DoD awards $895M contract for follow-on services, extending support through 2012
Contract Overview
Contract Amount: $8,949,368,389 ($8.9B)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-24
End Date: 2012-09-30
Sector: Defense
Official Description: FOLLOW ON TASK ORDER TO 139 IS NOW TASK ORDER 159
Plain-Language Summary
Department of Defense obligated $8.95 billion to KBR SERVICES, LLC for work described as: FOLLOW ON TASK ORDER TO 139 IS NOW TASK ORDER 159 Key points: 1. Significant contract value awarded to KBR Services, LLC. 2. Follow-on task order indicates continued need for services. 3. Long-term award suggests potential for vendor lock-in. 4. Contract spans multiple years, requiring sustained oversight.
Value Assessment
Rating: good
The contract value of approximately $895 million over its period of performance is substantial, reflecting a significant investment by the Department of the Army. The follow-on nature of the task order suggests that the services provided were deemed valuable and necessary, warranting continued funding.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The award type is a Delivery Order, which is typically issued under an existing contract. The specific procurement method used to establish the base contract is not detailed here, leaving the competition level unknown.
Taxpayer Impact: Taxpayer funds are being utilized for essential services supporting military operations.
Public Impact
Ensures continuity of critical support services for the military. Potential impact on personnel and operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may limit flexibility for future needs.
- Potential for cost overruns if not managed effectively.
- Dependence on a single contractor for critical services.
Positive Signals
- Successful execution of follow-on task orders.
- Demonstrates sustained demand for contractor expertise.
- Provides stable support for ongoing operations.
Sector Analysis
This contract falls within the broad category of support services for defense operations, likely encompassing logistics, maintenance, or other operational support functions essential for the Department of the Army.
Small Business Impact
The provided data does not indicate whether small businesses were involved or if any set-aside provisions were applied to this contract.
Oversight & Accountability
Given the substantial value and multi-year duration, robust oversight mechanisms are crucial to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits would be expected.
Related Government Programs
- Follow-on Task Orders
- Delivery Orders
- Support Services Contracts
Risk Flags
- Contract Duration
- Follow-on Award
Tags
department-of-defense, department-of-the-army, kbr-services-llc, delivery-order, task-order, support-services, long-term-contract, follow-on-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.95 billion to KBR SERVICES, LLC. FOLLOW ON TASK ORDER TO 139 IS NOW TASK ORDER 159
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 $8.95 billion.
What is the period of performance?
Start: 2008-09-24. End: 2012-09-30.
Analysis insight 1
The transition from Task Order 139 to 159 suggests a phased approach to service delivery or evolving requirements.
Analysis insight 2
The extended performance period ending in 2012 indicates a long-term commitment to the services provided by KBR.
Analysis insight 3
Understanding the specific nature of the services procured would provide further insight into the contract's strategic importance.