Thursday, October 16, 2003 Contracts for Work in Iraq
Army Corps of Engineers
An existing Army Field Support Command Logistics Civil Augmentation Program (LOGCAP) contract, competitively bid, was used to prepare contingency plans for the government. The contract was awarded to Brown & Root Services (later to be known as Kellogg, Brown and Root) of Houston on December 14, 2001.
When a potential requirement to develop contingency plans to extinguish oil well fires and to assess damage to oil facilities that might occur in Iraq in the event of hostilities was identified it became readily apparent that use of an existing contract (LOGCAP) would be the most efficient and expedient way to meet the very compressed time line for potential plan execution.
After DOD designated the U. S. Army Corps of Engineers as Executive Agent to implement plans to extinguish oil well fires and assess damages to oil facilities during Operation Iraqi Freedom, the Corps used the existing contract to pre-position firefighting equipment and personnel and to extinguish oil well fires in southern Iraq that were ignited during the war and to assess damages.
On March 8, 2003 the Corps issued a contract to KBR to use for an interim period as a bridge to a competitive contract. It is an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract. Task Orders are issued against this contract as needed to obtain services necessary to support the mission in the near term. This contract is specified to be for a maximum of $7 billion. It is for a maximum period of two years with three one-year renewal options. This is a cost plus award fee contract with a 2% fixed fee and a potential extra 5% for work achieved over and above what is normally achieved. This is determined by an award board that meets to go over all aspects of the work performed.
Army Materiel Command utilized a competitively procured LOGCAP contract to perform the contingency planning for this mission. Through LOGCAP, Kellogg, Brown & Root (KBR) pre-positioned people and equipment to be able to provide emergency response related to the oil system, as well as other needs and services outlined under this contract. DOD selected KBR for a follow-on contract with the Corps of Engineers to perform the emergency response portion of this mission because they were the only contractor that could satisfy the requirement for immediate execution of the plan. OK, there is a guarantee of a profit margin of 2%, that could go to 7% based upon performance as determined by an Army board. 2% is not a huge profit margin. 7% is great. There are two contracts being let this month that follow up the emergency contract to KBR. We have always planned for competitively procured contracts. The competitive contracts will replace the current sole source contract with KBR.
The Corps will issue two new competitively bid contracts in mid- to late October 2003 to replace the bridge contract with KBR. One will be for support to the Northern Oil Company area and the other for the Southern Oil Company area. The two areas will not overlap. Each will be for a minimum of $500,000 and a maximum of $500 million. They are for a period of two years with three one-year renewals.August 14, 2003 was the closing date for those RFPs. The RFP was open to both domestic and international companies. In accordance with Federal Acquisition Regulation, we cannot discuss the number of proposals received, the names of the companies submitting proposals, their country of origin, or details within the proposals. The next steps in the process involve evaluation of the proposals and selection of the companies to be awarded the two indefinite delivery/indefinite quantity contracts. The Corps anticipates the contract awards will take place mid-to-late October. Companies from countries qualifying under the Trade Agreements Act, Balance of Payments Act and Coalition members that are not qualified under the Acts are eligible to compete. Here is what Halliburton says: Q. What is KBR�s history of contracting for the U.S.Government?
A. KBR became a military contractor in 1942 when Brown Shipbuilding Company built the first of 359 ships for the US Navy at the company�s Greens Bayou Fabrication Yard in Houston. Since then, KBR has become the premier provider of logistics and support services to all branches of the military. The company has a dedicated Government Services product line with capabilities ranging from complex, fast-track construction, logistics and support services in remote, militarized locations to day-to-day base operations support. KBR provides a diverse range of services to all branches of the United States military and other Department of Defense and government agencies. As �force multipliers,� KBR performs the support tasks that allow troops and government clients to focus on their primary mission.
Q. How is the work part of the LOGCAPIII contract?
A. The Army Materiel Command awarded KBR the LOGCAPIII contract in December 2001. KBR was tasked, under the LOGCAPIII contract, to develop the contingency plan for extinguishing oil well fires in Iraq. Implementation of the contingency plan will be performed under a separate contract with the US Army Corps of Engineers.
Q. What type of contract does KBR have with the US Army Corps of Engineers?
A. KBR has an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract that enables the government to immediately obtain, through the placement of task orders, the specific services it needs to execute contingency plans. The Corps of Engineers will limit orders under this contract to only those services necessary to support the mission in the near term.
Q. How many firefighters is KBR hiring for this effort?
A. For security reasons, we will not discuss specific numbers of employees in any one occupation or location.
Q. Will the firefighters be KBR employees or will the services be subcontracted?
A. KBR will subcontract firefighting services to two companies: Boots & Coots International Well Control, Inc. and Wild Well Control, Inc.
Q. Is KBR using other subcontractors?
A. Yes. KBR has subcontracted International Response Corporation (IRC) to assist with the assessment and cleanup of oil spills as a result of the war in Iraq. IRC is the international service affiliate of National Response Corporation (NRC).
The truth, finally, the truth about EVIL Halliburton and Dick Cheney! [sarcasm off] And, finally [sigh], here's a link to the USAID Iraq award page. Their contacts and grants are listed at this site. So, give it a rest, loonies. Your ranting is just plain incorrect. -- posted by Chuck at Thursday, October 16, 2003 | E-mail | Permalink | Main |
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