DoD's $20.8M Spain Base Operations Support contract awarded to KBR Services, LLC for facilities support
Contract Overview
Contract Amount: $20,822,143 ($20.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-28
End Date: 2023-01-27
Contract Duration: 213 days
Daily Burn Rate: $97.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: SPAIN BASE OPERATIONS SUPPORT
Plain-Language Summary
Department of Defense obligated $20.8 million to KBR SERVICES, LLC for work described as: SPAIN BASE OPERATIONS SUPPORT Key points: 1. Contract value appears reasonable for a multi-year base support operation in a foreign country. 2. Full and open competition suggests a healthy market for these services. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces some inflation risk. 4. Contract duration of 213 days is relatively short for base operations, potentially indicating task-specific or interim support. 5. The award falls within the Facilities Support Services sector, a common area for large government contracts. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.
Value Assessment
Rating: good
The contract value of approximately $20.8 million for a roughly 7-month period of performance for base operations support in Spain is within a reasonable range for such services. Benchmarking against similar contracts for overseas base support is challenging due to unique location-specific costs and service requirements. However, the fixed-price nature with economic price adjustment suggests an attempt to control costs while accounting for potential fluctuations in foreign labor and material costs. The value appears to be a fair reflection of the services provided, assuming the scope of work is comprehensive for the duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of Defense actively sought bids from all responsible sources. The specific number of bidders is not provided, but the use of full and open competition generally implies a competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by allowing multiple qualified contractors to submit proposals. The absence of specific competition details limits a deeper analysis of the intensity of the bidding process.
Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential offerors and drives down prices through market forces. This approach ensures that taxpayer dollars are used efficiently by selecting the most cost-effective solution.
Public Impact
The primary beneficiaries are the U.S. military personnel and operations stationed at the Spain base, ensuring continuity and functionality. Services delivered include essential facilities support, maintaining operational readiness and quality of life for service members. The geographic impact is localized to the specific military installation in Spain where the services are rendered. Workforce implications include employment opportunities for local nationals and potentially U.S. expatriates supporting the base operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The fixed-price with economic price adjustment (FPEPA) contract type carries inherent risk of cost overruns due to potential inflation in labor, materials, and services, especially in a foreign operating environment.
- The relatively short contract duration (213 days) might indicate a need for follow-on contracts or potential instability in long-term planning for base support.
- Lack of specific details on the number of bidders in the full and open competition makes it difficult to assess the true competitiveness and potential for price optimization.
Positive Signals
- Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
- The contract is for essential base operations support, critical for maintaining military readiness and personnel well-being.
- KBR Services, LLC is a known entity in providing large-scale support services to government and defense clients, implying experience and capability.
Sector Analysis
This contract falls under the Facilities Support Services sector (NAICS 561210), a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. The global market for facilities management is substantial, with government contracts forming a significant portion. Comparable spending benchmarks are difficult to establish precisely without knowing the specific scope of services and location, but large overseas base support contracts can range from tens to hundreds of millions of dollars annually. This contract represents a mid-tier award within this sector for a specific operational period.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This suggests that the primary contract was competed broadly, and the awardee, KBR Services, LLC, is likely a large business. There is no direct information on subcontracting plans for small businesses within this specific delivery order. However, large prime contractors are often required to meet small business subcontracting goals on larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles from which this delivery order might have been issued, though this specific order does not reflect a direct set-aside.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices, given the awarding agency. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment clauses. Transparency is facilitated through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged, allowing for independent investigation.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Support Services
- Facilities Maintenance and Management
- Overseas Contingency Operations Support
- Department of Defense Contract Services
Risk Flags
- Potential for cost overruns due to economic price adjustment clause.
- Short contract duration may indicate interim or incomplete service provision.
- Lack of specific bidder numbers limits assessment of competition intensity.
Tags
defense, department-of-defense, air-force, facilities-support-services, full-and-open-competition, fixed-price-economic-price-adjustment, delivery-order, spain, base-operations-support, kbr-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to KBR SERVICES, LLC. SPAIN 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 $20.8 million.
What is the period of performance?
Start: 2022-06-28. End: 2023-01-27.
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 (BOS) and other services to the Department of Defense (DoD) and other government agencies, both domestically and internationally. They have held numerous large-scale contracts for services such as facility maintenance, logistics, security, and life support at military installations worldwide. Their experience includes managing complex operations in various geopolitical environments. While specific performance metrics for past contracts are not detailed here, KBR is generally recognized as a major contractor in this space, often winning significant portions of the DoD's global support requirements. Their extensive portfolio suggests a proven capability to manage the scope and scale of services required for base operations.
How does the awarded value of $20.8 million compare to similar base operations support contracts in Spain or similar overseas locations?
Directly comparing the $20.8 million value for a 213-day period (approximately 7 months) requires detailed knowledge of the specific services included and the exact location's cost structure. However, for context, large-scale, multi-year base operations support contracts for major overseas installations can easily run into hundreds of millions of dollars annually. For a shorter duration or a smaller installation, $20.8 million is a substantial but not extraordinary amount. Factors like labor costs, security requirements, infrastructure complexity, and the scope of services (e.g., housing, dining, maintenance, transportation) significantly influence pricing. Without a precise scope-of-work comparison, it's difficult to definitively benchmark, but the value appears aligned with the potential scale of services for a defined period in a foreign theater.
What are the primary risks associated with a Fixed Price with Economic Price Adjustment (FPEPA) contract for base operations support in Spain?
The primary risks with an FPEPA contract for base operations support in Spain revolve around cost escalation due to economic fluctuations. While the fixed-price component aims to cap the base cost, the economic price adjustment clause allows for increases based on predefined indices for labor, materials, and potentially currency exchange rates. In an overseas environment, these factors can be volatile. Risks include: 1) Inflationary pressures on local labor and imported materials driving up costs beyond initial projections. 2) Currency exchange rate volatility impacting the cost of goods and services procured in local currency versus the contract's payment currency. 3) Potential for disputes over the application and calculation of economic price adjustments. The government bears the risk of increased costs due to these economic factors, while the contractor is protected against unforeseen market shifts.
What does the contract duration of 213 days imply about the nature of the services being provided?
A contract duration of 213 days (approximately 7 months) for base operations support is relatively short, especially when compared to typical multi-year BOS contracts that can span several years. This short duration could imply several things: 1) It might be a bridge contract, intended to provide essential services while a longer-term, larger contract is being competed or finalized. 2) It could be for a specific, limited scope of work or a particular project within the broader base operations, rather than comprehensive, ongoing support. 3) It might represent a specific phase of a larger program or a temporary surge requirement. Without further context, it suggests that this award is not for the full, long-term sustainment of base operations but rather for a defined, shorter period.
How does the 'Facilities Support Services' classification (NAICS 561210) relate to the overall spending on base operations?
The NAICS code 561210, 'Facilities Support Services,' is a broad classification that encompasses a wide range of activities necessary for the operation and maintenance of buildings and grounds. Base operations support (BOS) contracts often fall under this category because they typically include services such as facility maintenance, repair, custodial services, groundskeeping, pest control, and sometimes even utilities management. While BOS contracts can be comprehensive, encompassing logistics, security, and life support as well, the 'Facilities Support Services' code specifically highlights the physical upkeep and operational readiness of the installation's infrastructure. This classification helps categorize the contract within the broader federal procurement landscape, allowing for comparisons with other spending on facility management across government agencies.
What is the significance of the contract type being 'Delivery Order' (aw)?
The 'aw' field indicating 'Delivery Order' signifies that this contract is a task order issued under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. IDIQ contracts establish terms and conditions, including pricing structures and performance requirements, under which the government can issue specific orders for goods or services as needed. A delivery order represents a specific commitment to purchase a defined quantity of supplies or services by a specified date. This approach allows the government flexibility to procure services incrementally based on evolving requirements, while the underlying IDIQ contract provides a framework for competition and pricing over a longer period. It means this $20.8M award is one component of a potentially larger contracting vehicle.
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: $22,305,889
Exercised Options: $22,305,889
Current Obligation: $20,822,143
Actual Outlays: $4,275,868
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $36,924
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: 2022-06-28
Current End Date: 2023-01-27
Potential End Date: 2023-01-27 00:00:00
Last Modified: 2026-02-04
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