Fluor Intercontinental awarded $17.8M for base operating support in Kuwait, highlighting global logistics needs
Contract Overview
Contract Amount: $17,846,694 ($17.8M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2024-03-22
End Date: 2026-03-21
Contract Duration: 729 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASE OPERATING SUPPORT SERVICES AT ALI AL SALEM AIR BASE KUWAIT.
Plain-Language Summary
Department of Defense obligated $17.8 million to FLUOR INTERCONTINENTAL, INC for work described as: BASE OPERATING SUPPORT SERVICES AT ALI AL SALEM AIR BASE KUWAIT. Key points: 1. Contract value of $17.8 million over two years suggests significant investment in maintaining overseas military infrastructure. 2. The award to Fluor Intercontinental, a large defense contractor, indicates a reliance on established players for complex global operations. 3. The firm-fixed-price contract type aims to control costs, but potential for change orders exists in a dynamic operational environment. 4. This contract falls under facilities support services, a critical but often overlooked component of military readiness and personnel welfare. 5. The duration of 729 days (approximately 2 years) provides a stable operational period but requires continuous monitoring for performance.
Value Assessment
Rating: good
The $17.8 million award for base operating support services in Kuwait appears reasonable given the scope and duration. While direct comparisons are difficult without more granular data on specific services provided, similar contracts for overseas base support often range in the tens of millions of dollars annually. The firm-fixed-price structure suggests an attempt to lock in costs, but the complexity of operating in a foreign military base environment can lead to unforeseen expenses. Benchmarking against other Air Force base support contracts globally would provide a clearer picture of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received are crucial for fully assessing the effectiveness of the competition.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value.
Public Impact
The primary beneficiaries are the U.S. Air Force personnel stationed at Ali Al Salem Air Base, Kuwait, who will receive essential support services. Services include facility maintenance, logistics, transportation, and potentially other operational support functions necessary for base functionality. The geographic impact is concentrated at Ali Al Salem Air Base in Kuwait, supporting U.S. military operations in the Middle East. The contract supports a workforce involved in facilities management and operational support, likely including both U.S. and local personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in a complex overseas operational environment.
- Reliance on a single large contractor may limit flexibility and innovation.
- Geopolitical instability in the region could impact service delivery and costs.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract type helps control costs.
- Contractor has experience in large-scale global support operations.
Sector Analysis
Base operating support services are a critical component of the defense sector, encompassing a wide range of facility management, logistics, and operational functions essential for military installations. The global market for such services is substantial, driven by the need to maintain readiness and operational capability for armed forces deployed worldwide. This contract fits within the broader category of defense infrastructure support, where spending is often dictated by geopolitical requirements and strategic positioning. Comparable spending benchmarks would typically be found within the Department of Defense's facilities and logistics support budgets.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Fluor Intercontinental, is a large entity, suggesting that subcontracting opportunities for small businesses may exist, but this is not guaranteed or mandated by the contract terms. Further analysis of subcontracting plans would be needed to determine the specific impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices at Ali Al Salem Air Base. Accountability measures are embedded within the contract's performance standards and delivery requirements. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Base Operations Support Services
- Defense Logistics Agency Contracts
- Overseas Military Construction
- Facilities Engineering Support
- Contingency Operations Support
Risk Flags
- Geopolitical Risk
- Logistical Complexity
- Contractor Performance Risk
- Potential for Scope Creep
Tags
defense, department-of-defense, air-force, kuwait, facilities-support-services, full-and-open-competition, firm-fixed-price, base-operations-support, fluor-intercontinental, overseas-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to FLUOR INTERCONTINENTAL, INC. BASE OPERATING SUPPORT SERVICES AT ALI AL SALEM AIR BASE KUWAIT.
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 $17.8 million.
What is the period of performance?
Start: 2024-03-22. End: 2026-03-21.
What is Fluor Intercontinental's track record with similar base operating support contracts, particularly in overseas environments?
Fluor Intercontinental has a significant track record in providing base operating support services (BOSS) and logistics support to military installations globally. They have historically secured large contracts with the Department of Defense, including extensive work in regions like the Middle East. Their experience often encompasses a broad range of services, from facility maintenance and construction to transportation, supply chain management, and life support. This extensive experience suggests a capacity to manage complex operations in challenging environments. However, like any large contractor, their performance history may include both successes and instances requiring corrective action, which would be detailed in past performance reviews during the bidding process.
How does the per-unit cost or scope of services in this contract compare to similar base operating support contracts awarded by the Air Force or other branches?
Benchmarking the value of this $17.8 million contract requires a detailed breakdown of the specific services included and their associated quantities (e.g., square footage of facilities maintained, number of personnel supported, volume of logistics handled). Without this granular data, direct comparison is challenging. However, typical base operating support contracts for medium-to-large installations can range from tens to hundreds of millions of dollars annually, depending on the location, threat level, and scope of services. The firm-fixed-price nature of this contract aims for cost certainty, but the 'per-unit' cost can fluctuate based on actual usage and unforeseen operational demands in a dynamic overseas environment. Comparing this contract's total value against the number of personnel supported or the size of the base would offer a more meaningful, albeit still approximate, benchmark.
What are the primary risk indicators associated with this contract, considering its location and the nature of base operating support?
Key risk indicators for this contract include geopolitical instability in the Middle East, which could disrupt operations, increase security costs, or necessitate rapid changes in service requirements. The remote location of Ali Al Salem Air Base presents logistical challenges for personnel, equipment, and supply chains, potentially leading to delays and increased costs. Furthermore, the reliance on a single prime contractor for a broad scope of essential services creates a risk of service disruption if the contractor faces financial difficulties, labor disputes, or performance failures. The firm-fixed-price contract type, while intended to control costs, can become a risk if unforeseen circumstances require extensive modifications or additional work, potentially leading to disputes or cost overruns if not managed carefully.
What is the historical spending pattern for base operating support services at Ali Al Salem Air Base or similar facilities in the region?
Historical spending on base operating support services at Ali Al Salem Air Base and similar facilities in the region has likely been substantial and subject to fluctuations based on U.S. military posture and operational tempo. Prior contracts for BOSS at this base would provide the most direct historical context. Generally, these types of contracts are awarded for multi-year periods and often renewed, indicating consistent demand. Spending levels are influenced by factors such as the number of personnel stationed, the scale of infrastructure, and the prevailing security environment. Analyzing past contract awards, including their values, durations, and incumbent contractors, would reveal trends in spending and potential shifts in service requirements or contractor performance over time.
How does the selection of Fluor Intercontinental, a large established contractor, impact the potential for innovation and cost savings compared to smaller, specialized firms?
The selection of Fluor Intercontinental, a large and established contractor, brings significant advantages in terms of proven experience, established supply chains, and the capacity to manage complex, large-scale operations. This often translates to reliability and a lower risk of operational failure. However, large contractors may sometimes face challenges related to bureaucratic overhead, which could potentially limit agility and innovation compared to smaller, more specialized firms. Cost savings can be achieved through economies of scale, but the overhead associated with large organizations might offset some of these benefits. The government's ability to drive innovation and cost savings often depends on robust performance metrics, clear contract requirements, and effective contract management, regardless of the contractor's size.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
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: $40,987,728
Exercised Options: $25,549,226
Current Obligation: $17,846,694
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $15,229,999
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: 2024-03-22
Current End Date: 2026-03-21
Potential End Date: 2029-03-21 00:00:00
Last Modified: 2026-01-15
More Contracts from Fluor Intercontinental, Inc
- Logcap IV Services Afghanistan — $12.6B (Department of Defense)
- Afghanistan South Expansion — $639.9M (Department of Defense)
- 200607!601203!2100!w912er!transatlantic Program Center !w912er04d0004 !A!N! !Y!0017 ! !20060410!20070514!140243291!140243291!006907190!n!fluor Intercontinental Inc !100 Fluor Daniel Drive !greenville !SC!29607!00000! !IZ! ! !iraq !+000059103585!n!n!000000000000!z299!maint/All Other Non-Building Facilities !S1 !services !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!u!j!2!030!b! !Z!N!A! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $375.8M (Department of Defense)
- Hafb Operation Allies Welcome (refuge) - O21R — $352.1M (Department of Defense)
- 200312!001241!2100!CA78 !transatlantic Program Center !daca7803d0005 !A!N! !N!0006 !20030919!20040331!615422995!615422995!006907190!n!fluor Intercontinental, Inc !ONE Enterprise Drive !aliso Viejo !CA!92656!* !* !IZ!* !* !iraq !+000000460000!n!n!000000000000!y199!other Miscellaneous Buildings !C2 !construction !1000!NOT Discernable or Classified !236220!E! !5!B!M! !A!D!20040331!B! ! !n!a!d!n!u!1!001!n!2a!z!n!z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! !Y!Y! ! !0001! ! — $334.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)