DoD Awards $177.6M Logistics Contract to Brown & Root Services for Transatlantic Program Center

Contract Overview

Contract Amount: $58,101,083 ($58.1M)

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: $161.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200106!000003!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0011 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !HU!* !* !HUNGARY !+000008529298!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S! !*!*!*!B!*!*!B! !A !Y!R!2!002!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y!Y! ! !0001!

Plain-Language Summary

Department of Defense obligated $58.1 million to BROWN & ROOT SERVICES for work described as: 200106!000003!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0011 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !HU!* !* … Key points: 1. The contract value is substantial at $177.6 million, indicating a significant investment in logistics support. 2. Brown & Root Services, a division of Halliburton, secured this award, highlighting their established presence in government contracting. 3. The contract carries a risk of cost overruns due to its Cost Plus Award Fee structure. 4. The sector is primarily logistics support services, crucial for military operations.

Value Assessment

Rating: fair

The contract value of $177.6 million for a 359-day period appears high for logistics support services. Benchmarking against similar contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Award Fee (CPAF) structure can incentivize higher costs if not managed carefully.

Taxpayer Impact: Taxpayer funds are being used for this contract. While competition aims for fair pricing, the CPAF structure requires diligent oversight to ensure cost efficiency and prevent unnecessary spending.

Public Impact

Ensures continued operational support for military personnel and equipment in the Transatlantic Program Center region. Supports employment opportunities within Brown & Root Services and its subcontractors. Potential for improved logistical efficiency and effectiveness through contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can lead to higher-than-expected costs.
Limited duration (359 days) may necessitate future re-competes and transition costs.
Geographic focus (Hungary) may present unique logistical and operational challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Brown & Root Services has a history of performing large government contracts.
Contract aims to provide essential logistics support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically logistics support. Government spending in this area is critical for maintaining operational readiness and global presence.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Brown & Root Services is a large prime contractor, and subcontracting opportunities for small businesses are not detailed in this record.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates robust oversight from the Department of Defense to ensure performance standards are met and costs are controlled effectively. Award fees should be tied to measurable outcomes.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Award Fee (CPAF) structure.
Potential for cost overruns.
Limited contract duration.
Lack of detailed service description.
Geographic operational complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.1 million to BROWN & ROOT SERVICES. 200106!000003!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0011 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !HU!* !* !HUNGARY !+000008529298!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S! !*!*!*!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 $58.1 million.

What is the period of performance?

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

What specific logistics services are included in this $177.6 million contract, and how do they align with the operational needs of the Transatlantic Program Center?

The contract specifies 'LOGISTICS SUPPORT SERVICES' under PSC code R706. While the exact services are not detailed, they likely encompass a range of activities such as supply chain management, transportation, warehousing, maintenance, and potentially base operations support within the Transatlantic Program Center's area of responsibility, which includes Hungary. The alignment with operational needs would depend on the specific mission requirements and deployment status of forces in that region.

Given the Cost Plus Award Fee (CPAF) structure, what are the key performance indicators (KPIs) and award fee criteria used to manage contractor performance and control costs?

The provided data does not specify the KPIs or award fee criteria. However, for a CPAF contract of this nature, typical KPIs would include on-time delivery, inventory accuracy, cost savings initiatives, equipment readiness rates, and compliance with safety and environmental regulations. The award fee would be determined by the government's assessment of the contractor's performance against these predefined criteria, incentivizing efficiency and effectiveness.

What is the projected taxpayer impact of this contract, considering the potential for cost growth under the CPAF structure and the duration of the contract?

The initial contract value is $177.6 million for a 359-day period. The CPAF structure introduces a risk of cost growth beyond the base amount if award fees are maximized. Diligent government oversight is crucial to ensure that costs remain reasonable and that award fees are earned based on exceptional performance, thereby mitigating excessive taxpayer burden. The relatively short duration suggests a need for ongoing evaluation and potential future contract actions.

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