KBR Services awarded $131.5M for Marine Corps prepositioning, focusing on vessel maintenance
Contract Overview
Contract Amount: $13,150,878 ($13.2M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-06
End Date: 2026-03-23
Contract Duration: 290 days
Daily Burn Rate: $45.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MARINE CORPS PREPOSITIONING PROGRAM - USNS BUTTON & GPN
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.2 million to KBR SERVICES, LLC for work described as: MARINE CORPS PREPOSITIONING PROGRAM - USNS BUTTON & GPN Key points: 1. Contract value represents significant investment in maintaining critical maritime assets. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Delivery order structure indicates task-based execution within a larger program. 4. Focus on machinery repair highlights the importance of operational readiness. 5. Contract duration of 290 days points to a defined scope of work. 6. The award is part of a broader effort to support global force projection.
Value Assessment
Rating: good
The contract value of $131.5 million for vessel maintenance appears reasonable given the scope of supporting the Marine Corps Prepositioning Program. Benchmarking against similar large-scale maritime maintenance contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure necessitates careful oversight to ensure costs remain controlled and that the fixed fee is justified by the complexity and risk involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The open nature of the competition suggests that the Department of the Navy sought the most advantageous offer.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds, potentially leading to cost savings and improved service delivery for essential military support functions.
Public Impact
The U.S. Marine Corps benefits through the enhanced readiness and operational availability of prepositioned vessels. Services delivered include critical repair and maintenance of commercial and industrial machinery on these vessels. The geographic impact is primarily in Florida, where the vessels are likely stationed or maintained. Workforce implications include potential employment opportunities for skilled trades and maritime professionals in the maintenance sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
- Reliance on a single contractor for critical maintenance could pose supply chain or performance risks.
- The specific nature of 'prepositioning' implies long-term storage and potential degradation requiring specialized maintenance expertise.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- KBR Services, LLC has a track record in government contracting, implying experience.
- The contract supports a critical national defense function, ensuring force readiness.
Sector Analysis
This contract falls within the broader industrial services sector, specifically focusing on the maintenance and repair of specialized maritime assets. The market for defense-related vessel maintenance is substantial, driven by the need to maintain global operational readiness. Comparable spending benchmarks would involve analyzing other large contracts for ship repair, overhaul, and logistical support within the Department of Defense and other maritime agencies.
Small Business Impact
The contract data indicates that small business participation (ss and sb fields) is not explicitly detailed as a set-aside or subcontracting goal in this specific award notice. Further analysis would be needed to determine if KBR Services, LLC has committed to subcontracting with small businesses as part of this contract, which is a common requirement in large federal procurements to foster the small business ecosystem.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Navy's contracting officers and program managers, who are responsible for monitoring performance, costs, and compliance. Accountability measures are built into the contract terms, requiring KBR Services, LLC to meet specified performance standards. Transparency may be enhanced through contract reporting requirements and potential audits by the Department of Defense's Inspector General, especially concerning cost expenditures.
Related Government Programs
- Marine Corps Logistics Command
- Military Sealift Command
- Naval Sea Systems Command
- Defense Logistics Agency
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Dependency
- Scope Creep Potential
Tags
defense, department-of-defense, department-of-the-navy, marine-corps, vessel-maintenance, machinery-repair, full-and-open-competition, delivery-order, cost-plus-fixed-fee, florida, kbr-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.2 million to KBR SERVICES, LLC. MARINE CORPS PREPOSITIONING PROGRAM - USNS BUTTON & GPN
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 $13.2 million.
What is the period of performance?
Start: 2025-06-06. End: 2026-03-23.
What is KBR Services, LLC's track record with similar maritime maintenance contracts for the Department of Defense?
KBR Services, LLC has a significant history of performing large-scale services contracts for the Department of Defense, including extensive work in logistics, base operations, and engineering support. While specific details on maritime maintenance contracts of this exact scale and nature require deeper database analysis, their broad experience suggests a capacity to manage complex operations. Past performance reviews and contract award histories would reveal their success rates, any past performance issues, and their ability to manage budgets and schedules effectively on similar government contracts. This background is crucial for assessing their reliability in executing the Marine Corps Prepositioning Program contract.
How does the $131.5 million contract value compare to historical spending on the Marine Corps Prepositioning Program vessel maintenance?
To accurately benchmark the $131.5 million award, historical spending data for the Marine Corps Prepositioning Program's vessel maintenance over the past 5-10 years would be necessary. This would involve analyzing previous contracts, delivery orders, and task orders issued for similar services. Factors such as inflation, changes in the number of vessels maintained, and the scope of work (e.g., routine maintenance vs. major overhauls) would need to be considered. Without this historical context, it is difficult to definitively state whether this award represents an increase, decrease, or stable level of investment compared to prior periods. A trend analysis would reveal if this award is an anomaly or part of a consistent spending pattern.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for vessel maintenance?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a guaranteed profit margin regardless of the final cost. This can reduce the contractor's incentive to control costs rigorously, as increased expenses do not directly reduce their profit. For the government, this necessitates robust oversight to ensure that all claimed costs are reasonable, allocable, and allowable. Additionally, defining the scope of work clearly is critical, as ambiguities can lead to disputes and change orders, further complicating cost management. The government bears the risk of unforeseen costs that may arise during performance.
How effective is the current maintenance strategy for ensuring the long-term readiness of prepositioned vessels?
Assessing the effectiveness of the current maintenance strategy requires data on vessel readiness rates, operational availability, and the frequency and severity of equipment failures. Information on the average age and condition of the prepositioned fleet, as well as the backlog of maintenance and repair (M&R) requirements, would also be indicative. The fact that this contract is awarded suggests a recognized need for ongoing or enhanced maintenance. However, without specific performance metrics and readiness reports related to the prepositioned fleet, it's challenging to quantify the effectiveness of the maintenance strategy. The success of this specific contract award will be a key indicator moving forward.
What is the typical duration and value range for contracts supporting the Marine Corps Prepositioning Program?
The typical duration and value range for contracts supporting the Marine Corps Prepositioning Program can vary significantly based on the specific services required. Contracts can range from short-term, task-specific orders for repairs to long-term agreements for overall program management and maintenance. Values can span from hundreds of thousands to hundreds of millions of dollars, depending on the scope, duration, and complexity. This $131.5 million award for vessel maintenance over approximately 9 months (delivery order period) suggests a substantial, but potentially episodic, investment within the broader program. Analyzing a portfolio of past contracts would provide a clearer picture of the typical lifecycle and financial scale.
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: $16,271,491
Exercised Options: $16,271,491
Current Obligation: $13,150,878
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: 2025-06-06
Current End Date: 2026-03-23
Potential End Date: 2026-03-23 00:00:00
Last Modified: 2026-01-14
More Contracts from KBR Services, LLC
- Follow on Task Order to 139 IS NOW Task Order 159 — $8.9B (Department of Defense)
- 200612!001884!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0007 !A!N! !Y!0139 ! !20060822!20120131!133469119!133469119!964409007!n!kellogg Brown&root Services,!4100 Clinton DRY !houston !TX!77020!00000! !IZ! ! !iraq !+000400000000!n!n!000000000000!r706!logistics Support Services !S1 !services !000 !NOT Discernable !561210!E! !5!B!S! ! ! !99990909!B! ! !A! !a!u!r!2!003!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $7.9B (Department of Defense)
- Federal Contract — $6.1B (Department of Defense)
- 200509!001151!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0007 !A!N! !Y!0089 ! !20050613!20120131!133469119!133469119!964409007!n!kellogg Brown&root Services,!4100 Clinton DR !houston !TX!77020!00000! !IZ!* !* !iraq !+000135000000!n!n!000000000000!r706!logistics Support Services !S1 !services !000 !* !561210!E! !5!B!S! ! ! !20200930!B! ! !A! !a!u!r!2!003!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! !Y! ! ! !0001! ! — $4.6B (Department of Defense)
- Logistic Civil Augmentation Program (logcap) V Award for Eucom Performance Task Order — $2.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)