DoD Awards $7.5M for Automated Fuel Handling Equipment Maintenance, KBR Services Secures Option Year 2
Contract Overview
Contract Amount: $7,546,675 ($7.5M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-13
End Date: 2025-05-12
Contract Duration: 364 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AUTOMATED FUEL HANDLING EQUIPMENT (AFHE) MAINTENANCE OPTION YEAR 2 TASK ORDER
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to KBR SERVICES, LLC for work described as: AUTOMATED FUEL HANDLING EQUIPMENT (AFHE) MAINTENANCE OPTION YEAR 2 TASK ORDER Key points: 1. Contract value of $7.5M for maintenance services. 2. KBR Services, LLC is the incumbent contractor. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is Defense Logistics, a critical area for operational readiness.
Value Assessment
Rating: good
The contract value of $7.5M for a one-year option period appears reasonable for specialized maintenance services. Benchmarking against similar AFHE maintenance contracts would provide a more precise assessment.
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 competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense logistics maintenance.
Public Impact
Ensures continued operational readiness of critical fuel handling systems. Supports the Department of Defense's logistical capabilities. Maintains specialized equipment essential for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep in subsequent option years if not closely monitored.
- Reliance on a single contractor for critical maintenance could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition.
- Clear definition of services for the option year.
- Incumbent contractor likely possesses specialized knowledge.
Sector Analysis
This contract falls within the Defense Logistics sector, which is crucial for maintaining the operational capabilities of the U.S. military. Spending in this area is typically driven by readiness requirements and the need for specialized support services.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. Continued monitoring of performance and costs will be essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price escalation in future option years.
- Dependence on incumbent contractor's specialized knowledge.
- Lack of small business participation noted.
- Need for ongoing performance monitoring.
Tags
engineering-services, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to KBR SERVICES, LLC. AUTOMATED FUEL HANDLING EQUIPMENT (AFHE) MAINTENANCE OPTION YEAR 2 TASK ORDER
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 $7.5 million.
What is the period of performance?
Start: 2024-05-13. End: 2025-05-12.
What is the historical performance of KBR Services, LLC on similar contracts?
Assessing KBR Services, LLC's past performance on comparable contracts is crucial. Reviewing their track record for on-time delivery, quality of work, and adherence to budget on previous AFHE maintenance or similar complex equipment support contracts can indicate their reliability and capability to fulfill this current requirement effectively.
Are there any emerging technologies or alternative maintenance approaches that could offer better value or efficiency?
Exploring emerging technologies and alternative maintenance strategies is vital for long-term cost-effectiveness. Investigating advancements in predictive maintenance, automation, or modular repair could potentially reduce downtime and overall lifecycle costs compared to traditional methods, ensuring the government benefits from the most efficient solutions available.
How does the pricing of this option year compare to the base year and previous option years?
Comparing the pricing of this option year to the base year and any prior option years is essential for identifying potential cost escalations. Analyzing any increases or decreases in unit costs or overall contract value can reveal trends and inform negotiations for future contract actions, ensuring fair pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP470220R0014
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: $7,546,675
Exercised Options: $7,546,675
Current Obligation: $7,546,675
Actual Outlays: $1,910,155
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $138,029
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470221D0001
IDV Type: IDC
Timeline
Start Date: 2024-05-13
Current End Date: 2025-05-12
Potential End Date: 2025-05-12 00:00:00
Last Modified: 2026-01-12
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