DoD's $28.4M Spain Base Operations Support contract awarded to KBR Services, LLC
Contract Overview
Contract Amount: $28,423,741 ($28.4M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-01-28
End Date: 2025-01-27
Contract Duration: 365 days
Daily Burn Rate: $77.9K/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 $28.4 million to KBR SERVICES, LLC for work described as: SPAIN BASE OPERATIONS SUPPORT. Key points: 1. Contract provides essential facilities support services for U.S. Air Force operations in Spain. 2. Fixed-price contract with economic price adjustment aims to mitigate inflation risks. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Duration of 365 days indicates a focus on immediate operational needs. 5. Contract value is significant for supporting U.S. military presence abroad. 6. No small business set-aside, indicating the primary contractor is not a small business.
Value Assessment
Rating: good
The contract value of $28.4 million for a one-year period for base operations support in Spain appears reasonable given the scope of services. Benchmarking against similar contracts for overseas base support is challenging due to unique geographic and operational factors. However, the fixed-price structure with economic price adjustment suggests an effort to control costs while accounting for potential market fluctuations. The award to KBR Services, LLC, a known entity in this sector, provides some assurance of capability.
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 Department of the Air Force sought the best value proposition from the market.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.
Public Impact
U.S. Air Force personnel and operations in Spain benefit from sustained base support. Services include facilities maintenance, logistics, and potentially other operational support functions. Geographic impact is concentrated at U.S. Air Force installations in Spain. Workforce implications include employment opportunities for local nationals and potentially U.S. personnel supporting KBR Services, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if economic price adjustment clauses are heavily utilized.
- Dependence on a single contractor for critical base operations could pose a risk if performance issues arise.
Positive Signals
- Award to an experienced contractor (KBR Services, LLC) suggests a higher likelihood of successful performance.
- Fixed-price contract structure provides a baseline cost control mechanism.
- Full and open competition indicates a robust market engagement process.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of maintaining government operations, particularly in overseas locations. The market for base operations support is often dominated by large, experienced defense contractors capable of managing complex logistical and facility requirements across diverse geographic regions. Spending in this sector is substantial, driven by the global footprint of military operations. This specific contract represents a portion of the broader U.S. Department of Defense spending on maintaining its international infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. This suggests that the primary contract was awarded to a large business, and any involvement of small businesses would likely be through subcontracting opportunities offered by KBR Services, LLC. Without specific subcontracting goals, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Air Force contracting and technical representatives at the supported installations in Spain. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance Contracts
- Overseas Military Support Contracts
- Department of Defense Logistics Support
Risk Flags
- Potential for cost escalation due to economic price adjustment clauses.
- Contractor performance risk for critical base operations.
- Dependence on a single provider for essential services.
Tags
defense, department-of-defense, air-force, spain, facilities-support-services, full-and-open-competition, fixed-price-with-economic-price-adjustment, base-operations-support, kbr-services-llc, overseas-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 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 $28.4 million.
What is the period of performance?
Start: 2024-01-28. End: 2025-01-27.
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 and related services to the Department of Defense and other government agencies, both domestically and internationally. They are a well-established contractor in this space, often managing large-scale, complex operations. Their track record includes significant contracts for base support, logistics, maintenance, and construction at various military installations worldwide. While specific performance details for every contract are not always public, KBR's continued success in winning and performing such contracts suggests a generally positive track record. However, like any large contractor, they may have faced past performance issues or disputes on specific contracts, which would be detailed in government past performance databases accessible to contracting officers.
How does the $28.4 million contract value compare to similar base operations support contracts in Europe?
Comparing the $28.4 million contract value for one year of base operations support in Spain to similar contracts in Europe requires careful consideration of scope, location, and duration. Overseas base support contracts can vary significantly due to factors like the size of the installation, the specific services required (e.g., security, housing, dining, maintenance), local labor costs, and geopolitical considerations. While $28.4 million for a year of comprehensive support is substantial, it may fall within the typical range for supporting a medium-to-large U.S. Air Force installation in Europe. Contracts for larger bases or those with more extensive service requirements could easily exceed this amount, while smaller installations or those with fewer services might be awarded smaller contracts. Without specific details on the scope of services and the size of the installation supported, a precise benchmark is difficult, but the value appears consistent with the demands of supporting military operations abroad.
What are the primary risks associated with this type of fixed-price contract with economic price adjustment?
The primary risks associated with a fixed-price contract with economic price adjustment (EPA) for base operations support involve the potential for cost increases due to fluctuating economic factors. While the fixed-price component aims to provide cost certainty for a baseline, the EPA clause allows for adjustments based on predefined economic indices (e.g., inflation, labor costs, material costs). The risk for the government lies in the possibility that these adjustments could lead to higher-than-anticipated expenditures, especially in periods of high inflation or supply chain disruptions. For the contractor, the risk is mitigated by the EPA, but they still bear the risk of managing performance within the fixed-price portion and ensuring that the EPA accurately reflects actual cost increases without becoming excessive. Effective oversight is crucial to ensure that EPA adjustments are justified and applied correctly.
What is the expected effectiveness of KBR Services, LLC in delivering these base operations support services?
The expected effectiveness of KBR Services, LLC in delivering these base operations support services is generally considered high, given their extensive experience and established presence in this sector. The Department of the Air Force's award of a full and open competition contract to KBR suggests that the company demonstrated strong technical capabilities, a sound understanding of the requirements, and a competitive price. Their track record with similar contracts implies a robust infrastructure, experienced personnel, and established processes for managing complex operations. Effectiveness will ultimately be measured by their adherence to contract performance standards, responsiveness to requirements, and overall contribution to the smooth functioning of the U.S. Air Force installations in Spain. Government performance evaluations and feedback mechanisms will be key indicators of their success.
How has historical spending on base operations support in Spain by the Department of Defense trended over the past five years?
Analyzing historical spending trends for base operations support in Spain by the Department of Defense requires access to detailed procurement data over the past five years. Generally, spending in this category is influenced by factors such as the level of U.S. military presence, infrastructure investments, geopolitical conditions, and evolving operational requirements. It is plausible that spending has remained relatively stable or seen moderate increases, potentially influenced by inflation and the need to maintain aging facilities. However, significant shifts could occur due to changes in force posture, new strategic agreements, or major infrastructure projects. Without specific data, it's difficult to provide precise trends, but such contracts are typically long-term commitments reflecting ongoing strategic needs.
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: $32,906,393
Exercised Options: $32,906,393
Current Obligation: $28,423,741
Actual Outlays: $6,746,587
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: 2024-01-28
Current End Date: 2025-01-27
Potential End Date: 2025-01-27 00:00:00
Last Modified: 2026-02-04
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