DoD's $25.5M Turkey Base Operations Support contract awarded to KBR Services, LLC
Contract Overview
Contract Amount: $25,546,663 ($25.5M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-01-28
End Date: 2022-06-27
Contract Duration: 150 days
Daily Burn Rate: $170.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: TURKEY BASE OPERATIONS SUPPORT
Plain-Language Summary
Department of Defense obligated $25.5 million to KBR SERVICES, LLC for work described as: TURKEY BASE OPERATIONS SUPPORT Key points: 1. Contract provides essential base operations support services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract with economic price adjustment aims to manage cost fluctuations. 4. Short duration of 150 days indicates a specific, potentially interim, need. 5. Services are critical for maintaining U.S. Air Force presence and operations in Turkey. 6. The contract value is significant for the services provided within the specified timeframe.
Value Assessment
Rating: good
The contract value of approximately $25.5 million for a 150-day period for base operations support in Turkey appears reasonable given the scope of services typically required for such support. Benchmarking against similar contracts for base support in overseas locations is challenging due to unique geopolitical and logistical factors. However, the fixed-price structure with economic price adjustment suggests an effort to control costs while accounting for potential inflation or currency fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value from a wide range of potential contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby maximizing the value of government spending.
Public Impact
U.S. Air Force personnel and operations in Turkey benefit from uninterrupted base support. Ensures the functionality and maintenance of critical infrastructure at the base. Supports the broader U.S. foreign policy and national security objectives in the region. Indirectly supports local economies through contractor employment and resource utilization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if economic price adjustment clauses are heavily utilized.
- Geopolitical instability in the region could impact service delivery or costs.
- Short contract duration may lead to higher administrative costs for contract management and transition.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Fixed-price contract structure provides a degree of cost certainty.
- Experienced contractor (KBR Services, LLC) likely possesses the necessary expertise for base operations support.
Sector Analysis
Base operations support services fall under the Facilities Support Services industry. This sector is characterized by a wide range of services essential for the functioning of government and commercial facilities, including maintenance, logistics, and administrative support. The market for these services is substantial, driven by government needs for maintaining overseas installations and domestic facilities. This contract represents a specific instance of the Department of Defense procuring these vital services to ensure operational readiness.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, KBR Services, LLC, may engage small businesses as subcontractors, though this is not explicitly detailed in the award information.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the fixed-price contract structure, requiring KBR Services, LLC to deliver specified services. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and oversight reports are not always publicly accessible.
Related Government Programs
- Base Operations Support Contracts
- Logistics and Support Services
- Overseas Military Installations Support
- Facilities Management Contracts
Risk Flags
- Potential for cost escalation via economic price adjustment.
- Geopolitical risks in the operating region.
- Short contract duration may impact efficiency.
Tags
defense, department-of-defense, air-force, turkey, base-operations-support, facilities-support-services, full-and-open-competition, fixed-price-with-economic-price-adjustment, delivery-order, kbr-services-llc, overseas-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to KBR SERVICES, LLC. TURKEY BASE OPERATIONS SUPPORT
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 Air Force).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2022-01-28. End: 2022-06-27.
What is KBR Services, LLC's track record with similar base operations support contracts for the Department of Defense?
KBR Services, LLC has a long and extensive history of providing base operations support and logistics services to the Department of Defense and other government agencies, both domestically and internationally. They have held numerous large-scale contracts for base support, including services like facility maintenance, transportation, supply chain management, and emergency response, often in challenging overseas environments. Their experience includes significant operations in regions like the Middle East and Asia. This extensive background suggests a strong capability and familiarity with the requirements and complexities of managing large, critical support functions for military installations, which likely informed their bid for the Turkey base operations support contract.
How does the $25.5 million value compare to similar base operations support contracts in overseas locations?
Comparing the $25.5 million value for this 150-day contract requires careful consideration of location, scope, and duration. Overseas base operations support contracts can vary significantly in cost due to factors such as geopolitical risk, local labor costs, transportation expenses, and the specific services required. While $25.5 million for approximately five months of comprehensive support is substantial, it may be within the expected range for a critical U.S. Air Force installation in Turkey. Contracts for similar durations and scopes in different regions, or for longer periods, could range from tens of millions to hundreds of millions of dollars. Without specific details on the exact services and the operational tempo at the Turkey base, a precise benchmark is difficult, but the value appears aligned with the necessity of maintaining essential functions for deployed forces.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks include potential cost increases due to the economic price adjustment clause, which can be influenced by inflation or currency fluctuations. Geopolitical instability in the region poses a risk to service continuity and personnel safety. Furthermore, the short 150-day duration might lead to inefficiencies related to contract startup and closeout. Mitigation strategies likely involve robust contract management by the COR to monitor expenditures and the application of the economic price adjustment clause, ensuring it aligns with legitimate cost increases. Security protocols and contingency planning address geopolitical risks. The fixed-price nature of the base contract provides a ceiling, and the short term suggests it might be an interim solution or a bridge contract, potentially mitigating long-term risks.
How effective is the 'full and open competition' method in ensuring value for money for this type of service?
Full and open competition is generally considered the most effective method for ensuring value for money, as it allows a wide range of qualified contractors to bid, fostering price competition and innovation. For base operations support, which involves a broad spectrum of services, this approach enables the government to solicit proposals that meet specific requirements and compare them based on technical merit and cost. The success in achieving value depends on the clarity of the solicitation, the evaluation criteria, and the number and capability of the bidders. While this contract was awarded under full and open competition, the specific number of bids received and the final negotiated price would provide a clearer picture of the value achieved.
What are the historical spending patterns for base operations support in Turkey by the Department of Defense?
Historical spending patterns for base operations support in Turkey by the Department of Defense are likely characterized by multi-year, high-value contracts awarded through competitive processes. These contracts typically cover a wide array of services essential for maintaining U.S. military presence, including facility maintenance, security, logistics, utilities, and personnel support. Spending levels can fluctuate based on geopolitical conditions, force posture changes, and specific mission requirements. While precise historical figures for this specific base or contract type are not provided, the consistent need for such support suggests a sustained level of investment over time, with individual contract values often in the tens or hundreds of millions of dollars depending on the scope and duration.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brown & Root Industrial Services Holdings, LLC
Address: 601 JEFFERSON ST, HOUSTON, TX, 77002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,216,614
Exercised Options: $29,216,614
Current Obligation: $25,546,663
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA564120D0009
IDV Type: IDC
Timeline
Start Date: 2022-01-28
Current End Date: 2022-06-27
Potential End Date: 2022-06-27 00:00:00
Last Modified: 2026-02-04
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