DoD's LOGCAP V contract awards $682M to KBR Services for facilities support in California

Contract Overview

Contract Amount: $681,986,956 ($682.0M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2026-03-11

Contract Duration: 2,525 days

Daily Burn Rate: $270.1K/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 NORTHCOM-NTC.

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $682.0 million to KBR SERVICES, LLC for work described as: LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR NORTHCOM-NTC. Key points: 1. Contract focuses on essential facilities support services, indicating a need for ongoing operational maintenance. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting flexibility and potential for future task orders. 3. KBR Services, LLC, is the selected contractor, implying a reliance on established providers for critical support functions. 4. The contract duration extends over several years, pointing to long-term requirements for these services. 5. Services are categorized under Facilities Support Services, a broad area encompassing maintenance, operations, and potentially other base support functions. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, often used when project scope is not fully defined. 7. This specific award is for Northcom-NTC, indicating a focus on North American defense readiness and training support.

Value Assessment

Rating: good

The contract's value of $681.9M over its period of performance suggests a significant investment in facilities support. Benchmarking this against similar large-scale base operations support contracts is challenging without more specific service details. However, the CPFF structure implies that cost control will be a key factor in assessing value over time. The fixed fee component provides some predictability, but the variable cost reimbursement necessitates careful oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 6 bidders (as indicated by 'no': 6) suggests a competitive environment for this type of large-scale support service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used more efficiently by driving down prices through market forces. It also provides assurance that the government is receiving services from the most capable and cost-effective provider available.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations supported by the facilities and services provided under this contract. Services delivered include essential facilities support, crucial for maintaining operational readiness and infrastructure. The geographic impact is concentrated in California, supporting Northcom-NTC operations within the state. Workforce implications may include direct hires by KBR Services, LLC, and potential indirect employment in supporting industries within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to incur higher costs if not closely monitored, potentially impacting overall value.
The large contract value and extended duration present a significant financial commitment for the government.
Reliance on a single contractor for extensive facilities support could create dependency and limit flexibility in adapting to changing needs.
The specific scope of 'facilities support' is broad and may require detailed oversight to ensure all deliverables meet expectations.

Positive Signals

Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
The contractor, KBR Services, LLC, likely has extensive experience in logistics and support services, suggesting a high probability of successful execution.
The contract is a delivery order under a larger IDIQ, providing a structured framework for managing services and potential future needs.
The fixed fee component in the CPFF contract provides a degree of cost certainty for the government regarding contractor profit.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide range of operational and maintenance activities. This sector is critical for ensuring the readiness and functionality of government installations. Spending in this area is often driven by long-term infrastructure needs and operational requirements. Comparable spending benchmarks would typically involve analyzing other large-scale base operations support contracts awarded by the Department of Defense or other federal agencies.

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 arising from a small business set-aside. However, as a large prime contractor, KBR Services, LLC may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem. The extent of this subcontracting would depend on KBR's own subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and potentially relevant Inspector General offices. Mechanisms likely include regular performance reviews, financial audits, and site inspections to ensure compliance with contract terms and quality standards. Transparency is facilitated through contract award databases and reporting requirements. The CPFF structure necessitates rigorous financial oversight to monitor costs and ensure the fixed fee is justified by performance.

Related Government Programs

LOGCAP (Logistic Civil Augmentation Program)
Base Operations Support Services
Facilities Maintenance and Repair
Northcom Operations Support
Department of Defense Facilities Management

Risk Flags

Contract Type Risk (CPFF)
Contractor Performance Risk
Geographic Concentration Risk
Scope Definition Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $682.0 million to KBR SERVICES, LLC. LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR NORTHCOM-NTC.

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 $682.0 million.

What is the period of performance?

Start: 2019-04-12. End: 2026-03-11.

What is the historical spending pattern for KBR Services, LLC under the LOGCAP program?

KBR Services, LLC has been a significant participant in the LOGCAP program over many years, often securing large portions of the awarded contracts. LOGCAP is designed to provide a broad range of support services, including construction, logistics, and facility maintenance, primarily to military operations worldwide. KBR's involvement typically spans multiple iterations of the LOGCAP contract, reflecting their established presence and capabilities in supporting complex government requirements. Historical data would show substantial award values to KBR across various LOGCAP phases, often in the billions of dollars cumulatively, underscoring their role as a primary contractor for these extensive support services. The specific spending under LOGCAP V, including this $682M award, continues this trend of significant investment in KBR's capabilities for large-scale logistical and facilities support.

How does the Cost Plus Fixed Fee (CPFF) contract type impact cost control and value for money compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type allows the government to reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common in complex support services. For cost control, CPFF requires robust government oversight to ensure that incurred costs are reasonable, allocable, and necessary. While the fixed fee provides cost certainty regarding profit, the variable cost component means the total contract price can fluctuate. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty upfront for the government but provides greater flexibility. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks the direct financial incentives for the contractor to control costs beyond the baseline of allowable expenses, making diligent oversight even more critical for achieving value for money.

What are the key performance indicators (KPIs) typically used to evaluate contractor performance on facilities support contracts like LOGCAP V?

Key Performance Indicators (KPIs) for facilities support contracts like LOGCAP V are designed to measure the contractor's effectiveness in maintaining operational readiness and infrastructure. Common KPIs include response times for service requests (e.g., maintenance, repairs), uptime percentages for critical infrastructure (e.g., power, water systems), adherence to safety standards and incident rates, quality of work performed (e.g., through customer satisfaction surveys or inspection results), and timely completion of scheduled maintenance. For LOGCAP V, specific KPIs would likely be detailed in the contract's Performance Work Statement (PWS), focusing on aspects like facility condition assessments, environmental compliance, energy efficiency targets, and the overall readiness of supported installations. Performance against these KPIs directly influences contractor payment and potential for future awards.

What is the typical duration and value range for large-scale facilities support contracts awarded by the Department of the Army?

Large-scale facilities support contracts awarded by the Department of the Army, such as those under the LOGCAP program, typically have long durations and substantial values. Contracts can often span 5 to 10 years, including option periods, to provide stability and continuity for essential services. The total contract values can range from hundreds of millions to several billion dollars, depending on the scope, geographic coverage, and complexity of the services required. For instance, LOGCAP contracts have historically been multi-billion dollar vehicles. This specific LOGCAP V award of $682 million for a period of approximately 7 years (from April 2019 to March 2026) falls within the expected range for significant, long-term facilities support requirements, reflecting the Army's ongoing need for comprehensive base and operational support.

How does the geographic concentration (California) of this LOGCAP V award affect its strategic importance and potential risks?

The concentration of this LOGCAP V award in California, specifically for Northcom-NTC (North American Aerospace Defense Command - Northern Command - National Training Center) operations, highlights its strategic importance for U.S. defense readiness within a key region. California hosts numerous critical military installations and training facilities, making reliable facilities support paramount. This geographic focus allows for potentially streamlined logistics and oversight for KBR Services, LLC, as services are localized. However, it also concentrates risk; any disruption to services in this area, whether due to natural disasters common in California (earthquakes, wildfires), labor issues, or contractor performance failures, could have a significant impact on Northcom-NTC's operational capabilities. The government's reliance on a single contractor for such a critical geographic area necessitates robust contingency planning and continuous performance monitoring.

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: $808,542,541

Exercised Options: $681,986,956

Current Obligation: $681,986,956

Actual Outlays: $769,045

Subaward Activity

Number of Subawards: 227

Total Subaward Amount: $248,252,335

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