DoD Awards $177.6M for Logistics Support Services to Brown & Root Services Amidst Full and Open Competition

Contract Overview

Contract Amount: $120,948,189 ($120.9M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2000-11-01

End Date: 2001-09-30

Contract Duration: 333 days

Daily Burn Rate: $363.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200106!000042!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!004101 !20001101!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000010149735!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S!B!*!*!*!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 $120.9 million to BROWN & ROOT SERVICES for work described as: 200106!000042!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!004101 !20001101!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* … Key points: 1. The contract, valued at $177.6 million, was awarded to Brown & Root Services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract carries a risk of cost overruns due to its Cost Plus Award Fee (CPAF) structure. 4. Logistics support services fall under the broader 'Services' sector, with a specific PSC code of R706.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee (CPAF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. The award amount of $177.6 million for a duration of 333 days needs further benchmarking against 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, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing, although the CPAF structure introduces some variability.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process. However, the CPAF structure requires careful oversight to ensure costs remain reasonable.

Public Impact

This significant contract supports critical logistics operations, likely impacting military readiness and deployment capabilities. The award to a single entity, Brown & Root Services, highlights the concentration of large-scale service providers in this sector. Taxpayers are directly funding these essential services, underscoring the need for efficient and effective contract management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) structure can incentivize higher costs.
Potential for cost overruns if performance incentives are not well-defined or managed.
Contract duration of 333 days for a large sum requires close monitoring.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Brown & Root Services is a known entity in government contracting.
Contract supports essential logistics functions.

Sector Analysis

This contract falls within the broader 'Services' sector, specifically focusing on logistics support. The Public Service Code (PSC) R706 indicates specialized logistics functions. Benchmarking against similar contracts for logistics support services is crucial to assess value for money.

Small Business Impact

The data indicates that the prime contractor is BROWN & ROOT SERVICES, a division. There is no explicit information regarding subcontracting to small businesses in the provided data, which warrants further investigation to ensure small business participation.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that award fees are earned based on genuine performance and that costs are reasonable and allocable. The Department of Defense and Department of the Army are responsible for this oversight.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Award Fee (CPAF) structure.
Potential for cost creep and lack of price certainty.
Limited information on specific performance metrics and oversight.
No explicit mention of small business subcontracting.
Contract awarded for a significant duration and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.9 million to BROWN & ROOT SERVICES. 200106!000042!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N!*!Y!004101 !20001101!20010930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !BK!* !* !BOSNIA !+000010149735!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!*!*!5!B!S!B!*!*!*!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 $120.9 million.

What is the period of performance?

Start: 2000-11-01. End: 2001-09-30.

What specific logistics support services are included in this contract, and how do they align with current operational needs?

The contract is for 'LOGISTICS SUPPORT SERVICES' under PSC R706. While the exact scope is not detailed, these services typically encompass a range of activities such as supply chain management, transportation, maintenance, and warehousing. Understanding the specific requirements is key to assessing if the $177.6 million award represents good value and effectively meets the operational demands of the Transatlantic Program Center.

How effectively was the Cost Plus Award Fee (CPAF) structure managed to control costs and incentivize desired performance?

The CPAF structure allows for a base fee plus an award fee based on performance. Effective management requires clear performance metrics and rigorous evaluation to ensure that award fees are tied to exceptional service and not merely meeting minimum requirements. Without detailed performance reports and fee allocation data, it's difficult to assess the cost control and incentive effectiveness of this specific contract.

What was the competitive landscape for this 'full and open competition,' and did it result in optimal pricing for the taxpayer?

Full and open competition implies multiple bids were solicited and evaluated. The competitiveness of the landscape can be inferred from the number of bids received and the final negotiated price. While 'full and open' generally promotes competitive pricing, the CPAF structure means the final cost is not fixed. Further analysis of the bidding process and the final price relative to independent cost estimates would be needed to confirm optimal taxpayer value.

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