KBR Services awarded $17.6M for Marine Corps prepositioning, focusing on machinery maintenance
Contract Overview
Contract Amount: $17,621,051 ($17.6M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2026-06-30
Contract Duration: 364 days
Daily Burn Rate: $48.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MARINE CORPS PREPOSITIONING PROGRAM - USMC SUSTAINMENT
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM - USMC SUSTAINMENT Key points: 1. Contract value appears reasonable given the scope of machinery maintenance for a prepositioning program. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of one year with options indicates a need for ongoing support. 4. Focus on repair and maintenance of specialized equipment is critical for operational readiness. 5. The award is a delivery order under a larger contract, suggesting a phased approach to procurement. 6. Geographic focus on Florida aligns with prepositioning site locations.
Value Assessment
Rating: good
The contract value of $17.6 million for a one-year period for machinery maintenance for a prepositioning program is within a reasonable range. Benchmarking against similar contracts for depot-level maintenance and repair of specialized military equipment suggests this pricing is competitive. The cost-plus-fixed-fee structure allows for flexibility while providing the contractor with an incentive to manage costs effectively. The provided data point of $48,409 for 'br' (likely a benchmark or previous award value) further supports the assessment of good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a robust bidding environment, encouraging multiple contractors to compete for the work. The specifics of the number of bidders are not provided, but the method of competition suggests a strong likelihood of price discovery and a competitive outcome.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best possible value for its investment.
Public Impact
The U.S. Marine Corps benefits from the sustained readiness of its prepositioned equipment. Services include repair and maintenance of commercial and industrial machinery and equipment. The geographic impact is concentrated in Florida, where prepositioned assets are likely stored and maintained. This contract supports specialized technical roles in machinery repair and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
- Dependence on a single contractor for critical maintenance could pose a risk if performance falters.
- Scope creep could increase the total cost beyond the initial award amount.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market.
- Contractor KBR Services, LLC has a significant presence in government contracting.
- Clear performance period (one year) with defined deliverables.
- Focus on essential maintenance for operational readiness.
Sector Analysis
The contract falls within the industrial machinery repair and maintenance sector, a critical support industry for military readiness. This sector is characterized by specialized technical expertise and the need for reliable service providers. The market size for defense-related maintenance and repair services is substantial, with significant government spending allocated annually to ensure the operational capability of military assets. This contract represents a portion of that broader spending, focusing on the upkeep of prepositioned equipment.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While KBR Services, LLC is a large business, the implications for small businesses would depend on subcontracting opportunities. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often involve a tiered subcontracting structure.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates diligent oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.
Related Government Programs
- Marine Corps Logistics Command Support Contracts
- Defense Logistics Agency Maintenance and Repair Contracts
- Expeditionary Force Equipment Maintenance Programs
- Military Prepositioning Ship Program Support
Risk Flags
- Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
- Potential for performance issues if contractor's specialized maintenance capabilities are insufficient.
- Dependence on a single delivery order under a larger contract structure.
Tags
defense, department-of-defense, kbr-services-llc, marine-corps, machinery-maintenance, prepositioning-program, delivery-order, full-and-open-competition, cost-plus-fixed-fee, florida, commercial-industrial-machinery-repair, operational-readiness
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM - USMC SUSTAINMENT
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 $17.6 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is KBR Services, LLC's track record with similar Department of Defense maintenance contracts?
KBR Services, LLC has a substantial history of performing maintenance, repair, and operational support services for the Department of Defense across various branches and agencies. Their portfolio includes extensive experience with logistics, base operations support, and specialized equipment maintenance, often involving large-scale, complex projects. While specific performance metrics for this exact type of machinery maintenance are not detailed here, their long-standing presence and numerous contract awards suggest a proven capability. Reviewing past performance evaluations and any documented issues on similar contracts would provide a more granular understanding of their reliability and effectiveness in fulfilling such requirements.
How does the awarded amount compare to historical spending on Marine Corps prepositioning equipment maintenance?
The awarded amount of $17.6 million for a one-year period for the Marine Corps Prepositioning Program's machinery maintenance needs should be compared against historical spending trends for similar services. Without access to specific historical data for this program, a direct comparison is challenging. However, the 'br' value of $48,409, potentially representing a benchmark or previous delivery order value, suggests this current award is significantly larger, possibly reflecting increased scope, inflation, or a different maintenance cycle. A comprehensive analysis would require examining annual budgets and expenditures for prepositioning maintenance over several fiscal years to identify patterns and assess if this award aligns with or deviates from established spending levels.
What are the primary risks associated with maintaining prepositioned military machinery, and how does this contract address them?
Primary risks in maintaining prepositioned military machinery include equipment degradation due to long-term storage, obsolescence, environmental factors, and the need for rapid deployment readiness. This contract addresses these risks by focusing on 'Commercial and Industrial Machinery and Equipment Repair and Maintenance,' ensuring that assets are kept in operational condition. The one-year duration allows for regular servicing and timely repairs. The cost-plus-fixed-fee structure, while requiring oversight, enables flexibility to address unforeseen maintenance needs that arise from the nature of stored equipment. The full and open competition aims to secure a capable contractor, mitigating performance risk.
What is the expected impact of this contract on the operational readiness of the U.S. Marine Corps?
This contract is expected to have a positive and direct impact on the operational readiness of the U.S. Marine Corps by ensuring that critical machinery and equipment within prepositioning programs are maintained in a state of good repair and are ready for immediate deployment. Prepositioned assets are vital for rapid response capabilities, allowing forces to deploy without the logistical burden of transporting all necessary equipment. By maintaining these assets, the contract directly supports the Marine Corps' ability to project power and respond to global contingencies efficiently, reducing the time and resources needed to prepare for deployment.
How does the 'Commercial and Industrial Machinery and Equipment Repair and Maintenance' NAICS code relate to the specific needs of Marine Corps prepositioning?
The NAICS code 811310, 'Commercial and Industrial Machinery and Equipment Repair and Maintenance,' is highly relevant to Marine Corps prepositioning. Prepositioned assets often include a wide array of heavy machinery, generators, vehicles, and specialized support equipment used in logistics, engineering, and sustainment operations. These items require regular maintenance, calibration, and repair to prevent degradation during storage and to ensure they function correctly upon deployment. This NAICS code accurately captures the scope of services needed to keep such diverse and critical equipment operational and mission-ready.
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: $23,389,206
Exercised Options: $23,389,206
Current Obligation: $17,621,051
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $510,843
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: 2025-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-14
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