DoD awards $36.6M task order to KBR Services for facilities support in Turkey
Contract Overview
Contract Amount: $36,663,138 ($36.7M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-01-28
End Date: 2026-01-28
Contract Duration: 365 days
Daily Burn Rate: $100.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: TASK ORDER FOR UABOS SERVICES AND SUPPORT IN TURKEY FOR BASIC ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IAW BASIC PERFORMANCE WORK STATEMENT AND PWS TURKEY BASIC ORDERING PERIOD 5.
Plain-Language Summary
Department of Defense obligated $36.7 million to KBR SERVICES, LLC for work described as: TASK ORDER FOR UABOS SERVICES AND SUPPORT IN TURKEY FOR BASIC ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IAW BASIC PERFORMANCE WORK STATEMENT AND PWS TURKEY BASIC ORDERING PERIOD 5. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price with economic price adjustment contract type introduces potential for cost fluctuations. 3. Task order duration of 12 months provides a defined period for service delivery. 4. Facilities Support Services sector indicates a focus on operational and maintenance needs. 5. Awarded by the Department of the Air Force, aligning with aviation and base support requirements. 6. No small business set-aside, indicating the primary awardee is not a small business.
Value Assessment
Rating: fair
The total award amount is $36.6 million for a 12-month period. Benchmarking this against similar facilities support contracts requires detailed analysis of scope and location. The fixed-price with economic price adjustment (FPEPA) structure can lead to costs exceeding initial estimates if economic factors, such as inflation or currency fluctuations, are significant. Without specific performance metrics or comparisons to industry standards for similar services in the region, a definitive value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. 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. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide the required services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of contractors to bid, potentially driving down costs.
Public Impact
The primary beneficiary is the Department of the Air Force, which will receive facilities support services. Services include general facilities support and maintenance, crucial for operational readiness. The geographic impact is localized to Turkey, supporting U.S. Air Force installations in the region. Workforce implications may include local employment opportunities for support staff in Turkey, depending on KBR's subcontracting strategy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost increases due to economic price adjustment clause.
- Lack of specific details on the scope of 'facilities support services' could lead to scope creep or unmet expectations.
- Geographic location in Turkey may present logistical and geopolitical risks.
- Contract duration of only 12 months may not incentivize long-term investment in service quality or efficiency.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Fixed-price contract type provides some cost certainty, though adjusted for economic factors.
- Clear performance work statement (PWS) is referenced, implying defined service requirements.
- Contractor KBR Services, LLC has a history of performing government contracts.
Sector Analysis
Facilities Support Services is a broad category encompassing a range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is critical for government agencies, particularly those with overseas installations like the Department of Defense. The market is competitive, with numerous providers offering specialized and general support. Comparable spending benchmarks would depend heavily on the specific services required, the scale of the facilities, and the geographic location, with overseas contracts often carrying higher logistical and operational costs.
Small Business Impact
This contract does not appear to have a small business set-aside. The awardee, KBR Services, LLC, is a large business. While there is no direct set-aside, the contract may still offer subcontracting opportunities for small businesses as part of KBR's overall project execution, depending on their subcontracting plan and the nature of the services required.
Oversight & Accountability
Oversight for this task order will likely be managed by the contracting officer and the designated contracting officer's representative (COR) within the Department of the Air Force. Performance will be monitored against the Performance Work Statement (PWS). Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Supply Chain Management
- Contingency Base Support
- Facilities Maintenance and Repair
- Overseas Construction and Engineering Support
Risk Flags
- Economic Price Adjustment Clause
- Geopolitical Risk
- Logistical Complexity
- Performance Monitoring Challenges
- Foreign Currency Fluctuation
Tags
facilities-support, department-of-defense, department-of-the-air-force, turkey, task-order, full-and-open-competition, fixed-price-economic-price-adjustment, large-business, overseas-operations, facilities-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to KBR SERVICES, LLC. TASK ORDER FOR UABOS SERVICES AND SUPPORT IN TURKEY FOR BASIC ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IAW BASIC PERFORMANCE WORK STATEMENT AND PWS TURKEY BASIC ORDERING PERIOD 5.
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 $36.7 million.
What is the period of performance?
Start: 2025-01-28. End: 2026-01-28.
What is KBR Services, LLC's track record with similar facilities support contracts, particularly in overseas environments?
KBR Services, LLC has a significant history of performing large-scale government contracts, including extensive experience in base operations support and facilities management, often in challenging overseas environments. They have been awarded numerous contracts by the Department of Defense and other agencies for services similar to those outlined in this task order. Their past performance on contracts in regions like the Middle East and Europe suggests a capability to manage complex logistics, security, and operational requirements. Analyzing specific past performance evaluations and contract histories would provide a clearer picture of their reliability, efficiency, and adherence to cost and schedule on comparable projects.
How does the $36.6 million award compare to historical spending for similar facilities support services in Turkey?
Comparing the $36.6 million award for 12 months of facilities support services in Turkey to historical spending requires access to detailed historical contract data for similar services in that specific geographic region. Factors such as the scope of services (e.g., maintenance, security, utilities, transportation), the size and type of facilities supported, and the prevailing economic conditions at the time of historical awards are crucial for a meaningful comparison. Without this granular data, it's difficult to definitively state whether this award represents an increase, decrease, or stable spending trend. However, given the nature of overseas operations, costs can be significantly higher than domestic contracts due to logistical complexities and risk premiums.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include geopolitical instability in the region, potential currency fluctuations impacting the economic price adjustment, logistical challenges in a foreign country, and the inherent risks of large-scale facilities management. Mitigation strategies likely involve robust security protocols, contingency planning for supply chain disruptions, careful monitoring of economic indicators for the price adjustment clause, and strong contract management by the COR. The fixed-price nature, even with adjustments, aims to contain costs, while the full and open competition suggests a vetted contractor with demonstrated capabilities. The specific PWS and oversight mechanisms are key to managing performance risks.
How effective is the 'Fixed Price with Economic Price Adjustment' contract type for managing costs in this context?
The Fixed Price with Economic Price Adjustment (FPEPA) contract type attempts to balance cost certainty for the government with protection for the contractor against unforeseen economic fluctuations. In an overseas environment like Turkey, where currency exchange rates and inflation can be volatile, this clause is intended to prevent cost overruns solely due to external economic factors, rather than contractor performance issues. However, it introduces complexity in tracking and verifying price adjustments. The effectiveness hinges on the clarity of the economic indicators used for adjustment and the rigor of the government's oversight in approving these adjustments to ensure they are justified and reasonable, preventing excessive cost increases.
What is the typical duration for facilities support task orders of this magnitude and scope?
Task orders for facilities support services, especially those supporting military installations, can vary significantly in duration. While 12 months is common for initial task orders or for services that are reviewed annually, longer-term contracts (multiple years, often with option periods) are also frequent for base operations support to ensure continuity and allow contractors to amortize investments. A 12-month duration for a $36.6 million task order suggests either a specific short-term need, a phased approach to a larger requirement, or a deliberate strategy to re-compete or re-evaluate services annually. It provides flexibility but may not foster the same level of long-term efficiency as a multi-year commitment.
What are the implications of awarding this contract to KBR Services, LLC, a large business, versus a small business?
Awarding this significant task order to a large business like KBR Services, LLC means the primary contract value flows to a large entity. This contrasts with awarding to a small business, which would directly support small business growth and economic development goals. However, large businesses often possess the extensive resources, established infrastructure, and specialized expertise required for complex, large-scale overseas operations like this. While direct small business benefit is reduced, large prime contractors are often required to meet small business subcontracting goals, potentially creating indirect opportunities for small businesses to participate in the project.
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: $37,619,745
Exercised Options: $37,619,745
Current Obligation: $36,663,138
Actual Outlays: $10,433,083
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: 2025-01-28
Current End Date: 2026-01-28
Potential End Date: 2026-01-28 00:00:00
Last Modified: 2026-02-04
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