The Army has named four firms as primes on its much-anticipated $82 billion "LOGCAP V" global logistics contract.
The Army has named four primes to its much-anticipated 10-year, $82 billion “LOGCAP V” contract for logistics and other professional services around the world.
Fluor, KBR, Vectrus and a PAE-Parsons joint venture have won positions on this new iteration of the Logistics Civil Augmentation Program that represents one of the defense services market’s biggest opportunities of the decade.
Prime awards for LOGCAP V are broken out by regional command with a separate award set aside for Afghanistan, which is within Central Command. There were six total bidders, according to the Defense Department's Friday awards digest.
Contract award details are as follows:
- Fluor's award covers Africa Command.
- KBR's award covers European and Northern Commands, plus Afghanistan
- PAE-Parsons' award covers Southern Command
- Vectrus' contract covers Pacific Command and Central Command
KBR, DynCorp and Fluor are incumbents on the current LOGCAP IV contract that expires in April 2020. Vectrus can also claim incumbency as its main contract for military base support in Kuwait -- located within the Centcom area -- was rolled into the new LOGCAP V contract.
U.S. regional combatant commands, service component commands and other military organizations use LOGCAP contracts to acquire construction, supply, logistics and other services.
The current LOGCAP IV contract awarded in 2008 has seen nearly $24 billion spent on task orders so far against its $150 billion ceiling.
All iterations of LOGCAP have had high ceilings to give the Army headroom in the event of rapid increases in operational requirements, namely if armed conflict arises.
LOGCAP IV and its “III” predecessor in particular were heavily used to support operations in Afghanistan, thus awardees based there received a bulk of the task orders.
For LOGCAP V, a deployment of a large number of troops to a certain region still means the contractor based there would take in much of the funding.
But this new iteration’s structure is intended to be less dependent on overseas contingency operations and instead incorporate more long-term, stable work involving services such as training.
EDITOR'S NOTE: A previous version of this story misstated the number of primes.