DoD's $67.4M NSF Redzikowo Contract Awarded to KBR Services, LLC for Facilities Support

Contract Overview

Contract Amount: $67,389,836 ($67.4M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2024-08-31

Contract Duration: 2,164 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: FY19 BOS CONTRACT FOR NSF REDZIKOWO - SLUPSK, POLAND

Plain-Language Summary

Department of Defense obligated $67.4 million to KBR SERVICES, LLC for work described as: FY19 BOS CONTRACT FOR NSF REDZIKOWO - SLUPSK, POLAND Key points: 1. Contract awarded to KBR Services, LLC for facilities support in Poland. 2. Full and open competition was utilized for this contract. 3. The contract has a significant duration, spanning from 2018 to 2024. 4. This award falls under the Facilities Support Services sector.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which allows for performance incentives. The total award amount is substantial, and further analysis of specific task orders and performance metrics would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing, although the specific award fee structure can influence final costs.

Taxpayer Impact: Taxpayer funds are being utilized for essential facilities support services in a strategic overseas location, contributing to operational readiness.

Public Impact

Ensures operational readiness and support for U.S. forces and personnel at NSF Redzikowo. Supports the local economy in Poland through contract execution and potential subcontracting. Contributes to the U.S. Department of Defense's global infrastructure maintenance and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to Cost Plus Award Fee structure.
  • Long contract duration may not reflect current market conditions.
  • Geopolitical risks associated with operating in Poland.

Positive Signals

  • Awarded through full and open competition, indicating potential for value.
  • Long-term contract provides stability for essential services.
  • Supports critical U.S. infrastructure abroad.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for government facilities. Spending in this sector is crucial for maintaining infrastructure and operational capabilities, with benchmarks varying significantly based on location and scope of services.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to KBR Services, LLC. Further investigation would be needed to determine if KBR utilizes small business subcontractors.

Oversight & Accountability

The contract is managed by the Department of the Navy, indicating established oversight mechanisms. The use of a Delivery Order under a larger contract suggests a structured procurement process, but specific oversight details are not provided.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
  • Long contract duration may not capture potential market efficiencies.
  • Lack of small business participation directly in the prime contract.
  • Geopolitical risks associated with the contract's location.

Tags

facilities-support-services, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.4 million to KBR SERVICES, LLC. FY19 BOS CONTRACT FOR NSF REDZIKOWO - SLUPSK, POLAND

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 $67.4 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-08-31.

What is the breakdown of costs within the Cost Plus Award Fee structure, and how are award fees determined?

The Cost Plus Award Fee (CPAF) structure typically involves a base cost plus an award fee based on performance metrics. Understanding the specific criteria for earning award fees is crucial to assess if the contractor is incentivized to deliver exceptional value and efficiency, thereby maximizing taxpayer benefit. Without this detail, it's difficult to fully evaluate the cost-effectiveness.

What are the key performance indicators (KPIs) used to evaluate KBR Services, LLC's performance under this contract?

Key performance indicators are essential for managing a CPAF contract effectively. These KPIs would likely relate to facility maintenance, operational uptime, response times for issues, safety compliance, and overall customer satisfaction. Robust KPIs ensure that the contractor meets or exceeds expectations, justifying the award fee and ensuring the government receives the intended level of service for its investment.

How does the cost of these facilities support services compare to similar contracts in other overseas locations or domestic equivalents?

Benchmarking this contract's cost against similar services in other regions is vital for assessing value. Factors like local labor costs, logistical challenges, and geopolitical stability significantly influence pricing. A comparative analysis would reveal if the $67.4 million expenditure represents a fair market price or if there are opportunities for cost savings in future procurements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,200,638

Exercised Options: $77,200,638

Current Obligation: $67,389,836

Actual Outlays: $1,661,419

Subaward Activity

Number of Subawards: 270

Total Subaward Amount: $49,316,814

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274216D3551

IDV Type: IDC

Timeline

Start Date: 2018-09-28

Current End Date: 2024-08-31

Potential End Date: 2024-08-31 00:00:00

Last Modified: 2024-09-30

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