Navy's $24.3M Marine Corps Prepositioning Program contract awarded to KBR Services, LLC for machinery repair
Contract Overview
Contract Amount: $24,265,449 ($24.3M)
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: $66.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MARINE CORPS PREPOSITIONING PROGRAM - NAVY SUSTAINMENT
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM - NAVY SUSTAINMENT Key points: 1. KBR Services, LLC secured a significant contract for essential Marine Corps sustainment. 2. The contract focuses on repair and maintenance of industrial machinery, a critical but potentially high-cost area. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: good
The contract value of $24.3M for a 364-day period appears reasonable for specialized machinery repair services. Benchmarking against similar large-scale maintenance contracts for military equipment would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited competition.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value. However, the Cost Plus Fixed Fee structure warrants close monitoring to control overall expenditure.
Public Impact
Ensures readiness of critical Marine Corps equipment through specialized maintenance. Supports the Navy's sustainment efforts for prepositioned assets. Potential for job creation in Florida, the contract's performance location. Highlights the ongoing need for robust industrial machinery repair capabilities within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of small business participation noted.
- Performance location in Florida may have specific logistical considerations.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical operational need for the Marine Corps.
- Clear contract duration and performance period.
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 operational readiness of military assets, with benchmarks varying widely based on equipment complexity and service scope.
Small Business Impact
The data indicates no specific small business participation in this contract award. Efforts to ensure small businesses have opportunities in future related procurements could be beneficial.
Oversight & Accountability
The award process utilized full and open competition, suggesting a degree of oversight. Continued oversight will be necessary to manage the Cost Plus Fixed Fee structure and ensure efficient use of funds.
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.
- Potential for cost overruns.
- Reliance on contractor performance for asset longevity.
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 $24.3 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM - NAVY 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 $24.3 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is the projected cost efficiency of this Cost Plus Fixed Fee contract compared to other contract types for similar services?
Cost Plus Fixed Fee contracts can be less cost-efficient if not tightly managed, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure may lack the incentive for cost reduction inherent in fixed-price contracts. Benchmarking against fixed-price or cost-reimbursement contracts for similar machinery repair services would reveal potential cost savings or overruns.
What are the specific risks associated with the Cost Plus Fixed Fee structure in this context?
The primary risk of a Cost Plus Fixed Fee contract is the potential for cost escalation, as the government bears the cost of performance. The fixed fee provides a profit incentive, but the contractor may not be strongly motivated to control costs beyond what is necessary to achieve the fee. Robust government oversight and clear definition of allowable costs are critical to mitigate this risk.
How effectively does this contract ensure the long-term readiness and cost-effectiveness of the Marine Corps' prepositioned assets?
The contract directly addresses the maintenance needs of prepositioned assets, which is crucial for readiness. However, the long-term cost-effectiveness depends heavily on the contractor's performance, the government's oversight of costs under the CPFF structure, and the actual condition and lifespan extension achieved for the machinery. Regular performance reviews and cost analysis are essential.
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: $24,500,000
Exercised Options: $24,500,000
Current Obligation: $24,265,449
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,329,740
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: 2025-08-18
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