Defense Logistics Agency awards $149M contract for warehousing to KBR Services, LLC
Contract Overview
Contract Amount: $14,911,548 ($14.9M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2005-11-30
End Date: 2010-04-12
Contract Duration: 1,594 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200604!431326!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310006C0003 !A!N! !Y! ! !20051130!20061201!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!2451 CRYSTAL DR STE 300 !ARLINGTON !VA!22202!00000! !KU!* !* !KUWAIT !+000008358528!N!N!000000000000!M179!OPERATION/OTHER WAREHOUSE BUILDINGS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !493110!E! !3! ! ! ! ! !99990909!B! ! !N!Z!A!N!J!2!002!N!3A!Z!N!Z!B!KU!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $14.9 million to KBR SERVICES, LLC for work described as: 200604!431326!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310006C0003 !A!N! !Y! ! !20051130!20061201!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!2451 CRYSTAL DR STE 300 !ARLINGTON !VA!22202!00000! !KU!* !* … Key points: 1. The contract value of $149.1 million for General Warehousing and Storage services is significant. 2. KBR Services, LLC, a large business, secured this contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The primary sector is IT, though the PSC code suggests warehousing.
Value Assessment
Rating: fair
The contract value of $149.1 million over approximately 4 years (1594 days) suggests an average annual value of around $37.5 million. Without specific unit cost data or comparable contracts, a precise pricing assessment is difficult, but it appears to be within a reasonable range for large-scale logistics support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a fair price for the services rendered, as multiple companies vied for the contract.
Public Impact
Supports critical defense logistics operations, ensuring supplies are stored and managed effectively. Impacts the efficiency of military readiness by maintaining operational warehouses. Provides employment opportunities within the logistics and warehousing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope changes or unforeseen issues arise.
- Reliance on a single large contractor for critical logistics functions.
- Contract duration may not fully align with evolving defense needs.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm Fixed Price contract type helps control costs.
- Experienced contractor likely to deliver reliable services.
Sector Analysis
The contract falls under General Warehousing and Storage (NAICS 493110), a critical component of the logistics sector. Spending in this area is essential for maintaining supply chains, particularly for government and defense agencies. Benchmarks for similar large-scale warehousing contracts can vary widely based on scope, location, and specific services required.
Small Business Impact
This contract was awarded to KBR Services, LLC, a large business. There is no indication of small business participation or subcontracting goals within the provided data.
Oversight & Accountability
The award through full and open competition suggests a degree of oversight in the procurement process. However, ongoing oversight of performance and cost management throughout the contract's life is crucial for ensuring accountability and value for taxpayer money.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Potential for reliance on a single large contractor.
- Lack of explicit small business participation noted.
- Specific performance metrics not detailed in summary data.
Tags
general-warehousing-and-storage, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.9 million to KBR SERVICES, LLC. 200604!431326!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310006C0003 !A!N! !Y! ! !20051130!20061201!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!2451 CRYSTAL DR STE 300 !ARLINGTON !VA!22202!00000! !KU!* !* !KUWAIT !+000008358528!N!N!000000000000!M179!OPERATION/OTHER WAREHOUSE BUILDINGS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !493110!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is KBR SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.9 million.
What is the period of performance?
Start: 2005-11-30. End: 2010-04-12.
What specific warehousing services are included in this contract, and how do they align with current defense needs?
The contract specifies 'OPERATION/OTHER WAREHOUSE BUILDINGS' and 'ALL OTHER SUPPLIES AND EQUIPMENT'. This suggests a broad scope covering general warehousing, storage, and potentially related operational support for various defense supplies. The alignment with current defense needs would require a deeper dive into the Statement of Work (SOW) and any subsequent modifications or task orders issued under the contract.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure service quality and efficiency?
The provided data does not explicitly detail performance metrics or KPIs. However, for a contract of this magnitude and importance, it is highly probable that the Defense Logistics Agency has established performance standards and monitoring mechanisms. These would typically be outlined in the contract's Statement of Work and reviewed regularly by the Contracting Officer's Representative (COR).
What is the potential for cost escalation or scope creep given the firm fixed-price nature of the contract?
While a Firm Fixed Price (FFP) contract is designed to limit cost escalation, scope creep can still occur if modifications are issued without adequate justification or if the initial SOW was incomplete. KBR Services, LLC is incentivized to perform within the agreed price, but changes to requirements could necessitate contract modifications, potentially impacting the total cost.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 2451 CRYSTAL DR STE 300, ARLINGTON, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-11-30
Current End Date: 2010-04-12
Potential End Date: 2010-04-12 00:00:00
Last Modified: 2010-04-12
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