LOGCAP 4: Billions of Dollars Awarded for Army Logistics Support

Latest updates: $313 million to KBR for LOGCAP work in Iraq; 2009 contracts backfilled. Fluor builds LOGCAP housingin southern Afghanistan(click to view full) The US Army’s sole provider LOGCAP 3 contract, which provided food, housing and fuel for U.S. troops worldwide, generated lots of controversy because government audits of the sole supplier’s (Halliburton-KBR) work were unable to fully account for millions of dollars or justify all charges to the Pentagon’s satisfaction. To address perceived problems of LOGCAP 3, the Army awarded the follow-on contract, LOGCAP 4, to 3 companies – KBR, DynCorp and Fluor – who compete for task orders. The LOGCAP 4 contracts are indefinite-quantity/ indefinite-delivery contracts with 1 base year and 9 option years. Each contract has a maximum value of $5 billion per year. This allows the Army to award a total annual maximum value of $15 billion and a lifetime maximum value of $150 billion. New Approach Headed for Iraq The 4th in a series of Logistics Civil Augmentation Program (LOGCAP) contracts awarded since the late 1990s, LOGCAP 4 was awarded based on a procurement strategy that employs multiple contractors to deliver services, instead of using a single contractor as in the past. Planning support and […]