State Department awards $977K for Kuwait support services, extending contract for one year

Contract Overview

Contract Amount: $97,720 ($97.7K)

Contractor: Silver Chain Kuwait Company

Awarding Agency: Department of State

Start Date: 2026-04-06

End Date: 2027-04-30

Contract Duration: 389 days

Daily Burn Rate: $251/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USMILGP KUWAIT UNSCHEDULED SERVICES TASK ORDER FOR CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027

Plain-Language Summary

Department of State obligated $97,719.87 to SILVER CHAIN KUWAIT COMPANY for work described as: USMILGP KUWAIT UNSCHEDULED SERVICES TASK ORDER FOR CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027 Key points: 1. Contract value represents a modest increase for unscheduled services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Services are essential for ongoing US military presence in Kuwait. 5. Contract duration aligns with typical option year extensions for support services.

Value Assessment

Rating: good

The contract value of approximately $977,199 for one year of unscheduled services appears reasonable when considering the context of supporting a US military presence abroad. Benchmarking against similar support service contracts in the region would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally supports fair market pricing and encourages efficiency from the awarded contractor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ensuring the government receives the best value for its investment.

Public Impact

US military personnel and operations in Kuwait benefit from essential support services. The contract ensures the continuity of operations and maintenance for facilities. Geographic impact is localized to Kuwait, supporting US diplomatic and defense missions. Workforce implications include employment opportunities for local staff and potentially US expatriates in Kuwait.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
Limited detail on the 'unscheduled services' could mask potential for scope creep or unexpected cost increases if not managed carefully.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Full and open competition suggests a robust bidding process.
Contract extension indicates satisfaction with the contractor's performance to date.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically catering to government and defense needs in overseas locations. The market for such services is characterized by specialized logistics, maintenance, and operational support providers. Comparable spending benchmarks would involve analyzing other contracts for base operations and support in similar geopolitical regions.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely minimal unless they are acting as subcontractors to the prime contractor, SILVER CHAIN KUWAIT COMPANY. Further analysis of subcontracting plans would be needed to assess broader small business ecosystem implications.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of State, ensuring adherence to contract terms and performance standards. Accountability measures are embedded in the firm fixed-price structure and the potential for contract termination if performance is unsatisfactory. Transparency is facilitated through contract award databases, though specific performance reporting details are not publicly detailed here.

Related Government Programs

US Department of State Overseas Operations Support
US Military Base Support Services
Kuwait Infrastructure Maintenance Contracts
Logistics and Facilities Management Contracts

Risk Flags

Lack of detailed performance metrics.
Ambiguity in 'unscheduled services' scope.
Limited public information on specific bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $97,719.87 to SILVER CHAIN KUWAIT COMPANY. USMILGP KUWAIT UNSCHEDULED SERVICES TASK ORDER FOR CONTRACT 1ST OPTION YEAR FROM 05/01/2026 - 04/30/2027

Who is the contractor on this award?

The obligated recipient is SILVER CHAIN KUWAIT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $97,719.87.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-30.

What is the historical spending trend for this specific contract or similar services provided by SILVER CHAIN KUWAIT COMPANY to the Department of State?

Analyzing historical spending for this contract (Contract 1st Option Year) requires access to prior award data. If this is a new task order under an existing contract, previous years' spending would indicate the typical scale of services. If SILVER CHAIN KUWAIT COMPANY has held similar contracts, their past performance and pricing history with the Department of State would be a key indicator. Without specific historical data for this contract or contractor, it's difficult to establish a trend. However, the current award of approximately $977K for one year suggests a consistent level of support service demand. Further investigation into contract databases like FPDS or SAM.gov could reveal prior awards and spending patterns for this contractor and service category.

How does the per-unit cost of the 'unscheduled services' compare to industry benchmarks or similar government contracts?

The provided data does not detail the specific 'unscheduled services' or their associated per-unit costs, making direct benchmarking challenging. 'Unscheduled services' can encompass a wide range of support activities, from emergency repairs to minor logistical adjustments. To assess value for money, one would need to break down the total contract value into specific service categories and compare their rates against established government price lists (e.g., GSA schedules) or recent contract awards for similar support in the Kuwait region. The firm fixed-price nature suggests that the contractor has already factored in potential variations, but the underlying rates are crucial for a thorough value assessment.

What are the key performance indicators (KPIs) used to evaluate SILVER CHAIN KUWAIT COMPANY's performance under this contract?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) for this task order. However, for support services contracts, common KPIs often include response times for service requests, quality of maintenance or repair work, adherence to safety protocols, and overall customer satisfaction from the end-users (e.g., military personnel). The contracting officer's representative (COR) is responsible for monitoring these KPIs. The renewal and extension of the contract, especially under a firm fixed-price arrangement, implicitly suggest that the contractor has met or exceeded the required performance standards to date.

What is the potential risk associated with the 'unscheduled services' component of this contract?

The primary risk associated with 'unscheduled services' is the potential for scope creep and budget unpredictability if not managed effectively. While the contract is firm fixed-price, the definition and scope of 'unscheduled' need to be clearly delineated to prevent the contractor from broadly interpreting it to increase costs or effort beyond the original intent. Robust oversight by the COR is critical to ensure that only legitimate, necessary unscheduled tasks are approved and that the contractor is not exploiting the flexibility of this service category. The duration of the contract and the relatively modest value suggest that the risk is likely contained.

How does the competition level (full and open) for this contract influence the pricing and potential for innovation?

A 'full and open' competition generally fosters a competitive environment where multiple vendors vie for the contract. This typically drives down prices as contractors aim to offer the most cost-effective solution to win the bid. Furthermore, a competitive landscape can encourage innovation, as companies seek to differentiate themselves not only on price but also on the quality, efficiency, or unique approaches they can offer. The fact that this contract was competed broadly suggests that the Department of State likely received competitive bids, potentially leading to better value and service delivery compared to a sole-source or limited competition award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BEIRUT STREET, BEIRUT HAWALLI

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $97,720

Exercised Options: $97,720

Current Obligation: $97,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19KU2025D0008

IDV Type: IDC

Timeline