DoD's $41.5M base operating services contract for Saudi Arabia awarded to KBR Services, LLC
Contract Overview
Contract Amount: $41,505,535 ($41.5M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-06
End Date: 2022-08-05
Contract Duration: 729 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE OPERATING SERVICES AT PSAB SAUDI ARABIA
Plain-Language Summary
Department of Defense obligated $41.5 million to KBR SERVICES, LLC for work described as: BASE OPERATING SERVICES AT PSAB SAUDI ARABIA Key points: 1. Contract provides essential facilities support services, ensuring operational readiness. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 729 days indicates a medium-term commitment for services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The North American Industry Classification System (NAICS) code 561210 points to a standard facilities support services category. 6. The base value of $41.5M is a significant investment in maintaining overseas facilities.
Value Assessment
Rating: good
The contract value of $41.5 million for base operating services over approximately two years appears reasonable given the scope of facilities support required in a complex overseas environment. Benchmarking against similar contracts for base support in comparable regions would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.
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 presence of 4 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process as it typically drives down prices and encourages contractors to offer the best value to win the award.
Public Impact
The primary beneficiaries are the U.S. military personnel and operations at the Prince Sultan Air Base (PSAB) in Saudi Arabia, who receive essential support services. Services delivered include facility maintenance, logistics, and potentially other operational support functions critical for base functioning. The geographic impact is concentrated at PSAB in Saudi Arabia, supporting U.S. strategic interests in the region. Workforce implications include employment opportunities for both U.S. and local personnel managed by the contractor, KBR Services, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not clearly defined and managed.
- Reliance on a single contractor for critical base operations could pose a risk if performance falters.
- Geopolitical factors in Saudi Arabia could impact service delivery or costs.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Fixed-price contract type aligns incentives for cost control with the contractor.
- KBR Services, LLC has extensive experience in government contracting and base support operations.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. The global market for facilities management is substantial, with government contracts forming a significant portion due to the extensive real estate and operational needs of defense and other agencies. This specific contract supports a key overseas military installation, highlighting the critical role of such services in maintaining national security posture and operational readiness in strategic locations.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, KBR Services, LLC, as a large prime contractor, may engage small businesses in its supply chain, though this is not detailed in the provided information.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting requirements are standard mechanisms to ensure accountability and transparency. The contract's fixed-price nature also provides a degree of financial oversight by limiting the government's exposure to cost increases.
Related Government Programs
- Base Operating Support Services (BOSS)
- Logistics and Base Support
- Facilities Maintenance Contracts
- Overseas Military Construction Support
Risk Flags
- Performance Risk
- Geopolitical Risk
- Logistical Challenges
Tags
defense, department-of-defense, air-force, facilities-support-services, kbr-services-llc, saudi-arabia, fixed-price, full-and-open-competition, base-operating-support, overseas-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.5 million to KBR SERVICES, LLC. BASE OPERATING SERVICES AT PSAB SAUDI ARABIA
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 $41.5 million.
What is the period of performance?
Start: 2020-08-06. End: 2022-08-05.
What is KBR Services, LLC's track record with similar base operating support contracts, particularly in overseas environments?
KBR Services, LLC, a subsidiary of Kellogg Brown & Root, has a long and extensive history of providing base operating support services (BOSS) to various government agencies, including the Department of Defense, across numerous overseas locations. Their experience spans decades and includes managing complex logistical, maintenance, and operational support functions in challenging environments similar to Saudi Arabia. They have held numerous large-scale contracts for base support, often involving services like facility management, transportation, communications, security, and life support. While specific performance details for every contract are not publicly available, their continued success in winning and executing such contracts suggests a generally positive track record in delivering required services. However, like any large contractor, they may have faced performance issues or disputes on specific contracts, which would require a deeper dive into contract performance reports and historical data.
How does the awarded value of $41.5 million compare to similar base operating support contracts in the Middle East region?
Comparing the $41.5 million value for approximately two years of base operating services at PSAB requires careful consideration of the specific scope of work, base size, and geopolitical context. Contracts for similar services in the Middle East can vary significantly. For instance, larger bases or those requiring more extensive life support, construction, or security services might command higher values, potentially reaching tens or even hundreds of millions of dollars annually. Conversely, smaller installations or those with a more limited service requirement would naturally have lower contract values. Without detailed scope-of-work comparisons and specific location risk assessments, a precise benchmark is difficult. However, $41.5 million for two years suggests a substantial but not exceptionally large contract, likely covering essential maintenance, logistics, and operational support for a significant but not the largest-tier military installation in the region.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include performance failures by the contractor (KBR Services, LLC), potential cost overruns if the fixed-price structure is not managed effectively, geopolitical instability in Saudi Arabia affecting operations, and logistical challenges inherent in overseas support. Mitigation strategies typically involve robust contract oversight by the Air Force, including performance monitoring through Quality Assurance Surveillance Plans (QASPs), regular progress meetings, and defined performance metrics. The fixed-price contract shifts some financial risk to the contractor. For geopolitical risks, the government maintains its own security and diplomatic channels, and contract clauses may address force majeure events. Logistical challenges are managed through established supply chains and contingency planning, often detailed within the contractor's proposed approach.
What is the expected program effectiveness and impact of these base operating services on military readiness?
The expected program effectiveness is high, as base operating services are fundamental to maintaining the functionality and readiness of military installations. By ensuring that facilities are maintained, utilities are operational, logistics are managed, and essential life support is provided, these services directly enable the primary mission of the personnel stationed at PSAB. Effective execution of this contract means that military units can focus on their core operational tasks without being hindered by infrastructure or support deficiencies. This directly contributes to U.S. military readiness in the region by ensuring a stable and functional operational base, supporting power projection, intelligence gathering, and regional security cooperation efforts.
How has federal spending on base operating support services in the Middle East evolved over the past five years?
Federal spending on base operating support services (BOSS) in the Middle East has generally seen fluctuations over the past five years, influenced by geopolitical events, troop level adjustments, and evolving strategic priorities. Following periods of heightened military engagement, spending often increased to support larger troop footprints and more extensive base operations. As troop levels have been adjusted or strategic focus shifted, spending may have decreased or been reallocated. Contracts like this one represent ongoing requirements for maintaining a persistent presence and operational capability. The overall trend reflects a continued, albeit sometimes adjusted, commitment to supporting U.S. military infrastructure and personnel in a critical region, with spending levels often reflecting the scale and nature of U.S. operations and diplomatic engagement.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
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: $92,015,251
Exercised Options: $41,505,535
Current Obligation: $41,505,535
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $10,396,227
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA805120D0005
IDV Type: IDC
Timeline
Start Date: 2020-08-06
Current End Date: 2022-08-05
Potential End Date: 2025-08-05 00:00:00
Last Modified: 2025-10-27
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)