KBR Services LLC awarded $11.8M for Marine Corps prepositioning program shipboard services
Contract Overview
Contract Amount: $11,815,255 ($11.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2025-06-30
Contract Duration: 364 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MARINE CORPS PREPOSITIONING PROGRAM SHIPBOARD SERVICES
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM SHIPBOARD SERVICES Key points: 1. Contract value represents a significant investment in maintaining critical military assets. 2. The award was made under full and open competition, suggesting a competitive market. 3. The duration of the contract is one year, indicating a need for ongoing support. 4. The service category relates to industrial machinery repair, a specialized field. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The geographic location of service is Florida, a key hub for naval operations.
Value Assessment
Rating: good
The contract value of $11.8 million for one year of shipboard services appears reasonable given the specialized nature of maintaining industrial machinery for military prepositioning. Benchmarking against similar contracts for fleet maintenance and logistics support would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure allows for cost recovery while providing a fixed profit margin, which can be effective in managing complex service contracts.
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 vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages contractors to offer their best value. The open competition suggests a healthy market for these specialized services.
Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives fair market value for the services rendered.
Public Impact
The U.S. Marine Corps benefits through the readiness and operational capability of its prepositioned assets. Services include the maintenance and repair of critical shipboard industrial machinery. The geographic impact is primarily in Florida, where naval operations and ship maintenance are concentrated. This contract supports a specialized workforce skilled in industrial machinery repair and maritime logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Reliance on a single contractor for a year may limit flexibility in adapting to changing operational needs.
- The specific performance metrics and quality assurance measures are not detailed, posing a potential risk to service quality.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and potentially cost-effective process.
- The contractor, KBR Services, LLC, likely possesses specialized expertise required for this niche service.
- The contract supports critical military readiness, ensuring assets are maintained for rapid deployment.
Sector Analysis
This contract falls within the broader defense logistics and maintenance sector, specifically focusing on shipboard industrial machinery. The market for such services is specialized, requiring contractors with expertise in maritime environments and complex equipment. Spending in this area is crucial for maintaining the operational readiness of naval fleets and prepositioned assets, ensuring they are deployable when needed.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation in the prime contract. However, KBR Services, LLC, as a large prime contractor, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract.
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, costs, and compliance. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, though specific details of oversight activities are not publicly detailed.
Related Government Programs
- Marine Corps Logistics Command Support Services
- Naval Sea Systems Command (NAVSEA) Maintenance Contracts
- Fleet Readiness Centers
- Defense Logistics Agency (DLA) Support Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Monitoring Complexity
- Specialized Skill Dependency
Tags
defense, marine-corps, ship-maintenance, industrial-machinery-repair, full-and-open-competition, cost-plus-fixed-fee, delivery-order, florida, kbr-services-llc, department-of-the-navy, logistics-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM SHIPBOARD 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 $11.8 million.
What is the period of performance?
Start: 2024-07-01. End: 2025-06-30.
What is KBR Services, LLC's track record with similar Department of Defense contracts, particularly those involving shipboard maintenance and industrial machinery?
KBR Services, LLC has a substantial history of performing complex services for the Department of Defense, including logistics, base operations support, and maintenance. Their experience often encompasses large-scale operations and specialized technical services. While specific details on shipboard industrial machinery repair contracts are not immediately available in this summary, KBR's broad portfolio suggests they possess the necessary capabilities and security clearances. A deeper dive into their contract history with NAVSEA or other naval commands would reveal the extent and success of their prior performance in directly comparable roles, including their performance metrics and any past issues or commendations.
How does the awarded amount of $11.8 million compare to historical spending on similar Marine Corps prepositioning program shipboard services?
Without specific historical data for this exact service line, a direct comparison is challenging. However, $11.8 million for a one-year contract covering shipboard industrial machinery maintenance for a prepositioning program suggests a significant but potentially standard investment. Prepositioning programs involve maintaining assets in strategic locations, requiring continuous upkeep. Annual spending can fluctuate based on the specific assets being serviced, their condition, and the scope of maintenance required. Benchmarking against similar fleet maintenance contracts or logistics support for other military branches could provide context, but this figure appears to be within a plausible range for specialized, ongoing military support services.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for shipboard services, and how are they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial estimates, the government bears the burden. Mitigation strategies include robust oversight by the contracting officer and technical representatives, detailed review of all claimed costs, and clear definitions of allowable expenses. The 'fixed fee' component incentivizes the contractor to manage costs efficiently to protect their profit margin. For shipboard services, additional risks include operational disruptions, safety hazards, and the complexity of accessing and repairing equipment in a maritime environment, which require stringent safety protocols and experienced personnel.
What is the expected impact of this contract on the operational readiness of the Marine Corps' prepositioned assets?
This contract is directly intended to enhance the operational readiness of the Marine Corps' prepositioned assets. By ensuring that critical shipboard industrial machinery is properly maintained and repaired, the contract guarantees that these assets will be in a state of good working order and available for rapid deployment. Effective maintenance prevents degradation, extends the lifespan of equipment, and reduces the likelihood of mission-critical failures during operations. The services provided are fundamental to the concept of prepositioning, which relies on assets being ready for immediate use anywhere in the world.
How does the 'full and open competition' procurement method influence the value and quality of services received by the government?
The 'full and open competition' method is designed to maximize value and quality by allowing all responsible sources to submit bids. This broad competition typically leads to more competitive pricing as contractors vie for the award. It also encourages innovation and the submission of diverse technical approaches, potentially leading to higher quality services. By opening the field to all qualified bidders, the government increases its chances of finding the most capable contractor at the best possible price, thereby enhancing overall value for taxpayer dollars and ensuring a higher standard of service delivery.
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: $22,175,741
Exercised Options: $22,175,741
Current Obligation: $11,815,255
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $35,760
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: 2024-07-01
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-09-02
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