DoD Awards $36.4M for Turkey Base Operations Support to KBR Services, LLC

Contract Overview

Contract Amount: $36,405,797 ($36.4M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-26

End Date: 2024-01-27

Contract Duration: 366 days

Daily Burn Rate: $99.5K/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 $36.4 million to KBR SERVICES, LLC for work described as: TURKEY BASE OPERATIONS SUPPORT Key points: 1. Contract value of $36.4 million for base operations support. 2. Awarded to KBR Services, LLC under full and open competition. 3. Facilities Support Services sector, NAICS 561210. 4. Fixed Price with Economic Price Adjustment contract type. 5. Duration of 366 days, ending January 27, 2024.

Value Assessment

Rating: good

The contract value of $36.4 million for a 366-day duration appears reasonable for base operations support services. Benchmarking against similar contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment among potential contractors.

Public Impact

Ensures critical base operations support at Turkey facilities. Supports U.S. Air Force operations and personnel. Provides essential services for maintaining military readiness. Potential impact on local economies through contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Economic Price Adjustment clause may lead to cost increases.
  • Contract duration is relatively short (366 days).

Positive Signals

  • Awarded through full and open competition.
  • Supports critical military infrastructure.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of government facilities. Spending in this sector is substantial and critical for agency operations.

Small Business Impact

The data does not indicate if small businesses were involved in subcontracting opportunities for this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was made by the Department of the Air Force, part of the Department of Defense, suggesting established oversight mechanisms. However, specific oversight details for this contract are not provided.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost overruns due to Economic Price Adjustment.
  • Limited contract duration may require frequent re-competition.
  • Lack of small business participation data.
  • Geopolitical risks inherent in operating in Turkey.

Tags

facilities-support-services, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 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 $36.4 million.

What is the period of performance?

Start: 2023-01-26. End: 2024-01-27.

What is the typical cost range for similar base operations support contracts in similar geographic regions?

The typical cost range for base operations support contracts can vary significantly based on location, scope of services, and duration. For a 366-day contract of this nature, values can range from tens of millions to over a hundred million dollars. Factors like labor costs, security requirements, and the specific facilities managed heavily influence the final price.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type?

The primary risk with an Economic Price Adjustment (EPA) clause is that it allows for price increases based on fluctuations in specific economic indicators, such as labor or material costs. This can lead to higher-than-anticipated expenditures for the government if inflation is significant, potentially eroding cost savings expected from a fixed-price structure.

How effectively does this contract contribute to the overall mission readiness of the U.S. Air Force in Turkey?

This contract is crucial for maintaining the operational readiness of U.S. Air Force assets and personnel stationed in Turkey. By ensuring essential services like facility maintenance, logistics, and potentially security, it allows military personnel to focus on their core mission objectives, thereby directly contributing to mission effectiveness and regional stability.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE 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: $36,460,298

Exercised Options: $36,460,298

Current Obligation: $36,405,797

Actual Outlays: $18,503,715

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: 2023-01-26

Current End Date: 2024-01-27

Potential End Date: 2024-01-27 00:00:00

Last Modified: 2026-02-04

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