DoD Awards $452.5M Task Order to KBR for EUCOM Facilities Support

Contract Overview

Contract Amount: $452,552,411 ($452.6M)

Contractor: KBR Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-15

End Date: 2023-07-23

Contract Duration: 554 days

Daily Burn Rate: $816.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER FOR LOGCAP EUCOM AOR TO SUPPORT EUROPE PREPAREDNESS FOR SUPPORT AT GERMANY, POLAND, AND ROMANIA AND OTHER POTENTIAL LOCATIONS.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $452.6 million to KBR SERVICES, LLC for work described as: TASK ORDER FOR LOGCAP EUCOM AOR TO SUPPORT EUROPE PREPAREDNESS FOR SUPPORT AT GERMANY, POLAND, AND ROMANIA AND OTHER POTENTIAL LOCATIONS. Key points: 1. Significant contract value highlights substantial support needs in the EUCOM AOR. 2. KBR Services, LLC, a large established contractor, secured this order. 3. Potential risks include performance in dynamic geopolitical environments and cost overruns. 4. The sector is Facilities Support Services, crucial for operational readiness.

Value Assessment

Rating: good

The contract value of $452.5M for a 1.5-year period appears reasonable given the scope of supporting multiple European locations. Benchmarking against similar large-scale facilities support contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being utilized for essential logistical and facilities support in a critical geopolitical region, aiming for efficient resource allocation.

Public Impact

Ensures operational readiness and support for U.S. forces in Eastern Europe. Supports critical infrastructure maintenance and services in Germany, Poland, and Romania. Contributes to U.S. diplomatic and military presence in the region. Potential for job creation and economic activity in host nations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geopolitical instability in the EUCOM AOR.
  • Potential for scope creep in a dynamic environment.
  • Reliance on a single large contractor for critical support.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national security objectives.
  • Clear performance period and defined locations.

Sector Analysis

Facilities Support Services are essential for maintaining operational bases and infrastructure. Spending in this sector can fluctuate based on global deployments and geopolitical needs, with benchmarks varying widely by region and service type.

Small Business Impact

This contract was awarded to KBR Services, LLC, a large business. There is no indication of specific small business subcontracting goals or participation in this particular task order, which is common for large prime contracts.

Oversight & Accountability

The Department of the Army, through the Department of Defense, is responsible for oversight. The task order structure allows for specific performance monitoring and accountability for the services rendered.

Related Government Programs

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

Risk Flags

  • Geopolitical instability.
  • Potential for cost overruns due to unforeseen circumstances.
  • Logistical challenges in remote or austere environments.
  • Performance degradation in high-demand periods.

Tags

facilities-support-services, department-of-defense, tx, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $452.6 million to KBR SERVICES, LLC. TASK ORDER FOR LOGCAP EUCOM AOR TO SUPPORT EUROPE PREPAREDNESS FOR SUPPORT AT GERMANY, POLAND, AND ROMANIA AND OTHER POTENTIAL LOCATIONS.

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 $452.6 million.

What is the period of performance?

Start: 2022-01-15. End: 2023-07-23.

What is the projected cost per day for this task order, and how does it compare to similar support contracts in other regions?

The total value is $452,552,410.66 over approximately 554 days (Jan 15, 2022 to Jul 23, 2023). This equates to roughly $816,882 per day. Comparing this to similar contracts requires access to a database of historical contract data, considering factors like location, specific services, and prevailing economic conditions.

What are the primary performance metrics and risk mitigation strategies for KBR in this EUCOM AOR task order?

Performance metrics likely include timely service delivery, quality of maintenance, and adherence to safety standards. Risk mitigation strategies would typically involve KBR's established operational procedures, contingency planning for logistical challenges, and close coordination with EUCOM leadership to adapt to evolving security situations.

How effectively does this contract support the broader U.S. European preparedness strategy, and what is the long-term value proposition?

This contract directly supports European preparedness by ensuring robust facilities and logistical infrastructure are in place for potential contingencies. The long-term value lies in maintaining operational readiness, deterring aggression, and enabling rapid response, thereby contributing to regional stability and U.S. strategic interests.

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: $452,552,411

Exercised Options: $452,552,411

Current Obligation: $452,552,411

Actual Outlays: $923,613

Subaward Activity

Number of Subawards: 586

Total Subaward Amount: $693,456,002

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: 2022-01-15

Current End Date: 2023-07-23

Potential End Date: 2023-07-23 12:07:00

Last Modified: 2025-09-11

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