KBR Services awarded $824.9M for Japan base operations support, highlighting long-term facilities management needs
Contract Overview
Contract Amount: $8,249,400 ($8.2M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-06
End Date: 2026-03-15
Contract Duration: 1,164 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE OPERATIONS SUPPORT - JAPAN
Plain-Language Summary
Department of Defense obligated $8.2 million to KBR SERVICES, LLC for work described as: BASE OPERATIONS SUPPORT - JAPAN Key points: 1. Contract value represents significant investment in maintaining critical infrastructure abroad. 2. Full and open competition suggests a competitive bidding process for this large-scale service contract. 3. The duration of the contract indicates a need for sustained and reliable base support services. 4. Fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 5. This award aligns with broader defense spending trends focused on operational readiness and global presence. 6. The specific NAICS code points to a focus on comprehensive facilities management rather than specialized construction.
Value Assessment
Rating: good
Benchmarking this contract's value requires comparison to similar large-scale base operations support contracts, particularly those in overseas locations like Japan. Given the extensive scope of facilities support services, the $824.9 million award over its period appears reasonable, reflecting the complexity and scale of maintaining military installations. The firm fixed-price structure suggests that the contractor has factored in potential cost fluctuations, aiming for predictable expenses for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service proposals. The presence of multiple bidders, as suggested by the award details, generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: Taxpayers benefit from full and open competition through the likelihood of receiving a more cost-effective solution. This process drives down prices as contractors vie for the award, ensuring that government funds are utilized efficiently.
Public Impact
U.S. military personnel and their families stationed in Japan benefit from well-maintained and operational facilities. Essential services such as maintenance, repair, and logistical support are delivered to ensure mission readiness. The geographic impact is concentrated on U.S. military bases within Japan, supporting diplomatic and defense posture. This contract supports a significant number of jobs, both directly with KBR Services and indirectly through subcontractors, contributing to the local and U.S. economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen operational challenges arise, despite fixed-price structure.
- Dependence on a single contractor for critical base operations could pose a risk if performance falters.
- Geopolitical factors in the region could impact operational continuity and associated costs.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust selection process and competitive pricing.
- Long contract duration indicates a stable, long-term partnership for essential services.
- Contractor's experience in similar overseas operations likely ensures reliable service delivery.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of the broader defense and government services industry. The market for base operations support is substantial, driven by the U.S. military's global footprint. Spending in this area is essential for maintaining infrastructure, ensuring operational readiness, and supporting personnel abroad. Comparable contracts often involve extensive logistical, maintenance, and administrative services, with values ranging widely based on location, scope, and duration.
Small Business Impact
While the primary awardee is KBR Services, LLC, the contract's scale and scope often necessitate subcontracting. Analysis should focus on whether KBR Services has a robust plan for engaging small businesses as subcontractors to fulfill specific service needs. The absence of explicit small business set-aside flags suggests the primary competition was broad, but subcontracting opportunities remain a key area for small business participation and economic impact.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Air Force, with specific contracting officers and program managers responsible for monitoring performance and adherence to terms. Accountability measures are embedded within the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award databases and reporting mechanisms, though detailed operational oversight specifics are typically internal.
Related Government Programs
- Base Operations Support Services
- Logistics and Support Services
- Facilities Maintenance and Repair
- Overseas Military Construction and Operations
- Defense Contract Management Agency (DCMA) Oversight
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Contractor performance risk in delivering comprehensive services.
- Geopolitical instability impacting operational continuity.
- Dependency on a single large contractor for critical functions.
Tags
defense, department-of-defense, air-force, base-operations-support, facilities-support-services, full-and-open-competition, firm-fixed-price, japan, kbr-services-llc, large-contract, overseas-operations, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.2 million to KBR SERVICES, LLC. BASE OPERATIONS SUPPORT - JAPAN
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 $8.2 million.
What is the period of performance?
Start: 2023-01-06. End: 2026-03-15.
What is KBR Services, LLC's track record with similar base operations support contracts, particularly in overseas environments?
KBR Services, LLC has a long and extensive history of providing base operations support services to the U.S. military, including significant experience in overseas locations such as Japan. They have managed numerous large-scale contracts encompassing a wide range of services, from facilities maintenance and logistics to security and morale, welfare, and recreation (MWR) support. Their track record generally indicates a capacity to handle complex, long-term requirements in challenging environments. However, like any large contractor, past performance reviews and specific contract outcomes should be examined for detailed insights into their reliability, efficiency, and adherence to contractual obligations across different projects.
How does the $824.9 million value compare to similar base operations support contracts awarded by the Department of Defense in the Asia-Pacific region?
The $824.9 million value for this base operations support contract in Japan is substantial and aligns with the typical scale of such awards in high-cost, strategically important regions like the Asia-Pacific. Contracts for similar services at major U.S. installations in South Korea or Guam, for instance, often run into hundreds of millions or even billions of dollars over several years. Factors influencing this value include the size and complexity of the bases supported, the range of services required (e.g., housing, utilities, transportation, maintenance), and the specific economic conditions and labor costs in the host country. This award appears consistent with the significant investment required to maintain robust operational capabilities and quality of life for personnel in these critical overseas theaters.
What are the primary performance risks associated with this firm fixed-price contract for base operations support?
While a firm fixed-price contract is designed to provide cost certainty, primary performance risks revolve around the contractor's ability to deliver all required services within the agreed-upon price. Key risks include potential cost overruns if KBR Services underestimates the complexity or cost of certain tasks, faces unexpected operational challenges (e.g., natural disasters, supply chain disruptions), or experiences significant increases in labor or material costs not fully anticipated. Another risk is contractor underperformance, where cost pressures might lead to cuts in service quality or scope, impacting base operations and personnel welfare. Effective government oversight and clearly defined performance metrics are crucial to mitigate these risks and ensure contract compliance.
How effective are the current oversight mechanisms in ensuring program effectiveness and accountability for this contract?
Oversight for this contract is typically managed by the Department of the Air Force's contracting and program management offices, potentially supported by the Defense Contract Management Agency (DCMA). Effectiveness hinges on the rigor of performance monitoring, adherence to key performance indicators (KPIs), and the responsiveness to any identified deficiencies. Accountability is enforced through contractual remedies, performance evaluations, and potential award fees or penalties. Transparency is generally facilitated through contract databases and reporting requirements. However, the true effectiveness often depends on the resources allocated to oversight, the expertise of the personnel involved, and the clarity of the contract's performance standards.
What are the historical spending patterns for base operations support in Japan, and how does this award fit within that trend?
Historical spending on base operations support in Japan has consistently been significant, reflecting the U.S. military's long-term commitment and substantial presence in the region. Annual expenditures often run into billions of dollars across various contracts supporting different bases and service branches. This $824.9 million award, spanning approximately three years, represents a considerable portion of that ongoing investment. It fits within the trend of sustained, high-value contracts necessary to maintain critical infrastructure and operational readiness. Fluctuations in spending are typically driven by geopolitical shifts, base realignment decisions, and evolving mission requirements, but the overall need for comprehensive support services remains a constant driver of federal expenditure in this category.
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: 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: $23,303,735
Exercised Options: $10,100,254
Current Obligation: $8,249,400
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $8,605,074
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: 2023-01-06
Current End Date: 2026-03-15
Potential End Date: 2028-03-15 00:00:00
Last Modified: 2026-03-04
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