DoD's LOGCAP V Task Order to KBR Services for EUCOM Performance Exceeds $2.23 Billion
Contract Overview
Contract Amount: $2,232,104,729 ($2.2B)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-12
End Date: 2026-03-29
Contract Duration: 2,543 days
Daily Burn Rate: $877.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM PERFORMANCE TASK ORDER.
Plain-Language Summary
Department of Defense obligated $2.23 billion to KBR SERVICES, LLC for work described as: LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM PERFORMANCE TASK ORDER. Key points: 1. Significant contract value for logistics support services in the EUCOM area. 2. KBR Services, LLC is the awardee under a full and open competition. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. The Facilities Support Services sector is critical for military operations.
Value Assessment
Rating: good
The contract value of over $2.23 billion for LOGCAP V EUCOM performance is substantial. Benchmarking against similar large-scale logistics support contracts is difficult due to the unique operational scope, but the pricing appears competitive given the duration and complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are being utilized for essential logistical support, with competition aiming to secure the best value. Oversight is crucial to manage costs effectively.
Public Impact
Ensures critical logistical and facilities support for U.S. European Command (EUCOM) operations. Supports military readiness and operational effectiveness in a key geopolitical region. Provides employment opportunities through KBR Services, LLC and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher costs.
- Long contract duration increases exposure to economic fluctuations.
- Geopolitical instability in EUCOM could impact performance and costs.
Positive Signals
- Awarded through full and open competition.
- Supports critical military operations.
- Experienced contractor (KBR Services, LLC).
Sector Analysis
This contract falls within Facilities Support Services, a broad category encompassing maintenance, operations, and management of physical infrastructure. Spending in this sector is often tied to defense and government operations, with benchmarks varying widely based on scope and location.
Small Business Impact
While the primary awardee is KBR Services, LLC, a large corporation, the contract may involve subcontracting opportunities for small businesses in various support roles. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, through the LOGCAP program, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight and performance monitoring to ensure accountability and prevent cost overruns.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- Geopolitical risks in the EUCOM area.
- Potential for scope creep.
- Dependence on a single large contractor.
Tags
facilities-support-services, department-of-defense, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.23 billion to KBR SERVICES, LLC. LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR EUCOM PERFORMANCE 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $2.23 billion.
What is the period of performance?
Start: 2019-04-12. End: 2026-03-29.
What is the historical cost performance of KBR Services, LLC on similar LOGCAP contracts?
KBR Services, LLC has a long history with the LOGCAP program, having held previous iterations of the contract. While generally considered experienced, past performance reviews and cost audits on prior LOGCAP awards would provide a clearer picture of their cost control effectiveness and adherence to budgetary constraints. Analyzing trends in cost growth or savings on similar past contracts is essential for assessing future value.
How are potential cost overruns mitigated under the Cost Plus Fixed Fee (CPFF) structure for this EUCOM task order?
Mitigation of cost overruns in a CPFF contract relies heavily on robust government oversight, detailed performance metrics, and clear contract clauses. The fixed fee provides an incentive for the contractor to manage costs efficiently to maximize profit. However, the government must actively monitor expenditures, validate costs, and ensure the contractor adheres to the agreed-upon scope and budget, potentially through regular audits and performance reviews.
What are the key performance indicators (KPIs) used to measure the effectiveness of KBR's services for EUCOM?
Effectiveness is likely measured through a combination of KPIs related to operational readiness, response times for logistical support, facility maintenance standards, safety compliance, and overall mission support. Specific metrics would be detailed in the contract's Performance Work Statement (PWS). Regular performance evaluations and feedback mechanisms are crucial for ensuring KBR meets or exceeds these established standards.
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: 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: $2,497,475,473
Exercised Options: $2,497,475,473
Current Obligation: $2,232,104,729
Actual Outlays: $180,868
Subaward Activity
Number of Subawards: 2387
Total Subaward Amount: $1,675,051,900
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: 2019-04-12
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 00:00:00
Last Modified: 2025-12-15
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