DoD's $177.6M contract for logistics support in Bosnia awarded to Brown & Root Services

Contract Overview

Contract Amount: $74,061,991 ($74.1M)

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: $222.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200304!000098!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0024 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000002299991!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! !

Plain-Language Summary

Department of Defense obligated $74.1 million to BROWN & ROOT SERVICES for work described as: 200304!000098!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0024 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* … Key points: 1. Contract awarded for logistics support services, indicating a need for operational sustainment. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract was 333 days, suggesting a medium-term operational requirement. 4. The contract type is Cost Plus Award Fee, which incentivizes performance while managing costs. 5. The contractor, Brown & Root Services, has a significant presence in government contracting. 6. The geographic focus on Bosnia highlights specific operational theaters for the Department of Defense.

Value Assessment

Rating: fair

The total value of $177.6 million for a 333-day contract for logistics support services appears substantial. Benchmarking this against similar contracts for overseas logistics support is challenging without more specific details on the scope of services. However, the Cost Plus Award Fee structure suggests that the final cost could vary based on performance, making a direct price comparison difficult. The contract's value per day is approximately $533,333, which needs to be evaluated in the context of the specific services rendered, such as transportation, maintenance, and base operations support in a potentially austere environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bids suggests a competitive environment, though the exact number of proposals received is not specified. Full and open competition generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition for this significant logistics contract likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a less competitive award.

Public Impact

The primary beneficiaries are the U.S. military personnel operating in Bosnia, who receive essential logistical support. Services delivered include critical logistics support, ensuring the operational readiness and effectiveness of deployed forces. The geographic impact is concentrated in Bosnia, supporting U.S. military operations in that region. Workforce implications include employment opportunities for personnel supporting the contract, both directly and indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed diligently, as the government bears the cost of performance plus an award fee.
The specific details of the award fee criteria are not provided, making it difficult to assess the fairness of the incentive structure.
The large contract value raises questions about the efficiency and cost-effectiveness of the logistics support provided over the contract period.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should drive value.
The contractor, Brown & Root Services, is a known entity with experience in large-scale government contracts, potentially indicating reliability.
The contract aims to provide essential logistics support, which is critical for mission success in deployed environments.

Sector Analysis

This contract falls within the broader defense logistics and support services sector. This sector is characterized by large, complex contracts often awarded to major defense contractors. The market size for such services is substantial, driven by ongoing military operations and global deployments. This specific contract for services in Bosnia represents a segment of the defense spending focused on operational sustainment in specific geographic theaters. Comparable spending benchmarks would typically involve other overseas base operations and logistics support contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large prime contract awarded to Brown & Root Services, it's possible that subcontracting opportunities may exist, but their extent and focus on small businesses are not detailed here. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management structures. Accountability measures are often tied to the performance metrics within the Cost Plus Award Fee structure. Transparency is generally facilitated through contract award databases, though detailed performance reports may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Base Operations Support (BOS) Contracts
Overseas Contingency Operations (OCO) Support
Department of Defense Maintenance and Repair Contracts

Risk Flags

Cost Plus Award Fee structure requires careful monitoring to ensure value for money.
Geographic location in Bosnia may present unique logistical and security challenges.
Contract duration of less than a year might indicate evolving mission requirements or phased support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.1 million to BROWN & ROOT SERVICES. 200304!000098!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !N!0024 !20021101!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000002299991!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 $74.1 million.

What is the period of performance?

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

What specific logistics support services were included under this $177.6 million contract?

The contract specifically covered 'LOGISTICS SUPPORT SERVICES'. While the detailed scope is not fully itemized in the provided data, this typically encompasses a wide range of activities essential for military operations in a deployed environment. These can include transportation of personnel and equipment, supply chain management, maintenance and repair of facilities and equipment, waste management, food services, security support, and potentially construction or infrastructure maintenance. The exact mix and emphasis of these services would have been defined in the contract's statement of work, tailored to the specific needs of U.S. forces operating in Bosnia during the contract period.

How does the Cost Plus Award Fee (CPAF) structure influence the final cost and contractor performance for this contract?

The Cost Plus Award Fee (CPAF) contract structure means that the contractor (Brown & Root Services) is reimbursed for all allowable costs incurred during performance, plus a base fee and an additional award fee. The award fee is contingent upon the government's assessment of the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to perform well to earn the maximum award fee. However, it also means the final cost is not fixed and can exceed initial estimates if costs are higher than anticipated or if the award fee is maximized. Effective government oversight is crucial to ensure that costs remain reasonable and that the award fee is justified by exceptional performance, preventing potential cost overruns.

What was the historical spending pattern for logistics support services in Bosnia prior to this contract?

The provided data does not contain historical spending patterns for logistics support services in Bosnia. To assess this, one would need to access historical contract databases and analyze spending by the Department of Defense or other relevant agencies for similar services in that specific geographic region over previous years. Understanding historical spending would allow for a comparison to gauge whether the $177.6 million awarded to Brown & Root Services represented an increase, decrease, or stable level of investment in logistics support for U.S. operations in Bosnia.

What is the track record of Brown & Root Services in providing similar logistics support services to the Department of Defense?

Brown & Root Services, now part of KBR, has a long and extensive track record of providing large-scale logistics, construction, and support services to the Department of Defense and other government agencies, both domestically and in overseas contingency operations. They have been involved in major support contracts in regions such as Iraq and Afghanistan, as well as base operations support worldwide. Their experience typically includes managing complex supply chains, maintaining facilities, providing life support services, and ensuring the operational readiness of deployed forces. While specific performance metrics for past contracts are not detailed here, their continued selection for significant contracts suggests a generally accepted capability and past performance record with the DoD.

How does the contract value of $177.6 million compare to the typical size of logistics support contracts for overseas operations?

A contract value of $177.6 million for approximately one year of logistics support services in an overseas operational theater is substantial, but not uncommon for large-scale deployments. Contracts of this magnitude are often awarded to support significant military presence or complex operational requirements. The size reflects the comprehensive nature of logistics support, which can include everything from transportation and supply to facility maintenance and personnel services. To provide a precise comparison, one would need to benchmark against similar contracts awarded for operations in comparable regions or of similar duration and scope, considering factors like the number of personnel supported and the level of infrastructure involved.

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