DoD awards $177.5M for logistics support, raising questions on cost-effectiveness and competition

Contract Overview

Contract Amount: $36,351,247 ($36.4M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2000-10-06

End Date: 2001-09-30

Contract Duration: 359 days

Daily Burn Rate: $101.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200106!000005!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0040 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !MK!* !* !MACEDONIA !+000007789919!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S! !*!*!*!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 $36.4 million to BROWN & ROOT SERVICES for work described as: 200106!000005!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0040 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !MK!* !* … Key points: 1. The contract for logistics support services was awarded to BROWN & ROOT SERVICES for $177.5 million. 2. Awarded by the Department of the Army, the contract falls under the Defense sector. 3. The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. 4. While listed as full and open competition, the specific details of the bidding process are not fully discernible.

Value Assessment

Rating: questionable

The Cost Plus Award Fee structure allows for contractor reimbursement of costs plus a fee that can be adjusted based on performance. Without detailed performance metrics and fee structures, it's difficult to assess if the final price represents excellent value compared to similar logistics support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the data notes 'NOT DISCERNABLE OR CLASSIFIED' for certain details, which could obscure the true extent of competition and how price discovery was achieved.

Taxpayer Impact: The significant award amount necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for the required logistics support.

Public Impact

Military readiness and operational efficiency are directly impacted by the quality and cost of logistics support. Taxpayers are funding a substantial contract that requires careful monitoring to ensure value for money. The duration of the contract and its potential for follow-on work could have long-term implications for the awarded vendor's market position.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure
Lack of discernible details on competition
Potential for cost overruns without strict oversight

Positive Signals

Awarded under full and open competition
Addresses critical logistics support needs

Sector Analysis

This contract falls within the professional services sector, specifically logistics support, which is crucial for military operations. Benchmarks for similar large-scale logistics contracts can vary widely based on scope, duration, and specific services required.

Small Business Impact

There is no specific indication in the provided data that small businesses were involved as subcontractors or prime contractors in this particular award. Further analysis would be needed to determine any small business participation.

Oversight & Accountability

The Department of Defense is responsible for overseeing this contract. The 'NOT DISCERNABLE OR CLASSIFIED' notation suggests potential gaps in transparency or reporting, which could hinder effective oversight and accountability.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Award Fee structure can lead to higher costs.
Ambiguity in competition details.
Potential for cost overruns.
Lack of transparency in performance metrics.
Significant taxpayer investment requires strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to BROWN & ROOT SERVICES. 200106!000005!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!0040 !20001006!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !MK!* !* !MACEDONIA !+000007789919!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S! !*!*!*!B!*!*!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 $36.4 million.

What is the period of performance?

Start: 2000-10-06. End: 2001-09-30.

What specific performance metrics were used to determine the award fee, and how did they ensure cost-effectiveness?

The provided data does not detail the specific performance metrics tied to the award fee. For a Cost Plus Award Fee contract, these metrics are crucial for incentivizing efficiency and ensuring the contractor meets or exceeds performance expectations. Without this information, it's challenging to ascertain if the fee structure effectively controlled costs or simply added to the overall expenditure.

How did the 'full and open competition' process ensure the best possible price and quality for these logistics services?

While the contract is designated as 'full and open competition,' the notation 'NOT DISCERNABLE OR CLASSIFIED' for certain aspects raises concerns. This lack of clarity could mask limitations in the bidding pool or prevent a thorough understanding of how competing proposals were evaluated to secure the best value for the government and taxpayers.

What is the projected total cost of this contract, considering potential award fees and contract modifications over its duration?

The initial award amount is $177,582,855. However, as a Cost Plus Award Fee contract, the final cost can exceed this figure based on incurred costs and the awarded fee. Without detailed projections for award fees and potential contract modifications, the total expenditure remains uncertain, making a definitive assessment of its effectiveness difficult.

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, 77020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA7899D0003

IDV Type: IDC

Timeline