DoD Awards $615M Contract to Fluor Intercontinental for Iraq Logistics Support
Contract Overview
Contract Amount: $53,203,025 ($53.2M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2003-12-23
End Date: 2011-05-04
Contract Duration: 2,689 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200403!000292!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0008 ! !20031223!20040321!615422995!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!00000! !IZ!* !* !IRAQ !+000004800000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!M! !A!D!20040331!B! ! !N!A!A!Y!U!2!003!N!2A!Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $53.2 million to FLUOR INTERCONTINENTAL, INC for work described as: 200403!000292!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0008 ! !20031223!20040321!615422995!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!00000! !IZ!* !* … Key points: 1. The contract, valued at $615,422,995, was awarded to Fluor Intercontinental, Inc. for logistics support services in Iraq. 2. This award falls under the 'Other Heavy and Civil Engineering Construction' NAICS code, suggesting a broad scope of services. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific justification for limiting bidders. 4. With a duration of 2689 days, this represents a significant long-term commitment of taxpayer funds for overseas operations.
Value Assessment
Rating: fair
The contract's total value is $615,422,995. Without specific cost breakdowns or benchmarks for similar logistics support services in a contingency environment, a precise value assessment is difficult. However, the scale suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This method implies that while competition was sought, certain sources were excluded, potentially impacting price discovery and the breadth of competitive offers.
Taxpayer Impact: The significant value of this contract means a substantial portion of taxpayer funds is allocated to these logistics services, with the efficiency of the procurement method impacting the ultimate return on investment.
Public Impact
Taxpayers are funding extensive logistics support in a complex operational environment (Iraq). The duration of the contract suggests a long-term U.S. military presence and associated support needs. The specific exclusion of sources in the competition raises questions about the extent of market engagement and potential cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Long contract duration may indicate evolving needs or lack of flexibility.
- Geopolitical instability in Iraq could impact service delivery and costs.
Positive Signals
- Awarded to a single, established contractor.
- Contract aims to provide essential logistics support.
Sector Analysis
This contract falls under the construction and engineering sector, specifically related to heavy and civil engineering. The value of $615M is substantial for a single contract, especially within a contingency operations context. Benchmarks for similar services in austere environments are difficult to establish due to unique operational demands.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, Fluor Intercontinental, Inc., is a large corporation, suggesting that subcontracting opportunities may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The contract was awarded by the Department of Defense, specifically the Department of the Army. Oversight would typically involve program managers and contracting officers responsible for monitoring performance, costs, and compliance with contract terms, especially given the operational context.
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 operational complexities.
- Risk associated with limited competition impacting price.
- Dependency on a single contractor for critical logistics.
- Geopolitical risks affecting service continuity and security.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.2 million to FLUOR INTERCONTINENTAL, INC. 200403!000292!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0008 ! !20031223!20040321!615422995!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!00000! !IZ!* !* !IRAQ !+000004800000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!M! !A!D!200
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 $53.2 million.
What is the period of performance?
Start: 2003-12-23. End: 2011-05-04.
What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The justification for excluding sources typically relates to factors such as unique capabilities, prior performance, urgent needs, or specific security requirements that limit the pool of eligible contractors. Without further documentation, the precise reasons remain unclear, but it suggests a deliberate narrowing of the competitive field beyond standard full and open procedures.
How does the cost of this logistics support contract compare to similar operations in other contingency zones or historical contracts?
Direct cost comparisons are challenging due to the unique variables in each contingency operation, including threat levels, infrastructure availability, and specific mission requirements. However, a $615 million contract over several years for logistics support in Iraq represents a significant financial commitment. A detailed cost-benefit analysis against alternative support models or previous contracts would be necessary for a thorough assessment.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure effective service delivery and accountability for this contract?
Effective service delivery and accountability are typically managed through detailed contract clauses, performance work statements (PWS), and regular oversight by government representatives. Key performance indicators would likely focus on timeliness, quality, and cost-effectiveness of logistics operations. Regular reporting, site inspections, and performance reviews are standard mechanisms to ensure contractor compliance and address any deficiencies.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: ONE ENTERPRISE DRIVE, ALISO VIEJO, CA, 92656
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA7803D0005
IDV Type: IDC
Timeline
Start Date: 2003-12-23
Current End Date: 2011-05-04
Potential End Date: 2011-05-04 00:00:00
Last Modified: 2015-02-25
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