DoD's $954M Facilities Support Services Contract Awarded to KBR Services, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $954,043,690 ($954.0M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-01-17
End Date: 2012-09-30
Contract Duration: 2,448 days
Daily Burn Rate: $389.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $954.0 million to KBR SERVICES, LLC for work described as: Key points: 1. Contract awarded for facilities support services, indicating a broad scope of operational needs. 2. The significant award value suggests a long-term, high-impact engagement for the contractor. 3. Full and open competition was utilized, implying a robust bidding process. 4. The contract type (Cost Plus Award Fee) allows for performance-based incentives. 5. The duration of the contract (2448 days) points to a sustained need for these services. 6. The award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging without specific details on the scope of facilities support services provided. However, the award amount of over $954 million for a period of approximately 6.7 years suggests a substantial investment by the Department of Defense. The Cost Plus Award Fee (CPAF) contract type indicates that pricing is tied to performance, which can be a good value indicator if performance targets are met and incentivized effectively. Further analysis would require comparing the per-unit costs of specific services rendered against industry benchmarks or similar DoD contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible prospective contractors. This method is designed to maximize competition and ensure the government receives the best possible value. The number of bidders is not specified, but the use of full and open competition generally suggests multiple interested parties, leading to a more competitive pricing environment and a wider selection of qualified contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive marketplace, driving down costs and encouraging innovation. This approach helps ensure that government funds are used efficiently by selecting the most cost-effective and capable provider.
Public Impact
The Department of Defense benefits from comprehensive facilities support services, ensuring operational readiness and maintenance of infrastructure. Military personnel and civilian employees are likely to experience improved living and working environments due to enhanced facility management. The contract supports a wide range of facilities maintenance, repair, and operational services across potentially numerous DoD installations. The contract may have implications for the defense industrial base workforce, creating or sustaining jobs in facility management and related trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance metrics are not strictly managed.
- The long duration of the contract could lead to contractor complacency if oversight is not consistently rigorous.
- Scope creep could increase the overall cost if not carefully controlled and documented.
- Dependence on a single contractor for critical facilities support could pose a risk if the contractor faces financial or operational difficulties.
Positive Signals
- The use of full and open competition suggests a competitive process that likely secured a fair price.
- The Cost Plus Award Fee structure incentivizes high performance, potentially leading to superior service delivery.
- The significant contract value indicates a strong demand for KBR Services, LLC's capabilities in facilities support.
- The long contract duration provides stability and predictability for both the government and the contractor.
Sector Analysis
Facilities support services represent a significant segment within the broader professional, scientific, and technical services sector. This contract falls under the North American Industry Classification System (NAICS) code 561210, which includes establishments primarily engaged in operating and maintaining buildings and other facilities for others. The market for facilities management is substantial, driven by government and commercial entities seeking to outsource non-core functions. Comparable spending benchmarks would involve analyzing other large-scale facilities support contracts awarded by federal agencies, particularly within the Department of Defense, to assess cost-effectiveness and service scope.
Small Business Impact
The provided data indicates that small business participation (sb) was false for this contract. This suggests that the contract was not set aside for small businesses, and KBR Services, LLC, likely a large business, was the prime contractor. There is no information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, but it implies that opportunities for small businesses may be limited to lower-tier subcontracts if they exist.
Oversight & Accountability
Oversight for this contract would primarily reside within the Department of the Army, a component of the Department of Defense. Mechanisms likely include contract officers, contracting specialists, and program managers responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. The Cost Plus Award Fee structure necessitates rigorous performance evaluation to determine award fees. Transparency would be facilitated through contract databases like FPDS-NG (Federal Procurement Data System - Next Generation). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Support Services
- Facilities Maintenance and Repair
- Construction and Engineering Services
- Information Technology Support Services
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of contractor complacency over the long contract duration.
- Lack of specified small business subcontracting goals.
- Dependency on a single contractor for critical services.
Tags
department-of-defense, department-of-the-army, facilities-support-services, kbr-services-llc, cost-plus-award-fee, full-and-open-competition, large-contract, long-term-contract, professional-scientific-and-technical-services, naics-561210
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $954.0 million 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 $954.0 million.
What is the period of performance?
Start: 2006-01-17. End: 2012-09-30.
What specific types of facilities support services are included under this contract?
The contract falls under NAICS code 561210, Facilities Support Services. This broad category typically encompasses a wide range of services essential for the operation and maintenance of physical facilities. These can include, but are not limited to, building operations and maintenance, groundskeeping, custodial services, pest control, refuse collection, security systems operations, and potentially specialized services like energy management, environmental services, and fleet management. The exact scope would be detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, deliverables, and performance standards expected from KBR Services, LLC for the Department of the Army installations covered by this award.
How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control?
The Cost Plus Award Fee (CPAF) contract type allows the contractor to be reimbursed for all allowable costs incurred, plus a fixed fee that is subject to an award amount based on performance. This means KBR Services, LLC is incentivized to perform exceptionally well to earn the maximum award fee. Performance metrics are established, and the government evaluates the contractor's achievement against these metrics to determine the award fee. While CPAF can drive high performance, it also requires robust government oversight to ensure costs remain reasonable and that the award fee is justified. Without strict performance monitoring and clear criteria, there's a risk of inflated costs or subjective fee determination.
What is the historical spending pattern for facilities support services by the Department of Defense?
The Department of Defense is a major consumer of facilities support services, consistently awarding billions of dollars annually across various contracts. Historical data indicates a sustained and significant investment in maintaining its vast infrastructure, which includes bases, installations, and operational facilities worldwide. Spending patterns often reflect evolving mission requirements, infrastructure modernization efforts, and shifts towards outsourcing non-core functions to specialized contractors. Analyzing past spending on similar services, such as Base Operations Support (BOS) contracts, can provide context for the scale and nature of this $954 million award, highlighting trends in contract types, durations, and key service providers within the defense sector.
What are the potential risks associated with a long-duration contract like this for facilities support?
Long-duration contracts, such as this 2448-day (approximately 6.7 years) award, carry several potential risks. One primary concern is the potential for contractor complacency; if performance is not continuously monitored, the contractor might reduce efforts over time. Scope creep is another risk, where additional services or requirements are added without adequate adjustments to cost or schedule, potentially leading to cost overruns. Furthermore, a prolonged reliance on a single contractor can reduce flexibility and make it difficult to adapt to new technologies or changing operational needs. Finally, the government might miss opportunities to leverage competitive market shifts or innovations that occur during the contract's extended term.
How does the 'full and open competition' procurement method impact the value received by the government?
The 'full and open competition' method is designed to maximize the number of potential bidders, thereby fostering a competitive environment. This typically leads to better price discovery and allows the government to select from a wider pool of qualified contractors, increasing the likelihood of obtaining the best value. By encouraging multiple proposals, the government can compare technical approaches and pricing more effectively. This method is generally considered the most advantageous for taxpayers as it promotes efficiency and cost-effectiveness, reducing the risk of paying inflated prices that might occur in less competitive scenarios like sole-source or limited competition awards.
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: 2006-01-17
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 12:09:00
Last Modified: 2025-07-31
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