The U.S. Army announced today, April 17, the selection of three
companies on a full and open competition basis that will augment
essential logistics support services to military forces in the field.
The Logistics Civil Augmentation Program, or LOGCAP, uses private sector
contractors to provide a broad range of logistics and support services
to U.S. and allied forces during combat, such as those missions now
under way in Iraq and Afghanistan, as well as to other contingency,
peacekeeping, humanitarian and training operations.

The three companies awarded under the full and open competition process
are DynCorp International LLC of Fort Worth, Texas; Fluor
Intercontinental Inc., of Greenville, S.C.; and Kellogg, Brown and Root
(KBR) Services of Houston, Texas. A total of five companies submitted

The three LOGCAP IV performance contracts were originally awarded to the
same companies on June 27, 2007. Following the contract announcement,
two unsuccessful offerors filed protests with the Government
Accountability Office. The GAO upheld the protests on Oct. 5, 2007, and
the Army subsequently implemented the corrective actions recommended by
the GAO leading to today's contract award announcement.

The fourth in a series of LOGCAP contracts awarded since the late 1990s,
LOGCAP IV was awarded based on an innovative strategy using several new
support techniques. This strategy calls for multiple contractors to
deliver services under LOGCAP, instead of using a single contractor as
in the past. Under the strategy, planning support and performance
functions have been split among different contractors to allow the Army
to more effectively manage the number and scope of LOGCAP actions. The
three performance contractors will compete for individual LOGCAP task
orders, creating a competitive environment meant to control costs and
enhance quality.

"By using sound business practices the Army is confident that the LOGCAP
IV contractors will provide excellent value and performance, provide
Soldiers with the best services available and be able to respond quickly
to emerging requirements as identified in the LOGCAP mission," said the
Hon. Nelson M. Ford, Acting Under Secretary of the Army.

The types of services that will be delivered under the LOGCAP IV
performance contracts are similar to those currently delivered under the
LOGCAP III contract, which was also awarded through full and open
competition. These services include supply operations, such as the
delivery of food, water, fuel, spare parts, and other items; field
operations, such as dining and laundry facilities, housing, sanitation,
waste management, postal services, and Morale, Welfare and Recreation
activities; and other operations, including engineering and
construction, support to communication networks, transportation and
cargo services, and facilities maintenance and repair.

"LOGCAP IV uses competition to deliver the best quality at the right
price for our men and women around the world. This approach provides
our Soldiers the quality and value that the American public expects for
their tax dollars," concluded Ford.

The LOGCAP IV performance contracts are being awarded as Indefinite
Quantity / Indefinite Delivery (ID / IQ) contracts with one base year
and nine option years. Each contract has a maximum value of up to $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.

Each LOGCAP contract has been awarded through full and open competition.
Brown & Root Services held the LOGCAP I contract from 1992-1996; DynCorp
held LOGCAP II from 1997 through 2001 and KBR held the LOGCAP III
contract from 2001 to the present. In February 2007, the U.S. Army
Sustainment Command selected Serco, Inc. to provide planning and program
support under a separate LOGCAP IV contract.
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For more information contact: Lt. Col. Martin Downie at phone (703) 697-7591 or Mr. Dan Carlson at (309) 782-5421