DOD awards $375.8M contract to Fluor Intercontinental for Iraq facility maintenance, spanning over 12 years

Contract Overview

Contract Amount: $375,780,601 ($375.8M)

Contractor: Fluor Intercontinental, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-10

End Date: 2020-06-01

Contract Duration: 5,166 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200607!601203!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !Y!0017 ! !20060410!20070514!140243291!140243291!006907190!N!FLUOR INTERCONTINENTAL INC !100 FLUOR DANIEL DRIVE !GREENVILLE !SC!29607!00000! !IZ! ! !IRAQ !+000059103585!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!J!2!030!B! !Z!N!A! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $375.8 million to FLUOR INTERCONTINENTAL, INC. for work described as: 200607!601203!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !Y!0017 ! !20060410!20070514!140243291!140243291!006907190!N!FLUOR INTERCONTINENTAL INC !100 FLUOR DANIEL DRIVE !GREENVILLE !SC!29607!00000! !IZ! ! !IRAQ !+000059103585!N!N!000000000000!Z299!MAINT/ALL OTH… Key points: 1. Contract value of $375.8M represents significant investment in maintaining non-building facilities in Iraq. 2. Long contract duration of over 12 years suggests a need for sustained, long-term support services. 3. Awarded under full and open competition, indicating a potentially competitive bidding process. 4. The contract's focus on 'MAINT/ALL OTHER NON-BUILDING FACILITIES' highlights a specific niche within infrastructure support. 5. Fluor Intercontinental, Inc. has a substantial contract history with the government, suggesting established performance. 6. The contract's significant dollar value and long term may indicate potential risks related to changing geopolitical conditions or evolving needs.

Value Assessment

Rating: fair

The contract value of $375.8 million over more than 12 years averages to approximately $31.3 million annually. Benchmarking this against similar contracts for facility maintenance in complex overseas environments is challenging due to unique operational factors. However, the sheer scale and duration suggest a significant commitment of resources. Without more granular data on the specific services rendered and their unit costs, a definitive value-for-money assessment is difficult, but the long-term nature implies a strategic decision to ensure continuity of operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of 30 delivery orders indicates a structured approach to tasking within the contract's scope. While the specific number of initial bidders is not detailed, full and open competition generally fosters price discovery and encourages contractors to offer competitive pricing to secure such a substantial award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are U.S. military operations and personnel in Iraq, who rely on well-maintained facilities for mission effectiveness. Services delivered include maintenance and support for various non-building facilities critical to operational infrastructure. The geographic impact is concentrated in Iraq, supporting U.S. presence and activities within the country. Workforce implications may include direct employment by Fluor Intercontinental and its subcontractors in the region, as well as indirect economic impacts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases exposure to geopolitical risks and potential changes in operational requirements in Iraq.
The significant dollar amount necessitates robust oversight to ensure funds are used efficiently and effectively.
Reliance on a single large contractor for critical infrastructure maintenance could pose risks if performance falters.
The nature of 'MAINT/ALL OTHER NON-BUILDING FACILITIES' might involve specialized equipment or expertise that could be difficult to replace quickly.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
Fluor Intercontinental, Inc. has a long-standing relationship with the government, indicating a degree of proven capability and experience.
The contract's structure with multiple delivery orders allows for phased execution and management of tasks.
The sustained nature of the contract implies a recognized and ongoing need for these essential services.

Sector Analysis

This contract falls within the broader construction and facilities management sector, specifically focusing on the maintenance of non-building infrastructure. The global market for such services, particularly in support of government operations in challenging environments, is substantial. This award to Fluor Intercontinental represents a significant portion of spending dedicated to maintaining essential operational capabilities in a specific theater. Comparable spending benchmarks are difficult to establish precisely due to the unique operational context of Iraq, but the scale indicates a major commitment.

Small Business Impact

Information regarding specific small business set-asides or subcontracting plans for this contract is not detailed in the provided data. However, contracts of this magnitude often include provisions for small business participation, either through direct set-asides or as part of the prime contractor's subcontracting goals. The extent of small business involvement would depend on Fluor Intercontinental's subcontracting strategy and the availability of qualified small businesses for the required services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and potentially the Department of Defense's Inspector General, especially given its significant value and overseas location. Mechanisms likely include contract performance monitoring, regular reporting requirements from the contractor, and site inspections. Transparency is facilitated through contract award data, but detailed operational oversight specifics are typically internal to the agency.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Contingency Base Construction and Maintenance
Overseas Facility Management
Defense Infrastructure Projects

Risk Flags

Long-term contract in a high-risk environment
Significant dollar value requires robust oversight
Potential for scope creep or changing requirements
Dependence on contractor performance over extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $375.8 million to FLUOR INTERCONTINENTAL, INC.. 200607!601203!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !Y!0017 ! !20060410!20070514!140243291!140243291!006907190!N!FLUOR INTERCONTINENTAL INC !100 FLUOR DANIEL DRIVE !GREENVILLE !SC!29607!00000! !IZ! ! !IRAQ !+000059103585!N!N!000000000000!Z299!MAINT/ALL OTHER NON-BUILDING FACILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!J!2!030!B! !Z!N!A! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

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 $375.8 million.

What is the period of performance?

Start: 2006-04-10. End: 2020-06-01.

What is the historical spending trend for Fluor Intercontinental, Inc. with the Department of Defense, particularly in similar service categories?

Fluor Intercontinental, Inc. has a significant and long-standing contracting history with the Department of Defense, spanning several decades and encompassing a wide array of services, including construction, engineering, and base support operations. Analyzing historical spending reveals a pattern of large-scale awards, often associated with overseas operations and complex infrastructure projects. For instance, prior to this Iraq facility maintenance contract, Fluor has been involved in major construction and support initiatives in various theaters. While specific dollar amounts for similar service categories would require a deep dive into historical contract databases, the consistent award of substantial contracts indicates a trusted relationship and proven capability in delivering complex services to the DoD. This history suggests a predictable, albeit significant, level of financial engagement between the company and the department over time.

How does the per-unit cost of maintenance services under this contract compare to industry benchmarks for similar facilities in non-combat zones?

Directly comparing the per-unit cost of maintenance services under this contract to industry benchmarks for non-combat zones is challenging due to several critical factors. Firstly, the contract covers 'MAINT/ALL OTHER NON-BUILDING FACILITIES,' a broad category that likely includes diverse infrastructure like roads, airfields, utilities, and perimeter security, each with unique maintenance costs. Secondly, the operational environment in Iraq presents significant logistical, security, and operational complexities that inherently drive up costs compared to stable, domestic environments. These include higher labor costs, transportation expenses for materials and personnel, security provisions, and the need for rapid response capabilities. Without a detailed breakdown of specific services and their associated unit prices, a precise benchmark comparison is not feasible. However, it is reasonable to assume that costs in such a high-risk, complex environment would be substantially higher than standard commercial rates.

What are the primary risks associated with the long duration (over 12 years) of this contract, and what mitigation strategies are in place?

The primary risks associated with a contract of over 12 years include significant exposure to changing geopolitical landscapes, evolving operational requirements, potential technological obsolescence in maintenance practices, and contractor performance degradation over time. In the context of Iraq, geopolitical shifts could alter the nature or extent of U.S. presence, rendering the original scope of work obsolete or requiring substantial modification. Evolving military needs might demand different types of facility support. Furthermore, maintaining consistent high performance from a contractor over such an extended period can be challenging. Mitigation strategies typically involve robust contract management, including regular performance reviews, clear modification clauses to adapt to changing requirements, and performance-based incentives or penalties. The Department of Defense likely employs program managers and contracting officers to continuously monitor the contract, conduct periodic reviews, and ensure the contractor remains aligned with current objectives and performance standards.

What is the projected impact of this contract on the local Iraqi economy and workforce, if any?

The projected impact of this contract on the local Iraqi economy and workforce is likely to be mixed and dependent on the specific implementation by Fluor Intercontinental, Inc. On the positive side, the contract could create direct employment opportunities for Iraqi citizens in various roles, from skilled trades to general labor, contributing to local income and economic activity. It may also stimulate local businesses through subcontracting opportunities for materials, supplies, and support services. However, the extent of this impact is often influenced by the prime contractor's policies regarding local hiring and procurement, as well as security considerations that might limit the use of local resources. Furthermore, the presence of a large, long-term contract could also lead to dependency, and its eventual conclusion might result in economic disruption if not managed carefully. The overall net benefit would depend on the balance between job creation and local economic integration versus potential displacement or limited local participation.

How does the $375.8 million award compare to overall U.S. federal spending on facility maintenance and support in overseas contingency operations over the past decade?

The $375.8 million award to Fluor Intercontinental, Inc. for facility maintenance in Iraq represents a significant, but not unprecedented, investment within the broader context of U.S. federal spending on overseas contingency operations (OCO). Over the past decade, federal spending on OCO, particularly for defense and related support services in regions like the Middle East, has amounted to trillions of dollars. Contracts for base operations, construction, logistics, and maintenance have consistently formed a substantial portion of this spending. While this specific contract is large for a single award, it is one among thousands supporting U.S. military and diplomatic missions abroad. To contextualize, annual OCO budgets have often been in the tens or hundreds of billions of dollars. Therefore, this $375.8 million contract, spread over more than 12 years, is a notable allocation for a specific need in a particular theater but should be viewed as part of a much larger, ongoing federal commitment to supporting operations abroad.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 30

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 6000 FAIRVIEW AT J A JON, CHARLOTTE, NC, 28210

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER04D0004

IDV Type: IDC

Timeline