DoD's $29.9M task order for UABOS services in Spain awarded to KBR Services, LLC

Contract Overview

Contract Amount: $29,932,298 ($29.9M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-28

End Date: 2026-01-27

Contract Duration: 364 days

Daily Burn Rate: $82.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: TASK ORDER (TO) FOR UABOS SERVICES AND SUPPORT IN SPAIN FOR ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IN ACCORDANCE BASIC IDIQ PERFORMANCE WORK STATEMENT, AND THE FY25 TO PERFORMANCE WORK STATEMENT (ORDERING PERIOD 5) AND ITS ATTACHMENTS.

Plain-Language Summary

Department of Defense obligated $29.9 million to KBR SERVICES, LLC for work described as: TASK ORDER (TO) FOR UABOS SERVICES AND SUPPORT IN SPAIN FOR ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IN ACCORDANCE BASIC IDIQ PERFORMANCE WORK STATEMENT, AND THE FY25 TO PERFORMANCE WORK STATEMENT (ORDERING PERIOD 5) AND ITS ATTACHMENTS. Key points: 1. This task order represents a significant investment in maintaining critical infrastructure and support services for U.S. operations in Spain. 2. The contract utilizes a fixed-price with economic price adjustment structure, aiming to balance cost certainty with protection against market fluctuations. 3. Awarded under full and open competition, this suggests a robust bidding process that should theoretically drive competitive pricing. 4. The duration of 12 months for this ordering period indicates a need for ongoing, adaptable support services. 5. Facilities Support Services (NAICS 561210) is a broad category, and the specific nature of UABOS services will determine the true value and efficiency. 6. The contract's value of nearly $30 million warrants close monitoring of performance and cost control throughout its term.

Value Assessment

Rating: good

The contract value of $29.9 million for a 12-month period for facilities support services in Spain appears within a reasonable range for large-scale base operations support. Benchmarking against similar contracts for overseas base support is challenging due to unique geographic and operational factors. However, the fixed-price with economic price adjustment (EPA) clause suggests an effort to manage cost volatility, which is common in long-term overseas contracts. The pricing will ultimately be assessed based on the specific deliverables and service levels outlined in the performance work statement.

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 the competitive nature of the award process is a positive signal for price discovery and value for money. A competitive environment generally encourages contractors to offer their best pricing and performance to secure the contract.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it is expected to yield a more favorable price compared to sole-source or limited competition scenarios. This approach helps ensure that government funds are used efficiently.

Public Impact

U.S. military personnel and civilian employees stationed in Spain will benefit from continued essential support services. Services include facilities maintenance, logistics, and potentially other base operational support critical for mission readiness. The geographic impact is focused on U.S. installations in Spain, ensuring operational continuity. The contract supports a workforce potentially comprised of both U.S. personnel and local nationals employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause if inflation significantly outpaces projections.
Ensuring consistent service quality across all UABOS functions in Spain requires robust oversight.
Dependence on a single contractor (KBR Services, LLC) for critical support functions could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The fixed-price with EPA structure aims to provide cost stability while accounting for market changes.
The contract duration allows for sustained support and potential for contractor efficiency gains over time.

Sector Analysis

Facilities Support Services (NAICS 561210) is a substantial sector within government contracting, encompassing a wide range of services from building maintenance and repair to logistics and base operations. This contract fits within the broader defense infrastructure support market, which is characterized by long-term agreements and significant dollar values, especially for overseas operations. Comparable spending benchmarks are difficult to establish precisely without knowing the exact scope of UABOS, but large overseas base support contracts can range 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). As a large-value contract likely requiring extensive resources and capabilities, it is typical for such awards to go to large businesses. There is no explicit information on subcontracting plans for small businesses, which would be a key area to monitor for potential small business participation and to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order will likely be managed by the Department of the Air Force contracting and technical representatives responsible for the UABOS program in Spain. Accountability measures will be tied to the performance work statement, with potential for award fee adjustments or penalties based on service delivery. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Maintenance and Repair
Overseas Contingency Operations Support
Department of Defense Infrastructure Contracts

Risk Flags

Potential for cost escalation due to EPA clause.
Ensuring consistent service delivery quality across diverse support functions.
Dependence on contractor performance for critical base operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to KBR SERVICES, LLC. TASK ORDER (TO) FOR UABOS SERVICES AND SUPPORT IN SPAIN FOR ORDERING PERIOD 5 (12 MONTHS). TO SHALL BE PERFORMED IN ACCORDANCE BASIC IDIQ PERFORMANCE WORK STATEMENT, AND THE FY25 TO PERFORMANCE WORK STATEMENT (ORDERING PERIOD 5) AND ITS ATTACHMENTS.

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 $29.9 million.

What is the period of performance?

Start: 2025-01-28. End: 2026-01-27.

What is the historical spending pattern for UABOS services in Spain under previous ordering periods?

Analyzing historical spending for UABOS services in Spain is crucial for understanding cost trends and contractor performance over time. While specific data for previous ordering periods of this task order is not provided, similar large-scale base operations support contracts often show consistent annual spending, with fluctuations driven by operational tempo, infrastructure upgrades, or changes in service requirements. For instance, if previous periods averaged $25-30 million annually, this new $29.9 million award aligns with expectations. However, significant deviations could indicate changes in scope, market conditions, or contractor efficiency. A detailed review of past contract modifications, economic price adjustments, and performance reviews would provide a clearer picture of cost drivers and value realization.

How does KBR Services, LLC's performance on similar overseas contracts compare to the pricing of this task order?

Assessing KBR Services, LLC's performance on comparable overseas contracts is key to evaluating the value proposition of this $29.9 million task order. KBR has a long history of providing base operations and logistics support globally. Benchmarking would involve examining their track record on contracts with similar scope (e.g., facilities management, logistics, security) in regions with comparable operational complexities and cost structures. Positive indicators would include consistent high performance ratings, minimal contract disputes, and adherence to budget. If KBR has a strong history of successful execution and cost control on similar large-scale, long-term overseas contracts, it lends confidence to the pricing and expected outcomes of this new task order. Conversely, a history of performance issues or cost overruns on analogous contracts would raise concerns about the value and risk associated with this award.

What are the specific risks associated with the 'Economic Price Adjustment' (EPA) clause in this contract?

The Economic Price Adjustment (EPA) clause in this $29.9 million task order for UABOS services in Spain is designed to protect both the contractor and the government from significant unforeseen cost increases or decreases due to market fluctuations, primarily inflation. The primary risk for the government is that the EPA could lead to higher-than-anticipated costs if inflation rates in Spain or for specific inputs (labor, materials, fuel) rise substantially above the baseline established in the contract. This could erode the value for money if actual costs significantly exceed initial projections. Conversely, the contractor is protected from losses if costs rise unexpectedly. The effectiveness of the EPA depends heavily on the specific indices used for adjustment, the frequency of adjustments, and the caps or floors, if any, stipulated in the contract. Careful monitoring of the indices and the contractor's cost data is essential to manage this risk.

What is the potential impact of this contract on local Spanish employment and the local economy?

This $29.9 million task order for UABOS services in Spain, awarded to KBR Services, LLC, is likely to have a notable impact on local employment and the regional economy. As a large-scale facilities support contract, it typically requires a significant workforce, a substantial portion of which is often sourced from the local labor market. This can translate into job creation for roles such as maintenance technicians, administrative staff, logistics personnel, and potentially specialized trades. Furthermore, the contract's spending will likely stimulate local businesses through the procurement of goods and services, such as construction materials, food supplies, transportation, and other operational necessities. The economic benefit extends beyond direct employment to indirect job creation in supporting industries. The specific extent of this impact depends on KBR's subcontracting practices and hiring policies within Spain.

How does the scope of 'Facilities Support Services' (NAICS 561210) for UABOS in Spain compare to standard facility management contracts?

The scope of 'Facilities Support Services' (NAICS 561210) for UABOS (United States Army, Europe, and Africa Base Operations Support) in Spain is likely far more comprehensive than standard commercial facility management contracts. While typical contracts might focus on building maintenance, HVAC, janitorial services, and groundskeeping, UABOS contracts often encompass a much broader range of integrated support functions essential for military base operations. This can include infrastructure management, utilities, transportation support, logistics, waste management, fire and emergency services, security support, and potentially even morale, welfare, and recreation (MWR) services. The complexity arises from operating within a military context, often in overseas locations, requiring adherence to specific military standards, security protocols, and logistical challenges distinct from domestic commercial operations. Therefore, while categorized under 561210, the actual service delivery is significantly more extensive and mission-critical.

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: $32,436,376

Exercised Options: $32,436,376

Current Obligation: $29,932,298

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