DoD's $24.6M UCA for Power Production Support awarded to KBR Services, LLC
Contract Overview
Contract Amount: $24,622,847 ($24.6M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-31
End Date: 2022-12-30
Contract Duration: 729 days
Daily Burn Rate: $33.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UCA FOR POWER PRODUCTION SUPPORT FOR PSAB, KSA
Plain-Language Summary
Department of Defense obligated $24.6 million to KBR SERVICES, LLC for work described as: UCA FOR POWER PRODUCTION SUPPORT FOR PSAB, KSA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The duration of 729 days (2 years) indicates a medium-term need for these services. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 5. The award was a delivery order under a larger contract, implying a phased approach to fulfilling requirements. 6. The prime contractor, KBR Services, LLC, is a significant player in government contracting.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the total contract value it falls under and the scope of services provided. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While KBR Services, LLC is a reputable contractor, the CPFF structure necessitates robust oversight to ensure costs remain reasonable and do not exceed expectations. Further analysis would require comparing the fixed fee percentage and the total incurred costs against similar facilities support contracts.
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 fact that it resulted in a single delivery order suggests that the competition may have occurred at the contract level, with this order being one of potentially many. The level of competition at the initial contract award phase is crucial for determining price discovery and ensuring taxpayer value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Department of the Air Force, which will receive power production support services. The services delivered are critical for maintaining operational readiness and infrastructure at facilities managed by the Air Force. The geographic impact is likely concentrated at the specific Air Force installation(s) where power production support is required. Workforce implications may include the utilization of skilled technicians and engineers by KBR Services, LLC to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize higher spending if not closely monitored.
- Lack of specific details on the fixed fee percentage makes it difficult to assess profit margins.
- The nature of 'power production support' could involve critical infrastructure with potential for service disruptions if not managed effectively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- KBR Services, LLC has a significant track record in government contracting, implying experience.
- The contract addresses a core operational need for the Department of Defense.
Sector Analysis
Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This contract fits within the broader defense sector's need for reliable base operations and support. Comparable spending benchmarks would involve analyzing other large-scale facilities support contracts awarded by the DoD and other federal agencies to understand typical cost structures and pricing for similar services.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, KBR Services, LLC, is a large entity, and while they may engage small businesses as subcontractors, this contract itself does not mandate or prioritize small business participation through a set-aside mechanism.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is essential to monitor incurred costs and ensure the fixed fee is justified. Transparency would be enhanced by public reporting of contract performance and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Facilities Maintenance and Repair
- Energy Production and Management Contracts
- Logistics and Support Services
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Limited information on specific services and performance metrics.
- Competition details are for the contract vehicle, not necessarily this specific delivery order.
Tags
defense, department-of-defense, air-force, facilities-support-services, kbr-services-llc, full-and-open-competition, delivery-order, cost-plus-fixed-fee, middle-east, operational-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to KBR SERVICES, LLC. UCA FOR POWER PRODUCTION SUPPORT FOR PSAB, KSA
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 $24.6 million.
What is the period of performance?
Start: 2020-12-31. End: 2022-12-30.
What is the total value of the contract under which this delivery order was issued, and what is the remaining value?
The provided data only details a single delivery order with a value of $24,622,847.12. It does not specify the total contract value or any remaining value. This delivery order was active from December 31, 2020, to December 30, 2022, with a duration of 729 days. To understand the full scope and financial commitment, information on the parent contract is necessary. This would reveal if this $24.6M represents the entirety of the awarded work or just a portion of a larger, potentially multi-year, indefinite-delivery/indefinite-quantity (IDIQ) or other contract vehicle.
How does the fixed fee percentage for KBR Services, LLC compare to industry benchmarks for similar facilities support contracts?
The provided data does not include the fixed fee percentage negotiated for this Cost Plus Fixed Fee (CPFF) contract. To assess this, one would need to obtain the contract details, specifically the negotiated fee. Once obtained, this percentage could be compared against industry benchmarks for facilities support services awarded under CPFF structures. Generally, fixed fees in CPFF contracts aim to incentivize performance while providing a reasonable profit margin. A fee significantly above or below typical ranges could indicate either exceptional performance requirements or potential issues with pricing negotiations. Without the fee percentage, a direct comparison is not possible.
What specific power production support services are included under this contract, and what is their criticality to Air Force operations?
The contract description 'UCA FOR POWER PRODUCTION SUPPORT FOR PSAB, KSA' suggests services related to the generation, distribution, or maintenance of power at a specific location (likely Prince Sultan Air Base, Saudi Arabia). These services are critical for maintaining the operational readiness of Air Force installations, ensuring uninterrupted power for essential functions such as command and control, life support, communications, and mission-specific equipment. The criticality implies that failures in power production support could have severe operational consequences, potentially impacting mission success and personnel safety.
What was the competitive landscape like during the initial award of the contract vehicle under which this delivery order was placed?
The data states this contract was awarded under 'FULL AND OPEN COMPETITION'. This indicates that the initial solicitation for the contract vehicle allowed any responsible source to submit an offer. While this suggests a competitive process was intended, the fact that this is a single 'DELIVERY ORDER' means we don't know how many bids were received for the overall contract vehicle or for this specific order if it was competed separately. A robust competition typically involves multiple bidders submitting proposals, leading to better price discovery and value for the government.
Are there any past performance concerns or significant issues reported for KBR Services, LLC on similar government contracts?
The provided data does not contain specific past performance ratings or details on issues encountered by KBR Services, LLC for this particular contract or others. However, KBR Services, LLC is a large and established government contractor with extensive experience across various sectors, including defense and facilities support. Government agencies typically assess past performance as a key evaluation factor in contract awards. While this contract itself doesn't list issues, a comprehensive review would involve examining contractor performance evaluations (CAGE codes, Past Performance Information Retrieval System - PPIRS) for other relevant contracts to identify any recurring problems or commendations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $29,059,193
Exercised Options: $29,059,193
Current Obligation: $24,622,847
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $7,641,495
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: 2020-12-31
Current End Date: 2022-12-30
Potential End Date: 2022-12-30 00:00:00
Last Modified: 2025-10-27
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