DoD's $13.8M contract for APS-2 Germany EUCOM maintenance and transport services awarded to KBR Services, LLC
Contract Overview
Contract Amount: $13,787,309 ($13.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-14
End Date: 2026-10-20
Contract Duration: 858 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES FOR APS-2 GERMANY EUCOM
Plain-Language Summary
Department of Defense obligated $13.8 million to KBR SERVICES, LLC for work described as: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES FOR APS-2 GERMANY EUCOM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 858 days indicates a medium-term commitment for essential services. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not closely managed. 4. This award falls under Facilities Support Services, a critical component of operational readiness. 5. The award value of approximately $13.8 million is a significant investment in logistical support. 6. The contract is for delivery orders, implying flexibility in service provision as needed.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts in the region. The CPFF structure requires diligent oversight to ensure costs remain reasonable and the fixed fee aligns with the scope of work. While the total award is substantial, its value is contingent on the effective delivery of maintenance, supply, and transportation services critical for APS-2 Germany EUCOM operations.
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 bids. The presence of 4 bidders suggests a moderate level of competition for these specialized services. This competitive approach is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through multiple bids.
Public Impact
Service members and personnel operating within the APS-2 Germany EUCOM area of responsibility benefit from reliable logistical support. The contract ensures the maintenance of critical infrastructure, supply chain integrity, and efficient transportation services. Geographic impact is focused on EUCOM's operational areas in Germany, supporting U.S. military presence and readiness. The contract supports the workforce involved in facilities management, logistics, and transportation within the specified region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to achieve a higher fee, necessitating robust oversight.
- The broad scope of 'maintenance, supply, and transportation' could lead to scope creep if not clearly defined and managed.
- Reliance on a single contractor for these critical services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract duration suggests a stable, long-term need for these services, allowing for efficient planning.
- The services provided are essential for operational readiness, directly supporting military objectives.
Sector Analysis
Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services essential for maintaining government facilities and operations. This contract fits within the broader defense logistics and base support sector, which is a substantial market driven by the global presence of military forces. Comparable spending benchmarks would typically involve other base operations support contracts in similar geographic regions or for similar types of facilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). KBR Services, LLC is a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Further review of the contract details would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the relevant contracting command within DoD. The CPFF structure necessitates close financial oversight to monitor costs and ensure the fixed fee is justified. Transparency is generally maintained through contract award databases, but detailed performance reviews and Inspector General involvement would depend on specific performance issues or audits.
Related Government Programs
- Base Operations Support Services
- Logistics and Supply Chain Management
- Military Construction and Facilities Maintenance
- European Command (EUCOM) Support Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Potential for scope creep in broad service categories.
- Dependence on a single contractor for critical services.
Tags
defense, department-of-defense, kbr-services-llc, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, germany, eucom, maintenance, transportation, logistics
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to KBR SERVICES, LLC. MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES FOR APS-2 GERMANY EUCOM
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 Army).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2024-06-14. End: 2026-10-20.
What is KBR Services, LLC's track record with similar DoD contracts, particularly in Europe?
KBR Services, LLC has a substantial history of performing large-scale logistics, base operations, and facilities support contracts for the Department of Defense, including significant operations in Europe. They have been a prime contractor for various base support services, maintenance, and transportation requirements across multiple theaters. Their experience often includes managing complex supply chains and ensuring operational readiness for military installations. While specific performance metrics for past contracts are not detailed here, their consistent award of such contracts suggests a generally satisfactory performance history, though like any large contractor, they may have faced challenges or scrutiny on specific projects. A deeper dive into contract performance reports and past performance evaluations would provide a more granular understanding of their reliability and effectiveness in similar roles.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for these services, and what are the implications for value?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are difficult to estimate upfront, such as in complex maintenance or support services. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost overruns if not managed diligently. For value, the fixed fee aims to incentivize efficiency, but the government bears the risk of cost increases. Effective value is achieved through rigorous cost monitoring, clear definition of allowable costs, and ensuring the fixed fee is appropriate for the level of risk and effort involved. Other contract types like Firm-Fixed-Price (FFP) might offer better cost certainty if the scope is perfectly defined, while Cost-Plus-Incentive-Fee (CPIF) could better align contractor and government interests on cost control.
What are the primary risks associated with this contract, and what mitigation strategies are likely in place?
The primary risks for this contract include potential cost overruns due to the CPFF structure, scope creep if service requirements are not tightly managed, and performance deficiencies in delivering essential maintenance, supply, and transportation services. Operational risks, such as disruptions to supply chains or unforeseen maintenance needs, also exist. Mitigation strategies likely involve robust government oversight of costs and performance, clear contract line item definitions, regular performance reviews, and potentially performance-based incentives or penalties. The contractor's own risk management processes, including contingency planning and quality assurance programs, are also crucial. The competitive nature of the award may also incentivize KBR to perform well to secure future contracts.
How does the $13.8 million award value compare to historical spending for similar APS-2 Germany EUCOM support?
Without specific historical spending data for APS-2 Germany EUCOM support contracts of this exact nature, a direct comparison is difficult. However, $13.8 million over approximately two years (858 days) represents a significant annual expenditure for specialized logistical and maintenance services. This figure should be benchmarked against previous contracts for similar services in the EUCOM AOR, considering factors like inflation, changes in operational tempo, and scope adjustments. If this contract is a renewal or replacement of a prior award, comparing the current value to the previous one, adjusted for economic factors, would reveal trends in cost efficiency or scope expansion. The number of bidders (4) suggests a competitive market, which typically helps moderate costs relative to sole-source awards.
What is the significance of the 'Facilities Support Services' category (NAICS 561210) in the context of DoD spending?
Facilities Support Services (NAICS 561210) represent a critical and substantial category within Department of Defense spending. This sector encompasses a broad range of services essential for the operation and maintenance of military installations worldwide, including building operations, maintenance, groundskeeping, waste management, and related support functions. DoD's reliance on these services is immense, as they directly impact the readiness, safety, and quality of life for service members and personnel. Spending in this category is consistently high due to the vast number of facilities the DoD manages globally. Contracts like this one are vital for ensuring that military bases and operational sites are functional, secure, and well-maintained, thereby supporting the overall mission effectiveness of the armed forces.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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: $39,984,876
Exercised Options: $13,787,309
Current Obligation: $13,787,309
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0044
IDV Type: IDC
Timeline
Start Date: 2024-06-14
Current End Date: 2026-10-20
Potential End Date: 2026-10-20 12:10:00
Last Modified: 2026-01-07
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