 518 days
Daily Burn Rate: $858.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200506!000038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0100 ! !20041105!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* !IRAQ !+000130000000!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! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $444.9 million to KBR SERVICES, LLC for work described as: 200506!000038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0100 ! !20041105!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* … Key points: 1. The contract, valued at $444.8 million, was awarded to KBR Services, LLC. 2. This represents a significant expenditure for logistics support services in Iraq. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The sector is primarily logistics and facilities support, crucial for military operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial, and the final cost will depend on performance and award fees.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being utilized for essential but costly logistical operations in a high-risk environment.
Public Impact
Direct impact on military operations in Iraq through provision of essential services. Potential for job creation and economic activity related to the contractor's operations. Taxpayer funds are allocated to support complex, long-term logistical requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher costs.
- Operations in Iraq present inherent security and logistical risks.
- Long duration of contract performance period.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical military logistics.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is critical for maintaining operational readiness in deployed environments. Benchmarks for such services in conflict zones are difficult to establish due to unique risks and demands.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, KBR Services, LLC, is a large business, suggesting that subcontracting opportunities may exist for small businesses.
Oversight & Accountability
Oversight is crucial for Cost Plus Award Fee contracts to ensure performance and control costs. The Department of the Army is responsible for monitoring KBR's performance and managing the award fee structure.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High value contract for services in a contingency zone.
- Cost Plus Award Fee contract type.
- Extended performance period.
- Geopolitical instability in the region.
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 $444.9 million to KBR SERVICES, LLC. 200506!000038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0007 !A!N! !Y!0100 ! !20041105!20120131!133469119!133469119!964409007!N!KELLOGG BROWN&ROOT SERVICES,!4100 CLINTON DR !HOUSTON !TX!77020!00000! !IZ!* !* !IRAQ !+000130000000!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 $444.9 million.
What is the period of performance?
Start: 2004-11-05. End: 2006-04-07.
What specific logistics support services are included under this contract, and how do they directly contribute to mission effectiveness in Iraq?
The contract covers a broad range of logistics support services, likely including base operations, transportation, maintenance, and supply chain management. These services are fundamental to sustaining military forces, enabling them to focus on their primary combat and operational missions by ensuring the availability of resources, infrastructure, and personnel support.
What are the primary risks associated with KBR's performance in Iraq, and what mitigation strategies are in place?
Key risks include security threats to personnel and facilities, supply chain disruptions due to the operational environment, and potential cost overruns inherent in Cost Plus Award Fee contracts. Mitigation strategies likely involve robust security protocols, contingency planning for supply chain issues, and stringent oversight by the Army to manage performance and costs effectively.
How does the Cost Plus Award Fee structure incentivize KBR to achieve specific performance goals while managing taxpayer costs?
The Cost Plus Award Fee structure allows KBR to recover allowable costs plus a base fee, with the potential for an additional award fee based on meeting or exceeding defined performance objectives. This incentivizes KBR to perform well, but effective oversight is critical to ensure that the award fee criteria are met without unnecessary cost escalation.
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: 2004-11-05
Current End Date: 2006-04-07
Potential End Date: 2006-04-07 12:04:00
Last Modified: 2024-02-15
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