KBR Services awarded $63.6M for Navy facilities support, highlighting long-term contract needs
Contract Overview
Contract Amount: $63,610,477 ($63.6M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2017-11-20
End Date: 2021-11-19
Contract Duration: 1,460 days
Daily Burn Rate: $43.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF X001 TASK ORDER SUBJECT TO THE AVAILABILITY OF FUNDS
Plain-Language Summary
Department of Defense obligated $63.6 million to KBR SERVICES, LLC for work described as: IGF::OT::IGF X001 TASK ORDER SUBJECT TO THE AVAILABILITY OF FUNDS Key points: 1. Contract value represents significant investment in ongoing facilities maintenance and operations. 2. Full and open competition suggests a robust market for these services. 3. Long contract duration (1460 days) indicates a need for sustained support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Facilities support services are critical for operational readiness. 6. Contract awarded to KBR Services, LLC, a known entity in government contracting.
Value Assessment
Rating: good
The contract value of $63.6 million over approximately four years for facilities support services appears reasonable given the scope. Benchmarking against similar large-scale facilities support contracts awarded by the Department of Defense, this award falls within expected ranges for comprehensive maintenance, operations, and management services. The firm fixed-price structure provides cost certainty for the government, assuming the contractor can manage its expenses effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more favorable pricing and a wider selection of qualified contractors.
Public Impact
The Department of the Navy benefits from reliable and comprehensive facilities support, ensuring operational readiness. Services include maintenance, repair, and management of facilities, contributing to a safe and functional environment. Geographic impact is likely concentrated at Navy installations where these facilities are located. Workforce implications include employment opportunities for personnel skilled in facilities management and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly due to the long duration.
- Reliance on a single contractor for critical infrastructure could pose a risk if performance degrades.
- Ensuring consistent quality across all serviced facilities requires robust oversight.
Positive Signals
- Firm fixed-price contract aligns incentives for contractor efficiency.
- Full and open competition suggests a competitive market that can drive value.
- Long-term nature allows for specialized knowledge development by the contractor.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services essential for the operation and maintenance of buildings and grounds. This sector is characterized by numerous providers, from large integrated service companies to smaller specialized firms. Government contracts in this area are substantial, reflecting the extensive real estate holdings and operational needs of federal agencies. KBR Services, LLC operates within this competitive landscape, providing essential support functions.
Small Business Impact
While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, large prime contractors like KBR Services, LLC are often required to meet subcontracting goals. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses benefit from this award. Without specific subcontracting data, the direct impact on the small business ecosystem is unclear, though it's common for such large contracts to involve a network of smaller suppliers.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and their representatives (CORs) within the Department of the Navy. Performance metrics and quality assurance surveillance plans (QASPs) are standard mechanisms to ensure contractor adherence to contract terms and service level agreements. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Facilities Management Services
- Government Facilities Maintenance Contracts
- Public Building Services
Risk Flags
- Long-term contract duration requires sustained oversight.
- Firm Fixed Price shifts cost risk to contractor; requires quality monitoring.
- Potential for contractor performance issues over the contract life.
Tags
defense, department-of-defense, department-of-the-navy, facilities-support-services, kbr-services-llc, firm-fixed-price, full-and-open-competition, delivery-order, large-contract, ongoing-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.6 million to KBR SERVICES, LLC. IGF::OT::IGF X001 TASK ORDER SUBJECT TO THE AVAILABILITY OF FUNDS
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 $63.6 million.
What is the period of performance?
Start: 2017-11-20. End: 2021-11-19.
What is KBR Services, LLC's track record with similar government contracts, particularly within the Department of Defense?
KBR Services, LLC has a significant history of performing large-scale government contracts, including extensive work with the Department of Defense and other federal agencies. Their portfolio often includes base operations support, facilities management, logistics, and engineering services. While specific performance details for every contract are not publicly available, their continued success in winning and executing such awards suggests a generally positive track record. However, like any large contractor, there may be instances of past performance issues or disputes that would require deeper investigation into specific contract histories and CPARS (Contractor Performance Assessment Reporting System) data.
How does the $63.6 million value compare to other facilities support contracts awarded by the Navy in recent years?
The $63.6 million award for approximately four years of facilities support services is a substantial contract, but it is not unusual for the Department of the Navy, given its extensive infrastructure needs. Comparable contracts for base operations support or comprehensive facilities management at major Navy installations often range from tens to hundreds of millions of dollars over similar or longer periods. The value is influenced by the scope of services (e.g., maintenance, repair, utilities, groundskeeping, security), the number and size of facilities managed, and the geographic location. This specific award appears to be in line with the typical scale for such comprehensive support requirements.
What are the primary risks associated with a firm fixed-price contract for facilities support services?
The primary risk with a firm fixed-price (FFP) contract for facilities support services lies with the contractor, KBR Services, LLC. If the contractor underestimates costs, experiences unforeseen price increases in labor or materials, or faces operational inefficiencies, their profit margins will be squeezed. For the government, the risk is that the contractor might cut corners on service quality to maintain profitability, especially if oversight is not rigorous. Additionally, if the scope of work significantly changes, managing contract modifications to an FFP can become complex and potentially lead to disputes over pricing if not handled carefully.
What is the typical duration for facilities support contracts of this magnitude, and what does this duration imply?
Facilities support contracts of this magnitude, especially those involving comprehensive base operations or extensive facility management, often have durations of three to five years, with options for extensions. A duration of approximately four years (1460 days) for this $63.6 million contract is quite typical. This longer duration implies a need for sustained, consistent service delivery and allows the contractor to develop specialized knowledge of the facilities and operations. It also provides stability for the government, reducing the frequency of recompeting contracts and associated transition costs. However, it necessitates robust performance management throughout the contract term.
How does the 'Facilities Support Services' category (NAICS 561210) generally perform in terms of cost-effectiveness for the government?
Facilities Support Services, under NAICS 561210, can be highly cost-effective for the government when managed properly and competed effectively. By consolidating various maintenance, operations, and management functions under a single contract, agencies can achieve economies of scale and streamline procurement. Full and open competition, as seen in this award, is crucial for driving competitive pricing. However, cost-effectiveness is heavily dependent on clear performance standards, diligent oversight to ensure quality, and the contractor's ability to manage resources efficiently. Without these elements, costs can escalate, and service quality can decline, negating potential savings.
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, Inc.
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: $75,561,874
Exercised Options: $75,561,874
Current Obligation: $63,610,477
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $168,227,253
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247017D4012
IDV Type: IDC
Timeline
Start Date: 2017-11-20
Current End Date: 2021-11-19
Potential End Date: 2021-11-19 00:00:00
Last Modified: 2026-04-09
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