DoD Awards $2.67M Contract for Switchgear Diagnostics to KBR Services, LLC
Contract Overview
Contract Amount: $2,671,797 ($2.7M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2026-09-26
Contract Duration: 365 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONDUCT A COMPREHENSIVE ASSESSMENT AND DIAGNOSTIC EVALUATION OF SWITCHGEARS LOCATED IN PRIME POWER II (PP2) AND PRIME POWER III (PP3) BY THE ORIGINAL EQUIPMENT MANUFACTURER (OEM) OR AUTHORIZED REPRESENTATIVE
Plain-Language Summary
Department of Defense obligated $2.7 million to KBR SERVICES, LLC for work described as: CONDUCT A COMPREHENSIVE ASSESSMENT AND DIAGNOSTIC EVALUATION OF SWITCHGEARS LOCATED IN PRIME POWER II (PP2) AND PRIME POWER III (PP3) BY THE ORIGINAL EQUIPMENT MANUFACTURER (OEM) OR AUTHORIZED REPRESENTATIVE Key points: 1. Contract focuses on essential infrastructure maintenance for Navy power systems. 2. KBR Services, LLC, a large business, secured the award. 3. The contract carries a risk of potential single-point-of-failure if OEM expertise is critical. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $2.67M for diagnostic evaluation of switchgear appears reasonable given the specialized nature of OEM services. Benchmarking against similar infrastructure maintenance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and ensure the best value for the government.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure maintenance, ensuring operational readiness and preventing costly failures.
Public Impact
Ensures reliability of power systems for critical Navy operations. Supports the longevity and safety of essential electrical infrastructure. Potential for follow-on work if diagnostics reveal necessary repairs or upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on OEM for specialized knowledge.
- Potential for unforeseen repair costs beyond diagnostics.
Positive Signals
- Awarded through full and open competition.
- Focus on preventative maintenance.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, specifically related to the maintenance of critical electrical infrastructure. Spending benchmarks for similar OEM diagnostic services can vary widely based on system complexity and age.
Small Business Impact
The contract was awarded to KBR Services, LLC, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized OEM services.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm-fixed-price contract type provides cost certainty, but ongoing monitoring will be crucial to ensure performance standards are met.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for sole-source dependency on OEM for future work.
- Risk of unforeseen repair costs exceeding diagnostic budget.
- Importance of detailed reporting and verification of diagnostic findings.
- Ensuring long-term availability of critical spare parts.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to KBR SERVICES, LLC. CONDUCT A COMPREHENSIVE ASSESSMENT AND DIAGNOSTIC EVALUATION OF SWITCHGEARS LOCATED IN PRIME POWER II (PP2) AND PRIME POWER III (PP3) BY THE ORIGINAL EQUIPMENT MANUFACTURER (OEM) OR AUTHORIZED REPRESENTATIVE
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 $2.7 million.
What is the period of performance?
Start: 2025-09-26. End: 2026-09-26.
What is the potential long-term cost implication if the OEM's specialized knowledge is exclusively required for future maintenance or repairs?
Exclusive reliance on the OEM for future maintenance or repairs could lead to significantly higher costs compared to utilizing authorized third-party service providers. This is due to potential markups, limited negotiation leverage, and the OEM's control over parts and labor pricing. The government should explore options for knowledge transfer or developing alternative qualified service providers to mitigate this long-term risk and ensure competitive pricing for ongoing support.
How will the government ensure the diagnostic evaluation is thorough and identifies all potential risks to the switchgear's operational integrity?
The government can ensure thoroughness by clearly defining the scope of work, specifying detailed diagnostic procedures, and requiring comprehensive reporting from the OEM. Establishing clear performance metrics and key performance indicators (KPIs) within the contract will hold the contractor accountable. Post-evaluation reviews by government technical experts and comparison with industry best practices for switchgear diagnostics will further validate the findings and identify any potential omissions or areas needing deeper investigation.
What is the government's strategy for addressing any critical issues identified during the diagnostic evaluation to ensure minimal disruption to operations?
The government's strategy should involve a pre-defined contingency plan for addressing critical issues identified during the diagnostic evaluation. This includes having a rapid response mechanism in place, potentially pre-negotiated terms for emergency repairs or parts, and clear communication channels with the OEM and relevant operational units. Prioritizing identified issues based on criticality and impact on mission readiness will guide resource allocation and ensure swift, effective remediation to minimize operational disruptions.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
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: $2,671,797
Exercised Options: $2,671,797
Current Obligation: $2,671,797
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3319120D0811
IDV Type: IDC
Timeline
Start Date: 2025-09-26
Current End Date: 2026-09-26
Potential End Date: 2026-09-26 00:00:00
Last Modified: 2026-01-12
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