Naval Air Warfare Center contract for program management services awarded to Bowhead Transportation Company for over $23.4 million

Contract Overview

Contract Amount: $23,461,878 ($23.5M)

Contractor: Bowhead Transportation Company

Awarding Agency: Department of Defense

Start Date: 2005-09-15

End Date: 2009-06-30

Contract Duration: 1,384 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200512!415510!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0019 !A!N! !Y!0004 ! !20050915!20051231!076369581!019491604!079253902!N!BOWHEAD TRANSPORTATION COMPANY!15163 DAHLGREN ROAD !KING GEORGE !VA!22485!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001598192!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !212 !V22 !541330!E! !5!B!M! !E! !20200930!B! ! !A! !A!U!U!2!002!B! !Z!N!Z! ! !N!A!N!N!E! ! ! !A!A!000!A!B!N! ! ! !Y!1719!N00421!0001! !

Place of Performance

Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to BOWHEAD TRANSPORTATION COMPANY for work described as: 200512!415510!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0019 !A!N! !Y!0004 ! !20050915!20051231!076369581!019491604!079253902!N!BOWHEAD TRANSPORTATION COMPANY!15163 DAHLGREN ROAD !KING GEORGE !VA!22485!60650!037!24!PATUXENT RIVER NAS !ST. … Key points: 1. Contract awarded for program management and support services, indicating a need for specialized expertise. 2. The contract duration of over three years suggests a significant, ongoing requirement. 3. Awarded by the Naval Air Warfare Center, highlighting its importance within naval aviation programs. 4. The cost-plus-fixed-fee pricing structure may lead to cost overruns if not carefully managed. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The primary service category is engineering services, aligning with the technical nature of naval aviation.

Value Assessment

Rating: fair

The total award amount of $23,461,877.73 for program management and support services over approximately 3.8 years appears to be within a reasonable range for complex defense contracts. However, without specific benchmarks for similar program management support services within naval aviation, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) contract type carries inherent risks of cost escalation compared to fixed-price contracts, necessitating strong oversight to ensure efficient resource utilization and prevent contractor overspending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the competition are not fully detailed. A competitive process generally helps in achieving better pricing and service quality by allowing the government to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs and encourages innovation, ensuring that government funds are used efficiently to secure the best possible services.

Public Impact

Naval aviation programs benefit from enhanced program management and support, contributing to operational readiness. The contract supports critical functions within the Naval Air Warfare Center, aiding in the development and sustainment of naval air systems. Personnel involved in program management and support services, likely including engineers and administrative staff, are employed through this contract. The services delivered are essential for the effective planning, execution, and oversight of naval aviation projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to higher final costs if not managed diligently.
Limited information on the number of competitors beyond the two bids received.
Potential for scope creep in program management contracts if requirements are not clearly defined and controlled.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Contract duration indicates a stable, long-term need for these services.
The contractor, Bowhead Transportation Company, is likely experienced in providing support services to government entities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting program management and support functions for naval aviation. The defense sector, particularly naval aviation, relies heavily on specialized engineering and program management services to maintain complex weapon systems and develop new technologies. Spending in this area is substantial, driven by the need for technical expertise and project oversight in a high-stakes environment. Comparable contracts often involve significant dollar values and long durations due to the intricate nature of defense acquisition.

Small Business Impact

There is no explicit indication that this contract included small business set-asides. The contract was awarded under full and open competition, and the prime contractor is Bowhead Transportation Company. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this program management and support services contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Warfare Center's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Defense Program Management Services
Naval Aviation Support Contracts
Engineering Services for Defense

Risk Flags

Cost Overrun Risk (CPFF)
Moderate Competition Level
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to BOWHEAD TRANSPORTATION COMPANY. 200512!415510!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0019 !A!N! !Y!0004 ! !20050915!20051231!076369581!019491604!079253902!N!BOWHEAD TRANSPORTATION COMPANY!15163 DAHLGREN ROAD !KING GEORGE !VA!22485!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001598192!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !212 !V22 !541330!E! !5!B!M! !E! !202

Who is the contractor on this award?

The obligated recipient is BOWHEAD TRANSPORTATION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2005-09-15. End: 2009-06-30.

What is the track record of Bowhead Transportation Company in performing similar program management and support services for the Department of Defense?

Bowhead Transportation Company, as a subsidiary of the Ukpeaġvik Iñupiat Corporation (UIC), has a history of performing various services for the Department of Defense and other federal agencies. Their portfolio often includes logistics, transportation, base operations support, and technical services. While specific details on their program management success for naval aviation programs require deeper investigation into past performance reports and contract histories, their established presence suggests a capacity to handle complex government contracts. Analyzing their past performance on similar CPFF contracts would be crucial to assess their ability to manage costs effectively and deliver required program outcomes within budget and schedule.

How does the awarded amount compare to similar program management contracts within the naval aviation sector?

Comparing the $23.4 million award for program management and support services to similar contracts within naval aviation is challenging without access to a comprehensive database of comparable procurements. However, contracts for program management and technical support within large defense programs can range from millions to hundreds of millions of dollars, depending on the scope, duration, and complexity. The duration of this contract (approximately 3.8 years) and its award by the Naval Air Warfare Center suggest it is a significant, but not exceptionally large, contract for specialized support. The cost-plus-fixed-fee structure is common for services where the scope may evolve, but it necessitates vigilant oversight to ensure cost efficiency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for program management services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can incentivize less cost-conscious behavior from the contractor. For program management services, where scope can sometimes be fluid, effective government oversight, clear definition of requirements, and robust cost tracking are critical to mitigate the risk of the government paying more than necessary.

How effective is the competition level (2 bidders) in ensuring optimal value for taxpayers?

Having two bidders in a full and open competition provides a degree of price discovery and encourages competitive proposals. However, it is generally considered a moderate level of competition. A higher number of bidders (e.g., three or more) typically intensifies competition, potentially leading to more aggressive pricing and innovative solutions. With only two bidders, there is a risk that the government may not have received the absolute best possible price or that one of the bidders may have had a significant advantage due to pre-existing relationships or market dominance. Nevertheless, two bids are sufficient to establish a competitive baseline and avoid a sole-source situation.

What is the historical spending trend for program management and support services by the Naval Air Warfare Center?

Analyzing the historical spending trends for program management and support services by the Naval Air Warfare Center (NAWC) would require access to historical contract databases. Generally, spending in this category within defense agencies tends to be consistent, reflecting the ongoing need for specialized expertise to manage complex aviation programs, research, development, and sustainment efforts. Fluctuations can occur based on specific program lifecycles, budget allocations, and strategic priorities. The NAWC, being a key entity for naval aviation, likely maintains a steady expenditure on such services to ensure the effective execution of its mission.

What are the potential performance implications of awarding this contract to Bowhead Transportation Company based on its size and structure?

Bowhead Transportation Company is part of a larger Alaska Native Corporation (UIC), which often provides a stable financial backing and a long-term perspective. This structure can be advantageous for securing and executing large government contracts. Their experience across various service domains suggests they have the organizational capacity to manage complex projects. However, the performance implications also depend on the specific team assigned to this contract and their direct experience with naval aviation program management. A key factor will be their ability to integrate their existing capabilities with the specific technical and programmatic requirements of the Naval Air Warfare Center.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ukpeagvik Inupiat Corporation (UEI: 079253902)

Address: 15163 DAHLGREN ROAD, KING GEORGE, VA, 07

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,889,695

Exercised Options: $9,704,182

Current Obligation: $23,461,878

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042104D0019

IDV Type: IDC

Timeline