DoD Awards $312M Facilities Support Services Contract to KBR Services, LLC via Full and Open Competition
Contract Overview
Contract Amount: $312,328,836 ($312.3M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-05-30
End Date: 2012-08-31
Contract Duration: 2,285 days
Daily Burn Rate: $136.7K/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 $312.3 million to KBR SERVICES, LLC for work described as: Key points: 1. Significant contract value of $312.3M for facilities support services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Contract duration spans over 6 years, suggesting long-term service needs. 4. The contract type is Cost No Fee, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of $312.3M over 6 years is substantial for facilities support. Benchmarking against similar large-scale facilities management contracts would be necessary for a precise value assessment, but the competitive award suggests a reasonable price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing all responsible sources to submit bids. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the facilities support services provided.
Public Impact
Ensures continued operation and maintenance of critical facilities for the Department of the Army. Supports military readiness and personnel by providing essential base support services. Potential for job creation and economic activity through contractor employment and resource utilization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type places cost risk on the contractor, which could lead to quality compromises if not managed effectively.
- Long contract duration (over 6 years) may limit flexibility to adapt to changing needs or incorporate new technologies.
- No indication of small business participation, raising questions about equitable opportunity.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contract aims to provide essential facilities support, crucial for operational effectiveness.
- The Cost No Fee structure incentivizes the contractor to manage costs efficiently.
Sector Analysis
Facilities Support Services fall under the broader professional, scientific, and technical services sector. Spending in this sector is substantial across government, supporting everything from building maintenance to specialized operational support. Benchmarks vary widely based on scope and location.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss=false, sb=false). Further analysis would be needed to determine if small business set-asides were considered or if opportunities were subcontracted.
Oversight & Accountability
The award through full and open competition suggests a structured procurement process. Ongoing oversight would be critical to ensure performance, cost control, and adherence to contract terms, especially given the Cost No Fee structure.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost No Fee structure may incentivize cost-cutting over quality.
- Long contract duration could lead to service stagnation or missed technological advancements.
- Lack of small business participation noted.
- Specific performance metrics and oversight details are not provided in the summary data.
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 $312.3 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 $312.3 million.
What is the period of performance?
Start: 2006-05-30. End: 2012-08-31.
What specific facilities support services are included under this contract, and how do they align with the Army's operational needs?
The contract covers a broad range of facilities support services, likely including maintenance, repair, operations, and potentially specialized services like groundskeeping or custodial work. These services are fundamental to maintaining the infrastructure required for Army operations, ensuring bases are functional and safe for personnel and equipment. The specific alignment would depend on the detailed scope of work outlined in the contract.
How does the Cost No Fee (CNF) structure impact contractor performance and government oversight for this large facilities support contract?
A CNF structure places the entire cost risk on the contractor, incentivizing them to control expenses. However, it can also lead to potential quality reductions if the contractor seeks to minimize costs excessively. Robust government oversight is crucial to monitor performance standards, ensure contract deliverables are met, and prevent cost-cutting measures from negatively impacting essential services.
Given the $312M value and long duration, what mechanisms are in place to ensure the services remain cost-effective and technologically relevant over the contract's life?
Mechanisms for cost-effectiveness and relevance could include performance metrics, regular contract reviews, and potential for contract modifications or task order adjustments. While the CNF structure encourages cost control, the government should actively monitor service quality and explore opportunities for innovation or efficiency gains. Periodic market research and competitive task order awards, if applicable, can also help maintain cost-effectiveness.
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: 2006-05-30
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 12:08:00
Last Modified: 2025-07-31
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