Navy awards $12.2M contract for machinery repair, highlighting ongoing maintenance needs
Contract Overview
Contract Amount: $12,236,303 ($12.2M)
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: $33.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MCPP NAVY SERVICES
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $12.2 million to KBR SERVICES, LLC for work described as: MCPP NAVY SERVICES Key points: 1. Contract addresses essential repair and maintenance for industrial machinery. 2. Full and open competition suggests a competitive bidding process. 3. Cost-plus-fixed-fee structure requires careful monitoring of costs. 4. Delivery order indicates a specific, time-bound need for services. 5. Contract duration of one year aligns with operational cycles. 6. Geographic focus on Florida suggests regional support requirements.
Value Assessment
Rating: good
The contract value of $12.2 million for one year of machinery repair and maintenance appears reasonable given the scope of services for industrial equipment. Benchmarking against similar contracts for commercial and industrial machinery repair and maintenance is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure necessitates diligent oversight to ensure costs remain within acceptable parameters and that the fixed fee adequately compensates the contractor for their effort without excessive profit.
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. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing for the services rendered.
Public Impact
The Department of the Navy benefits from the continued operational readiness of its industrial machinery. Services include repair and maintenance of commercial and industrial machinery and equipment. The contract's geographic focus is Florida, supporting naval operations in the region. This contract supports skilled labor in the machinery repair and maintenance sector within Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not closely managed.
- Lack of specific performance metrics makes it difficult to assess efficiency.
- Limited detail on the types of machinery serviced hinders a full risk assessment.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market.
- Contract addresses critical maintenance needs for operational readiness.
- Clear delivery order and contract period provide defined expectations.
Sector Analysis
This contract falls within the industrial machinery repair and maintenance sector, a critical component of the defense industrial base. The North American Industry Classification System (NAICS) code 811310 covers establishments primarily engaged in the repair and maintenance of commercial and industrial machinery and equipment. Spending in this sector is essential for maintaining the operational readiness of military assets and supporting broader industrial infrastructure. Comparable spending benchmarks would depend on the specific types of machinery and the scale of operations supported.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the procurement was not specifically targeted towards small businesses, and opportunities for small business subcontracting were not explicitly mandated or highlighted in the award details. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor has a history of engaging small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are inherent in the contract terms, including the delivery order schedule and the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance reports are generally not public.
Related Government Programs
- Naval Ship Maintenance
- Industrial Equipment Repair
- Defense Logistics Support
- Base Operations Support
Risk Flags
- Cost-plus-fixed-fee contract requires diligent cost oversight.
- Scope of work clarity is crucial for effective performance.
- Potential for cost escalation if not managed properly.
Tags
defense, department-of-defense, department-of-the-navy, machinery-repair, maintenance, full-and-open-competition, delivery-order, cost-plus-fixed-fee, florida, commercial-and-industrial-machinery, kbr-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to KBR SERVICES, LLC. MCPP NAVY SERVICES
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 $12.2 million.
What is the period of performance?
Start: 2019-07-01. End: 2020-06-30.
What is the track record of KBR SERVICES, LLC in performing similar machinery repair and maintenance contracts for the Department of Defense?
KBR Services, LLC has a significant history of performing various services for the Department of Defense, including base operations, logistics, and technical support. While specific details on their machinery repair and maintenance performance for the Navy under similar contracts require deeper database analysis, their extensive experience suggests a capacity to handle complex service requirements. Reviewing past performance evaluations and any contract disputes or awards related to machinery maintenance would provide a more precise understanding of their track record in this specific domain. Their broad portfolio indicates familiarity with government contracting procedures and compliance requirements.
How does the $12.2 million value compare to other similar machinery repair contracts awarded by the Navy or other branches of the DoD?
The $12.2 million value for a one-year machinery repair and maintenance contract is within a common range for specialized support services within the Department of Defense. However, a precise comparison is difficult without knowing the exact scope of machinery covered, the criticality of the equipment, and the specific geographic location's labor rates. Contracts for large-scale depot-level maintenance or specialized equipment (e.g., naval vessels, aircraft components) can significantly exceed this amount. Conversely, contracts for routine maintenance of standard industrial equipment might be lower. Benchmarking requires detailed analysis of contract line item numbers (CLINs) and service descriptions across similar procurements.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for machinery repair?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for machinery repair is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can sometimes incentivize contractors to incur higher costs if oversight is not rigorous, as their fee remains constant regardless of the actual costs incurred (within allowable limits). For the government, the risk lies in managing and auditing these costs effectively to ensure they are reasonable and allocable to the contract. Additionally, defining the scope of 'allowable costs' and the 'fixed fee' requires careful negotiation and clear contract language to prevent disputes.
What is the expected impact of this contract on the operational readiness of Navy assets in Florida?
This contract is expected to have a positive impact on the operational readiness of Navy assets in Florida by ensuring that critical commercial and industrial machinery and equipment are maintained in good working order. Timely and effective repair and maintenance prevent equipment failures, reduce downtime, and extend the service life of assets. For the Navy, this translates to greater availability of platforms and systems required for training, deployment, and mission execution. The contract's focus on Florida suggests a strategic allocation of resources to support the significant naval presence in that region.
How has spending on machinery repair and maintenance services by the Department of the Navy trended over the past five years?
Analyzing the precise trend of spending solely on 'machinery repair and maintenance' for the Department of the Navy requires access to detailed historical contract data beyond this single award. However, overall defense spending on maintenance, repair, and overhaul (MRO) services has remained a significant and consistent component of the Navy's budget. Factors such as fleet size, aging assets, operational tempo, and modernization programs influence these expenditures. Generally, there is a sustained need for these services to ensure platform availability and mission capability, suggesting a relatively stable or increasing demand over recent years, barring major shifts in defense policy or budget priorities.
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: $17,491,170
Exercised Options: $17,491,170
Current Obligation: $12,236,303
Actual Outlays: $7,559,554
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: 2025-09-18
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