DoD's $112.5M Africa Base Life Support Contract Awarded to Fluor Intercontinental, Inc
Contract Overview
Contract Amount: $112,534,753 ($112.5M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2014-08-13
End Date: 2025-06-16
Contract Duration: 3,960 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE LIFE SUPPORT (BLS) SERVICES IN SITES LOCATED IN CONTINENTAL AFRICA
Plain-Language Summary
Department of Defense obligated $112.5 million to FLUOR INTERCONTINENTAL, INC for work described as: BASE LIFE SUPPORT (BLS) SERVICES IN SITES LOCATED IN CONTINENTAL AFRICA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning over 10 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services, a broad category. 5. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. No small business set-aside was utilized, meaning large businesses were the primary focus for this award.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) contract type inherently carries a risk of costs exceeding initial estimates, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this to similar base life support contracts in continental Africa would require access to detailed pricing structures and performance data from other awards. The total value of $112.5 million over approximately 10 years suggests a significant investment in maintaining facilities in a challenging operational environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. A competitive process like this generally aims to achieve fair market prices and encourage efficiency from contractors. The number of bidders (3) provides some level of competition, but the specific details of the bidding process and the evaluation criteria would be needed to fully assess its effectiveness in driving down costs.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for money. However, the CPFF structure requires diligent oversight to ensure costs remain reasonable.
Public Impact
Service members and civilian personnel operating in continental Africa benefit from essential life support services. The contract ensures the provision of facilities support services, which can include maintenance, operations, and potentially other related functions. The geographic impact is focused on sites located within continental Africa, supporting U.S. military and government operations in the region. The contract supports a workforce involved in maintaining and operating these facilities, potentially including both U.S. personnel and local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending to increase the fixed fee base if not carefully managed.
- Long contract duration (over 10 years) increases the risk of cost escalation due to inflation and changing operational needs.
- Limited information on specific performance metrics makes it difficult to assess the true value for money and contractor performance.
- Operating in continental Africa presents inherent logistical and security risks that could impact contract costs and execution.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process that should yield competitive pricing.
- The contract addresses critical base life support needs, ensuring operational readiness in potentially austere environments.
- The fixed fee component of the CPFF contract provides some level of cost predictability for the government, assuming costs are well-managed.
- The substantial value indicates a significant commitment to supporting personnel and operations in the region.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This contract falls within the broader defense contracting industry, where such services are crucial for supporting military installations and personnel globally. Comparable spending benchmarks for base life support services can vary significantly based on geographic location, security requirements, and the scope of services provided. The Department of Defense is a major consumer of these services, often awarding large, long-term contracts to support its global footprint.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mentioned. This suggests that the primary contractor, Fluor Intercontinental, Inc., is expected to perform the majority of the work. While large contracts can sometimes offer subcontracting opportunities, the absence of explicit set-asides or reporting requirements means the direct impact on the small business ecosystem for this specific award is likely limited unless the prime contractor voluntarily engages small businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Given the Cost Plus Fixed Fee (CPFF) structure, rigorous oversight of incurred costs, contractor performance, and adherence to contract terms is essential to ensure value for money and prevent potential cost overruns. The contract's duration and operational environment necessitate continuous monitoring. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, and abuse related to this contract.
Related Government Programs
- Base Operations Support (BOS)
- Logistics and Support Services
- Contingency Operations Support
- Facilities Maintenance and Management
- Defense Support Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Operating in continental Africa presents inherent logistical, security, and health risks.
- Long contract duration increases exposure to inflation and changing operational requirements.
- Limited public data on specific performance metrics hinders a comprehensive value-for-money assessment.
Tags
defense, department-of-defense, department-of-the-army, facilities-support-services, life-support, continental-africa, fluor-intercontinental-inc, cost-plus-fixed-fee, full-and-open-competition, delivery-order, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $112.5 million to FLUOR INTERCONTINENTAL, INC. BASE LIFE SUPPORT (BLS) SERVICES IN SITES LOCATED IN CONTINENTAL AFRICA
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 $112.5 million.
What is the period of performance?
Start: 2014-08-13. End: 2025-06-16.
What is Fluor Intercontinental, Inc.'s track record with similar Department of Defense contracts, particularly in Africa?
Fluor Intercontinental, Inc. has a significant history of performing large-scale engineering, procurement, and construction (EPC) projects, as well as operations and maintenance services for government clients, including the Department of Defense. They have been involved in numerous contracts supporting military operations in various challenging environments, including Africa. Their experience often encompasses base life support, infrastructure development, and facility management. Analyzing their past performance on similar contracts would involve reviewing past performance evaluations, any documented disputes or contract modifications, and their ability to meet cost, schedule, and performance requirements on previous awards. Specific details on their performance in Africa for base life support would provide crucial context for this current contract's potential success.
How does the pricing structure (Cost Plus Fixed Fee) compare to other base life support contracts in similar regions?
Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope of work is not precisely defined at the outset or involves significant uncertainty, such as operating in remote or evolving environments like continental Africa. This structure reimburses the contractor for allowable costs plus a predetermined fixed fee, which represents the contractor's profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost growth if cost controls are not robust. Benchmarking requires comparing the 'fixed fee' percentage and the 'cost' components against similar contracts. If the fixed fee is within industry norms (typically 5-15% of estimated cost) and the projected costs align with market rates for labor, materials, and logistics in Africa, the pricing could be considered reasonable. However, without detailed cost breakdowns and performance data from comparable contracts, a definitive value assessment is difficult.
What are the primary risks associated with executing base life support services in continental Africa under this contract?
Executing base life support services in continental Africa presents several significant risks. These include logistical challenges related to transportation of personnel, equipment, and supplies across vast distances and potentially underdeveloped infrastructure. Security risks, such as political instability, local conflicts, or terrorism, can impact personnel safety and operational continuity, potentially leading to increased security costs. Health risks, including endemic diseases and limited access to advanced medical facilities, require robust health and safety protocols. Furthermore, navigating diverse regulatory environments, cultural differences, and potential corruption can add complexity and cost. The Cost Plus Fixed Fee structure, while offering flexibility, necessitates stringent oversight to manage these inherent risks and prevent uncontrolled cost escalation.
What are the key performance indicators (KPIs) used to measure the effectiveness of these base life support services?
Key Performance Indicators (KPIs) for base life support services typically focus on ensuring the operational readiness and well-being of personnel. Common KPIs include response times for facility maintenance requests, uptime percentages for critical utilities (power, water, sanitation), food service quality and availability metrics, transportation service reliability, and safety incident rates. For a contract of this nature, specific KPIs might also relate to the efficiency of supply chain management, the effectiveness of waste management systems, and the provision of accommodation and recreational facilities. The effectiveness of these services is often measured against established service level agreements (SLAs) within the contract. Regular performance reviews and audits would assess Fluor Intercontinental's adherence to these KPIs.
How has spending on base life support services in Africa by the Department of Defense trended over the past five years?
Analyzing historical spending trends for base life support services in Africa by the Department of Defense requires access to comprehensive federal procurement data. Generally, defense spending in regions with ongoing military or diplomatic operations tends to fluctuate based on geopolitical factors, mission requirements, and strategic priorities. In recent years, the U.S. has maintained a presence in various African nations for counter-terrorism efforts, security cooperation, and diplomatic support, suggesting a sustained need for base life support. While specific figures for 'base life support in Africa' are not readily available in this summary, overall defense spending on logistics and support services globally has been substantial. Factors like troop deployments, base consolidation or expansion, and the nature of security challenges influence these spending patterns.
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
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $112,534,753
Exercised Options: $112,534,753
Current Obligation: $112,534,753
Subaward Activity
Number of Subawards: 131
Total Subaward Amount: $48,988,759
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2014-08-13
Current End Date: 2025-06-16
Potential End Date: 2025-06-16 12:06:00
Last Modified: 2025-07-07
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