DOD Awards $352M Facilities Support Contract to Fluor Intercontinental, Inc. for Operation Allies Welcome

Contract Overview

Contract Amount: $352,082,925 ($352.1M)

Contractor: Fluor Intercontinental, Inc

Awarding Agency: Department of Defense

Start Date: 2021-08-22

End Date: 2022-11-25

Contract Duration: 460 days

Daily Burn Rate: $765.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HAFB OPERATION ALLIES WELCOME (REFUGE) - O21R

Place of Performance

Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $352.1 million to FLUOR INTERCONTINENTAL, INC for work described as: HAFB OPERATION ALLIES WELCOME (REFUGE) - O21R Key points: 1. Contract awarded to Fluor Intercontinental, Inc. for $352M. 2. Services fall under Facilities Support Services (NAICS 561210). 3. Full and open competition was utilized. 4. Contract duration is 460 days. 5. This contract supports Operation Allies Welcome (Refuge).

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for flexibility but requires careful oversight to manage costs. The awarded amount of $352M for 460 days suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contractors.

Public Impact

Supports critical humanitarian mission for Afghan refugees. Provides essential facilities management services. Significant federal investment in supporting displaced persons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed properly.
  • Potential for scope creep in large-scale support operations.
  • Reliance on a single contractor for critical support services.

Positive Signals

  • Supports a vital national security and humanitarian initiative.
  • Utilizes full and open competition to ensure value.
  • Contract awarded to an experienced provider in the sector.

Sector Analysis

Facilities Support Services are crucial for maintaining operational readiness and infrastructure. Spending in this sector can fluctuate based on government needs, such as emergency operations like Operation Allies Welcome.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

Cost Plus Fixed Fee contracts require diligent oversight from the contracting agency to ensure costs are reasonable and fixed fees are justified. Performance monitoring is key.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Large contract value.
  • Potential for undefined scope creep.
  • Reliance on a single prime contractor.

Tags

facilities-support-services, department-of-defense, nm, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $352.1 million to FLUOR INTERCONTINENTAL, INC. HAFB OPERATION ALLIES WELCOME (REFUGE) - O21R

Who is the contractor on this award?

The obligated recipient is FLUOR INTERCONTINENTAL, INC.

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 $352.1 million.

What is the period of performance?

Start: 2021-08-22. End: 2022-11-25.

What specific facilities support services are included under this contract?

The contract likely includes a broad range of services such as base operations support, maintenance, logistics, housing, and potentially security services. Detailed scope is usually outlined in the Performance Work Statement (PWS) which is not provided here, but the 'Facilities Support Services' NAICS code suggests comprehensive operational support.

How will the agency ensure cost control with a Cost Plus Fixed Fee contract?

The agency will likely implement rigorous financial oversight, regular audits, and performance reviews. They will monitor all incurred costs against the contract's ceiling and ensure the fixed fee is earned based on meeting performance objectives and adhering to the scope of work.

What is the potential long-term impact of this contract on the local economy in New Mexico?

This contract could provide a significant economic boost through job creation, subcontractor opportunities, and local procurement by Fluor Intercontinental, Inc. The duration and scale of the operation will determine the extent of the economic impact, potentially supporting local businesses and service providers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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: Fluor Corporation

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $352,082,925

Exercised Options: $352,082,925

Current Obligation: $352,082,925

Actual Outlays: $330,417,440

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $402,156,136

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA805120D0004

IDV Type: IDC

Timeline

Start Date: 2021-08-22

Current End Date: 2022-11-25

Potential End Date: 2022-11-25 00:00:00

Last Modified: 2023-09-12

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