Army picks four for LOGCAP V, in move that 're-order[s] the defense contingency operations market'

By Marjorie Censer  / April 15, 2019

The Army said late Friday it has awarded KBR, Vectrus, Fluor and a PAE-Parsons team spots on the latest incarnation of its Logistics Civil Augmentation Program, known as LOGCAP V.

The service said it received six bids.

KBR, Fluor and DynCorp International were the incumbents on the previous version of the program. Vectrus had been the incumbent on the Kuwait Base Operations & Security Support Services, or K-BOSSS, contract, which it said was incorporated into LOGCAP V.

In a statement this weekend, KBR said its government services business won three LOGCAP V contracts: one to provide logistics support services in Afghanistan, one related to U.S. European Command and one for Northern Command.

Vectrus said in a statement that it won contracts relating to Pacific Command and Central Command, while Fluor said it received a contract for Africa Command.

In a statement provided to Inside Defense, John Heller, PAE's chief executive said the company is “ready to support the U.S. Army’s mission in Southern Command.”

DynCorp declined to comment, but in an interview with Inside Defense last year, George Krivo, DynCorp's chief executive, called the program a must-win.

The selection significantly alters the defense contingency operations market, according to Bruce Herskovics of Moody's Investor Service.

“KBR and Vectrus were big winners, named to the most desirable, high work flow regions, while incumbent DynCorp completely lost out and incumbent Fluor only retained U.S. Africa Command, historically a very low work flow region,” he said in a statement today. “Representing a 10-year program with $82 billion in total program ceiling value, the awards will probably be protested, making a final outcome somewhat uncertain and existing LOGCAP IV work will continue into 2020."