DoD Awards $48.7M Task Order to KBR for LOGCAP Infrastructure Support
Contract Overview
Contract Amount: $48,738,423 ($48.7M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-10
End Date: 2023-02-28
Contract Duration: 963 days
Daily Burn Rate: $50.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TASK ORDER AWARD FOR LOGCAP INFRASTRUCTURE SUPPORT IN SUPPORT OF OPERATION WARP SPEED. AWARD IS MADE AGAINST LOGCAP V INDEFINITE-DELIVER/INDEFINITE-QUANTITY CONTRACT W52P1J-19-D-0044.
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to KBR SERVICES, LLC for work described as: TASK ORDER AWARD FOR LOGCAP INFRASTRUCTURE SUPPORT IN SUPPORT OF OPERATION WARP SPEED. AWARD IS MADE AGAINST LOGCAP V INDEFINITE-DELIVER/INDEFINITE-QUANTITY CONTRACT W52P1J-19-D-0044. Key points: 1. Awarded under LOGCAP V IDIQ, indicating a pre-existing framework for large-scale support. 2. KBR Services, LLC, a significant player in government contracting, secured this task order. 3. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed closely. 4. Facilities Support Services sector, crucial for operational readiness and logistics.
Value Assessment
Rating: good
The $48.7M award is a substantial sum, but its value is relative to the scope of Operation Warp Speed support. Benchmarking against similar large-scale infrastructure support contracts would provide better context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable cost.
Public Impact
Supports critical infrastructure for Operation Warp Speed, a high-priority national initiative. Ensures continuity of essential facilities management services for military operations. Potential for job creation and economic activity through KBR's service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
- The long duration (963 days) necessitates ongoing performance monitoring.
Positive Signals
- Awarded under a competitive process.
- Supports a critical national operation (Operation Warp Speed).
Sector Analysis
This award falls within the Facilities Support Services sector, which encompasses a broad range of services essential for maintaining operational infrastructure. Spending in this sector is often driven by defense and national security needs, with benchmarks varying widely based on scope and location.
Small Business Impact
The data indicates this award was not set aside for small businesses and that the prime contractor, KBR Services, LLC, is a large business. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The award is made against an existing IDIQ contract (LOGCAP V), suggesting that oversight mechanisms are likely in place. However, the Cost Plus Fixed Fee structure necessitates robust government oversight to ensure cost control and performance.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Large contract value ($48.7M).
- Long contract duration (963 days).
- No explicit mention of small business subcontracting goals.
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 $48.7 million to KBR SERVICES, LLC. TASK ORDER AWARD FOR LOGCAP INFRASTRUCTURE SUPPORT IN SUPPORT OF OPERATION WARP SPEED. AWARD IS MADE AGAINST LOGCAP V INDEFINITE-DELIVER/INDEFINITE-QUANTITY CONTRACT W52P1J-19-D-0044.
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 $48.7 million.
What is the period of performance?
Start: 2020-07-10. End: 2023-02-28.
What specific infrastructure services are included in this task order, and how do they directly contribute to Operation Warp Speed's objectives?
The task order focuses on facilities support services, which can encompass a wide range of activities such as maintenance, repair, logistics, and potentially base operations support. The direct contribution to Operation Warp Speed would be ensuring that the physical infrastructure supporting vaccine development, distribution, or related activities is functional and maintained, thereby enabling the smooth execution of the operation's logistical and scientific goals.
Given the Cost Plus Fixed Fee structure, what are the primary risks associated with cost escalation, and what mitigation strategies are in place?
The primary risk with CPFF is that the contractor may not have a strong incentive to control costs, as the government bears most of the cost risk. Escalation can occur due to unforeseen complexities, scope creep, or inefficient resource management. Mitigation strategies typically involve stringent government oversight, detailed cost tracking, performance metrics, and clear definition of the fixed fee and allowable costs.
How does the competitive award process for this task order ensure effective price discovery and value for taxpayer money?
A full and open competition process allows multiple qualified contractors to submit proposals, creating a competitive environment. This encourages bidders to offer their most competitive pricing and innovative solutions to win the contract. Effective price discovery is achieved through the comparison of these bids against established cost benchmarks and the government's independent cost estimates, ensuring the selected price reflects fair market value.
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: 1
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: $48,738,423
Exercised Options: $48,738,423
Current Obligation: $48,738,423
Actual Outlays: $1,659,119
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $9,043,264
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: 2020-07-10
Current End Date: 2023-02-28
Potential End Date: 2023-02-28 12:02:00
Last Modified: 2024-07-09
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