DoD's $29.2M base operations support contract for Spain awarded to KBR Services, LLC
Contract Overview
Contract Amount: $29,226,731 ($29.2M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-28
End Date: 2024-01-27
Contract Duration: 364 days
Daily Burn Rate: $80.3K/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 $29.2 million to KBR SERVICES, LLC for work described as: SPAIN BASE OPERATIONS SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract with economic price adjustment offers some cost certainty with flexibility for inflation. 3. Duration of 364 days indicates a one-year operational support requirement. 4. The contract falls under Facilities Support Services, a common and essential government function. 5. Awarded by the Department of the Air Force, highlighting a specific military branch's need. 6. The base operations support function is critical for maintaining military installations abroad.
Value Assessment
Rating: good
Benchmarking the value of this contract requires comparison to similar base operations support contracts, particularly those for overseas installations. Given the fixed-price nature with economic price adjustment, the pricing structure aims for a balance between cost control and managing inflationary pressures. The total award amount of approximately $29.2 million for a year of comprehensive support services appears reasonable within the context of supporting a significant military presence, though a detailed cost breakdown would be needed for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement 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 through a broad solicitation process.
Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the most advantageous terms and pricing for the government, potentially leading to cost savings compared to less competitive award methods.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the U.S. Air Force personnel and operations in Spain, ensuring seamless facility management. Services delivered include a wide range of base operations support, crucial for the functionality and readiness of the military installation. The geographic impact is concentrated in Spain, supporting U.S. military presence and operations in that region. Workforce implications may include local employment opportunities for support staff and integration of contractor personnel with military personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if economic price adjustment clauses are heavily utilized due to unforeseen inflation.
- Dependence on a single contractor for critical base operations could pose a risk if performance issues arise.
- Ensuring consistent service quality across all aspects of base operations requires robust oversight.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market and potentially favorable pricing.
- Fixed-price contract structure provides a degree of cost predictability for the government.
- Economic price adjustment can help mitigate risks associated with fluctuating market costs for essential services.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing a wide array of services essential for the operation and maintenance of buildings and grounds. This sector is characterized by numerous providers, ranging from small local businesses to large multinational corporations. Government contracts in this area are substantial, reflecting the ongoing need to maintain federal facilities. This specific contract for base operations support in Spain fits within the larger trend of governments outsourcing non-core functions to specialized service providers to ensure efficient and cost-effective operations of their installations.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if KBR Services, LLC chooses to engage them. Without specific subcontracting plans or goals outlined in the award details, it is difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create indirect opportunities for small businesses within their supply chains.
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 contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance Contracts
- Logistics Support Contracts
- Department of Defense Overseas Operations
- Air Force Installation Support
Risk Flags
- Potential for cost escalation due to economic price adjustment clauses.
- Contractor performance risk for critical base operations.
- Need for robust government oversight to ensure service quality and compliance.
Tags
defense, department-of-defense, department-of-the-air-force, spain, facilities-support-services, full-and-open-competition, fixed-price-with-economic-price-adjustment, base-operations-support, overseas-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 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 $29.2 million.
What is the period of performance?
Start: 2023-01-28. End: 2024-01-27.
What is KBR Services, LLC's track record with similar base operations support contracts for the Department of Defense?
KBR Services, LLC has a significant and extensive history of performing base operations support (BOS) and base support services (BSS) for the Department of Defense (DoD) and other government agencies, both domestically and internationally. They have held numerous large-scale contracts involving facility maintenance, logistics, security, and other essential services for military installations. Their experience often includes managing complex operations in challenging environments. While specific performance metrics for past contracts are not detailed here, KBR's continued success in winning and executing such contracts suggests a generally positive track record and established capability in meeting DoD requirements for base support.
How does the $29.2 million award compare to the average cost of similar base operations support contracts?
Comparing the $29.2 million award for one year of base operations support in Spain requires context regarding the scope of services, location, and specific installation size. Overseas contracts often carry higher costs due to logistical complexities, security requirements, and potentially higher labor rates. Benchmarking against similar contracts for large U.S. military installations in Europe or other overseas locations would be necessary. Generally, large-scale base operations support contracts can range from tens of millions to hundreds of millions of dollars annually, depending on the scale of the base and the breadth of services required. This award appears to be within a reasonable range for supporting a significant military presence for a year.
What are the primary risks associated with this type of fixed-price contract with economic price adjustment?
The primary risks with a fixed-price contract with economic price adjustment (FP-EPA) involve the potential for cost escalation if inflation significantly outpaces the adjustment mechanisms. While the fixed-price component provides a baseline cost certainty, the EPA allows for adjustments based on pre-defined economic indicators (e.g., labor, material costs). If these indicators rise sharply and unexpectedly, the government could end up paying more than initially budgeted. Conversely, the contractor bears the risk if costs rise beyond the EPA's coverage or if the adjustment formula does not adequately reflect actual cost increases. Effective management and monitoring of the economic indicators are crucial for mitigating these risks.
How effective are base operations support contracts in ensuring military readiness and operational efficiency?
Base operations support contracts are generally considered highly effective in ensuring military readiness and operational efficiency. By outsourcing non-core functions like facility maintenance, groundskeeping, transportation, and sometimes security, military personnel can focus on their primary combat and operational missions. These contracts provide specialized expertise and economies of scale that can lead to more efficient service delivery. When well-managed and overseen, they ensure that installations are well-maintained, functional, and capable of supporting military operations without interruption. The continuity of services provided under these contracts is vital for maintaining the operational tempo and readiness of deployed forces.
What has been the historical spending trend for base operations support services by the Department of Defense?
The Department of Defense (DoD) has consistently allocated substantial funding towards base operations support (BOS) services over many years. Spending in this category has generally trended upwards, driven by factors such as increased global military presence, the outsourcing of more support functions to contractors, and rising costs of labor and materials. The DoD relies heavily on contractors to manage and maintain its vast network of domestic and overseas installations. Annual spending on BOS can fluctuate based on geopolitical conditions, strategic realignments, and budget appropriations, but it remains a significant and enduring component of the DoD's overall procurement budget, often amounting to billions of dollars annually across various service branches.
What are the implications of awarding this contract through 'full and open competition' for taxpayer value?
Awarding this contract through 'full and open competition' is generally positive for taxpayer value. This procurement method allows any responsible business to submit a bid, fostering a competitive environment. Competition typically drives down prices and encourages contractors to offer the best possible services and value to win the contract. It reduces the risk of the government overpaying for services compared to sole-source or limited competition scenarios. Taxpayers benefit from the potential for cost savings and the assurance that the selected contractor has been chosen based on a rigorous evaluation of technical capabilities and price, aiming for the best overall value for the government.
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: $31,792,755
Exercised Options: $31,792,755
Current Obligation: $29,226,731
Actual Outlays: $15,427,394
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $34,749
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: 2023-01-28
Current End Date: 2024-01-27
Potential End Date: 2024-01-27 00:00:00
Last Modified: 2026-02-04
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