DoD Awards KBR $38M for Saudi Arabia Power Production & Engineering Support
Contract Overview
Contract Amount: $38,074,275 ($38.1M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-03
End Date: 2026-02-28
Contract Duration: 1,244 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: POWER PRODUCTION AND ENGINEERING SUPPORT SERVICES - PSAB SAUDI ARABIA
Plain-Language Summary
Department of Defense obligated $38.1 million to KBR SERVICES, LLC for work described as: POWER PRODUCTION AND ENGINEERING SUPPORT SERVICES - PSAB SAUDI ARABIA Key points: 1. Contract value of $38.07M awarded to KBR Services, LLC. 2. Services are for power production and engineering support in Saudi Arabia. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. The contract falls under Facilities Support Services (NAICS 561210).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The award amount is substantial for specialized support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by leveraging market forces.
Public Impact
Supports critical power production and engineering functions for the Department of the Air Force in a key international location. Ensures operational readiness and infrastructure maintenance for U.S. Air Force assets in Saudi Arabia. Potential for follow-on work or expansion of services based on performance and evolving needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Geopolitical risks associated with operating in Saudi Arabia.
- Limited visibility into specific performance metrics and outcomes.
Positive Signals
- Awarded via full and open competition.
- Supports critical military infrastructure.
- Long-term contract duration (over 3 years).
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, operation, and management of facilities. Spending in this sector is often driven by government infrastructure needs and operational requirements, with benchmarks varying widely based on location and service complexity.
Small Business Impact
The contract was awarded to KBR Services, LLC, a large business. There is no indication of small business subcontracting participation in the provided data.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF contract type necessitates robust monitoring to control costs and ensure performance standards are met.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Geopolitical instability in the region.
- Dependence on a single large contractor for critical services.
- Lack of explicit 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 $38.1 million to KBR SERVICES, LLC. POWER PRODUCTION AND ENGINEERING 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 $38.1 million.
What is the period of performance?
Start: 2022-10-03. End: 2026-02-28.
What specific power production and engineering services are included, and how do they align with Air Force operational needs in Saudi Arabia?
The contract likely covers the operation, maintenance, and repair of power generation facilities, as well as engineering support for related infrastructure. This ensures reliable power for U.S. Air Force bases and operations in the region, crucial for mission effectiveness and personnel support. The specific services would be detailed in the Statement of Work (SOW).
What are the key performance indicators (KPIs) for this contract, and how is KBR's performance being measured to ensure value and effectiveness?
Key performance indicators would likely focus on power availability, system uptime, response times for maintenance, and adherence to engineering standards. The Air Force would monitor these metrics through regular reporting and site inspections. Effective performance management is crucial under a CPFF contract to mitigate cost risks and ensure mission-critical support.
What is the cost breakdown within the CPFF structure, and how are fixed fees determined to ensure fair pricing for the government?
A Cost Plus Fixed Fee (CPFF) contract includes allowable costs plus a fixed fee representing profit. The fixed fee is negotiated upfront and should reflect the complexity and risk involved. The government's finance and contracting officers would scrutinize cost proposals to ensure they are reasonable and the fixed fee is appropriate for the services rendered.
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: 3
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: $38,449,091
Exercised Options: $38,449,091
Current Obligation: $38,074,275
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $21,846,110
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: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-11-14
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