Army contract for administrative support services awarded to KBR Services, LLC for over $10.4 million
Contract Overview
Contract Amount: $10,415,781 ($10.4M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2005-06-15
End Date: 2007-09-30
Contract Duration: 837 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: 200509!001416!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0232P !C!N! !N!W52P1J05F0015! !20050615!20060601!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!1550 WILSON BLVD !ARLINGTON !VA!22209!00000! !KU!* !* !KUWAIT !+000003900000!N!N!000000000000!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !S1 !SERVICES !000 !* !541614!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to KBR SERVICES, LLC for work described as: 200509!001416!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0232P !C!N! !N!W52P1J05F0015! !20050615!20060601!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!1550 WILSON BLVD !ARLINGTON !VA!22209!00000! !KU!* !* … Key points: 1. Contract awarded for administrative management and general management consulting services. 2. KBR Services, LLC secured this contract through full and open competition. 3. The contract duration spans over 2.5 years, indicating a medium-term need. 4. The primary service category is administrative support, a common requirement across government agencies. 5. The contract was awarded as a delivery order under a larger indefinite-delivery contract. 6. The contract was awarded to a single vendor, KBR Services, LLC.
Value Assessment
Rating: fair
The total award amount of $10,415,781.14 for administrative support services appears to be within a reasonable range for a contract of this duration and scope. Benchmarking against similar contracts for administrative support services is challenging without more specific details on the exact services rendered and the labor categories involved. However, the contract was awarded under full and open competition, which generally promotes competitive pricing. The contract type is 'Labor Hours', which can sometimes lead to cost overruns if not managed carefully, but it also offers flexibility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but the designation suggests a competitive process was intended. Full and open competition is generally the preferred method for government contracting as it maximizes the pool of potential offerors and encourages competitive pricing.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered.
Public Impact
The U.S. Army benefits from this contract by receiving administrative management and general management consulting services. These services are crucial for the efficient operation and support of Army industrial operations. The contract is geographically located in Virginia, where the contractor is based, but the services likely support Army operations elsewhere. The contract supports a workforce through the provision of services, though direct job creation numbers are not specified.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep due to 'Labor Hours' contract type if not closely monitored.
- Lack of specific details on performance metrics makes it difficult to assess the true value for money.
- The contract is a delivery order, suggesting it's part of a larger, potentially multi-year, contracting vehicle which may obscure total spending.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Contractor, KBR Services, LLC, is a known entity in government contracting, implying some level of established capability.
- The contract specifies a clear service category (Administrative Management and General Management Consulting Services), indicating a defined need.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks for administrative support services vary widely based on the specific tasks, duration, and agency. However, the total award amount suggests a substantial, medium-sized engagement within this service category.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, KBR Services, LLC, is a large business, and any subcontracting would be at their discretion, not mandated by a set-aside provision.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Accountability measures would be tied to the performance work statement and delivery terms. Transparency is facilitated by public contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Professional, Scientific, and Technical Services
- Department of Defense Contracts
- U.S. Army Contracts
- Indefinite Delivery Contracts
Risk Flags
- Labor Hours contract type carries inherent risk of cost overruns.
- Lack of specific performance metrics in provided data makes value assessment difficult.
- Contract is a delivery order, potentially masking total contract value under a larger IDIQ.
Tags
department-of-defense, department-of-the-army, administrative-support-services, consulting-services, labor-hours, full-and-open-competition, kbr-services-llc, delivery-order, virginia, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to KBR SERVICES, LLC. 200509!001416!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0232P !C!N! !N!W52P1J05F0015! !20050615!20060601!929666709!043296920!964409007!N!KELLOGG BROWN & ROOT SERVICES,!1550 WILSON BLVD !ARLINGTON !VA!22209!00000! !KU!* !* !KUWAIT !+000003900000!N!N!000000000000!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !S1 !SERVICES !000 !* !541614!E! !6! ! ! ! ! !202
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 $10.4 million.
What is the period of performance?
Start: 2005-06-15. End: 2007-09-30.
What is the track record of KBR Services, LLC in performing similar administrative support contracts for the U.S. Army?
KBR Services, LLC, has a significant history of performing various services for the U.S. military, including extensive work in logistics, base operations support, and professional services. While specific details on their performance for this exact 'Administrative Management and General Management Consulting Services' contract are not provided in this data snippet, their broader experience suggests a capacity to handle complex government contracts. Analyzing past performance reviews, contract modifications, and any reported disputes related to similar contracts would provide a more comprehensive understanding of their track record. However, their consistent presence as a large government contractor indicates a level of established capability and experience in meeting federal requirements.
How does the awarded amount of approximately $10.4 million compare to similar administrative support contracts for the Army?
Comparing the $10.4 million award for administrative support services requires context regarding the contract's duration and specific deliverables. This contract, with a duration of approximately 2.5 years (June 2005 to September 2007), averages around $4.16 million per year. This figure needs to be benchmarked against other Army contracts for similar services, considering factors like the number of personnel supported, the complexity of the administrative tasks, and the geographic location of service delivery. Without access to a detailed database of comparable contracts with granular service descriptions, a precise comparison is difficult. However, for a medium-term, significant administrative support requirement, this award amount appears plausible within the federal contracting landscape.
What are the primary risks associated with this 'Labor Hours' contract type for administrative support services?
The primary risk associated with a 'Labor Hours' contract type, like this one, is the potential for cost overruns if the labor hours required exceed initial estimates or if labor rates are not carefully managed. Since payment is based on the hours worked by specific labor categories, there's less incentive for the contractor to be highly efficient compared to a fixed-price contract. This necessitates robust oversight from the government to monitor hours, ensure efficient performance, and validate the necessity of the labor being expended. Scope creep, where the tasks expand beyond the original intent without a corresponding adjustment in contract value or a formal modification, can also inflate costs under this contract type. Effective contract administration and clear performance metrics are crucial to mitigate these risks.
What is the expected effectiveness of the administrative support services provided under this contract for Army industrial operations?
The effectiveness of the administrative support services hinges on the specific tasks outlined in the contract's Performance Work Statement (PWS), which is not detailed here. Generally, effective administrative support is crucial for the smooth functioning of any large organization, including Army industrial operations. This can encompass a range of functions such as personnel support, logistical coordination, financial administration, record keeping, and general office management. If KBR Services, LLC delivers these services efficiently and accurately, it allows Army personnel to focus on core operational missions, thereby enhancing overall effectiveness. The contract's duration suggests a sustained need for these support functions.
How has historical spending on administrative support services by the Department of the Army trended over time?
Historical spending on administrative support services by the Department of the Army, and the broader Department of Defense, has generally been substantial and often increasing, particularly in periods of heightened military activity or significant organizational restructuring. Agencies like the Army rely heavily on administrative functions to manage personnel, resources, and operations. Spending in this category can fluctuate based on budget allocations, strategic priorities, and the extent to which these services are outsourced versus performed by government personnel. Analyzing multi-year spending data for the 'Administrative Management and General Management Consulting Services' (NAICS 541611) category, specifically for the Army, would reveal trends, identify peak spending periods, and highlight any shifts towards or away from contracting these services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc. (UEI: 784072626)
Address: 2451 CRYSTAL DR STE 675, ARLINGTON, VA, 22202
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0232P
IDV Type: FSS
Timeline
Start Date: 2005-06-15
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 12:09:00
Last Modified: 2021-12-09
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