DoD's $91.4M LOGCAP V Award for Northcom Theater Services: KBR Services LLC Secures Facilities Support Contract

Contract Overview

Contract Amount: $91,419,687 ($91.4M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2026-09-30

Contract Duration: 2,728 days

Daily Burn Rate: $33.5K/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 NORTHCOM SETTING THE THEATER SERVICES.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $91.4 million to KBR SERVICES, LLC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR NORTHCOM SETTING THE THEATER SERVICES. Key points: 1. The contract is a significant award for KBR Services, LLC, focusing on essential logistics support. 2. Competition was full and open, suggesting a competitive bidding process for this large contract. 3. The firm fixed price contract type aims to control costs, but potential risks exist in scope creep. 4. The sector is Facilities Support Services, a critical component of military operations.

Value Assessment

Rating: good

The $91.4M award for LOGCAP V appears reasonable given the extensive duration (2019-2026) and the nature of logistics augmentation services. Benchmarking against similar large-scale, long-term support contracts would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value through a robust price discovery process.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for essential logistics support services.

Public Impact

Ensures critical logistics and support services are available for Northcom operations. Supports military readiness by providing necessary facilities and augmentation. The long-term nature of the contract provides stability for service provision and planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if scope expands beyond initial estimates.
  • Reliance on a single contractor for critical support functions.
  • Contract duration may outpace evolving operational needs.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract type.
  • Supports critical military operations.

Sector Analysis

Facilities Support Services are crucial for maintaining operational readiness and infrastructure for military commands. This sector often involves long-term contracts with significant financial commitments, requiring robust oversight to ensure efficiency and cost-effectiveness.

Small Business Impact

The data indicates this contract was awarded to KBR Services, LLC, and does not specify any small business participation. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The contract's long duration and significant value necessitate diligent oversight from the Department of the Army to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits are essential.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Contract duration exceeds 5 years.
  • Potential for scope creep and cost overruns.
  • Lack of explicit small business participation noted.
  • Reliance on a single large prime contractor.

Tags

facilities-support-services, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.4 million to KBR SERVICES, LLC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR NORTHCOM 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 $91.4 million.

What is the period of performance?

Start: 2019-04-12. End: 2026-09-30.

What specific services are included under 'Logistics Civil Augmentation Program (LOGCAP) V' for Northcom?

LOGCAP V provides a broad range of logistics and support services, including construction, operations, maintenance, and support services. For Northcom, this likely encompasses base operations support, transportation, supply chain management, and facility maintenance to establish and sustain theater operations.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?

The primary risk with a firm fixed-price contract of this scale and duration is the contractor's potential to underbid and then seek scope changes or claim unforeseen costs, leading to cost overruns for the government. Conversely, the government risks paying a premium if the contractor's costs are significantly lower than anticipated.

How effectively does this contract support the government's long-term strategic objectives in the Northcom area?

This contract appears to effectively support long-term strategic objectives by ensuring consistent and reliable logistics augmentation for Northcom. The extended duration provides stability, allowing for sustained operational presence and readiness. However, effectiveness hinges on the contractor's performance and the government's ability to adapt the contract to evolving strategic needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities 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: $91,419,687

Exercised Options: $91,419,687

Current Obligation: $91,419,687

Actual Outlays: $73,378

Subaward Activity

Number of Subawards: 95

Total Subaward Amount: $193,334,515

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: 2026-09-30

Potential End Date: 2026-09-30 12:09:00

Last Modified: 2025-12-29

More Contracts from KBR Services, LLC

View all KBR Services, LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending