DoD's $163M global logistics support contract awarded to Fluor Intercontinental, Inc. for facilities services
Contract Overview
Contract Amount: $163,374,464 ($163.4M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-25
End Date: 2011-06-30
Contract Duration: 1,008 days
Daily Burn Rate: $162.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROVIDE MULTI-FUNCTIONAL LOGISTICS SUPPORT ON A GLOBAL BASIS
Plain-Language Summary
Department of Defense obligated $163.4 million to FLUOR INTERCONTINENTAL, INC for work described as: PROVIDE MULTI-FUNCTIONAL LOGISTICS SUPPORT ON A GLOBAL BASIS Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful monitoring of award fee determinations. 2. Global reach of services suggests potential for significant operational complexity and associated risks. 3. The duration of the contract (over 3 years) indicates a need for sustained performance and adaptability. 4. Facilities Support Services (NAICS 561210) is a broad category, implying a wide range of potential tasks and deliverables. 5. The contract was awarded via full and open competition, suggesting a competitive bidding process. 6. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the services provided and their scope. The Cost Plus Award Fee (CPAF) structure can lead to costs exceeding initial estimates if not managed tightly. Comparing it to similar global logistics support contracts would require detailed service level agreements and performance metrics. The raw dollar amount of $163M over approximately three years suggests a substantial investment in maintaining global operational capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This generally promotes price discovery and can lead to more competitive pricing for the government. The number of bidders (3) is moderate, suggesting a reasonable level of competition, but not an overwhelming number that might drive prices down to the absolute lowest possible.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price by fostering a competitive environment among potential contractors.
Public Impact
The Department of Defense (DoD) benefits through the provision of essential global logistics and facilities support, enabling operational readiness. Services delivered likely include maintenance, repair, and operational support for various facilities worldwide. The geographic impact is global, supporting military operations and personnel across multiple continents. Workforce implications could include direct employment by Fluor Intercontinental and its subcontractors, as well as indirect support for military personnel relying on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance metrics and award fee criteria are not rigorously defined and monitored.
- Complexity of managing global logistics can introduce risks related to supply chain disruptions, geopolitical instability, and varying regulatory environments.
- Ensuring consistent service quality across diverse global locations presents a significant management challenge.
- Dependence on a single contractor for critical global logistics functions could pose a risk if the contractor faces financial or operational difficulties.
Positive Signals
- Awarding under full and open competition suggests a robust process to select the most capable and cost-effective provider.
- The Cost Plus Award Fee structure, if well-implemented, can incentivize high performance and efficiency.
- The contract's global scope indicates the contractor's capacity to handle complex, large-scale international operations.
- The existence of multiple bidders (3) suggests a competitive market for these types of services.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad industry encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. The global nature of the support suggests it is part of a larger defense or governmental initiative requiring extensive logistical capabilities. Comparable spending benchmarks would depend heavily on the specific services rendered, but large-scale global support contracts for government entities often represent significant portions of agency budgets dedicated to operational infrastructure.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. This suggests that the primary focus was on full and open competition to meet the extensive global requirements. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for potential impacts on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Army) through contract officers and administrative contracting officers. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting requirements are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed operational performance data may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Global Contingency Logistics Support
- Base Operations Support (BOS)
- Logistics and Supply Chain Management Services
- Facilities Maintenance and Management Contracts
- Department of Defense Global Operations Support
Risk Flags
- Potential for cost creep due to CPAF structure.
- Complexity of managing global operations.
- Ensuring consistent service quality across diverse locations.
- Dependence on contractor for critical functions.
- Geopolitical and supply chain risks.
Tags
defense, department-of-defense, department-of-the-army, facilities-support-services, logistics-support, global, full-and-open-competition, cost-plus-award-fee, delivery-order, fluor-intercontinental-inc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.4 million to FLUOR INTERCONTINENTAL, INC. PROVIDE MULTI-FUNCTIONAL LOGISTICS SUPPORT ON A GLOBAL BASIS
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 $163.4 million.
What is the period of performance?
Start: 2008-09-25. End: 2011-06-30.
What specific types of facilities and services were included under this $163M global logistics support contract?
The contract description indicates 'PROVIDE MULTI-FUNCTIONAL LOGISTICS SUPPORT ON A GLOBAL BASIS' under NAICS code 561210 (Facilities Support Services). While specific details are not provided in the summary data, this typically encompasses a wide array of services such as facility maintenance and repair, groundskeeping, waste management, transportation support, supply chain management, and potentially life support services for personnel in deployed locations. The 'multi-functional' aspect suggests a comprehensive package rather than a single specialized service. The global nature implies support for various DoD installations, bases, or operational areas worldwide, requiring adaptability to different environments and requirements.
How did Fluor Intercontinental, Inc.'s past performance and track record influence the award of this contract?
The provided data does not include specific details on Fluor Intercontinental, Inc.'s past performance metrics or a formal past performance evaluation score for this particular contract. However, the award of a significant $163M global contract by the Department of the Army suggests that the contractor likely possessed a relevant and satisfactory track record in providing similar large-scale logistics and facilities support services. Government agencies typically conduct thorough past performance reviews as a critical component of the source selection process, evaluating factors such as technical approach, management capability, cost control, and adherence to schedule on previous contracts. A positive assessment in these areas would have been crucial for Fluor's successful bid.
Can the $163M contract value be considered a fair price for the global logistics support provided?
Determining if $163M is a fair price for global logistics support requires a detailed comparison against similar contracts and a thorough understanding of the scope of services. The contract type, Cost Plus Award Fee (CPAF), means the final cost could vary based on performance. Without specific deliverables, service levels, geographic coverage details, and performance metrics, a direct price-to-value assessment is difficult. However, given the 'full and open competition' and three bidders, it suggests a competitive market was engaged. The price reflects the complexity and scale of providing multi-functional logistics globally, which inherently involves significant operational costs, risk management, and specialized expertise. Benchmarking against other large-scale DoD global support contracts would be necessary for a definitive value assessment.
What are the primary risks associated with a contract of this magnitude and global scope?
The primary risks associated with this $163M global logistics support contract are multifaceted. Operational risks include potential disruptions to global supply chains due to geopolitical events, natural disasters, or transportation issues. Performance risks involve ensuring consistent service quality across diverse and potentially remote locations, managing a large workforce, and meeting stringent performance standards. Financial risks are present, particularly with the CPAF structure, where costs could escalate if not managed effectively, and award fees might be higher than anticipated. Security risks, both physical and cyber, are also significant given the sensitive nature of military operations and infrastructure. Finally, contract management risks arise from the complexity of overseeing a global operation, requiring robust communication, coordination, and oversight mechanisms.
How does this contract fit into the broader spending patterns for Department of Defense logistics and facilities support?
This $163M contract represents a significant, but likely not singular, component of the Department of Defense's overall spending on logistics and facilities support. The DoD globally manages vast infrastructure and requires continuous logistical operations, leading to substantial annual expenditures in these categories. Contracts for global logistics and facilities services are common and often awarded through various mechanisms, including IDIQs, task orders, and direct awards. The specific amount of $163M over approximately three years places it as a substantial contract, indicative of the ongoing need for robust support systems to maintain military readiness and operational capabilities worldwide. Analyzing historical spending data for similar contracts and the overall defense budget allocation for logistics would provide further context on its relative scale.
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
Solicitation ID: W52P1J08R0192
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $163,374,464
Exercised Options: $163,374,464
Current Obligation: $163,374,464
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2008-09-25
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2022-10-07
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