State Dept. Awards $51.5M LOGCAP Task Order for Afghan Refugee Support to KBR Services

Contract Overview

Contract Amount: $51,537,147 ($51.5M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-23

End Date: 2021-12-03

Contract Duration: 133 days

Daily Burn Rate: $387.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW TASK ORDER AWARD FOR LOGCAP SUPPORT TO OPERATION ALLIES REFUGE ON BEHALF OF THE U.S. DEPARTMENT OF STATE.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $51.5 million to KBR SERVICES, LLC for work described as: NEW TASK ORDER AWARD FOR LOGCAP SUPPORT TO OPERATION ALLIES REFUGE ON BEHALF OF THE U.S. DEPARTMENT OF STATE. Key points: 1. Significant award for critical refugee support operations. 2. KBR Services, a large established contractor, secured the task order. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. The sector is facilities support services, crucial for large-scale operations.

Value Assessment

Rating: good

The award is a cost-plus-fixed-fee type, which allows for flexibility but requires careful oversight to manage costs. The fixed fee component provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process to solicit bids from multiple qualified contractors. This method generally promotes competitive pricing and value for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Supports critical humanitarian efforts for Afghan refugees. Ensures continuity of essential services in a challenging operational environment. Highlights the role of private contractors in government-led operations. Demonstrates the government's commitment to assisting displaced populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in cost-plus contracts.
  • Geopolitical instability impacting operational effectiveness.
  • Reliance on a single contractor for critical support.

Positive Signals

  • Awarded under full and open competition.
  • Supports a vital humanitarian mission.
  • Experienced contractor selected.

Sector Analysis

This award falls under Facilities Support Services, a broad category encompassing a range of services essential for maintaining operational infrastructure. Spending in this sector can fluctuate significantly based on global events and operational tempo.

Small Business Impact

The data indicates this task order was awarded to KBR Services, LLC, a large business. There is no specific indication of small business participation in this particular task order award.

Oversight & Accountability

The award was made by the Department of the Army, indicating oversight by a major federal agency. The cost-plus-fixed-fee contract type necessitates diligent oversight to ensure costs remain within reasonable bounds and the fixed fee is justified.

Related Government Programs

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

Risk Flags

  • Cost-plus contract type requires close monitoring.
  • Operational environment presents inherent risks.
  • Reliance on a single large contractor.
  • Potential for scope creep in support services.

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 $51.5 million to KBR SERVICES, LLC. NEW TASK ORDER AWARD FOR LOGCAP SUPPORT TO OPERATION ALLIES REFUGE ON BEHALF OF THE U.S. DEPARTMENT OF STATE.

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 $51.5 million.

What is the period of performance?

Start: 2021-07-23. End: 2021-12-03.

What is the benchmark for facilities support services in similar large-scale humanitarian operations?

Benchmarking facilities support services for large-scale humanitarian operations is complex due to varying scopes, locations, and durations. However, typical cost drivers include personnel, logistics, base operations, and security. Comparing the per-unit cost of services like housing, food, or transportation against industry standards or historical government contracts for similar deployments is crucial for assessing value. Without specific service breakdowns, a precise benchmark is difficult, but the overall award size suggests significant resource allocation.

What are the primary risks associated with KBR's performance on this task order?

Primary risks include potential cost overruns inherent in cost-plus contracts, especially in dynamic environments like refugee support. Performance risks involve ensuring timely and adequate service delivery under pressure, managing a large workforce, and adapting to unforeseen logistical or security challenges. Reputational risk for both KBR and the government could arise from service failures impacting the well-being of refugees or operational effectiveness.

How effectively does this contract leverage competition to ensure optimal value for taxpayers?

The contract's "full and open competition" designation suggests a strong initial effort to leverage competition. This method typically drives multiple bids, encouraging contractors to offer competitive pricing and innovative solutions. However, the effectiveness of this competition in ensuring optimal value is contingent on the clarity of the requirements, the evaluation process, and the subsequent management of the cost-plus-fixed-fee structure to prevent unnecessary cost escalation.

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: $51,537,147

Exercised Options: $51,537,147

Current Obligation: $51,537,147

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,464,385

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: 2021-07-23

Current End Date: 2021-12-03

Potential End Date: 2021-12-03 12:12:00

Last Modified: 2024-03-11

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