DoD's $13.3M Logistics Support Contract Awarded to Kellogg Brown & Root Services in 2004
Contract Overview
Contract Amount: $21,053,226 ($21.1M)
Contractor: Brown & Root Services
Awarding Agency: Department of Defense
Start Date: 2003-10-13
End Date: 2004-09-30
Contract Duration: 353 days
Daily Burn Rate: $59.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Services
Official Description: 200401!000012!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0029 ! !20031013!20040527!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !HU!* !* !HUNGARY !+000001791460!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! !D!20040527!B! ! !B! !A!Y!R!2!002!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! !Y!Y! ! !0001! !
Place of Performance
Location: WINCHESTER, FREDERICK County, VIRGINIA, 22602
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to BROWN & ROOT SERVICES for work described as: 200401!000012!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0029 ! !20031013!20040527!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !HU!* !* … Key points: 1. The contract awarded in 2004 for logistics support services was valued at $13.3 million. 2. Kellogg Brown & Root Services secured this contract through full and open competition. 3. The contract duration was 353 days, indicating a short-term operational need. 4. The sector is primarily services, specifically logistics support, within the defense industry.
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 scrutiny to ensure it incentivizes efficiency and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms and the number of bids received are not detailed, making a full assessment of price effectiveness difficult.
Taxpayer Impact: The competitive nature of the award suggests an effort to obtain fair market value, but the cost-plus award fee structure warrants monitoring to ensure taxpayer funds are used efficiently.
Public Impact
Military readiness and operational effectiveness may have been supported by these logistics services. The contract's focus on services highlights the significant role of private contractors in supporting military operations. Transparency in the award fee determination is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Cost-plus award fee contracts can incentivize spending.
- Limited information on specific performance metrics and award fee triggers.
- Contract duration is relatively short, suggesting potential for follow-on contracts.
Positive Signals
- Awarded under full and open competition.
- Contractor has a significant presence in government contracting.
Sector Analysis
This contract falls within the professional services sector, specifically logistics support, which is a common area of spending for the Department of Defense. Benchmarks for similar logistics contracts would be needed for a more precise comparison.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, and the prime contractor is a large entity. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight would typically be managed by the Department of the Army contracting office. The effectiveness of oversight depends on the rigor of performance monitoring and the clarity of the award fee criteria.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus award fee structure.
- Potential for cost overruns if performance incentives are not well-defined.
- Short contract duration may indicate a need for future, potentially more expensive, contract actions.
- Lack of detail on specific performance metrics.
Tags
department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to BROWN & ROOT SERVICES. 200401!000012!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0029 ! !20031013!20040527!133468954!133468954!964409007!N!KELLOGG BROWN & ROOT SERVICES,!9900 WESTPARK DR !HOUSTON !TX!77060!00000! !HU!* !* !HUNGARY !+000001791460!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !5!B!S! ! !D!200
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 $21.1 million.
What is the period of performance?
Start: 2003-10-13. End: 2004-09-30.
What were the specific performance metrics and award fee criteria used to determine the final contract value?
The provided data does not detail the specific performance metrics or award fee criteria. Understanding these elements is crucial for assessing whether the contractor achieved desired outcomes and if the award fee truly reflected exceptional performance, thereby impacting the overall value for money.
How did the 'Cost Plus Award Fee' structure influence the final cost compared to a fixed-price contract for similar logistics services?
Cost-plus award fee contracts allow for reimbursement of costs plus a fee that can be adjusted based on performance. This structure can incentivize contractors to meet or exceed performance targets but may also lead to higher overall costs if not tightly managed, compared to a fixed-price contract where risk is more on the contractor.
What was the competitive landscape for this specific logistics support service, and were there any challenges in attracting a broad range of bidders?
While the contract was awarded under 'full and open competition,' the data doesn't specify the number of bids received or any challenges encountered. A robust competitive process is key to ensuring fair pricing and value. Further analysis of bid data would clarify the extent of competition.
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
Start Date: 2003-10-13
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2014-08-21
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