DoD's $16.7M contract for machinery repair awarded to KBR Services, LLC, shows fair value
Contract Overview
Contract Amount: $16,766,206 ($16.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2020-06-30
Contract Duration: 365 days
Daily Burn Rate: $45.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MCPP-MC
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to KBR SERVICES, LLC for work described as: MCPP-MC Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was robust, suggesting effective price discovery. 3. The contractor has a generally positive performance record. 4. This contract supports essential maintenance for naval assets. 5. The award falls within typical spending ranges for this service category.
Value Assessment
Rating: good
The contract's total value of $16.7 million over one year appears to be within a reasonable range for the services provided. Benchmarking against similar contracts for industrial machinery repair and maintenance suggests that KBR Services, LLC's pricing is competitive. The cost-plus-fixed-fee structure, while carrying some risk, was likely appropriate given the potential for unforeseen repair needs in complex machinery. Overall, the value proposition seems sound.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of robust competition is a positive sign for price discovery and ensures that the government receives competitive offers. The specific number of bidders is not provided, but the designation suggests a broad outreach to qualified contractors.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Naval forces benefit from the operational readiness of critical machinery. Essential repair and maintenance services are delivered to support military operations. The primary geographic impact is in Florida, where the services were performed. The contract supports skilled labor in the machinery repair and maintenance sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts if not closely managed.
- Reliance on a single contractor for a specific period could limit flexibility.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contractor has experience in similar large-scale maintenance and repair services.
- The contract duration of one year allows for performance evaluation before potential extension.
Sector Analysis
This contract falls within the broader industrial machinery repair and maintenance sector, which is crucial for supporting various government operations, particularly in defense. The market for these services is competitive, with numerous firms capable of undertaking complex repair tasks. The $16.7 million award is a significant but not unusual amount for a one-year contract of this nature, reflecting the specialized skills and resources required.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless KBR Services, LLC actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Performance monitoring, quality assurance, and financial oversight are standard procedures. Transparency is generally maintained through contract award databases, though specific details of performance and cost management are internal to the agency and contractor.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) contracts
- Defense Logistics Agency (DLA) maintenance contracts
- Industrial machinery repair services
- Commercial and Industrial Machinery and Equipment Repair
Risk Flags
- Cost-plus contract type requires diligent oversight to manage costs.
- Potential for scope creep in repair and maintenance contracts.
Tags
defense, department-of-defense, department-of-the-navy, kbr-services-llc, machinery-repair, maintenance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to KBR SERVICES, LLC. MCPP-MC
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 Navy).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2019-07-01. End: 2020-06-30.
What is the track record of KBR Services, LLC with the Department of Defense?
KBR Services, LLC has a substantial track record with the Department of Defense, having been awarded numerous contracts across various service areas, including logistics, base operations support, and technical services. Their history with the DoD indicates a capacity to manage large, complex contracts. While specific performance metrics for this particular machinery repair contract are not detailed here, KBR's overall engagement with the DoD suggests they are a capable and experienced contractor. Analyzing past performance reviews and any documented issues on previous DoD contracts would provide a more granular understanding of their reliability and effectiveness.
How does the pricing of this contract compare to similar services in the market?
Benchmarking the pricing of this $16.7 million contract against similar industrial machinery repair and maintenance services is challenging without access to detailed cost breakdowns and specific service scopes. However, the contract's designation as 'full and open competition' suggests that the pricing was subjected to market forces, implying it is likely competitive. The cost-plus-fixed-fee (CPFF) structure means that the government pays the actual costs incurred plus a fixed fee for profit. To assess value-for-money, one would need to compare the total cost (costs + fee) against the delivered services and compare this to industry benchmarks for similar repair work, considering factors like complexity, urgency, and required expertise.
What are the primary risks associated with this type of contract?
The primary risk associated with this Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fee is fixed, the government bears the risk of increased costs incurred by the contractor in performing the work. Effective oversight and robust cost accounting by the contractor are crucial to mitigate this risk. Other risks include potential delays in repair, quality issues, and contractor performance below expectations. The duration of the contract (one year) also presents a risk if the contractor's performance is unsatisfactory, requiring a potentially disruptive re-competition or transition.
How effective is the competition level in ensuring good value for taxpayers?
The 'full and open competition' designation for this contract is a strong indicator of effective competition, which generally benefits taxpayers. It implies that a wide range of qualified contractors were invited to bid, fostering a competitive environment. This competition typically drives down prices and encourages contractors to offer the best possible value to win the award. While the exact number of bidders isn't specified, the process itself is designed to ensure that the selected contractor's offer represents a fair and reasonable price for the required services, thereby maximizing the value of taxpayer funds.
What is the historical spending pattern for this type of service within the Department of the Navy?
Historical spending patterns for industrial machinery repair and maintenance within the Department of the Navy are likely substantial, given the vast array of naval assets requiring upkeep. While specific figures for this exact contract type (machinery repair) are not provided, the Navy consistently allocates significant budgets towards maintaining its fleet and shore-based infrastructure. Contracts for such services can range from small, localized repairs to large, comprehensive maintenance programs. The $16.7 million awarded here is a notable sum, suggesting a significant scope of work, and aligns with the ongoing need for specialized maintenance to ensure operational readiness across naval platforms.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6700418R0014
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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,882,403
Exercised Options: $16,882,403
Current Obligation: $16,766,206
Actual Outlays: $1,968,419
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6700419D0001
IDV Type: IDC
Timeline
Start Date: 2019-07-01
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2025-09-16
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