DoD's LOGCAP V contract with Fluor Intercontinental, Inc. exceeds $328M for Africom support
Contract Overview
Contract Amount: $328,164,517 ($328.2M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2019-04-12
End Date: 2026-09-02
Contract Duration: 2,700 days
Daily Burn Rate: $121.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V SUPPORT SERVICES IN SUPPORT OF AFRICOM.
Place of Performance
Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29607
Plain-Language Summary
Department of Defense obligated $328.2 million to FLUOR INTERCONTINENTAL, INC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V SUPPORT SERVICES IN SUPPORT OF AFRICOM. Key points: 1. This contract represents a significant investment in logistical support for U.S. Africa Command (AFRICOM). 2. The duration of the contract, spanning over seven years, indicates a long-term commitment to these services. 3. The cost-plus-fixed-fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 4. The services provided are critical for maintaining operational readiness and effectiveness in the AFRICOM area of responsibility. 5. While specific performance metrics are not detailed here, the scale suggests a substantial impact on deployed forces. 6. The contract's value places it among major service contracts within the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without detailed service breakdowns and performance data. However, the substantial dollar amount and long duration suggest a significant commitment of resources. The CPFF structure, while allowing flexibility, can lead to higher costs if not managed diligently. Comparing it to similar large-scale logistics support contracts for overseas operations would provide better context on its value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is intended to drive better pricing and service quality. The presence of multiple bidders suggests a healthy market for these types of specialized logistics services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
U.S. Africa Command (AFRICOM) personnel and operations are the primary beneficiaries, receiving essential logistical support. Services include facilities support, which is crucial for maintaining bases and operational infrastructure in Africa. The geographic impact is concentrated within AFRICOM's area of responsibility, supporting U.S. military presence and activities across the continent. The contract supports a significant workforce, both directly employed by Fluor Intercontinental and indirectly through subcontractors, contributing to employment in various regions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs to increase their fixed fee, requiring robust oversight.
- Long-term contracts for complex services in potentially austere environments carry inherent risks of cost overruns and performance issues.
- Dependence on a single large contract for critical logistics in a vast region could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield reasonable pricing.
- The contract's long duration indicates a stable and predictable support structure for AFRICOM operations.
- The scale of the contract suggests the contractor has the capacity and experience to handle complex logistical challenges.
Sector Analysis
This contract falls within the broader facilities support services sector, which is a critical component of government contracting, particularly for defense and overseas operations. The market for large-scale logistics and base support services is dominated by a few major defense contractors capable of operating in challenging environments. Spending in this sector is often driven by geopolitical needs and military readiness requirements.
Small Business Impact
While the data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false), large prime contracts like LOGCAP V often include subcontracting opportunities. It is crucial to assess whether Fluor Intercontinental is meeting its subcontracting goals with small businesses to ensure broader economic participation and to foster the small business ecosystem within the defense industrial base.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army and AFRICOM contracting officers and program managers. The cost-plus-fixed-fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- LOGCAP Program
- Base Operations Support Services
- Contingency Support Contracts
- Department of Defense Logistics Services
- Africa Command Support Contracts
Risk Flags
- Cost Overrun Potential
- Performance Monitoring Complexity
- Long-Term Service Dependency
- Geopolitical Instability Impact
Tags
defense, department-of-defense, department-of-the-army, logistics, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, large-contract, africa, africom, long-term-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $328.2 million to FLUOR INTERCONTINENTAL, INC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V SUPPORT SERVICES IN SUPPORT OF AFRICOM.
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $328.2 million.
What is the period of performance?
Start: 2019-04-12. End: 2026-09-02.
What is the historical spending trend for the LOGCAP program, and how does this contract compare?
The Logistics Civil Augmentation Program (LOGCAP) has been a cornerstone of DoD support services for decades, evolving through multiple iterations (LOGCAP I, II, III, IV, and V). Historical spending on LOGCAP has been substantial, often running into billions of dollars annually across all active contracts, particularly during periods of significant military engagement in regions like the Middle East and Afghanistan. LOGCAP V, awarded in 2019, is designed to be a more agile and flexible contract vehicle than its predecessors. The $328 million awarded to Fluor Intercontinental for Africom support represents a portion of the overall LOGCAP V spending, which is a multi-award indefinite-delivery/indefinite-quantity (IDIQ) contract. While specific year-over-year spending for LOGCAP V is dynamic and depends on task orders issued, this particular award signifies a significant, long-term commitment to supporting operations in Africa, aligning with the program's historical role in providing essential services.
How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry standards for similar services?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex service contracts, especially in defense and overseas operations where requirements can be uncertain or change frequently. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure is intended to incentivize efficiency by allowing the contractor to keep any cost savings below the target cost, while the fixed fee remains constant. Compared to fixed-price contracts, CPFF can offer more flexibility but also carries a higher risk of cost overruns if not managed tightly. Industry standards suggest that for large-scale, long-duration logistics support in challenging environments, CPFF is a widely accepted model. However, the effectiveness hinges on robust government oversight, clear definition of allowable costs, and strong performance metrics to ensure value for money.
What are the key performance indicators (KPIs) used to measure the success of this LOGCAP V contract, and how is performance monitored?
While specific KPIs for this individual delivery order are not publicly detailed in the provided data, LOGCAP contracts typically employ a range of performance metrics. These often include timeliness of service delivery (e.g., response times for facility maintenance, delivery schedules for supplies), quality of services (e.g., adherence to standards for food services, cleanliness of facilities), cost control (monitoring expenditures against budget), and safety performance (incident rates). Performance is usually monitored through regular progress reports submitted by the contractor, site visits and inspections by government representatives, and formal performance evaluations, often captured in Contractor Performance Assessment Reporting System (CPARS). The effectiveness of the monitoring system is crucial for ensuring the contractor meets its obligations and for justifying continued funding and contract renewals.
What is the potential impact of this contract on small business participation, both directly and indirectly?
As this contract was awarded under full and open competition and is not a small business set-aside, the direct award to Fluor Intercontinental, Inc. (a large business) means that small business participation will primarily occur through subcontracting. The government often includes small business subcontracting goals in large prime contracts to ensure opportunities for smaller firms. The impact on the small business ecosystem depends on the extent to which Fluor Intercontinental actively seeks out and utilizes qualified small business subcontractors for various aspects of the logistics support. If robust subcontracting plans are implemented and met, this contract could provide significant revenue streams and growth opportunities for small businesses in areas like transportation, maintenance, and specialized support services. Conversely, a lack of emphasis on subcontracting could limit the direct benefits to the small business sector.
Are there any known risks or concerns associated with Fluor Intercontinental's performance on similar large-scale government contracts?
Assessing Fluor Intercontinental's track record requires a review of their past performance on similar large-scale government contracts, which can be found in databases like the Contractor Performance Assessment Reporting System (CPARS). Historically, large contractors in this space have faced scrutiny regarding cost management, schedule adherence, and quality of services, particularly in complex overseas environments. Specific concerns might include allegations of cost overruns, contract disputes, or issues related to labor practices or environmental compliance. However, Fluor Intercontinental has also successfully executed numerous large contracts, demonstrating capability. A thorough risk assessment would involve examining CPARS reports, any past performance issues, and the contractor's overall financial stability and capacity to manage a contract of this magnitude and duration.
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: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $328,164,517
Exercised Options: $328,164,517
Current Obligation: $328,164,517
Actual Outlays: $48,197,355
Subaward Activity
Number of Subawards: 457
Total Subaward Amount: $260,764,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0046
IDV Type: IDC
Timeline
Start Date: 2019-04-12
Current End Date: 2026-09-02
Potential End Date: 2026-09-02 12:09:00
Last Modified: 2025-11-17
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