DoD awards $79M contract for escort services in Southwest Asia, with KBR Services LLC as the primary contractor

Contract Overview

Contract Amount: $79,104,173 ($79.1M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-07

End Date: 2025-12-06

Contract Duration: 913 days

Daily Burn Rate: $86.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOCAL NATIONAL/OTHER COUNTRY NATIONAL ESCORT SERVICE FOR MULTIPLE LOCATIONS IN SOUTHWEST ASIA

Plain-Language Summary

Department of Defense obligated $79.1 million to KBR SERVICES, LLC for work described as: LOCAL NATIONAL/OTHER COUNTRY NATIONAL ESCORT SERVICE FOR MULTIPLE LOCATIONS IN SOUTHWEST ASIA Key points: 1. Contract value of $79.1 million for escort services across multiple Southwest Asia locations. 2. KBR Services, LLC, a significant player in government contracting, secured this award. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The duration of the contract is 913 days, spanning over two years. 6. The North American Industry Classification System (NAICS) code 561210 points to Facilities Support Services. 7. This award represents a substantial investment in logistical and support functions in a critical region.

Value Assessment

Rating: fair

The contract value of $79.1 million for escort services over approximately 2.5 years requires careful scrutiny. While specific benchmarks for this niche service are difficult to ascertain publicly, the Cost Plus Fixed Fee (CPFF) structure warrants attention. CPFF contracts can lead to higher final costs if the contractor's expenses exceed initial estimates, though they are often used when project scope is uncertain. Benchmarking against similar support contracts in the region, if available, would provide a clearer picture of value for money. The base contract value of $86.6 million suggests a significant scope of work.

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. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: A competitive bidding process like full and open competition is generally favorable for taxpayers, as it aims to secure the best possible price and value by encouraging multiple companies to vie for the contract.

Public Impact

Provides essential escort services to support military and civilian personnel operating in Southwest Asia. Enhances operational security and logistical support for U.S. interests in the region. The services are delivered across multiple unspecified locations within Southwest Asia. Likely supports a workforce of personnel involved in security, logistics, and base operations. Contributes to the overall mission readiness and effectiveness of deployed forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to costs exceeding initial estimates.
The specific nature of 'escort services' can be sensitive and requires robust oversight to prevent misuse.
Operating in Southwest Asia presents inherent security and logistical challenges.
Lack of detailed performance metrics or outcomes in the provided data makes assessing effectiveness difficult.

Positive Signals

Awarded through full and open competition, suggesting a competitive process aimed at value.
KBR Services, LLC has extensive experience in government contracting, particularly in support services.
The contract duration of over two years provides stability for service delivery.
The contract addresses a critical support function for operations in a challenging environment.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of facilities. This sector is crucial for government operations, especially in overseas locations where robust support infrastructure is vital. The market for such services is competitive, with several large contractors specializing in providing comprehensive support packages to government agencies. Spending in this sector can fluctuate based on geopolitical conditions and operational tempo.

Small Business Impact

The provided 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 set-aside provision. However, the prime contractor, KBR Services, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of qualified small business vendors for specific tasks within the scope of this large contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Given the CPFF structure and the operational environment, robust oversight mechanisms are crucial. This would likely involve contract officers, program managers, and potentially an Inspector General's office to monitor performance, costs, and compliance. Transparency would be enhanced through regular reporting requirements from the contractor and periodic audits.

Related Government Programs

Base Operations Support (BOS)
Logistics and Transportation Services
Security Services
Contingency Support Contracts
Facilities Maintenance and Management

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
The sensitive nature of 'escort services' requires stringent oversight to prevent misuse and ensure ethical conduct.
Operational environment in Southwest Asia presents security and logistical risks.
Lack of detailed public information on specific performance metrics makes assessing effectiveness challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.1 million to KBR SERVICES, LLC. LOCAL NATIONAL/OTHER COUNTRY NATIONAL ESCORT SERVICE FOR MULTIPLE LOCATIONS IN SOUTHWEST ASIA

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 $79.1 million.

What is the period of performance?

Start: 2023-06-07. End: 2025-12-06.

What is the track record of KBR Services, LLC with similar government contracts, particularly in Southwest Asia?

KBR Services, LLC, a subsidiary of Kellogg Brown & Root, has a long and extensive history of performing large-scale government contracts, including significant support services in overseas contingency operations. They have been a major contractor for the Department of Defense in regions like Iraq and Afghanistan, providing a wide array of services including base operations, logistics, construction, and security. Their experience in Southwest Asia specifically would likely involve managing complex logistical challenges, personnel support, and ensuring operational continuity in demanding environments. While specific details of past performance on 'escort services' are not publicly detailed, their broad experience in similar support roles suggests a capacity to manage such requirements. However, like any large contractor, they have also faced scrutiny and contract disputes in the past, underscoring the need for diligent oversight on current awards.

How does the awarded amount of $79.1 million compare to similar escort or security support contracts in the region?

Directly comparing the $79.1 million award for 'escort services' to publicly available data for similar contracts in Southwest Asia is challenging due to the specialized nature of the service and the often-proprietary details of defense contracts. However, considering the contract duration of approximately 2.5 years (913 days), the average annual value is roughly $31.6 million. This figure needs to be contextualized within the broader scope of facilities support and security services provided in high-risk operational theaters. Large-scale support contracts in such regions can easily run into tens or hundreds of millions of dollars annually, encompassing a wide range of personnel, equipment, and logistical costs. The Cost Plus Fixed Fee (CPFF) nature of this contract also means the final expenditure could differ from the initial award amount, making direct comparisons based solely on the award value potentially misleading without further cost breakdown.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. In a CPFF arrangement, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's actual costs exceed initial estimates, the government bears the burden of these higher expenses. For 'escort services' in a complex region like Southwest Asia, unforeseen operational challenges, security incidents, personnel turnover, or logistical disruptions could significantly increase costs. While the fixed fee provides some incentive for the contractor to control costs, the government is ultimately responsible for covering all legitimate expenses. This necessitates rigorous oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor is making good-faith efforts to manage expenses efficiently.

What are the potential implications of this contract on workforce and employment in the region?

This contract is likely to create or sustain employment opportunities for a significant number of personnel, both locally within Southwest Asia and potentially for expatriate workers. The 'escort services' likely encompass roles related to security, transportation, and logistical support, requiring personnel with specific skills and clearances. KBR Services, LLC, as the prime contractor, will be responsible for recruiting, training, and managing this workforce. The demand for such services often leads to job creation in areas such as security guards, drivers, administrative support, and logistics coordinators. The specific geographic spread across multiple locations suggests a need for a distributed workforce, potentially impacting local economies through wages and associated spending. The contract's duration provides a degree of employment stability for those engaged.

How does this contract align with broader U.S. defense or foreign policy objectives in Southwest Asia?

Contracts for support services like escort services in Southwest Asia are typically aligned with broader U.S. defense and foreign policy objectives aimed at maintaining regional stability, protecting U.S. personnel and interests, and supporting ongoing military or diplomatic operations. The presence of U.S. forces and personnel in the region necessitates robust logistical and security support to ensure mission effectiveness and safety. Escort services, in particular, are crucial for the secure movement of personnel and assets in potentially hazardous environments. By ensuring the safe and efficient operation of U.S. activities, this contract indirectly contributes to objectives such as counter-terrorism efforts, diplomatic engagement, or regional security partnerships. The scale of the contract suggests a sustained U.S. presence and commitment to these objectives in the specified locations.

What are the potential challenges in monitoring and ensuring the quality of 'escort services' provided under this contract?

Monitoring and ensuring the quality of 'escort services' presents unique challenges. The term itself can be broad, encompassing security escorts for personnel or convoys, logistical escorts, or other forms of protective accompaniment. Ensuring consistent quality requires clearly defined performance standards, Key Performance Indicators (KPIs), and robust oversight mechanisms. Challenges include verifying the qualifications and training of escort personnel, ensuring adherence to strict protocols in potentially volatile situations, and preventing any misuse of authority or resources. The CPFF contract type adds complexity, as ensuring value for money requires diligent tracking of personnel hours, operational activities, and associated costs. Effective quality assurance would necessitate regular site visits, performance reviews, and potentially independent assessments by government personnel or third-party evaluators.

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: $80,404,173

Exercised Options: $80,404,173

Current Obligation: $79,104,173

Actual Outlays: $158,027

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $6,802,356

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