DoD's LOGCAP V contract awards $30.7M for EUCOM theater services, with KBR Services, LLC as the primary contractor

Contract Overview

Contract Amount: $30,758,521 ($30.8M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2026-03-02

Contract Duration: 2,516 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM SETTING THE THEATER SERVICES.

Plain-Language Summary

Department of Defense obligated $30.8 million to KBR SERVICES, LLC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM SETTING THE THEATER SERVICES. Key points: 1. This award represents a significant investment in logistical support for European Command operations. 2. The contract utilizes a Firm Fixed Price (FFP) structure, aiming to control costs and provide predictable spending. 3. With a duration extending to March 2026, this award signifies a long-term commitment to theater support. 4. The number of offers received suggests a competitive bidding process for this critical service. 5. Facilities Support Services are essential for maintaining operational readiness and troop welfare in the theater.

Value Assessment

Rating: good

The contract value of $30.7 million for EUCOM theater services appears reasonable given the scope and duration. While specific benchmarks for similar large-scale, long-term logistical support contracts in active theaters are complex to isolate, the FFP pricing structure generally promotes cost control. The number of bids received (6) indicates a degree of market interest and potential for competitive pricing. Further analysis would require comparing the per-unit costs of specific services (e.g., catering, maintenance) against historical LOGCAP awards or similar contracts in comparable operational environments.

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 offers. The fact that 6 bids were received suggests a healthy level of competition for this significant logistical support requirement. A competitive process like this is generally expected to drive down prices and ensure the government receives the best value for its investment, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price, preventing potential overspending that could occur with less competitive or sole-source awards.

Public Impact

U.S. military personnel stationed in the EUCOM area of responsibility benefit from essential logistical support, ensuring operational readiness. Services provided include facilities support, which encompasses a wide range of essential functions for maintaining military installations. The geographic impact is focused on the European Command theater, supporting U.S. strategic interests in the region. This contract supports a workforce involved in delivering critical base operations and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'theater services' is not tightly managed.
Reliance on a single contractor for critical logistical functions could pose risks if performance issues arise.
Geopolitical instability in the EUCOM region could impact service delivery and costs.

Positive Signals

The use of a full and open competition process suggests a robust market for these services.
The FFP contract type provides cost certainty for the government.
The long contract duration allows for stable planning and execution of services.

Sector Analysis

The Facilities Support Services sector is a critical component of government operations, particularly for defense agencies operating globally. This contract falls within the broader facilities management and base operations support market, which is substantial and highly competitive. The LOGCAP program itself is a cornerstone of DoD's ability to project and sustain forces, encompassing a wide array of services from construction and maintenance to logistics and transportation. Benchmarking this specific award against the overall LOGCAP program spending or against similar large-scale support contracts for other geographic combatant commands would provide further context on its scale and value.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, large prime contractors like KBR Services, LLC are often required to meet subcontracting goals. The extent to which small businesses will participate as subcontractors on this LOGCAP V award will depend on the specific subcontracting plan negotiated and monitored by the Department of the Army. A robust subcontracting program can provide significant opportunities for small businesses within the facilities support and logistics ecosystem.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Department of the Army, which awarded the LOGCAP V contract. Mechanisms for oversight likely include contract performance monitoring, regular reporting requirements from the contractor, and site visits by contracting officers' representatives (CORs). Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

LOGCAP IV
LOGCAP VI
Base Operations Support (BOS)
Theater Support Contracts
Contingency Contracting

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Reliance on contractor for critical mission support.
Geopolitical instability impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to KBR SERVICES, LLC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM SETTING THE THEATER SERVICES.

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 $30.8 million.

What is the period of performance?

Start: 2019-04-12. End: 2026-03-02.

What is the historical spending trend for the LOGCAP program, and how does this award compare?

The Logistics Civil Augmentation Program (LOGCAP) has been a critical vehicle for the U.S. military to procure essential support services, particularly in contingency operations. Historically, LOGCAP contracts have represented billions of dollars in spending across various iterations (LOGCAP I through V). For instance, LOGCAP III and IV saw significant global spending to support operations in Iraq and Afghanistan. The $30.7 million award for EUCOM theater services under LOGCAP V is a component of the overall LOGCAP V program, which itself is a multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) contract. While this specific award is substantial for its defined scope, it represents a fraction of the total potential value of the LOGCAP V program. Comparing it to historical spending requires looking at the aggregate awards under previous LOGCAP iterations and the total anticipated spending for LOGCAP V across all its task orders and delivery orders.

How does the per-unit cost of services under this LOGCAP V award compare to previous LOGCAP contracts or similar contracts in other regions?

Determining a precise per-unit cost comparison for services under this LOGCAP V award is challenging without access to detailed service breakdowns and pricing data. LOGCAP contracts are typically broad in scope, encompassing a wide array of services (e.g., food services, maintenance, transportation, construction). Per-unit costs can vary significantly based on the specific service, geographic location, operational tempo, and prevailing market conditions. While this $30.7 million award for EUCOM theater services is substantial, its value proposition must be assessed against the specific deliverables. Benchmarking would ideally involve comparing the cost per meal served, cost per square foot maintained, or cost per mile transported against similar services procured under previous LOGCAP iterations (like LOGCAP IV) or comparable contracts in other theaters (e.g., CENTCOM, INDOPACOM). The Firm Fixed Price nature of this award suggests an effort to establish predictable costs, but detailed analysis of unit pricing is often proprietary or requires in-depth review of contract line item numbers (CLINs).

What are the key performance indicators (KPIs) used to evaluate KBR Services, LLC's performance under this contract?

While the specific Key Performance Indicators (KPIs) for this particular LOGCAP V delivery order are not detailed in the provided summary data, performance under such critical support contracts is typically rigorously monitored. Common KPIs for logistical support contracts include metrics related to response times for service requests, quality of services delivered (e.g., food safety standards, facility maintenance quality), availability of personnel and equipment, adherence to safety protocols, and overall mission support effectiveness. The Department of the Army, as the contracting agency, would establish these KPIs in the contract's Performance Work Statement (PWS). Performance is often evaluated through contractor performance assessment reporting (CPARs), which tracks contractor strengths, weaknesses, and overall past performance. Failure to meet critical KPIs can result in contractual remedies, including financial penalties or even termination.

What is the potential impact of geopolitical factors in the EUCOM area on the execution and cost of this contract?

Geopolitical factors within the European Command (EUCOM) area can significantly impact the execution and cost of logistical support contracts like LOGCAP V. Increased regional tensions, such as those related to ongoing conflicts or political instability, can necessitate a higher operational tempo, increased demand for services, and potentially require rapid expansion of support capabilities. This could lead to increased costs associated with personnel, transportation, security, and materials. Furthermore, geopolitical events might affect supply chain reliability, potentially causing delays or requiring alternative sourcing strategies, which can also drive up expenses. The contract's flexibility and the contractor's ability to adapt to changing geopolitical landscapes are crucial. The Department of Defense likely incorporates contingency planning and risk mitigation strategies into such contracts to address these potential disruptions and cost escalations.

How does the use of a Firm Fixed Price (FFP) contract structure mitigate risks for the government in this context?

The Firm Fixed Price (FFP) contract structure is designed to mitigate cost risks for the government by establishing a ceiling price that is not subject to adjustment based on the contractor's cost experience. For this LOGCAP V award, an FFP structure means KBR Services, LLC assumes the primary responsibility for managing costs and absorbing any cost overruns. This provides the Department of the Army with significant cost certainty, making budgeting more predictable. It incentivizes the contractor to control costs efficiently and perform the work within the agreed-upon price. While FFP contracts can sometimes lead to higher initial prices compared to cost-reimbursement contracts to account for contractor risk, they generally offer the best value when the scope of work is well-defined and the potential for unforeseen costs is manageable. This structure is particularly suitable for services where the requirements are clearly understood, such as established logistical support functions.

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: 6

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: $41,194,577

Exercised Options: $30,758,521

Current Obligation: $30,758,521

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $34,166,229

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