DoD Awards $47.1M for Base Operating Support in Saudi Arabia to KBR Services, LLC
Contract Overview
Contract Amount: $47,128,487 ($47.1M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-03
End Date: 2026-12-23
Contract Duration: 1,542 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE OPERATING SUPPORT SERVICES - PSAB, SAUDI ARABIA
Plain-Language Summary
Department of Defense obligated $47.1 million to KBR SERVICES, LLC for work described as: BASE OPERATING SUPPORT SERVICES - PSAB, SAUDI ARABIA Key points: 1. Contract awarded to KBR Services, LLC for essential base operating support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over 4 years, indicating a significant long-term commitment. 4. The service category is Facilities Support Services, crucial for military operations abroad.
Value Assessment
Rating: fair
The contract value of $47.1M over approximately 4 years suggests a substantial investment. Benchmarking against similar facilities support contracts in overseas locations is necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific price discovery mechanisms and the number of bids received would provide further insight into the effectiveness of this competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential support services in a critical overseas location. Competitive bidding aims to ensure value for money, but ongoing monitoring is needed.
Public Impact
Ensures operational readiness of U.S. Air Force facilities in Saudi Arabia. Supports personnel and infrastructure in a key strategic region. Potential impact on local economies through contractor employment and resource utilization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Geopolitical risks associated with operating in Saudi Arabia.
- Potential for cost overruns in long-term overseas contracts.
Positive Signals
- Awarded through full and open competition.
- Supports critical military infrastructure.
- Experienced contractor likely involved.
Sector Analysis
Facilities Support Services are essential for maintaining military installations. Spending in this sector can vary significantly based on location, scope, and duration, with overseas contracts often carrying higher costs due to logistical complexities.
Small Business Impact
The data indicates the prime contractor is KBR SERVICES, LLC, and does not specify any small business subcontracting. Further investigation is needed to determine if small businesses are participating in this contract.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to ensure contract performance, cost control, and adherence to terms, especially given the overseas location and duration.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long-term contract duration may increase risk of cost escalation.
- Overseas location introduces logistical and security complexities.
- Lack of detailed performance metrics in the provided data.
- No indication of small business participation.
Tags
facilities-support-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.1 million to KBR SERVICES, LLC. BASE OPERATING SUPPORT SERVICES - 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 $47.1 million.
What is the period of performance?
Start: 2022-10-03. End: 2026-12-23.
What is the cost per square foot or per service unit for these facilities support services, and how does it compare to similar contracts in other overseas bases?
Without detailed service breakdowns and specific metrics, a precise per-unit cost is difficult to establish. However, the total contract value of $47.1M over 1542 days averages approximately $30,563 per day. Benchmarking this daily rate against comparable overseas facilities support contracts would be necessary to assess its competitiveness and identify potential cost efficiencies or overruns.
What are the specific geopolitical and operational risks associated with providing these services in Saudi Arabia, and what mitigation strategies are in place?
Operating in Saudi Arabia presents geopolitical risks including regional instability, evolving diplomatic relations, and potential security threats. Operational risks involve logistical challenges, supply chain disruptions, and adherence to local regulations. Mitigation strategies likely include robust security protocols, contingency planning, strong communication channels with local authorities, and flexible contract terms to adapt to changing circumstances.
How effectively does this contract contribute to the overall mission readiness and operational capabilities of the U.S. Air Force in the region?
This contract is fundamental to mission readiness by ensuring the operational integrity of base facilities, which directly impacts personnel well-being and the functionality of essential equipment and infrastructure. Effective execution by KBR Services, LLC ensures that Air Force units can focus on their primary mission objectives without being hindered by facility deficiencies or support gaps.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
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: $58,653,946
Exercised Options: $47,128,487
Current Obligation: $47,128,487
Actual Outlays: $10,256,147
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $17,114,211
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: 2022-10-03
Current End Date: 2026-12-23
Potential End Date: 2027-12-23 00:00:00
Last Modified: 2025-12-18
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