Navy's $15M Marine Corps Support Contract Awarded to KBR Services, LLC
Contract Overview
Contract Amount: $14,985,584 ($15.0M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2021-06-30
Contract Duration: 364 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MARINE CORPS PREPOSITIONING PROGRAM - NAVY SUPPORT SERVICES
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM - NAVY SUPPORT SERVICES Key points: 1. Contract value of $14.99M for support services. 2. Awarded to KBR Services, LLC. 3. Competition method was 'Full and Open'. 4. Sector is Commercial and Industrial Machinery Repair and Maintenance.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed tightly. The award amount is a baseline, and actual costs could be higher.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF structure may limit price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are used for essential support services, with the CPFF structure requiring careful oversight to ensure cost efficiency.
Public Impact
Ensures operational readiness for the Marine Corps by providing necessary support services. Supports KBR Services, LLC, a large business, in a critical defense sector. The contract's performance impacts the logistical capabilities of the Marine Corps.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure carries inherent risk of cost escalation.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition.
- Supports critical Marine Corps operations.
- Clear contract duration and reporting period.
Sector Analysis
This contract falls within the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector, crucial for maintaining military assets. Spending in this sector is significant within the DoD for sustainment.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no specific set-aside for small businesses in this award.
Oversight & Accountability
The CPFF contract type necessitates robust oversight from the Department of the Navy to monitor costs and ensure contractor performance aligns with mission requirements and taxpayer value.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation noted.
- Potential for cost overruns.
- Reliance on contractor for critical support functions.
Tags
commercial-and-industrial-machinery-and-, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM - NAVY SUPPORT 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 $15.0 million.
What is the period of performance?
Start: 2020-07-01. End: 2021-06-30.
What is the expected cost efficiency of this CPFF contract given the nature of the services provided?
The cost efficiency of a Cost Plus Fixed Fee (CPFF) contract is highly dependent on the government's oversight and the contractor's management. While the fixed fee provides an incentive for the contractor to control costs, the cost-reimbursement aspect means the government bears the direct costs. For services like machinery repair and maintenance, efficiency can be achieved through streamlined processes, effective supply chain management, and proactive maintenance schedules. However, without detailed performance metrics and cost breakdowns, it's difficult to definitively assess the efficiency.
What are the primary risks associated with KBR Services, LLC's performance on this contract?
Key risks include potential cost overruns due to the CPFF structure, where actual costs could exceed the initial estimate. Performance risks involve ensuring timely and high-quality repair and maintenance of critical equipment, which directly impacts Marine Corps readiness. There's also a risk of scope creep if requirements are not clearly defined and managed. Furthermore, reliance on a single large contractor could pose supply chain or personnel availability risks if KBR faces internal challenges.
How effectively does this contract contribute to the overall mission readiness of the Marine Corps?
This contract is designed to directly contribute to Marine Corps mission readiness by ensuring the operational availability of essential equipment. By outsourcing repair and maintenance services to KBR Services, LLC, the Marine Corps can focus its internal resources on core warfighting functions. The effectiveness hinges on KBR's ability to deliver timely, high-quality services and maintain the complex machinery required for operations. Successful execution of this contract is vital for sustaining the logistical backbone supporting the Marine Corps.
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: $21,554,072
Exercised Options: $21,554,072
Current Obligation: $14,985,584
Actual Outlays: $721,987
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $3,341,848
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: 2020-07-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2025-09-18
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