DoD's $11.5M MCPP-KUWAIT contract to KBR Services, LLC for machinery repair shows fair value
Contract Overview
Contract Amount: $11,475,510 ($11.5M)
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: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MCPP-KUWAIT
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $11.5 million to KBR SERVICES, LLC for work described as: MCPP-KUWAIT Key points: 1. Contract value appears reasonable given the scope of industrial machinery repair services. 2. Full and open competition suggests a competitive pricing environment. 3. No significant risk indicators identified in the contract terms. 4. Performance period aligns with typical service contract durations. 5. Contract falls within the broader industrial services sector for defense support. 6. Focus on machinery repair indicates a critical operational support function.
Value Assessment
Rating: good
The contract value of approximately $11.5 million for a one-year period for machinery repair services appears to be within a reasonable range for industrial support contracts of this nature. Benchmarking against similar contracts for depot-level maintenance and repair of specialized equipment would provide a more precise value assessment. However, the absence of significant cost overruns or performance issues in publicly available data suggests that the pricing was likely competitive and reflective of market rates for such specialized services.
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 had the opportunity to submit proposals. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve the quality of services offered. The use of full and open competition suggests that the agency sought the best value from a broad range of potential contractors.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that government funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense and its operational units requiring specialized machinery maintenance. Services delivered include repair and maintenance of commercial and industrial machinery and equipment. Geographic impact is centered around Kuwait, supporting military operations in the region. Workforce implications include the potential employment of skilled technicians and support staff in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Contract duration of one year is standard for service contracts, allowing for regular performance review.
- The nature of the service (machinery repair) is critical for operational readiness.
Sector Analysis
This contract falls within the broader industrial services sector, specifically focusing on the repair and maintenance of commercial and industrial machinery and equipment. This sector is vital for supporting military operations, ensuring that essential equipment remains functional. Comparable spending in this area often involves depot-level maintenance, specialized repair services, and logistical support for complex machinery, with contract values varying significantly based on the type and volume of equipment serviced.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, KBR Services, LLC, as a large prime contractor, may engage small businesses as subcontractors to fulfill portions of the contract, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting to small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy, with specific contracting officers and program managers responsible for monitoring performance, adherence to terms, and financial expenditures. Accountability measures are embedded in the contract's performance standards and payment terms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) Maintenance, Repair, and Operations (MRO) Contracts
- Naval Sea Systems Command (NAVSEA) Ship Repair Contracts
- Army Sustainment Command Maintenance Contracts
Tags
defense, department-of-defense, department-of-the-navy, kuwait, machinery-repair, industrial-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, service-contract, operational-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to KBR SERVICES, LLC. MCPP-KUWAIT
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 $11.5 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 substantial history of performing complex services for the Department of Defense, including logistics, base operations support, and technical services. While specific details on their machinery repair performance for this particular contract (MCPP-KUWAIT) are not extensively detailed in public summaries, their broader portfolio suggests experience in managing large-scale, geographically dispersed operations. Analyzing past performance reviews and contract close-out reports for KBR on similar DoD contracts would provide deeper insights into their reliability, technical proficiency, and ability to meet stringent performance requirements in demanding environments. Their extensive experience indicates a capacity to handle such requirements, though specific project outcomes would need detailed examination.
How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services, and what are its implications for value?
The Cost Plus Fixed Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure is often employed when the scope of work is not precisely defined or involves uncertainties, encouraging the contractor to control costs to maximize their fixed profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF can offer more flexibility but potentially less cost certainty for the government. For machinery repair, where unforeseen issues can arise, CPFF can be appropriate. However, it places a greater emphasis on government oversight to ensure costs are reasonable and necessary. The value is realized if the flexibility allows for effective problem resolution that might be hindered by a rigid FFP structure, provided costs are managed diligently.
What are the primary risks associated with performing machinery repair in a deployed environment like Kuwait, and how are they mitigated?
Performing machinery repair in Kuwait presents several risks, including logistical challenges in obtaining parts and specialized equipment, potential security concerns for personnel and assets, environmental factors (e.g., heat, dust), and the need for highly skilled technicians familiar with specific military equipment. Mitigation strategies typically involve robust supply chain management, comprehensive security protocols, tailored environmental protection measures for equipment and personnel, and rigorous contractor vetting and training. The contract's structure, including performance standards and reporting requirements, also serves as a risk mitigation tool by ensuring accountability and timely issue resolution. The specific details of risk mitigation plans are often found in the contract's statement of work and associated annexes.
What is the historical spending pattern for machinery repair and maintenance services by the Department of Defense in the Middle East region?
Historical spending by the Department of Defense (DoD) on machinery repair and maintenance services in the Middle East region has been substantial, particularly during periods of active military operations and sustained presence. This spending encompasses a wide range of equipment, from tactical vehicles and aircraft to base infrastructure and specialized support systems. Trends often reflect the operational tempo, equipment modernization cycles, and the extent of reliance on contracted support versus organic military capabilities. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) can reveal significant fluctuations and identify key areas of expenditure, often showing a concentration of contracts supporting forward-deployed forces and major operational hubs.
How does the performance period of one year influence the overall effectiveness and cost-efficiency of this contract?
A one-year performance period for a machinery repair contract like MCPP-KUWAIT offers a balance between providing sufficient time for the contractor to establish operations and deliver services, while also allowing the government to regularly assess performance and make adjustments. This duration is often sufficient for routine maintenance and repair cycles. It enables the agency to evaluate the contractor's effectiveness, cost control, and adherence to requirements before potentially extending the contract or re-competing. For cost-efficiency, a one-year term allows for competitive pricing based on a defined period, avoiding the long-term price commitments that might be associated with multi-year contracts, while still providing some stability for the contractor's resource planning.
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: $13,373,615
Exercised Options: $13,373,615
Current Obligation: $11,475,510
Actual Outlays: $1,575,182
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $993,288
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: 2025-09-12
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