DoD Awards $194.5M Contract for European Phased Adaptive Approach, Phase II in Romania
Contract Overview
Contract Amount: $194,506,627 ($194.5M)
Contractor: KBR Services, LLC
Awarding Agency: Department of Defense
Start Date: 2013-07-08
End Date: 2024-12-19
Contract Duration: 4,182 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONTRACT FOR EUROPEAN PHASED ADAPTIVE APPROACH, PHASE II AT DEVESELU ROMANIA.
Plain-Language Summary
Department of Defense obligated $194.5 million to KBR SERVICES, LLC for work described as: IGF::OT::IGF CONTRACT FOR EUROPEAN PHASED ADAPTIVE APPROACH, PHASE II AT DEVESELU ROMANIA. Key points: 1. Significant investment in European missile defense infrastructure. 2. KBR Services, LLC, a major defense contractor, secured the award. 3. Contract duration extends to late 2024, indicating a long-term project. 4. The project falls under 'Other Heavy and Civil Engineering Construction' sector.
Value Assessment
Rating: good
The contract value of $194.5 million for a multi-year project appears reasonable given the scope of establishing advanced missile defense capabilities. Benchmarking against similar large-scale civil engineering and defense infrastructure projects 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 robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: Taxpayer funds are being utilized for a critical national security initiative, enhancing regional stability and defense capabilities.
Public Impact
Enhances NATO's missile defense capabilities in Europe. Supports U.S. strategic interests and alliances in the region. Contributes to technological advancement in defense systems. Potential for job creation and economic activity in Romania and supporting regions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration could lead to cost overruns if not managed effectively.
- Geopolitical risks associated with operating in Eastern Europe.
- Complexity of integrating advanced defense systems.
Positive Signals
- Strengthens U.S. European Command's operational posture.
- Demonstrates commitment to collective security with NATO allies.
- Leverages established contractor expertise for critical infrastructure.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, often involving large-scale infrastructure development. Spending in this area for defense purposes can be substantial, driven by geopolitical needs and technological upgrades.
Small Business Impact
The data indicates this is a definitive contract awarded to KBR Services, LLC, a large business. There is no explicit information on small business participation, which warrants further investigation to ensure opportunities for smaller enterprises.
Oversight & Accountability
The Department of Defense's Inspector General and relevant oversight bodies are responsible for monitoring contract performance, cost, and adherence to regulations. Regular reporting and audits are crucial for accountability on such significant projects.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to project duration.
- Geopolitical instability in the region.
- Complexity of integrating advanced technology.
- Dependence on a single large contractor.
- Lack of explicit small business participation data.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $194.5 million to KBR SERVICES, LLC. IGF::OT::IGF CONTRACT FOR EUROPEAN PHASED ADAPTIVE APPROACH, PHASE II AT DEVESELU ROMANIA.
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 $194.5 million.
What is the period of performance?
Start: 2013-07-08. End: 2024-12-19.
What is the projected return on investment for this missile defense system in terms of enhanced security and deterrence?
The return on investment is primarily measured in enhanced national security and deterrence capabilities. By bolstering missile defense, the system aims to mitigate threats from ballistic missiles, thereby protecting U.S. and allied interests. Quantifying this in direct financial terms is challenging, but the strategic value of preventing attacks and maintaining regional stability is considered substantial.
What are the primary risks associated with the long-term maintenance and operational readiness of this complex defense system?
Key risks include technological obsolescence, the need for continuous upgrades, potential for component failures, and the requirement for highly skilled personnel. Maintaining operational readiness over the system's lifespan necessitates ongoing investment in training, spare parts, and cybersecurity measures to counter evolving threats and ensure system effectiveness.
How effectively does this contract contribute to interoperability and burden-sharing within the NATO alliance?
This contract directly contributes to NATO's missile defense architecture, enhancing interoperability by establishing a common framework for threat detection and response. It also signifies burden-sharing, as the U.S. invests in critical infrastructure that benefits collective security, complementing the defense efforts of European allies and strengthening the alliance's overall posture.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912GB13R0003
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: KBR, Inc.
Address: 2451 CRYSTAL DR STE 675, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $194,506,627
Exercised Options: $194,506,627
Current Obligation: $194,506,627
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $34,388,408
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-07-08
Current End Date: 2024-12-19
Potential End Date: 2024-12-19 00:00:00
Last Modified: 2024-12-31
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