DoD's $177.6M DTRA contract with Brown & Root Services for Russia-based construction services awarded under full and open competition

Contract Overview

Contract Amount: $88,731,286 ($88.7M)

Contractor: Brown & Root Services

Awarding Agency: Department of Defense

Start Date: 2000-09-06

End Date: 2005-11-30

Contract Duration: 1,911 days

Daily Burn Rate: $46.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Construction

Official Description: 200012!9700!001742!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0101 !A!*!P00001 !20000906!20090820!177582855!010810893!964409007!N!1PX83!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !RS!* !* !RUSSIA !0001!+000045000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !1799!3!*!*!C!B!A!*!A !Y!R!2!003!A!* !Z!Y!Z!B !RS!N!M!*!*!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $88.7 million to BROWN & ROOT SERVICES for work described as: 200012!9700!001742!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0101 !A!*!P00001 !20000906!20090820!177582855!010810893!964409007!N!1PX83!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !RS!* !* … Key points: 1. The contract value is substantial at $177.6 million, indicating a significant investment. 2. Brown & Root Services, a division of Halliburton, is a large, established contractor. 3. The contract's focus on Russia presents geopolitical and operational risks. 4. Construction services in a foreign, potentially unstable region are inherently risky.

Value Assessment

Rating: questionable

The contract value of $177.6 million is high. Without specific unit costs or benchmarks for similar construction projects in Russia, it's difficult to definitively assess pricing fairness. The 'NOT DISCERNABLE OR CLASSIFIED' note for cost breakdown further hinders this assessment.

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 nature of construction services in Russia might limit the pool of truly capable and willing bidders, potentially impacting price discovery.

Taxpayer Impact: While competition was intended, the lack of detailed cost information makes it hard to quantify the precise taxpayer benefit. The government aimed for value through competition, but the final cost-effectiveness remains somewhat opaque.

Public Impact

Taxpayers are funding significant construction projects in Russia, potentially related to defense or infrastructure. The contract duration of over 5 years suggests long-term commitment and potential for ongoing expenditure. Geopolitical factors in Russia could impact project execution, cost, and safety, indirectly affecting U.S. interests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical Risk (Russia)
Operational Complexity (Foreign Construction)
Lack of Cost Transparency

Positive Signals

Full and Open Competition
Established Contractor

Sector Analysis

This contract falls under the Construction sector, specifically for 'OTHER MISCELLANEOUS BUILDINGS' in Russia. Construction projects, especially in foreign or sensitive regions, often carry higher risks related to logistics, security, and regulatory compliance compared to domestic projects.

Small Business Impact

The awardee, Brown & Root Services, is a large corporation, not a small business. There is no indication that small businesses were subcontracted for this specific award, suggesting limited direct benefit to the small business sector from this prime contract.

Oversight & Accountability

The contract was awarded by the Defense Threat Reduction Agency (DTRA), part of the Department of Defense. Oversight would likely involve DTRA's contracting officers and potentially personnel on the ground in Russia to monitor progress and ensure compliance.

Related Government Programs

Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Geopolitical Instability in Russia
Operational Challenges in Foreign Construction
Limited Cost Transparency
Potential for Scope Creep
Security Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.7 million to BROWN & ROOT SERVICES. 200012!9700!001742!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0101 !A!*!P00001 !20000906!20090820!177582855!010810893!964409007!N!1PX83!BROWN & ROOT SERVICES, A DIVIS!9900 WESTPARK !HOUSTON !TX!77063!* !* !RS!* !* !RUSSIA !0001!+000045000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !1799!3!*!*!C!B!A!*!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 (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $88.7 million.

What is the period of performance?

Start: 2000-09-06. End: 2005-11-30.

What specific types of 'OTHER MISCELLANEOUS BUILDINGS' were constructed, and how did their purpose align with DTRA's mission?

The specific nature of the 'OTHER MISCELLANEOUS BUILDINGS' is not detailed in the provided data. Given DTRA's mission to reduce the threat of WMDs, these buildings could range from storage facilities, research labs, or support infrastructure related to arms control or demilitarization efforts in Russia. Further details would be needed to confirm their exact purpose and strategic alignment.

What were the key risk mitigation strategies employed for a large construction project in Russia, and how effective were they?

Executing construction in Russia presents significant geopolitical, security, and logistical risks. Effective mitigation would likely involve robust security protocols, contingency planning for political instability, navigating complex local regulations, and ensuring supply chain resilience. The 'questionable' value rating suggests potential concerns about cost-effectiveness, which could be linked to unforeseen risks or inadequate mitigation strategies impacting the final price.

How did the 'FULL AND OPEN COMPETITION' process ensure the best value was obtained for these specific services in Russia?

While 'FULL AND OPEN COMPETITION' is the preferred method, its effectiveness in ensuring best value for specialized services in a challenging location like Russia depends on the breadth of qualified bidders. If the pool of capable contractors willing and able to operate in Russia was limited, the competition might not have driven prices down as effectively as in a less complex environment. The lack of detailed cost data makes it difficult to confirm optimal value was achieved.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Contractor Details

Address: 9900 WESTPARK, HOUSTON, TX, 77063

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline