DoD's $177.6M logistics contract for Serbia awarded to Brown & Root Services, spanning 359 days

Contract Overview

Contract Amount: $69,459,033 ($69.5M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 1999-10-07

End Date: 2000-09-30

Contract Duration: 359 days

Daily Burn Rate: $193.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200012!2100!000006!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!*!0039 !19991007!20000930!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !SR!* !* !SERBIA !0001!+000007284632!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!5!B!S!A!B!B!*!A !Y!R!2!002!B!* !Z!N!Z!* !* !N!M!*!*!*!A!A!A!A!* !*!N!A!B!N!*!*!Y!Y!*!

Plain-Language Summary

Department of Defense obligated $69.5 million to BROWN & ROOT SERVICES for work described as: 200012!2100!000006!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!*!0039 !19991007!20000930!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !SR!* !* … Key points: 1. Contract value of $177.6 million for logistics support services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of 359 days suggests a short-term operational need. 4. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 5. Services were delivered in Serbia, highlighting a specific geographic focus. 6. The primary contractor is Brown & Root Services, a known entity in government contracting.

Value Assessment

Rating: fair

The contract's total value of $177.6 million for approximately one year of logistics support in Serbia appears substantial. Benchmarking against similar international logistics contracts is difficult without more specific service details and geographic comparisons. The Cost Plus Award Fee structure allows for flexibility but can lead to higher costs if not managed carefully, making a direct value-for-money assessment challenging without performance data.

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 were likely solicited and evaluated. The presence of two bids indicates a degree of competition, which is generally favorable for price discovery and achieving a reasonable cost. However, the specific number of bidders and the details of the solicitation process would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are likely U.S. military or diplomatic personnel operating in Serbia, receiving essential logistical support. Services delivered include general logistics support, crucial for maintaining operational readiness in a foreign deployment. The geographic impact is concentrated in Serbia, supporting U.S. interests or operations within that region. Workforce implications could involve the deployment of specialized personnel by Brown & Root Services to manage and execute the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance metrics and award fees are not tightly controlled.
The specific nature of 'logistics support services' is broad and could encompass a wide range of activities, making it difficult to assess efficiency without further detail.
Operating in a foreign country like Serbia may introduce geopolitical or logistical risks not fully captured in the contract terms.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contractor, Brown & Root Services, has a history of performing large-scale government contracts, implying experience and capability.
The contract duration, while relatively short, suggests a focused and potentially manageable scope of work.

Sector Analysis

This contract falls within the broader defense logistics and support services sector. The global defense logistics market is substantial, driven by ongoing military operations, training exercises, and strategic deployments worldwide. Contracts like this are essential for maintaining the operational effectiveness of forces stationed abroad, often involving complex supply chain management, transportation, and base support. Comparable spending benchmarks would depend heavily on the specific services rendered and the operational tempo in the region.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting plans within the provided data. This contract, given its significant value and scope, may not have been specifically targeted for small business participation. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, with specific program managers responsible for monitoring performance, costs, and compliance. The Cost Plus Award Fee structure necessitates close oversight to ensure that award fees are justified by performance and that costs remain within reasonable bounds. Transparency would depend on the agency's reporting practices and the public availability of contract performance reports.

Related Government Programs

Department of Defense Logistics Contracts
International Support Services
Army Service Contracts
Foreign Military Support

Risk Flags

Contract awarded in late 1999, potentially subject to evolving geopolitical conditions in the Balkans.
Cost Plus Award Fee structure requires diligent oversight to ensure value for money.
Limited information on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.5 million to BROWN & ROOT SERVICES. 200012!2100!000006!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!*!0039 !19991007!20000930!177582855!010810893!964409007!N!0BY16!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !SR!* !* !SERBIA !0001!+000007284632!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!5!B!S!A!B!B!*!A !Y!R!

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 $69.5 million.

What is the period of performance?

Start: 1999-10-07. End: 2000-09-30.

What was the specific nature of the logistics support services provided under this contract in Serbia?

The provided data categorizes the service as 'LOGISTICS SUPPORT SERVICES' (PSC code R706). While the specific tasks are not detailed, this typically encompasses a broad range of activities essential for military or governmental operations abroad. This can include supply chain management, transportation of goods and personnel, maintenance of equipment, facility management, and potentially base operations support. Given the location in Serbia, these services were likely crucial for supporting U.S. personnel or assets deployed in the region, ensuring the smooth functioning of operations through reliable delivery of resources and maintenance of infrastructure.

How does the $177.6 million contract value compare to similar logistics support contracts in the region or for similar durations?

Directly comparing the $177.6 million value for a 359-day contract is challenging without more granular data on the specific services rendered and the operational context in Serbia. However, for a single-year contract of this magnitude, it suggests a significant operational footprint or a high level of required support. Large-scale logistics contracts supporting military deployments can range from tens to hundreds of millions of dollars annually, depending on the size of the contingent, the complexity of the mission, and the remoteness of the location. Without specific benchmarks for Serbian operations or comparable mission types, it's difficult to definitively label this value as high or low, but it indicates a substantial investment in logistical capabilities.

What were the key performance indicators (KPIs) and award fee criteria for Brown & Root Services under this Cost Plus Award Fee contract?

The provided data does not specify the Key Performance Indicators (KPIs) or the criteria for the award fee. Under a Cost Plus Award Fee (CPAF) contract, the contractor is reimbursed for allowable costs plus a fixed fee, with the potential for an additional award fee based on performance against pre-defined metrics. These metrics are typically established in the contract's Performance Work Statement (PWS) and might include factors like on-time delivery, quality of service, cost control, safety compliance, and responsiveness. The Contracting Officer's Representative (COR) or a similar oversight official would evaluate performance against these criteria to determine the amount of the award fee, if any.

What is the track record of Brown & Root Services in performing large-scale international logistics contracts for the Department of Defense?

Brown & Root Services, and its parent companies over time (like KBR), have a long and extensive history of performing large-scale, complex logistics and support contracts for the Department of Defense, particularly in overseas contingency operations. They have been involved in major support efforts in regions such as the Middle East (Iraq, Afghanistan) and other global locations. Their experience typically includes base operations, supply chain management, construction, and maintenance services. While this specific contract in Serbia is a data point, the company's broader track record suggests significant capability and experience in executing such demanding international logistics requirements.

Were there any notable risks or challenges associated with this contract, either identified during procurement or encountered during performance?

The provided data does not explicitly detail risks or challenges encountered during the performance of this contract. However, operating in a foreign country like Serbia, especially during the period of the late 1990s, could present inherent risks related to political stability, security, local regulations, and logistical complexities. The Cost Plus Award Fee contract type itself implies a level of uncertainty or complexity where performance incentives are deemed necessary. Potential risks could include unforeseen operational demands, changes in the geopolitical landscape affecting the mission, or difficulties in resource acquisition and personnel deployment in the region.

How has spending on logistics support services in the Balkans region evolved since this contract was awarded in 1999?

Spending on logistics support services in the Balkans region has likely evolved significantly since this contract was awarded in 1999. The late 1990s and early 2000s were a period of substantial U.S. and NATO military presence and stabilization operations in the Balkans (e.g., Bosnia, Kosovo). As security situations stabilized and direct military involvement decreased, the nature and scale of logistics support contracts would have shifted. Spending may have decreased overall or transitioned towards different types of support, such as intelligence, training, or smaller-scale security cooperation initiatives. Tracking specific spending trends requires access to subsequent contract awards and budget allocations for the region.

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