DoD's $48.5M LOGCAP V contract for Kenyan and Djiboutian base support awarded to Fluor Intercontinental
Contract Overview
Contract Amount: $48,513,683 ($48.5M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-23
End Date: 2027-01-19
Contract Duration: 1,579 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V BASE LIFE SUPPORT AND SUSTAINMENT SERVICES IN SUPPORT OF AIR FORCE SITES AT MANDA BAY, KENYA AND CAMP CHABELLEY, DJIBOUTI.
Plain-Language Summary
Department of Defense obligated $48.5 million to FLUOR INTERCONTINENTAL, INC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V BASE LIFE SUPPORT AND SUSTAINMENT SERVICES IN SUPPORT OF AIR FORCE SITES AT MANDA BAY, KENYA AND CAMP CHABELLEY, DJIBOUTI. Key points: 1. This contract represents a significant investment in logistical support for U.S. Air Force operations in East Africa. 2. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control and prevent overruns. 3. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 4. The contract duration of nearly 4 years indicates a long-term commitment to sustaining these critical forward operating bases. 5. Performance will be assessed against established metrics for life support and sustainment services. 6. This award falls within the broader category of facilities support services, a critical component of global military operations.
Value Assessment
Rating: good
The contract's value of $48.5 million over approximately 4 years for base life support and sustainment services in Kenya and Djibouti appears reasonable given the scope and complexity of operations in potentially austere environments. Benchmarking against similar large-scale logistics contracts for forward operating bases suggests that pricing is within expected ranges, though the CPFF structure necessitates vigilant oversight. The fixed fee component provides some predictability, but the cost-reimbursement aspect requires careful management to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of multiple bidders generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The specific number of bidders is not provided, but the designation implies a healthy level of market interest and capability for providing these specialized logistics services.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, thereby maximizing the value of federal dollars spent.
Public Impact
U.S. Air Force personnel operating at Manda Bay, Kenya, and Camp Chabelley, Djibouti, will benefit from sustained life support and operational services. The contract ensures the provision of essential services such as housing, food, water, power, and maintenance, enabling mission readiness. Geographic impact is concentrated in East Africa, supporting U.S. strategic interests in the region. The contract supports a workforce involved in logistics, maintenance, and facility management, potentially including local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur costs, requiring robust government oversight to manage expenditures effectively.
- Operating in potentially remote or challenging locations like Kenya and Djibouti may introduce logistical complexities and risks to service delivery.
- The long duration of the contract (nearly 4 years) necessitates ongoing performance monitoring to ensure sustained quality and value.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market and potential for cost efficiencies.
- The contract specifies clear performance standards for life support and sustainment, providing a basis for accountability.
- The Department of the Army's selection of Fluor Intercontinental, a known entity in large-scale logistics, suggests a degree of confidence in their capability.
Sector Analysis
This contract falls within the Facilities Support Services sector (NAICS 561210), a critical segment of the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services essential for the operation and maintenance of government and commercial facilities. The global market for facility management is substantial, with significant government spending dedicated to supporting military installations worldwide. This specific award is part of the larger Logistics Civil Augmentation Program (LOGCAP), a program of record designed to provide flexible and responsive support to military operations globally.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular contract award. While Fluor Intercontinental, as a large prime contractor, may engage small businesses as subcontractors, there is no explicit indication of a small business set-aside or subcontracting goal being mandated within this specific award notice. Further analysis would be needed to determine the extent of small business involvement through subcontracting.
Oversight & Accountability
Oversight for this contract will primarily be managed by the Department of the Army, likely through contracting officers and technical representatives responsible for monitoring performance, costs, and compliance. The CPFF structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Logistics Civil Augmentation Program (LOGCAP)
- Base Operations Support Services
- Contingency Base Support Contracts
- Global Force Protection Services
- Department of Defense Facilities Management
Risk Flags
- Cost Overrun Risk (CPFF)
- Geopolitical Instability
- Logistical Challenges in Remote Locations
- Security Threats
- Environmental Hazards
Tags
defense, department-of-defense, department-of-the-army, logistics, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, kenya, djibouti, africa, sustainment-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.5 million to FLUOR INTERCONTINENTAL, INC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V BASE LIFE SUPPORT AND SUSTAINMENT SERVICES IN SUPPORT OF AIR FORCE SITES AT MANDA BAY, KENYA AND CAMP CHABELLEY, DJIBOUTI.
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $48.5 million.
What is the period of performance?
Start: 2022-09-23. End: 2027-01-19.
What is Fluor Intercontinental's track record with LOGCAP contracts and similar large-scale logistics support operations?
Fluor Intercontinental has a significant history of performing large-scale logistics and base support services, including extensive work under the LOGCAP program for the U.S. Army. They have been a major contractor for services in various global theaters, often involving complex logistical challenges in remote or austere environments. Their experience typically encompasses a wide range of support functions, from life support and facility maintenance to transportation and security. While specific performance metrics for past LOGCAP contracts are not detailed here, their continued selection for such high-value, critical programs suggests a generally positive track record in delivering required services, though like any large contractor, they may have faced performance challenges or disputes on specific projects.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar base support services, and what are the implications for cost control?
The Cost Plus Fixed Fee (CPFF) contract type is common for services where the scope is well-defined but costs are difficult to estimate precisely beforehand, such as complex logistics support in evolving environments. In a CPFF contract, the government reimburses the contractor for allowable costs and pays a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the contractor bears more risk for cost overruns, and cost-reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee), which may offer stronger incentives for cost control or performance. For base support services, CPFF can be advantageous for ensuring essential services are provided without contractor hesitation due to cost uncertainty. However, it places a significant burden on the government to meticulously track, audit, and approve all incurred costs to prevent overspending and ensure value. Robust oversight is crucial to mitigate the risk of cost escalation inherent in this structure.
What are the key performance indicators (KPIs) typically used to evaluate the success of LOGCAP V contracts, and how are they measured?
Key performance indicators (KPIs) for LOGCAP V contracts generally focus on the reliability, quality, and timeliness of essential services. These often include metrics related to food service (e.g., meal quality, availability), facility maintenance (e.g., response times for repairs, preventative maintenance completion rates), power generation (e.g., uptime percentage), water supply (e.g., quality, availability), waste management, and transportation services. Performance is typically measured through regular inspections, user feedback surveys (from military personnel), contractor self-reporting, and adherence to established service level agreements (SLAs). The government contracting officer's representative (COR) or technical monitor plays a crucial role in overseeing these KPIs and ensuring the contractor meets contractual obligations. Failure to meet KPIs can result in contract deficiencies, penalties, or even termination.
What is the historical spending trend for LOGCAP contracts, and how does this award fit into the overall program expenditure?
The Logistics Civil Augmentation Program (LOGCAP) has historically represented a substantial portion of the U.S. Army's and Department of Defense's spending on contracted support services, particularly in overseas contingency operations. Over the years, LOGCAP contracts have collectively amounted to tens of billions of dollars, reflecting the extensive logistical needs of military deployments. The LOGCAP V program itself is designed to be a multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle, allowing for numerous task orders and delivery orders to be issued over its lifespan. This specific $48.5 million award is one of many delivery orders anticipated under the LOGCAP V umbrella, contributing to the overall program expenditure. The total spending under LOGCAP V will depend on the number and value of future task orders issued to support various global military requirements.
What are the potential risks associated with providing base life support and sustainment services in East Africa, specifically Kenya and Djibouti?
Providing base life support and sustainment services in East Africa, particularly in locations like Manda Bay, Kenya, and Camp Chabelley, Djibouti, presents several potential risks. These include geopolitical instability in the region, which could disrupt supply chains or affect security. Logistical challenges are significant due to potentially limited local infrastructure, long distances for transportation, and the need for specialized equipment and personnel. Environmental factors, such as extreme weather conditions or disease prevalence, can impact service delivery and personnel health. Furthermore, security risks, including potential threats to personnel and facilities, require robust security protocols and coordination with military forces. Ensuring a consistent supply of essential resources like water, power, and food in these environments can also be challenging and costly.
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: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,513,683
Exercised Options: $48,513,683
Current Obligation: $48,513,683
Subaward Activity
Number of Subawards: 107
Total Subaward Amount: $77,928,363
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0046
IDV Type: IDC
Timeline
Start Date: 2022-09-23
Current End Date: 2027-01-19
Potential End Date: 2027-01-19 00:00:00
Last Modified: 2026-02-09
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