DoD's $17.7M Logistics Support Contract Awarded to Brown & Root Services Amidst Full and Open Competition

Contract Overview

Contract Amount: $13,092,669 ($13.1M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2002-11-01

End Date: 2003-09-30

Contract Duration: 333 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200304!000096!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0022 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000003901362!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !5!A!S! ! !D!20030930!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: HOUSTON, HARRIS County, TEXAS, 77020

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to BROWN & ROOT SERVICES for work described as: 200304!000096!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0022 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* … Key points: 1. The contract, valued at $17.7 million, was awarded by the Department of the Army. 2. Brown & Root Services, a division of Halliburton, secured the contract. 3. The contract was awarded under a full and open competition. 4. The period of performance spans from November 1, 2002, to September 30, 2003. 5. The contract falls under the Logistics Support Services category.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. The award fee structure needs robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven a fair price. However, the Cost Plus Award Fee structure requires careful monitoring to ensure the final price reflects true value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a reasonable price, but the cost-plus structure warrants vigilance to prevent overspending.

Public Impact

Ensures continued logistical support for military operations, potentially in Bosnia. Supports a major defense contractor, contributing to the defense industrial base. The contract's duration of less than a year suggests a specific, short-term need. Awarding to a large, established firm may limit opportunities for smaller, specialized businesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can incentivize higher costs.
Short contract duration may indicate a stop-gap measure or specific project.
Lack of specific details on performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Established contractor with demonstrated capabilities.
Supports critical logistics functions for the Department of Defense.

Sector Analysis

This contract falls within the professional services sector, specifically logistics support. Benchmarks for similar services can vary widely based on scope and location, but a $17.7 million contract for a year of support is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large, established firm. There is no indication of small business subcontracting goals or achievements.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the DoD. Oversight would typically involve contract officers and program managers to ensure performance and cost control, especially given the Cost Plus Award Fee structure.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Short contract duration may indicate a temporary or stop-gap solution.
Lack of specific performance metrics makes value assessment challenging.
Potential for limited small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to BROWN & ROOT SERVICES. 200304!000096!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0022 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000003901362!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !5!A!S! ! !D!20030930!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 $13.1 million.

What is the period of performance?

Start: 2002-11-01. End: 2003-09-30.

What specific logistics support services were provided under this contract, and how did they contribute to mission objectives?

The contract provided 'LOGISTICS SUPPORT SERVICES' under PSC R706. While the exact nature of these services isn't detailed, they likely encompassed supply chain management, transportation, maintenance, or base operations support crucial for military deployments. The contract's performance period suggests it addressed immediate or short-term logistical needs, directly impacting operational readiness and effectiveness in the theater of operations.

How effectively did the full and open competition process ensure competitive pricing for this Cost Plus Award Fee contract?

Full and open competition theoretically drives competitive pricing by allowing all eligible sources to bid. However, the Cost Plus Award Fee (CPAF) structure introduces complexity. While the initial award price might be competitive, the 'cost plus' element means the final price is tied to actual costs plus a fee, which can be influenced by performance incentives. Effective oversight is crucial to ensure the CPAF structure doesn't inflate costs beyond what a fixed-price contract might achieve.

What is the potential long-term impact of awarding such contracts to large, established firms versus promoting smaller, specialized businesses?

Awarding large contracts to established firms like Brown & Root Services ensures reliable execution of complex tasks, leveraging their extensive resources and experience. However, it can limit opportunities for smaller businesses to gain experience and grow within the defense sector. A balanced approach, potentially including set-asides or subcontracting requirements, could foster a more diverse and competitive industrial base while still meeting critical mission needs.

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