LOGCAP IV
Written by Jon Connor
DynCorp International LLC was awarded the work for southern Afghanistan, and Fluor Intercontinental was selected for work in northern Afghanistan, according to the Army Sustainment Command at Rock Island, Ill.
The selection process was an “integrated source selection encompassing technical management proposals, past performance and costs,” explained Jim Loehrl, executive director, Rock Island Contracting Center, Rock Island, Ill.
From this, a “best-value” decision is then made, Loehrl said, which will benefit the soldiers and other personnel, and give taxpayers the most value.
The contracting office issued a solicitation outlining the task order requirements and the terms and conditions under which the task order would be administered. The solicitation contained criteria against which each of the contractors’ proposals was evaluated.
“The concept hinges on the principle that while price is always a factor in the selection process, price alone does not define the best value for the taxpayer,” said Amy Hayden, chief, LOGCAP IV Contracting Branch, Rock Island, Ill.
“The best-value approach takes into account the fact that it may be in the government’s best interest to pay more to receive a better product or service,” she said.
The task orders were awarded with pricing for one base year effective July 7 and four option years. Depending on growth in Afghanistan, the two task orders could potentially total $15 billion over five years, Loehrl said.
This figure is based on each task order’s base year, costing $1.5 billion plus a potential four option years.
“It all depends on what the growth is in Afghanistan as we continue to put troops in Afghanistan and where they go,” he said. “We built the contract capacity to handle that.” These two task order awards include moving all existing work in LOGCAP III to LOGCAP IV, plus capacity to stand up additional base camps, Loehrl said.
These latest task orders are a good example of the Army’s LOGCAP processes’ flexibility and responsiveness in difficult locations and unstable environments like Iraq and Afghanistan. As it turns out, LOGCAP adapts to a quite methodical process, through its flexibility to emerging, unforeseen requirements to support the warfighter.
The (unforeseen) requirement goes to a LOGCAP support officer in theater, then to a contracting officer for an authorization to proceed, said Lee Thompson, LOGCAP executive director, Rock Island, Ill.
However, for new work, the rule is that the requirement has to be completed under LOGCAP IV, Thompson said. This also means that all current contractors supporting LOGCAP IV must submit proposals for this new work.
In this case, all three performance contractors—Fluor Intercontinental, DynCorp International LLC and KBR—had to submit proposals for the new task orders.
The new task orders are the continuation of the Army’s plan to transition work from the single-source LOGCAP III contract to the multiple-award LOGCAP IV contract.
So far, there have been 10 task orders awarded under LOGCAP IV, Loehrl said.
The task orders encompass base life support services and logistics support, which include base setup, food service, facilities maintenance, and morale, welfare and recreation to name a few, Loehrl said.
The Army had previously transitioned all LOGCAP work in Kuwait from LOGCAP III to LOGCAP IV (DynCorp), as well as awarded some new work in Afghanistan under LOGCAP IV (Fluor and DynCorp).
These newly announced task orders will transition all work in Afghanistan to LOGCAP IV. Similar processes to compete and transition the work in Iraq are also under way.
“The transition will be operationally driven, and methodically undertaken to ensure a transition that is seamless to the warfighter,” Hayden added.
“The transition is not a ‘turnkey’ operation and is extremely complex,” Thompson said. “Before we even begin the legacy task order transitions, we will be starting the urgent work required for force expansion [in Afghanistan].”
The first step in the process is to conduct a post-award conference scheduled in early August, Thompson said. The conferees will discuss such areas as transition touch-points, explain the process, and reach agreements between contractors on the conduct of the transition, known as protocols, Thompson said.
“During the transition the incumbent continues to provide services and will do so until the U.S. government is satisfied that the incoming performance contractor [IPC] can assume full operation of the function,” Thompson explained. “Once the IPC has demonstrated full operational capability, the incumbent is officially released from responsibility and the IPC is officially assigned full responsibility and accountability for performance execution.”
Reviews, audits and continuous oversight of contractor performance will be ongoing—as with all government contracts—to make sure government and American taxpayers’ interests are protected, ASC officials said.
The contractors’ performance will be measured by the Defense Contract Management Agency and Defense Contract Audit Agency in accordance with pre-established performance standards, ASC officials said.
“DCMA and DCAA provide oversight of contractor business systems, and the LOGCAP IV task orders contain award-fee provision incentives for the contractors to maintain these systems at an adequate level. DCMA also provides quality assurance representatives in-theater to oversee the contractors’ work,” Hayden explained.
“DCAA reviews contractor billings to ensure they are appropriate. In combination, these measures provide a high degree of protection against inappropriate practices during the execution of these task orders,” she said.
Thompson said that there are monthly and semi-annual evaluations.
“On a monthly basis there is performance evaluation to monitor the progress,” he said, conducted by LOGCAP support officers and the DCMA.
Furthermore, there is a semi-annual award fee evaluation board that meets to review the performance contractor’s strengths and weaknesses. Since the contract is a cost-plus award fee contract, the contractor is given an opportunity through the contract to demonstrate practices that are over and above what is expected by the contract. When this happens, the contractor is then able to earn its proposed award fee, Thompson said.
And, there is more checking too.
“DCAA will do floor checks [on-the-site reviews] for us. They will monitor and look at proposals if we ask them to do so,” Thompson said. “But on the tactical side of the house, they do floor checks. On the strategic side, the business systems back here in the continental United States, the DCAA will be looking at the business systems that each contractor has, and judge along with DCMA, the wellness of the systems.”
A concern of Congress and other U.S. organizations has been subcontracting—the use of, additional costs, ensuring quality of work, and employing local nationals, etc. The federal government, however, cannot directly supervise subcontractors.
While prime contractors are not obligated by law to offer contracts or employment to indigenous firms or inhabitants, they are encouraged to do so, Thompson said.
“Why?” he rhetorically asked. “Obviously to build up the development of their own country.”
Thompson referenced the views of Army General David Petraeus, commander of U.S. Central Command, saying part of the strategy is to “employ the local population to help build their economy.”
The subcontractor acts on behalf of the prime contractor. However, there is no privity of contract between the government and the subcontractor. If an issue arises, the U.S. government must address this with the prime contractor, Thompson said.
“From a performance [perspective], it’s transparent to us because we don’t care if it’s a prime that’s self-performing or they have a sub. We hold them to the contract terms and conditions. We make sure contractually that’s there’s a flow down. So whenever the sub fails, so does the prime,” Thompson said. With the increase of U.S. forces in Afghanistan, Thompson predicted that competition among the local populace for employment would rise based on the finite pool of skilled laborers.
“The introduction of more U.S. forces in Afghanistan is going to mean the vetting process for the Afghans is going to get tougher,” Thompson said. But, if work is offered they will come, he said. ♦
Jon Connor is a public affairs specialist with the Army Sustainment Command at Rock Island, Ill. He is a retired Army soldier and served at the Pentagon for four years in the Army’s Office, Chief of Public Affairs. He is graduate of the University of Wisconsin-Milwaukee in mass communications-journalism.