DoD's $66M Facilities Support Contract for Navy Option Year 3 Awarded to KBR Services, LLC

Contract Overview

Contract Amount: $66,147,594 ($66.1M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-11-20

End Date: 2021-11-19

Contract Duration: 364 days

Daily Burn Rate: $181.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SR#19668693 BOS CONTRACT, OPTION YEAR 3

Plain-Language Summary

Department of Defense obligated $66.1 million to KBR SERVICES, LLC for work described as: SR#19668693 BOS CONTRACT, OPTION YEAR 3 Key points: 1. Contract value represents a significant investment in maintaining naval facilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Facilities support services are critical for operational readiness and infrastructure upkeep. 4. The contract's duration of one year (Option Year 3) indicates ongoing need and potential for follow-on work. 5. Fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 6. The North American Industry Classification System (NAICS) code 561210 points to a focus on general facilities management.

Value Assessment

Rating: good

Benchmarking the value of this $66.15 million contract for facilities support services requires comparison to similar large-scale contracts. Given the scope of facilities management, which can encompass maintenance, repair, and operational support for extensive naval installations, the price appears within a reasonable range for such comprehensive services. The firm-fixed-price structure suggests that KBR Services, LLC is responsible for managing costs to deliver the agreed-upon services, which is generally a favorable arrangement for the government when the scope is well-defined. Without specific details on the exact services provided and the scale of the facilities, a precise value-for-money assessment is challenging, but the competitive award process lends confidence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a robust bidding environment, encouraging multiple qualified contractors to compete for the work. The presence of multiple bidders, while not explicitly detailed in the provided data, is implied by the nature of full and open competition. This level of competition is generally expected to drive down prices and improve the quality of services offered as contractors vie for the award.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and service for essential facilities support at naval installations.

Public Impact

Naval personnel and operations benefit from well-maintained and functional facilities. The contract supports the operational readiness of Department of the Navy assets. Geographic impact is likely concentrated around the specific naval installations managed under this contract. Employment opportunities may be generated or sustained for personnel involved in facilities management and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate change order management.
Dependence on a single contractor for critical infrastructure support could pose a risk if performance falters.
Ensuring consistent service quality across all managed facilities requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and quality.
Firm-fixed-price contract type provides cost certainty for the government.
KBR Services, LLC's experience in government contracting may indicate a lower risk of performance issues.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represents a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of government facilities, including building systems management, groundskeeping, custodial services, and pest control. The total addressable market for such services within the federal government is substantial, with agencies like the Department of Defense being major consumers due to their extensive real estate holdings. This contract fits within the broader trend of agencies outsourcing non-core functions to specialized service providers to focus on their primary missions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract awarded under full and open competition, it is unlikely to have specific small business subcontracting goals mandated unless explicitly stated in the solicitation or contract terms. While KBR Services, LLC may engage small businesses as subcontractors, the primary award mechanism does not prioritize small business participation. This means the direct impact on the small business ecosystem for this specific contract award is minimal, though larger prime contractors often utilize small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Logistics and Support Services
Department of Defense Facilities Management
Naval Installation Support

Risk Flags

Potential for scope creep impacting cost and schedule.
Dependence on contractor performance for critical infrastructure.
Need for robust quality assurance to ensure service standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.1 million to KBR SERVICES, LLC. SR#19668693 BOS CONTRACT, OPTION YEAR 3

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 $66.1 million.

What is the period of performance?

Start: 2020-11-20. End: 2021-11-19.

What is the historical spending trend for facilities support services at this specific naval installation or within the Department of the Navy?

Analyzing historical spending trends for facilities support services at this specific naval installation or within the Department of the Navy is crucial for understanding cost evolution and budget predictability. While the provided data focuses on a single option year award of $66.15 million for SR#19668693, a comprehensive review would involve examining contract awards for similar services over the past 5-10 years. This would reveal whether spending has been consistent, increasing, or decreasing, and identify any significant fluctuations. Factors influencing these trends could include changes in facility requirements, shifts in government priorities, inflation, and the competitive landscape. For instance, a steady increase in spending might indicate growing facility needs or rising service costs, whereas a decrease could suggest efficiency gains or scope reductions. Understanding these patterns helps in forecasting future budget needs and assessing the long-term financial commitment associated with maintaining naval infrastructure.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts?

A detailed comparison of the per-unit cost of services under this $66.15 million contract to industry benchmarks is essential for evaluating value for money. However, the provided data lacks the granular detail necessary to calculate specific per-unit costs (e.g., cost per square foot maintained, cost per service call). To perform this analysis, one would need to break down the total contract value by the specific services rendered (e.g., HVAC maintenance, janitorial services, groundskeeping) and the scope of facilities covered. Subsequently, these service-specific costs would be compared against publicly available data from industry reports, professional associations (like IFMA), or government cost-estimating guides for similar-sized facilities and geographic regions. If the contract's per-unit costs are significantly higher than benchmarks, it could indicate potential inefficiencies or a lack of competitive pressure. Conversely, costs below benchmarks might suggest strong value or potentially underestimated scope, warranting further investigation into service quality.

What is KBR Services, LLC's track record with similar large-scale facilities support contracts for the Department of Defense or other federal agencies?

KBR Services, LLC has a substantial track record in providing large-scale facilities support and base operations support (BOS) services to the Department of Defense (DoD) and other federal agencies. The company has historically been awarded numerous prime contracts for managing extensive infrastructure, including maintenance, repair, operations, and logistics support for military bases and installations worldwide. Examining their past performance on similar contracts, particularly those involving firm-fixed-price structures and full and open competition, would reveal their ability to manage costs effectively and meet performance requirements. Key indicators to assess include contract past performance ratings, any history of significant contract disputes or terminations, and their demonstrated capacity to handle the complexity and scale of operations required for naval facilities. A review of their portfolio would likely show extensive experience, which generally correlates with a lower risk profile for new contract awards.

What are the key performance indicators (KPIs) used to measure the success of this facilities support contract, and how has KBR Services, LLC performed against them?

The success of this facilities support contract is typically measured through a set of Key Performance Indicators (KPIs) established in the contract's Performance Work Statement (PWS). These KPIs often include metrics related to response times for service requests, completion rates for preventive maintenance schedules, facility condition assessments, energy efficiency targets, and customer satisfaction scores. For a contract of this magnitude and nature, KPIs would likely focus on ensuring operational readiness, safety compliance, and cost-effectiveness. While the provided data does not detail KBR Services, LLC's specific performance against these KPIs for this option year, government contract performance is usually tracked through Contractor Performance Assessment Reporting System (CPARS) or similar internal mechanisms. A review of these records would indicate whether the contractor has consistently met or exceeded performance expectations, identifying any areas of concern or commendation.

What is the potential impact of this contract on KBR Services, LLC's overall revenue and market position within the federal facilities support sector?

This $66.15 million contract for facilities support services represents a significant revenue stream for KBR Services, LLC for the awarded option year (2021). For a company specializing in government contracting and engineering services, such awards are crucial for maintaining a strong market position and demonstrating continued capability. The renewal or extension of services through an option year, especially following a competitive process, signals client satisfaction and reinforces KBR's standing as a reliable provider in the federal facilities support sector. This contract likely contributes a notable percentage to their annual revenue derived from federal contracts, bolstering their portfolio and potentially serving as a reference for securing future, larger, or more complex contracts. Its successful execution can enhance their reputation and competitiveness against other major players in the facilities management and base operations support market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247015R4007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR Services LLC

Address: 1080 ELDRIDGE PKWY, HOUSTON, TX, 77077

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $66,147,594

Exercised Options: $66,147,594

Current Obligation: $66,147,594

Actual Outlays: $5,539,770

Subaward Activity

Number of Subawards: 145

Total Subaward Amount: $12,139,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247017D4012

IDV Type: IDC

Timeline