KBR Receives Further Iraq Contract

by: Matthew Potter
October 31, 2011

Category: Business Line, Companies, Contract Additions, Contract Awards, Countries, Department of Defense, Events, Iraq, KBR, logistics, Services | RSS 2.0

President Obama may have announced that the U.S. will be withdrawing all of its troops from Iraq by the end of this year but that does not mean the U.S. is leaving the country that it invaded almost 9 years ago. The State Department and other Government agencies will still maintain a presence and provide support to the Iraqi Government.

This means that those entities will still require logistical support themselves. Under the existing Logistics Civil Augmentation Program (LOGCAP) IV run by the U.S. Army a task order was awarded to KBR (KBR) to provide housekeeping services for that personnel. The TO has a value of over $500 million for its two years if both are executed.

The size of the award indicates that the U.S. Government will need a great deal of support during those two years. KBR will provide basic services such as facilities, utilities, food service, laundry, transport as well as other types of support.

The LOGCAP contracts have been controversial as they have had billing problems and issues since their inception. They have had the ability though to allow the U.S. to get the necessary services they need to support thousands of troops and other personnel across Iraq in very trying conditions. They are omnibus service contracts allowing what type of support needed to be bought.

Because of the nature of the U.S. armed forces today and their structure they are now reliant on contracted support for most housekeeping services and contracts like LOGCAP are inevitable. Combined with the fast changing nature of requirements in Iraq which quickly went from invasion to stabilization to counter insurgency operations the LOGCAP needed to be awarded quickly and executed.

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