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 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: $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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