DoD awards $39.6M for Turkey Base Operations Support to KBR Services, LLC
Contract Overview
Contract Amount: $39,555,104 ($39.6M)
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: $108.4K/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 $39.6 million to KBR SERVICES, LLC for work described as: TURKEY BASE OPERATIONS SUPPORT. Key points: 1. Contract provides essential base operations support services, ensuring continuity for critical military functions. 2. The fixed-price structure with economic price adjustment aims to manage cost fluctuations in a dynamic environment. 3. Competition was full and open, suggesting a robust market engagement and potential for competitive pricing. 4. The contract duration of one year allows for regular re-evaluation of needs and contractor performance. 5. Services are vital for maintaining operational readiness and supporting personnel stationed in Turkey. 6. The award falls within the facilities support services NAICS code, a common area for large-scale government contracts.
Value Assessment
Rating: good
The contract value of approximately $39.6 million for a one-year period for base operations support in Turkey appears reasonable given the scope of services. Benchmarking against similar large-scale base support contracts globally suggests that pricing is likely competitive, especially considering the full and open competition. The fixed-price with economic price adjustment (EPA) clause is standard for long-term service contracts in overseas locations to account for inflation and currency fluctuations, which can help stabilize costs for the government while ensuring the contractor can maintain service levels.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, driving down prices and encouraging innovation. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide the required services at a fair and reasonable price.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, leading to a more competitive bidding process and potentially lower overall costs for the government.
Public Impact
Serves U.S. Air Force personnel and operations in Turkey, ensuring mission continuity. Provides critical facilities support services, including maintenance, logistics, and potentially security. Supports the U.S. military's strategic presence and diplomatic relations in the region. Contributes to the local economy in Turkey through employment and resource utilization. Ensures a stable and functional base environment for deployed service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the economic price adjustment clause if inflation is higher than anticipated.
- Dependence on a single contractor for a broad range of essential base services could pose a risk if performance issues arise.
- Geopolitical instability in the region could impact service delivery or necessitate additional security measures.
Positive Signals
- Award to an established contractor (KBR Services, LLC) with a history of providing similar services globally.
- The use of full and open competition suggests a well-defined requirement and a competitive market.
- One-year contract duration allows for flexibility and performance monitoring before potential extensions.
Sector Analysis
This contract falls under the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. The global market for base operations support is substantial, with major defense contractors often competing for these long-term, high-value agreements. Spending in this sector is driven by the need to maintain readiness and operational capability for military installations worldwide. Comparable contracts often involve extensive logistical, maintenance, and administrative support, with values ranging from tens to hundreds of millions of dollars annually.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). KBR Services, LLC is a large business. While there is no direct small business set-aside, large prime contractors are often required to meet small business subcontracting goals. The extent to which KBR will utilize small businesses for subcontracting will determine the indirect impact on the small business ecosystem. Without specific subcontracting plans, the direct benefit to small businesses from this particular award is likely limited.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices responsible for U.S. Air Forces in Europe - Air Forces Africa (USAFE-AFAFRICA). Performance will be monitored through regular reporting, site inspections, and adherence to service level agreements outlined in the contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Base Operations Support Services
- Logistics and Supply Chain Management
- Facilities Maintenance and Repair
- Contingency Support Services
- Defense Contract Management
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Performance risk in delivering essential base services.
- Geopolitical risks impacting operations in Turkey.
Tags
defense, department-of-defense, department-of-the-air-force, turkey, base-operations-support, facilities-support-services, full-and-open-competition, fixed-price-with-economic-price-adjustment, kbr-services-llc, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 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 $39.6 million.
What is the period of performance?
Start: 2024-01-28. End: 2025-01-27.
What is KBR Services, LLC's track record in providing base operations support globally?
KBR Services, LLC, a subsidiary of Kellogg Brown & Root, has an extensive history of providing base operations support (BOS) and logistics services to governments and defense agencies worldwide, including significant operations in the Middle East and Europe. They have managed large-scale contracts for the U.S. Department of Defense, NATO, and other international organizations, covering a wide spectrum of services such as facility maintenance, construction, logistics, transportation, and life support. Their experience includes supporting major military installations and contingency operations, demonstrating a capacity to handle complex requirements in challenging environments. While specific performance metrics for all contracts are not publicly available, KBR is generally recognized as a major player in the global defense services market, often competing for and winning substantial contracts of this nature.
How does the awarded price compare to similar base operations support contracts?
The awarded value of approximately $39.6 million for a one-year base operations support contract in Turkey is within the expected range for such services, particularly for a full and open competition. Large-scale base support contracts, especially those involving extensive facilities management, logistics, and personnel support in overseas locations, can range from tens to hundreds of millions of dollars annually. Factors influencing price include the specific scope of services, geographic location, security requirements, and the duration of the contract. Given that this is a fixed-price contract with economic price adjustment (EPA), the base price is set, with adjustments for inflation and currency fluctuations. Without access to detailed service breakdowns and specific market benchmarks for Turkey, a precise comparison is difficult, but the award appears competitive for the scope.
What are the primary risks associated with this contract for the Department of Defense?
The primary risks associated with this contract include potential cost increases due to the economic price adjustment (EPA) clause, especially if inflation or currency exchange rates fluctuate unfavorably. Performance risk is another significant concern; any degradation in essential services like facility maintenance, security, or logistics could impact mission readiness and personnel well-being. Geopolitical instability in Turkey or the surrounding region could disrupt operations or necessitate additional security measures, increasing costs and complexity. Furthermore, reliance on a single contractor for a broad range of critical functions creates a dependency risk; any contractor failure or withdrawal could have substantial operational consequences.
How effective is the full and open competition strategy in ensuring value for taxpayers on this contract?
The full and open competition strategy is generally highly effective in ensuring value for taxpayers on contracts like this. By allowing all responsible sources to submit bids, it maximizes the number of potential offerors, thereby increasing competition. This competitive pressure typically drives down prices and encourages contractors to offer the most cost-effective solutions to win the contract. It also provides the agency with a wider range of technical approaches and pricing structures to evaluate, allowing for the selection of the best overall value. While the initial competition is crucial, ongoing performance monitoring and contract management are also essential to sustain value throughout the contract's life.
What is the historical spending pattern 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 can vary significantly based on the specific bases, the scope of services required, and the geopolitical climate. Over the years, the U.S. has maintained a significant military presence in Turkey, necessitating ongoing support contracts. These contracts often involve multi-year agreements for services such as facility maintenance, logistics, security, and life support. Spending levels can fluctuate due to changes in force posture, infrastructure upgrades, or evolving mission requirements. While specific historical figures for this exact contract or location are not detailed here, the overall trend indicates consistent investment in maintaining operational capabilities at key installations in the region, with contract values often in the tens of millions of dollars annually for comprehensive support packages.
What are the implications of the fixed-price with economic price adjustment (FPEPA) contract type for cost control?
The Fixed-Price with Economic Price Adjustment (FPEPA) contract type aims to balance cost certainty for the government with the contractor's need to manage fluctuating costs, particularly in overseas operations. For this $39.6 million Turkey Base Operations Support contract, the fixed-price component provides a baseline cost, while the EPA allows for adjustments based on pre-defined economic factors, such as inflation indices or currency exchange rates. This structure can help prevent cost overruns that might occur with a purely fixed-price contract if unforeseen economic changes significantly impact labor or material costs. However, it also means that the final cost to the government is not entirely fixed and could increase if economic conditions worsen. Effective management requires careful monitoring of the economic indicators used for adjustment to ensure fairness and prevent excessive price increases.
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: $39,980,722
Exercised Options: $39,980,722
Current Obligation: $39,555,104
Actual Outlays: $7,971,780
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
More Contracts from KBR Services, LLC
- Follow on Task Order to 139 IS NOW Task Order 159 — $8.9B (Department of Defense)
- 200612!001884!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0007 !A!N! !Y!0139 ! !20060822!20120131!133469119!133469119!964409007!n!kellogg Brown&root Services,!4100 Clinton DRY !houston !TX!77020!00000! !IZ! ! !iraq !+000400000000!n!n!000000000000!r706!logistics Support Services !S1 !services !000 !NOT Discernable !561210!E! !5!B!S! ! ! !99990909!B! ! !A! !a!u!r!2!003!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $7.9B (Department of Defense)
- Federal Contract — $6.1B (Department of Defense)
- 200509!001151!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0007 !A!N! !Y!0089 ! !20050613!20120131!133469119!133469119!964409007!n!kellogg Brown&root Services,!4100 Clinton DR !houston !TX!77020!00000! !IZ!* !* !iraq !+000135000000!n!n!000000000000!r706!logistics Support Services !S1 !services !000 !* !561210!E! !5!B!S! ! ! !20200930!B! ! !A! !a!u!r!2!003!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! !Y! ! ! !0001! ! — $4.6B (Department of Defense)
- Logistic Civil Augmentation Program (logcap) V Award for Eucom Performance Task Order — $2.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)