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 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: 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

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