DoD's $177.6M Logistics Support Contract Awarded to Brown & Root Services Faces Scrutiny
Contract Overview
Contract Amount: $68,648,752 ($68.6M)
Contractor: Brown & Root Services
Awarding Agency: Department of Defense
Start Date: 2002-11-04
End Date: 2003-09-30
Contract Duration: 330 days
Daily Burn Rate: $208.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200304!000061!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0045 !20021104!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !YO!* !* !YUGOSLAVIA!+000001960608!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !5!B!S! ! !D!20040930!B! ! !A! !A!U!R!1!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $68.6 million to BROWN & ROOT SERVICES for work described as: 200304!000061!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0045 !20021104!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !YO!* !* … Key points: 1. The contract, valued at $177.6 million, was awarded to Brown & Root Services for logistics support. 2. Awarded under full and open competition, the contract's pricing and value are subject to review. 3. The duration of the contract is 330 days, with a significant portion of the funding allocated. 4. The sector is primarily services, with a specific PSC code indicating logistics support.
Value Assessment
Rating: questionable
The contract's total value is $177.6 million. Without specific unit costs or detailed breakdowns, it's difficult to benchmark against similar logistics support services. The Cost Plus Award Fee structure warrants close examination to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the Cost Plus Award Fee (CPAF) structure can sometimes lead to less aggressive cost control by the contractor if not managed tightly.
Taxpayer Impact: The significant value of this contract means that any inefficiencies or excessive costs directly impact taxpayer funds. Robust oversight is crucial to ensure value for money.
Public Impact
Taxpayers are funding a substantial logistics support contract for operations in Yugoslavia. The contract's duration and cost raise questions about the efficiency and necessity of the services provided. The Department of Defense's award process and oversight of this contract are critical for accountability. Potential for cost overruns exists with the Cost Plus Award Fee structure, impacting the final taxpayer expense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Limited transparency on specific service costs
- Geopolitical context of Yugoslavia operations
Positive Signals
- Awarded under full and open competition
- Clear contract duration and start/end dates
Sector Analysis
This contract falls within the broader services sector, specifically focusing on logistics support. Benchmarking this specific type of service can be challenging due to its operational context and the nature of the support required, especially in a post-conflict or transitional region.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) structure necessitates strong government oversight to ensure that the contractor is meeting performance objectives and managing costs effectively. The Department of the Army is responsible for this oversight.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Award Fee structure may incentivize higher costs.
- Lack of detailed cost breakdown for services.
- Operational environment in Yugoslavia presents unique risks.
- Potential for scope creep without strict oversight.
- Limited information on contractor's past performance in similar roles.
Tags
department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.6 million to BROWN & ROOT SERVICES. 200304!000061!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7899D0003 !A!N! !Y!0045 !20021104!20030930!177582855!010810893!964409007!N!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !YO!* !* !YUGOSLAVIA!+000001960608!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !5!B!S! ! !D!20040930!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 $68.6 million.
What is the period of performance?
Start: 2002-11-04. End: 2003-09-30.
What specific logistics support services are included in this contract, and how were they priced to ensure value for money?
The data indicates 'LOGISTICS SUPPORT SERVICES' but lacks granular detail on the specific tasks and their associated costs. The Cost Plus Award Fee (CPAF) structure means pricing is tied to performance and cost targets. A thorough review of the contract's performance metrics and cost reports would be necessary to assess value for money and ensure that taxpayer funds are being used efficiently for the services rendered.
What are the primary risks associated with providing logistics support in Yugoslavia, and how are they being mitigated by Brown & Root Services?
Operating in Yugoslavia presents inherent risks including political instability, security concerns, and logistical challenges unique to the region. Mitigation strategies would likely involve robust security protocols, adaptable logistical planning, and close coordination with military and diplomatic entities. The contract's performance and award fee structure should incentivize effective risk management by the contractor.
How effective has Brown & Root Services been in fulfilling similar logistics support contracts for the Department of Defense in the past?
Assessing the effectiveness of Brown & Root Services requires reviewing their past performance records, including any past performance evaluations or award fee determinations on similar DoD contracts. Without access to this historical data, it's difficult to definitively state their effectiveness. However, their selection under full and open competition suggests they met initial qualification criteria.
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: 2002-11-04
Current End Date: 2003-09-30
Potential End Date: 2003-09-30 00:00:00
Last Modified: 2014-08-26
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