DoD's $56.9M Facilities Support Services Contract Awarded to KBR Services, LLC for Option Year 7

Contract Overview

Contract Amount: $56,924,407 ($56.9M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-20

End Date: 2025-11-19

Contract Duration: 364 days

Daily Burn Rate: $156.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YEAR 7 RECURRING WORK

Plain-Language Summary

Department of Defense obligated $56.9 million to KBR SERVICES, LLC for work described as: OPTION YEAR 7 RECURRING WORK Key points: 1. This contract represents recurring work, indicating a stable, ongoing need for facilities support services. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a pre-established relationship and competitive framework. 3. The firm-fixed-price contract type generally offers good cost control for the government, provided the scope is well-defined. 4. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation. 5. The duration of 364 days for this option year aligns with typical contract management cycles. 6. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities support, encompassing services like building operation and maintenance.

Value Assessment

Rating: good

Benchmarking the value of this specific $56.9 million delivery order requires access to the parent IDIQ contract's total value and other awarded orders. However, the firm-fixed-price structure is a positive indicator for cost predictability. Without comparative data on per-unit service costs within this specific contract or against similar facilities support contracts across the DoD, a precise value-for-money assessment is challenging. The recurring nature of the work suggests the services are essential and have been historically valued by the agency.

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 offers. This typically leads to a broader range of potential bidders and can foster competitive pricing. The specific number of bidders for this delivery order is not provided, but the 'full and open' designation suggests a robust competitive process was intended.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.

Public Impact

The Department of the Navy benefits from the continuity of essential facilities support services, ensuring operational readiness. This contract delivers critical services for the maintenance, operation, and upkeep of government facilities. The geographic impact is localized to the facilities managed by the Department of the Navy where KBR Services, LLC is performing these services. Workforce implications include the employment of personnel by KBR Services, LLC to execute these facilities support tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics or outcome-based evaluations in the provided data.
  • Potential for cost creep if the scope of 'facilities support services' is not tightly managed over the contract's life.
  • Dependence on a single contractor for a critical function like facilities support could pose a risk if performance degrades.

Positive Signals

  • Award to an established contractor (KBR Services, LLC) suggests a degree of confidence in their past performance.
  • Firm-fixed-price contract type provides cost certainty for the government.
  • Recurring nature of the work indicates a demonstrated need and likely satisfaction with the services provided in previous option years.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a significant sector within government contracting. This industry encompasses a wide range of services essential for the operation and maintenance of physical infrastructure, including cleaning, security, maintenance, and operational support. Government spending in this area is substantial, driven by the vast real estate holdings of federal agencies. Comparable spending benchmarks would involve analyzing the total value of facilities support contracts across different agencies and over various fiscal years to understand market rates and typical contract sizes.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (sb: false) and does not appear to have specific small business subcontracting plans noted (st: '', sn: ''). This suggests that the primary award went to a large business, and there may not be a mandated focus on involving small businesses in this particular delivery order. The impact on the small business ecosystem is therefore likely minimal unless KBR Services, LLC voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

  • Facilities Maintenance Services
  • Base Operations Support (BOS)
  • Logistics and Support Services
  • Government Property Management
  • Construction and Engineering Services

Risk Flags

  • Potential for scope creep in facilities support services.
  • Reliance on a single contractor for essential services.
  • Lack of detailed performance metrics in provided data.

Tags

defense, department-of-defense, department-of-the-navy, facilities-support-services, kbr-services-llc, full-and-open-competition, firm-fixed-price, delivery-order, recurring-work, option-year, naics-561210

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to KBR SERVICES, LLC. OPTION YEAR 7 RECURRING WORK

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 $56.9 million.

What is the period of performance?

Start: 2024-11-20. End: 2025-11-19.

What is the historical spending trend for this specific contract vehicle (parent IDIQ) over its lifespan?

To assess the historical spending trend for this contract vehicle, one would need to examine the cumulative obligations against the parent IDIQ contract from its inception. This data, typically available through federal procurement databases like FPDS, would reveal the total value awarded across all delivery orders issued under the IDIQ. Analyzing year-over-year spending would indicate whether the contract is being fully utilized, if spending is increasing or decreasing, and how this specific $56.9 million option year order fits into the broader spending pattern. A consistent or increasing spending trend might suggest sustained demand and agency reliance on the contract, while a declining trend could signal a shift in requirements or a move towards alternative solutions.

How does the estimated cost per square foot for facilities maintenance under this contract compare to industry benchmarks?

Determining the cost per square foot requires knowing the total square footage of facilities managed under this contract and dividing the contract value by that figure. Comparing this to industry benchmarks for similar facilities (e.g., government buildings, office complexes) in comparable geographic locations would provide insight into value for money. Facilities support services costs can vary widely based on the type of facility, the scope of services (e.g., janitorial, HVAC, groundskeeping), and labor rates. If the per-square-foot cost is significantly higher than benchmarks, it could indicate potential overpricing or a more intensive service level. Conversely, a lower cost might suggest efficiency or a less comprehensive service package.

What is KBR Services, LLC's performance history on similar large-scale facilities support contracts with the federal government?

Assessing KBR Services, LLC's performance history on similar contracts is crucial for understanding the risk associated with this award. This involves reviewing past performance evaluations, contract termination records, and any documented instances of disputes or corrective actions on previous federal facilities support contracts. Agencies often maintain past performance information databases. A track record of successful, on-time, and within-budget performance on comparable contracts would be a strong positive signal, suggesting a lower risk of performance issues. Conversely, a history of negative performance reviews or contract disputes would raise concerns about the reliability and effectiveness of the contractor.

What specific types of facilities support services are included in this $56.9M delivery order, and are they aligned with standard industry practices?

The broad term 'Facilities Support Services' can encompass a wide array of activities. To evaluate this contract effectively, a detailed breakdown of the services is necessary. This would include specifics like routine maintenance, HVAC repair, janitorial services, groundskeeping, pest control, and potentially minor repairs or renovations. Comparing the scope of services to industry standards for facilities management helps determine if the contract covers essential functions and if the pricing is commensurate with the level of service. If the scope is unusually broad or narrow, or if it includes services typically handled under separate contracts, it warrants further investigation into the rationale and potential cost implications.

What is the total value of the parent IDIQ contract, and how much remains available for future task orders?

The total value of the parent IDIQ contract and the remaining ceiling are critical metrics for understanding the long-term commitment and potential for future spending. This information, usually found in the contract award details or through agency procurement systems, indicates the overall scope and duration of the contracting vehicle. Knowing the remaining value helps forecast future obligations and assess if the contract is on track to be fully utilized. It also provides context for the significance of this $56.9 million delivery order relative to the total contract value. A large remaining balance suggests continued reliance on this vehicle for future needs.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247015R4007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, 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: $56,924,407

Exercised Options: $56,924,407

Current Obligation: $56,924,407

Actual Outlays: $86,145

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $2,162,018

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

Start Date: 2024-11-20

Current End Date: 2025-11-19

Potential End Date: 2025-11-19 00:00:00

Last Modified: 2026-04-09

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