DoD Awards $177.6M Logistics Contract to Brown & Root Services for Bosnian Operations

Contract Overview

Contract Amount: $20,345,481 ($20.3M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2000-10-06

End Date: 2001-09-30

Contract Duration: 359 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200109!000002!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0010 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000007328463!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S!A!*!*!*!B!*!*!B! !A !Y!R!2!002!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y!Y! ! !0001!

Place of Performance

Location: WINCHESTER, FREDERICK County, VIRGINIA, 22602

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to BROWN & ROOT SERVICES for work described as: 200109!000002!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0010 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* … Key points: 1. The contract value of $177.6 million for logistics support services in Bosnia represents a significant investment in operational sustainment. 2. Brown & Root Services, a division of a larger entity, secured this award, indicating established capabilities in complex support roles. 3. The primary risk lies in the operational environment of Bosnia, which can present logistical and security challenges impacting service delivery. 4. This contract falls under the 'Services' sector, specifically logistics support, a critical component for military deployments.

Value Assessment

Rating: good

The contract value of $177.6 million over 359 days suggests a substantial daily rate. Benchmarking against similar large-scale logistics support contracts in complex environments is necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of logistics support in a deployed environment might limit the number of truly competitive bids.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value. The final price reflects the outcome of this competitive process.

Public Impact

Ensures continued logistical support for U.S. military operations in Bosnia, maintaining readiness and operational effectiveness. Supports personnel and equipment movement, supply chain management, and base operations critical for mission success. Contributes to regional stability by enabling sustained military presence and humanitarian efforts.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

Geopolitical instability in Bosnia
Potential for cost overruns in complex logistical operations
Dependence on a single contractor for critical support

Positive Signals

Awarded through full and open competition
Experienced contractor with a history of similar services
Clear contract duration and defined scope of work

Sector Analysis

This contract falls within the broader 'Services' sector, specifically focusing on logistics support. Spending in this area is crucial for military readiness and operational deployment, with benchmarks varying widely based on location and scope.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this award. Further analysis would be needed to determine if small business concerns were addressed.

Oversight & Accountability

The Department of the Army, under the Department of Defense, awarded this contract. Oversight would involve monitoring performance, cost, and adherence to contract terms to ensure accountability and effective service delivery.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Operational environment risks in Bosnia
Potential for cost creep under CPAF structure
Contractor performance monitoring complexity
Dependence on contractor for critical mission support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to BROWN & ROOT SERVICES. 200109!000002!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0010 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000007328463!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S!A!*!*!*!B!*!*!B!

Who is the contractor on this award?

The obligated recipient is BROWN & ROOT SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2000-10-06. End: 2001-09-30.

What specific logistical challenges in Bosnia were addressed by this contract, and how did they influence the pricing?

The contract likely addressed challenges such as transportation in difficult terrain, security escorts for convoys, maintenance of equipment in austere conditions, and provision of essential supplies to remote locations. These factors, combined with the inherent risks of operating in a post-conflict zone, would have contributed to the overall cost, necessitating a comprehensive risk assessment during the bidding process.

How does the cost-plus-award-fee structure potentially impact the final expenditure and contractor performance?

A Cost-Plus-Award-Fee (CPAF) contract allows the contractor to recover allowable costs plus a base fee, plus an award fee that is earned based on performance against specific criteria. This structure incentivizes the contractor to perform well and control costs, but it also carries the risk of higher final costs if performance targets are exceeded or if the award fee criteria are broadly interpreted.

What are the long-term implications of relying on a single large contractor for extensive logistics support in a potentially unstable region?

Long-term reliance on a single contractor can create dependency and reduce flexibility. While it can ensure continuity, it may also limit opportunities for other providers and potentially lead to price increases in subsequent contracts if competition is not actively fostered. The stability of the region and the contractor's long-term commitment are critical factors.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4100 CLINTON DR, HOUSTON, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA7899D0003

IDV Type: IDC

Timeline