DoD awards $256M facilities support contract to KBR Services for Operation Allies Refuge in Europe
Contract Overview
Contract Amount: $255,784,116 ($255.8M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-21
End Date: 2025-02-15
Contract Duration: 1,274 days
Daily Burn Rate: $200.8K/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 EUCOM AOR TO SUPPORT OPERATION ALLIES REFUGE FOR SUPPORT AT CAMP BONDSTEEL, KOS RAMSTEIN AIR BASE (RAM), GERMANY AND RHINE ORDINANCE BARRACKS (ROB), GERMANY.
Plain-Language Summary
Department of Defense obligated $255.8 million to KBR SERVICES, LLC for work described as: TASK ORDER AWARD FOR LOGCAP EUCOM AOR TO SUPPORT OPERATION ALLIES REFUGE FOR SUPPORT AT CAMP BONDSTEEL, KOS RAMSTEIN AIR BASE (RAM), GERMANY AND RHINE ORDINANCE BARRACKS (ROB), GERMANY. Key points: 1. Contract provides critical logistical support for Operation Allies Refuge, demonstrating significant government reliance on contractor services for complex operations. 2. The full and open competition suggests a robust market for these services, though the specific performance metrics will determine true value. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not closely managed, warranting vigilant oversight. 4. This award falls within the broader category of facilities support services, a substantial segment of federal contracting. 5. The duration of the contract (over 3 years) indicates a long-term commitment to supporting ongoing operations in the EUCOM AOR. 6. The contractor, KBR Services, LLC, has a history of large-scale government contracts, suggesting established capabilities but also potential for complacency.
Value Assessment
Rating: fair
The contract value of $255.8 million over approximately 3.5 years averages to roughly $73 million annually. Benchmarking this against similar large-scale base support contracts is challenging without more granular data on the specific services provided. However, given the scope and duration, the pricing appears within a plausible range for complex, contingency-related support operations. The CPFF structure necessitates close monitoring to ensure costs remain reasonable and avoid excessive profit margins.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. This approach generally fosters competitive pricing and allows the government to select the best value offer. The number of bidders is not specified, but the open competition suggests a healthy market for these types of services, which is positive for price discovery.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to secure the most cost-effective solution for essential support services.
Public Impact
Serves U.S. military personnel and potentially allied forces involved in Operation Allies Refuge. Provides essential facilities support services including maintenance, logistics, and potentially life support at key European bases. Geographic impact is concentrated at Camp Bondsteel (Kosovo), Ramstein Air Base (Germany), and Rhine Ordnance Barracks (Germany). Supports the operational readiness and effectiveness of U.S. European Command (EUCOM) operations. Indirectly impacts the workforce at these bases by ensuring smooth logistical and facility operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed.
- The significant dollar value requires robust oversight to ensure value for money.
- Reliance on a single contractor for critical support functions can create dependency.
- The duration of the contract may not align with the evolving needs of contingency operations.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contractor (KBR Services, LLC) has extensive experience in large-scale government support contracts.
- Supports a critical national security operation (Operation Allies Refuge).
- Clear performance period with defined start and end dates.
Sector Analysis
This contract falls within the broader Facilities Support Services sector, which is a significant component of the federal contracting landscape. This sector encompasses a wide range of services, including base operations support, maintenance, and logistics. The market is characterized by large, experienced defense contractors capable of managing complex, geographically dispersed operations. Spending in this category often fluctuates with geopolitical events and military deployment levels.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses are directly benefiting from this specific award as prime contractors. However, KBR Services, LLC may be required to subcontract portions of the work to small businesses, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers' representatives (CORs) and contracting officer's technical representatives (COTRs) at the operational sites. The CPFF structure necessitates close financial oversight to monitor expenditures and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract award databases, but detailed performance reporting is typically internal.
Related Government Programs
- LOGCAP (Logistics Civil Augmentation Program)
- Operation Allies Refuge
- EUCOM Base Operations Support
- Contingency Base Support Contracts
- Facilities Maintenance and Management Services
Risk Flags
- Cost Overrun Potential (CPFF)
- Performance Monitoring Intensity Required
- Geopolitical Instability Impact
- Contractor Dependency Risk
Tags
facilities-support, department-of-defense, department-of-the-army, operation-allies-refuge, logcap, full-and-open-competition, cost-plus-fixed-fee, contingency-operations, europe, germany, kosovo, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $255.8 million to KBR SERVICES, LLC. TASK ORDER AWARD FOR LOGCAP EUCOM AOR TO SUPPORT OPERATION ALLIES REFUGE FOR SUPPORT AT CAMP BONDSTEEL, KOS RAMSTEIN AIR BASE (RAM), GERMANY AND RHINE ORDINANCE BARRACKS (ROB), GERMANY.
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 $255.8 million.
What is the period of performance?
Start: 2021-08-21. End: 2025-02-15.
What is KBR Services, LLC's track record with similar large-scale base support contracts, particularly in contingency environments?
KBR Services, LLC, formerly Kellogg Brown & Root, has a long and extensive history of performing large-scale logistics and base support services for the U.S. military, including significant involvement in contingency operations. They have been a major contractor under the LOGCAP program, which is designed for exactly this type of support. Their experience spans numerous global deployments, providing services ranging from construction and maintenance to life support and transportation. While this extensive experience suggests capability, it also means they have faced scrutiny regarding performance and cost management on past contracts. Analyzing specific past performance reviews and any associated disputes or investigations related to similar LOGCAP or base support awards would provide a more complete picture of their reliability and efficiency in this domain.
How does the pricing structure (Cost Plus Fixed Fee) compare to other similar base support contracts awarded by the DoD?
Cost Plus Fixed Fee (CPFF) contracts are common for complex services where the scope may evolve or is difficult to precisely define upfront, such as contingency operations. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility but carries a higher risk of cost growth for the government if not managed diligently. Many large-scale base support contracts, especially those supporting ongoing military operations or requiring adaptability, utilize CPFF or variations like Cost Plus Incentive Fee (CPIF). The key benchmark is not just the contract type, but the reasonableness of the estimated costs and the fixed fee relative to the scope of work and the contractor's historical performance and overhead. Without specific cost breakdowns and service level agreements, a direct comparison is difficult, but the CPFF itself indicates a need for robust government oversight.
What are the primary risks associated with this contract, beyond potential cost overruns?
Beyond potential cost overruns inherent in the CPFF structure, several risks are associated with this contract. Operational risks include potential disruptions to service delivery due to unforeseen geopolitical events, logistical challenges in the AOR, or contractor performance issues. There's also a risk of contractor dependency, where the military becomes overly reliant on KBR for critical functions, potentially reducing organic capabilities or flexibility. Security risks at the operating locations could impact personnel and operations. Furthermore, reputational risk exists if the contractor fails to meet performance standards or if there are allegations of mismanagement or misconduct. Finally, the long duration of the contract introduces a risk that the defined scope may become misaligned with evolving operational requirements, necessitating costly modifications or re-competition.
How effective is the current service delivery likely to be, given the contractor's experience and the contract type?
Given KBR Services, LLC's extensive experience with LOGCAP and similar large-scale support contracts, the likelihood of effective service delivery is generally considered high, provided adequate government oversight. Their established processes and personnel are accustomed to the demands of contingency operations. The CPFF contract type, while carrying cost risks, allows for flexibility to adapt services as operational needs change, which is crucial in dynamic environments like Operation Allies Refuge. Effectiveness will largely depend on the clarity of performance work statements, the diligence of the contracting officer's representatives (CORs) in monitoring performance against those statements, and the contractor's commitment to meeting service level agreements. Past performance data and ongoing quality assurance surveillance will be critical indicators of actual effectiveness.
What are the historical spending patterns for facilities support services in the EUCOM AOR, and how does this award compare?
Historical spending on facilities support services in the EUCOM AOR has been substantial, driven by the presence of major U.S. military installations and ongoing operational requirements. Programs like LOGCAP have historically accounted for billions of dollars in spending across various theaters, including Europe. This specific award of $255.8 million for Operation Allies Refuge is significant but falls within the expected range for large-scale, multi-year support contracts in a high-demand operational area. Comparing it directly requires analyzing the specific services rendered, the number of personnel supported, and the duration relative to previous awards. However, it reflects a continued trend of leveraging contractor support for essential base operations and logistical functions in strategically important regions.
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: $284,301,259
Exercised Options: $255,784,116
Current Obligation: $255,784,116
Actual Outlays: $117,848
Subaward Activity
Number of Subawards: 284
Total Subaward Amount: $247,119,933
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: 2021-08-21
Current End Date: 2025-02-15
Potential End Date: 2025-02-15 00:00:00
Last Modified: 2025-07-09
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