DoD Awards $17.7M Logistics Support Services Contract to Brown & Root Services

Contract Overview

Contract Amount: $60,350,026 ($60.4M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 1998-10-19

End Date: 1998-11-27

Contract Duration: 39 days

Daily Burn Rate: $1.5M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199901!2100!0011!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7897D0001 !A!*!0018 !19981019!19990527!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES CORPORAT!4100 CLINTON DR !HOUSTON !TX!77020!* !* !MK!* !* !MACEDONIA !0001!+000003447985!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!5!B!S!H!B!B!*!D !Y!R!1!001!N!1B!Z!Y!Z!* !* !N!M!*!*!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $60.4 million to BROWN & ROOT SERVICES for work described as: 199901!2100!0011!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7897D0001 !A!*!0018 !19981019!19990527!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES CORPORAT!4100 CLINTON DR !HOUSTON !TX!77020!* !* !MK!* !* … Key points: 1. Contract awarded for logistics support services, indicating a need for operational efficiency. 2. Brown & Root Services, a large corporation, secured the contract, suggesting established capabilities. 3. The contract was not competed, raising questions about potential cost savings and best value. 4. The sector is Defense, a major area of federal spending with complex procurement needs.

Value Assessment

Rating: fair

The contract value of $17.7 million for a short duration (39 days) appears high for logistics support services. Benchmarking against similar contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award means taxpayers may not have received the best possible price for these essential logistics services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on contractors for critical support, impacting operational readiness. Lack of transparency in sole-source awards hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Defense sector, specifically for logistics support services. Spending in this area is substantial, and efficient procurement is crucial for national security. Benchmarks for similar services vary widely based on scope and duration.

Small Business Impact

The award went to a large corporation, Brown & Root Services, with no indication of small business participation. This contract did not appear to leverage small business capabilities.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable. Accountability is reduced when competition is absent.

Related Government Programs

Risk Flags

Tags

department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.4 million to BROWN & ROOT SERVICES. 199901!2100!0011!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7897D0001 !A!*!0018 !19981019!19990527!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES CORPORAT!4100 CLINTON DR !HOUSTON !TX!77020!* !* !MK!* !* !MACEDONIA !0001!+000003447985!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!5!B!S!H!B!B!*!D !Y!R!1!0

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 $60.4 million.

What is the period of performance?

Start: 1998-10-19. End: 1998-11-27.

What specific logistics support services were provided under this contract, and how do they justify the $17.7 million cost for a 39-day period?

The data indicates the contract was for 'LOGISTICS SUPPORT SERVICES' under a 'COST PLUS AWARD FEE' structure. Without a detailed statement of work, it's impossible to ascertain the exact services. The high cost for a short duration suggests either highly specialized or extensive support was required, or the pricing may not have been optimized due to the lack of competition.

What were the circumstances that led to this contract being awarded on a sole-source basis instead of through a competitive process?

The contract was designated as 'NOT COMPETED'. Reasons for sole-source awards can include urgency, lack of available sources, or specific technical requirements. However, without further documentation, the justification for bypassing competition remains unclear, raising concerns about potential missed savings and fairness.

How effectively did Brown & Root Services meet the performance objectives under this contract, particularly given the cost-plus-award-fee structure?

The contract type is 'COST PLUS AWARD FEE', implying that contractor performance against defined objectives influences the final payment. The provided data does not include performance metrics or award fee determinations. Therefore, the effectiveness of the contractor's service delivery and the justification for any award fee cannot be assessed from this information.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 4100 CLINTON DR, HOUSTON, TX, 77020

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 1998-10-19

Current End Date: 1998-11-27

Potential End Date: 1998-11-27 00:00:00

Last Modified: 2023-01-27

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