DoD's Army awards $2.3M for software development support, with a 3-year duration

Contract Overview

Contract Amount: $2,288,492 ($2.3M)

Contractor: Bowhead Total Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-17

End Date: 2026-12-16

Contract Duration: 364 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: HITS-R2 CREATE SOFTWARE DEVELOPMENT SUPPORT (TASK ORDER 03- YEAR-3) W912DY22D0040 (PANERD-26-P-0000 025802)

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC for work described as: HITS-R2 CREATE SOFTWARE DEVELOPMENT SUPPORT (TASK ORDER 03- YEAR-3) W912DY22D0040 (PANERD-26-P-0000 025802) Key points: 1. The contract value represents a moderate investment for specialized software development support. 2. Competition dynamics suggest a potentially competitive bidding process, which can influence pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent cost-reimbursement risks. 4. Performance is benchmarked against similar IT services contracts within the federal landscape. 5. This contract falls within the IT services sector, specifically focusing on software development. 6. The duration of three years allows for sustained support and project continuity.

Value Assessment

Rating: fair

The contract value of approximately $2.3 million over three years for software development support is within a typical range for specialized IT services. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, as it reimburses the contractor for allowable costs plus a fixed fee. Benchmarking against similar task orders for software development support within the Department of the Army or other DoD components would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some exclusions, the final award was made through a broad competitive process. The specific number of bidders is not provided, but the 'full and open' designation suggests that multiple companies had the opportunity to compete. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive offers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive critical software development support. Services delivered include software development, potentially encompassing design, coding, testing, and maintenance. The geographic impact is likely concentrated within the Army's operational areas, potentially worldwide. Workforce implications may include the direct employment of software developers and related IT professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency of the support provided.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the initial exclusions.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The three-year duration provides stability for critical software development efforts.
The contract is for a specific task order, implying it addresses a defined need within a larger program.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software development and computer facilities management. The federal IT services market is substantial, with agencies consistently investing in modernizing systems, developing new applications, and maintaining existing infrastructure. Comparable spending benchmarks for software development support contracts within the Department of Defense often range from hundreds of thousands to several million dollars, depending on the complexity and duration. This contract's value appears to be in the mid-range for a task order of this nature.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Bowhead Total Enterprise Solutions, LLC, may still engage small businesses as subcontractors to fulfill parts of the contract, depending on their own business practices and the specific needs of the task order. The absence of a small business set-aside means the opportunity was open to all eligible large and small businesses.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army contracting officers and technical representatives who will monitor performance, costs, and adherence to the contract terms. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs are allowable and reasonable, and that the fixed fee is earned. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Army IT Services Contracts
Software Development Support Task Orders
Department of Defense IT Modernization Programs
Cost Plus Fixed Fee IT Contracts
Full and Open Competition IT Awards

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Short duration (approx. 1 year) may limit long-term strategic impact and continuity.
Competition details ('after exclusion of sources') warrant understanding of initial exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to BOWHEAD TOTAL ENTERPRISE SOLUTIONS, LLC. HITS-R2 CREATE SOFTWARE DEVELOPMENT SUPPORT (TASK ORDER 03- YEAR-3) W912DY22D0040 (PANERD-26-P-0000 025802)

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 $2.3 million.

What is the period of performance?

Start: 2025-12-17. End: 2026-12-16.

What is the specific scope of work for HITS-R2 CREATE SOFTWARE DEVELOPMENT SUPPORT (TASK ORDER 03- YEAR-3)?

The provided data indicates the contract is for 'HITS-R2 CREATE SOFTWARE DEVELOPMENT SUPPORT (TASK ORDER 03- YEAR-3)' under NAICS code 541513 (Computer Facilities Management Services). While the exact deliverables are not detailed in the summary data, this typically involves providing expertise and labor for the design, development, testing, implementation, and maintenance of software applications. This could include custom software creation, system integration, database management, and potentially cybersecurity enhancements related to software. The task order structure suggests it addresses a specific, defined set of requirements within a larger program, likely aimed at supporting the Army's operational or administrative IT needs.

How does the $2.28 million contract value compare to similar software development support contracts within the Department of the Army?

The contract value of approximately $2.28 million over a 3-year period for software development support is considered a moderate-sized task order within the Department of the Army's IT services portfolio. Larger, more complex software development programs or enterprise-wide system overhauls can easily reach tens or hundreds of millions of dollars. Conversely, smaller, short-term projects or specialized support might be in the hundreds of thousands. This specific task order's value suggests it addresses a significant but not massive requirement, likely for a specific system enhancement, module development, or ongoing support for a particular application suite. Benchmarking against other task orders under the same or similar indefinite-delivery/indefinite-quantity (IDIQ) vehicles would provide a more precise comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for software development?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for software development is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. If the project scope expands, unforeseen technical challenges arise, or the contractor's cost management is inefficient, the total cost to the government can exceed initial estimates, even though the fee remains fixed. This necessitates robust government oversight to scrutinize costs, ensure they are reasonable and allocable, and manage scope creep effectively. For the contractor, the risk lies in underestimating costs such that the fixed fee becomes insufficient compensation.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the bidding process?

'Full and Open Competition After Exclusion of Sources' indicates that while certain sources might have been initially excluded from consideration (perhaps due to specific qualifications or prior contract limitations), the final award was made through a process open to all responsible sources that met the established criteria. This suggests a broader competitive environment than a sole-source or limited competition award. It implies that the agency actively sought proposals from multiple offerors after potentially narrowing the field based on initial requirements or pre-qualification. The goal is to ensure fair and broad competition while potentially leveraging specific capabilities or addressing unique circumstances that might lead to initial exclusions.

What is the track record of Bowhead Total Enterprise Solutions, LLC in delivering IT services to the federal government?

Bowhead Total Enterprise Solutions, LLC is a significant contractor within the federal space, particularly serving defense and civilian agencies. They have a history of performing IT services, logistics, and engineering support. Information available through federal procurement data systems (like FPDS) would detail their past performance, including contract values, agencies served, and types of services rendered. While specific details for this task order are limited, their established presence suggests they possess the necessary experience and infrastructure to undertake software development support. A deeper dive into their past performance ratings on similar contracts would provide a more granular assessment of their reliability and quality of service.

How does the duration of 364 days (approximately one year) for this task order impact its strategic value?

The provided data indicates a duration of 364 days (dur: 364), which is approximately one year, not three years as initially inferred from the end date. This shorter duration impacts the strategic value significantly. A one-year task order is suitable for addressing specific, time-bound needs, such as developing a particular software module, providing support during a transition period, or completing a defined project phase. It allows for agility and reassessment of requirements after completion. However, for long-term system sustainment or continuous development efforts, a one-year contract may necessitate frequent re-competition or extensions, potentially leading to less continuity and higher administrative costs compared to a multi-year award.

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 - IT MANAGEMENT

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: $4,265,986

Exercised Options: $4,265,986

Current Obligation: $2,288,492

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