DoD's $20.2M IT contract to Bowhead Total Enterprise Solutions, LLC for computer facilities management

Contract Overview

Contract Amount: $20,215,006 ($20.2M)

Contractor: Bowhead Total Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2024-10-16

Contract Duration: 386 days

Daily Burn Rate: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MATERIALS & ODCS

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC for work described as: MATERIALS & ODCS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires robust oversight. 3. Performance period spans over a year, indicating a significant operational requirement. 4. The specific NAICS code (541513) points to a focus on computer facilities management services. 5. The award is a Delivery Order under a larger contract vehicle, typical for ongoing service needs. 6. The contractor, Bowhead Total Enterprise Solutions, LLC, is a known entity in federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this $20.2 million contract requires more detailed cost breakdowns and comparison to similar IT facilities management contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a negotiated fixed fee. While this can be appropriate for services where costs are hard to predict, it necessitates strong oversight to ensure costs remain reasonable and the fee is justified. Without specific performance metrics or detailed cost data, a definitive value-for-money assessment is challenging, but the CPFF structure itself presents a moderate risk if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was broad, there might have been specific reasons for excluding certain sources, which warrants further investigation. The fact that it was 'full and open' suggests multiple bidders were likely considered, which generally promotes price discovery and competitive pricing. However, the 'after exclusion of sources' clause needs clarification to understand the full competitive landscape.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality compared to sole-source awards.

Public Impact

The Department of the Army benefits from essential computer facilities management services, ensuring operational continuity. This contract supports the IT infrastructure necessary for military operations and administrative functions. The services are likely delivered within a specific geographic region relevant to the Army's operations in Virginia. The contract supports jobs within the IT services sector, potentially including specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require diligent oversight to manage costs effectively and prevent overruns.
The 'after exclusion of sources' clause in the competition type needs further clarification to ensure maximum competition was achieved.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance context.
The contract duration of 386 days (over a year) requires ongoing monitoring to ensure continued value and alignment with evolving needs.

Positive Signals

Awarded through a full and open competition, indicating a potentially competitive bidding process.
The contractor, Bowhead Total Enterprise Solutions, LLC, has experience in federal contracting, suggesting familiarity with government requirements.
The contract is for essential IT facilities management services, crucial for agency operations.
The award is a Delivery Order, implying it's part of an established contract vehicle, which can streamline procurement.

Sector Analysis

The IT services sector, particularly computer facilities management, is a critical component of federal operations. This contract falls within the broader IT services market, which is characterized by a mix of large and small businesses competing for government contracts. Spending in this area is consistently high across various agencies, reflecting the increasing reliance on robust IT infrastructure. Benchmarks for similar IT facilities management contracts vary widely based on scope, location, and specific services, but contracts in the tens of millions are common for comprehensive support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Bowhead Total Enterprise Solutions, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Analysis of their subcontracting reports would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, the awarding agency. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs and ensure the fixed fee remains appropriate. Transparency would be enhanced through regular reporting requirements mandated by the contract, including cost performance reports and progress updates. The specific Inspector General jurisdiction would likely be that of the Department of Defense.

Related Government Programs

IT Infrastructure Management Services
Computer Systems Design Services
Information Technology Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires robust oversight.
Competition type 'Full and Open Competition After Exclusion of Sources' needs clarification on the impact of exclusions.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC. MATERIALS & ODCS

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 Army).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2023-09-26. End: 2024-10-16.

What is the track record of Bowhead Total Enterprise Solutions, LLC with the Department of Defense and similar IT contracts?

Bowhead Total Enterprise Solutions, LLC has a history of receiving federal contracts, including those with the Department of Defense. Their portfolio often includes IT services, logistics, and professional support. To assess their track record specifically for computer facilities management, a deeper dive into their past performance evaluations on similar contracts would be necessary. This would involve reviewing contract databases for ratings, any past performance issues, and the successful completion of prior engagements. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage costs effectively would also be key indicators of their suitability for this role.

How does the $20.2 million value compare to similar IT facilities management contracts awarded by the DoD?

The $20.2 million value for this contract appears to be within a common range for comprehensive IT facilities management services supporting a significant agency component like the Department of the Army. Similar contracts can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and complexity of the facilities managed. Factors such as the number of users supported, the criticality of the systems, geographic spread, and the specific services included (e.g., hardware maintenance, network management, data center operations) heavily influence cost. A direct comparison would require identifying contracts with highly similar service descriptions, performance periods, and agency needs.

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

The primary risk with a CPFF contract is that the government may pay more than necessary if costs are not adequately controlled and justified. While the fixed fee provides some cost certainty for the contractor's profit, the government bears the risk of escalating direct and indirect costs. Effective risk mitigation requires robust oversight, including detailed cost audits, thorough review of all claimed expenses, and clear performance standards. Without diligent monitoring, there's a potential for cost overruns that exceed initial estimates, diminishing the overall value for the taxpayer. The contractor's incentive is to complete the work, but the cost control relies heavily on the government's oversight capacity.

How does the 'Full and Open Competition After Exclusion of Sources' classification impact price discovery and taxpayer value?

The classification 'Full and Open Competition After Exclusion of Sources' suggests that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded. This exclusion could stem from various reasons, such as specific security requirements, past performance issues, or the need for specialized capabilities not widely available. If the exclusions were justified and limited, it might still result in sufficient competition to ensure reasonable pricing. However, if the exclusions significantly narrowed the field of qualified bidders, it could potentially reduce competitive pressure, leading to less favorable pricing for the government and taxpayers. Understanding the rationale behind the exclusions is critical to assessing the true level of competition achieved.

What are the potential performance implications given the contract duration and service type?

A contract duration of 386 days (over a year) for computer facilities management implies a need for sustained, reliable service delivery. This duration allows the contractor to establish operational efficiencies and potentially implement improvements. However, it also necessitates ongoing performance monitoring to ensure the contractor meets or exceeds service level agreements (SLAs). For IT facilities management, consistent uptime, rapid issue resolution, and proactive maintenance are critical. The CPFF structure, while flexible, requires the government to actively manage performance to ensure the contractor is incentivized not just to incur costs, but to deliver high-quality, efficient services throughout the contract period.

Are there any indications of potential cost efficiencies or inefficiencies based on the contract structure?

The Cost Plus Fixed Fee (CPFF) structure itself presents a mixed bag regarding cost efficiencies. The 'cost plus' element means the government reimburses the contractor for allowable costs, which can lead to inefficiencies if not tightly controlled. However, the 'fixed fee' provides a defined profit margin, which can incentivize the contractor to complete the work within a reasonable cost structure to maximize their return on the fee. True cost efficiencies are more likely to be driven by the contractor's operational expertise and the government's rigorous oversight in scrutinizing costs and ensuring performance standards are met. Without detailed cost data and performance metrics, it's difficult to definitively assess efficiency.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ukpeagvik Inupiat Corporation

Address: 6564 LOISDALE CT STE 900, 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: $22,687,188

Exercised Options: $22,687,188

Current Obligation: $20,215,006

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $9,684,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY22D0040

IDV Type: IDC

Timeline