DoD's $7.2M Computer Systems Design Services Contract Awarded to Bowhead Total Enterprise Solutions, LLC

Contract Overview

Contract Amount: $7,271,565 ($7.3M)

Contractor: Bowhead Total Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE YEAR-LABOR

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC for work described as: BASE YEAR-LABOR Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract is a definitive contract with a base year labor value of $7.2M. 3. Awarded by the Department of the Navy, suggesting a focus on naval IT infrastructure or operations. 4. The contractor, Bowhead Total Enterprise Solutions, LLC, has secured this award. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. The contract duration is 729 days, spanning from July 1, 2024, to June 30, 2026. 7. The contract was not available for competition, raising questions about the procurement process. 8. The North American Industry Classification System (NAICS) code is 541512, for Computer Systems Design Services.

Value Assessment

Rating: questionable

The base year labor value of $7.2M for computer systems design services requires further benchmarking against similar contracts. Without comparative data on the scope and complexity of services, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed closely, as it incentivizes the contractor to incur costs to achieve the fixed fee. A detailed breakdown of labor categories and hours would be necessary for a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This procurement approach bypasses the standard competitive bidding process, which typically aims to secure the best pricing and terms through market forces. The lack of competition means that the government did not explore alternative solutions or pricing from other qualified contractors, potentially limiting price discovery and negotiation leverage.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the cost savings typically achieved through a competitive bidding process. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

The primary beneficiaries of this contract are likely the Department of the Navy and its personnel, who will receive enhanced computer systems design services. The services delivered will focus on the design and potentially implementation of computer systems, crucial for modern naval operations and IT infrastructure. The geographic impact is likely concentrated within the areas where the Department of the Navy operates or has significant IT infrastructure needs. Workforce implications may include the direct employment of IT professionals by Bowhead Total Enterprise Solutions, LLC, and potentially indirect impacts on government IT staff who will manage or utilize the designed systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type requires diligent oversight to manage costs effectively.
Sole-source award raises concerns about fairness and equal opportunity for other potential bidders.

Positive Signals

Award to a specific contractor suggests alignment with specialized needs or existing relationships.
Definitive contract structure provides a framework for service delivery over a defined period.
Contract duration allows for sustained support and development of computer systems.

Sector Analysis

The computer systems design services sector is a critical component of the broader IT industry, supporting government and commercial entities in developing and maintaining complex technological infrastructures. This contract falls within the IT services market, which is characterized by rapid innovation and specialized expertise. Comparable spending benchmarks for similar IT design services can vary widely based on scope, complexity, and security requirements. The market size for government IT services is substantial, with agencies continually investing in modernizing their systems.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss=false) and the contractor is not identified as a small business (sb=false). This suggests that the primary awardee is a large business. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside requirement on this specific contract. However, the prime contractor may still engage small businesses as subcontractors based on their own procurement strategies, but this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency may be limited due to the sole-source nature of the award, but contract performance metrics and reporting requirements should be established. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Naval Information Warfare Systems Command (NAVWAR) Contracts
Computer Systems Design and Related Services
Cost-Plus Contract Vehicles

Risk Flags

Sole-source award raises concerns about competition and potential for higher costs.
Cost Plus Fixed Fee contract type requires stringent oversight to manage expenditures.
Lack of detailed scope of work in the provided data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC. BASE YEAR-LABOR

Who is the contractor on this award?

The obligated recipient is BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of Bowhead Total Enterprise Solutions, LLC with the Department of Defense, particularly in computer systems design services?

A comprehensive review of Bowhead Total Enterprise Solutions, LLC's track record with the Department of Defense (DoD) would involve analyzing past contract awards, performance evaluations, and any reported issues. Specific to computer systems design services (NAICS 541512), it's important to ascertain if they have a history of successfully delivering similar projects within budget and schedule. Examining their past performance ratings, such as those found in the Contractor Performance Assessment Reporting System (CPARS), would provide insights into their reliability and capability. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts is also crucial, as this contract type requires specific management expertise. Without access to detailed historical contract data and performance reviews, a definitive assessment of their track record is challenging, but the award itself suggests they met certain criteria for this specific requirement.

How does the $7.2M base year labor cost compare to similar computer systems design contracts awarded by the Navy or other DoD components?

Benchmarking the $7.2M base year labor cost requires access to a database of comparable contracts. Factors such as the specific services rendered (e.g., system architecture, software integration, network design), the complexity of the systems, the security requirements (e.g., classified environments), and the geographic location of service delivery significantly influence pricing. Contracts for highly specialized or mission-critical systems, especially those involving advanced technologies or requiring top-secret clearances, will naturally command higher labor costs. A comparison would ideally involve looking at contracts with similar NAICS codes (541512), contract types (CPFF), and durations, while accounting for inflation and market rate fluctuations. Without such detailed comparative data, it's difficult to definitively state whether $7.2M represents a high, low, or average cost for the labor component of this contract.

What are the primary risks associated with a sole-source award for computer systems design services, and how are they being mitigated?

The primary risks associated with a sole-source award for computer systems design services include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or optimize costs, and a perception of unfairness or lack of transparency in the procurement process. Taxpayers may bear a higher cost than if the contract had been competed. Mitigation strategies typically involve robust government oversight, including detailed cost analysis, negotiation of fair and reasonable pricing, and stringent performance monitoring. The government should ensure that the justification for the sole-source award is well-documented and meets regulatory requirements (e.g., FAR Part 6). Clear performance metrics, regular progress reviews, and strong contract administration are essential to manage risks and ensure the contractor delivers value despite the absence of competition.

What is the expected impact of this contract on the Department of the Navy's IT capabilities and operational readiness?

This contract is expected to enhance the Department of the Navy's IT capabilities by providing specialized computer systems design services. The specific impact will depend on the nature of the systems being designed. If the contract focuses on modernizing legacy systems, it could lead to improved efficiency, enhanced cybersecurity, and better data management. For new system designs, it could enable advanced functionalities critical for naval operations, such as improved command and control, intelligence, surveillance, and reconnaissance (ISR) systems, or enhanced logistics and personnel management platforms. Ultimately, the successful execution of this contract should contribute to the Navy's overall operational readiness by ensuring its IT infrastructure is robust, secure, and capable of supporting its mission requirements in a rapidly evolving technological landscape.

How does the Cost Plus Fixed Fee (CPFF) contract structure influence contractor performance and cost control in this context?

The Cost Plus Fixed Fee (CPFF) contract structure aims to balance risk between the government and the contractor. The contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work cannot be precisely defined at the outset, or when there is a high degree of uncertainty or risk involved, such as in research and development or complex system design. For the contractor, the CPFF structure provides an incentive to complete the work efficiently to protect their fee, but it does not directly incentivize cost reduction beyond what is necessary to complete the project within acceptable parameters, as costs are reimbursed. For the government, effective oversight is paramount. Robust cost accounting standards, regular audits, and close monitoring of expenditures are necessary to ensure costs are reasonable and allocable, and that the fixed fee is justified by the performance achieved. Without diligent oversight, CPFF contracts can lead to cost overruns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042124R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ukpeagvik Inupiat Corporation

Address: 6564 LOISDALE CT, SPRINGFIELD, VA, 22150

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,266,472

Exercised Options: $7,716,767

Current Obligation: $7,271,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline