DoD's $18.5M Marine Corps Program with KBR Services Faces Potential Cost Overruns and Limited Small Business Participation
Contract Overview
Contract Amount: $18,561,091 ($18.6M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-11
End Date: 2024-12-02
Contract Duration: 357 days
Daily Burn Rate: $52.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MARINE CORPS PREPOSITIONING PROGRAM - GPN AND USNS DAHL PRODUCTION
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.6 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM - GPN AND USNS DAHL PRODUCTION Key points: 1. The contract for Marine Corps Prepositioning Program, valued at $18.5 million, is with KBR SERVICES, LLC. 2. The sector is Commercial and Industrial Machinery and Equipment Repair and Maintenance. 3. Competition was full and open, but the contract type (Cost Plus Fixed Fee) introduces risk. 4. There is no explicit small business set-aside, raising concerns about participation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific cost breakdowns.
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 Cost Plus Fixed Fee structure may not incentivize the most cost-effective solutions.
Taxpayer Impact: The potential for cost overruns in a Cost Plus Fixed Fee contract could lead to higher taxpayer costs than anticipated if performance is not closely monitored.
Public Impact
Ensures readiness of Marine Corps equipment by maintaining prepositioned assets. Supports global deployment capabilities for the U.S. Marine Corps. The contract's performance directly impacts the operational readiness of deployed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of small business participation noted
- Potential for cost escalation
Positive Signals
- Full and open competition utilized
- Supports critical Marine Corps readiness
Sector Analysis
This contract falls under the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining the operational readiness of military assets, but efficiency and cost control are key concerns.
Small Business Impact
The data indicates that this contract did not involve small business participation. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that favored larger contractors.
Oversight & Accountability
Oversight will be critical to manage the Cost Plus Fixed Fee structure effectively. The Department of the Navy must ensure robust monitoring of costs and performance to prevent overruns and ensure value for taxpayer money.
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 can lead to cost overruns.
- Lack of small business participation.
- Potential for contractor inefficiencies due to cost-reimbursement structure.
- Dependence on a single contractor for critical maintenance.
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 $18.6 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM - GPN AND USNS DAHL PRODUCTION
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 $18.6 million.
What is the period of performance?
Start: 2023-12-11. End: 2024-12-02.
What specific cost controls and oversight mechanisms are in place to mitigate risks associated with the Cost Plus Fixed Fee contract type?
Effective oversight for Cost Plus Fixed Fee contracts typically involves detailed cost tracking, regular audits, and performance reviews. The Department of the Navy should implement stringent reporting requirements for KBR SERVICES, LLC, focusing on direct costs, indirect costs, and the justification for the fixed fee. Independent government cost estimators and program managers play a vital role in validating expenditures and ensuring the contractor operates within agreed-upon parameters to achieve the best value.
How will the Department of the Navy ensure fair and equitable opportunities for small businesses in future related procurements?
To ensure fair opportunities for small businesses, the Department of the Navy can conduct market research to identify capable small businesses for future contracts. Setting aside portions of contracts for small businesses, utilizing small business subcontracting plans, and actively engaging with small business advocacy groups can also promote participation. Clear communication of requirements and evaluation criteria can help small businesses better compete.
What is the projected long-term value and effectiveness of this contract in supporting Marine Corps prepositioning goals?
The long-term value and effectiveness hinge on KBR SERVICES, LLC's ability to maintain equipment efficiently and cost-effectively under the CPFF structure. Successful execution means ensuring all prepositioned assets are mission-ready, thereby directly supporting the Marine Corps' global deployment and rapid response capabilities. Continuous monitoring of performance metrics and cost trends will be essential to gauge its ongoing effectiveness and value.
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: $20,351,207
Exercised Options: $20,351,207
Current Obligation: $18,561,091
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $71,596
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: 2023-12-11
Current End Date: 2024-12-02
Potential End Date: 2024-12-02 00:00:00
Last Modified: 2025-04-30
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