Defense Health Agency contract for IT sustainment valued at $26.8M awarded to Golden Wolf, LLC

Contract Overview

Contract Amount: $26,793,279 ($26.8M)

Contractor: Golden Wolf, LLC

Awarding Agency: General Services Administration

Start Date: 2024-03-30

End Date: 2027-03-29

Contract Duration: 1,094 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE HEALTH AGENCY'S ENTERPRISE SUSTAINMENT MANAGEMENT SYSTEM TRANSITION AND SUSTAINMENT SUPPORT SERVICES

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $26.8 million to GOLDEN WOLF, LLC for work described as: DEFENSE HEALTH AGENCY'S ENTERPRISE SUSTAINMENT MANAGEMENT SYSTEM TRANSITION AND SUSTAINMENT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services, indicating a focus on operational efficiency. 3. A firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of approximately three years provides a stable period for service delivery. 5. The awardee, Golden Wolf, LLC, is a relatively new entity in federal contracting, warranting attention to performance. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $26.8 million contract is challenging without specific service details or comparable contract data. The firm-fixed-price structure is generally favorable for cost control. However, the absence of detailed performance metrics or a clear comparison to similar sustainment support services makes a definitive value assessment difficult. Further analysis would require understanding the scope of work and the specific IT systems being sustained.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific award. While competition is present, a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally drives down costs through market forces. However, with only two bids, the potential for significant cost savings may be limited compared to scenarios with more extensive competition.

Public Impact

The primary beneficiaries are the Defense Health Agency (DHA) and its personnel, who will receive sustained IT support. Services delivered include sustainment and transition support for IT systems critical to military healthcare operations. The geographic impact is primarily within the DHA's operational footprint, likely supporting military treatment facilities and administrative centers. Workforce implications may include the utilization of specialized IT and management consulting professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record in large-scale federal IT sustainment is not extensively documented, posing a potential performance risk.
Limited competition (two bidders) may have constrained the government's ability to secure the most competitive pricing.
The specific nature of 'enterprise sustainment management system transition' requires clear definition to ensure scope alignment and prevent cost overruns.

Positive Signals

Awarded through full and open competition, adhering to standard procurement practices.
Firm-fixed-price contract type provides cost predictability for the government.
The contract supports critical IT infrastructure for the Defense Health Agency, ensuring operational continuity.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on management consulting and IT sustainment. The federal IT services market is vast and highly competitive, with agencies increasingly relying on external contractors for specialized support. Benchmarks for similar sustainment contracts vary widely based on system complexity and scope, but contracts in the tens of millions are common for enterprise-level IT support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities with the prime contractor, Golden Wolf, LLC. The extent of such opportunities is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract on behalf of the Defense Health Agency. The contract's firm-fixed-price nature and delivery order structure suggest standard oversight mechanisms, including performance monitoring and payment verification. Transparency is facilitated through federal procurement databases, but detailed operational oversight rests with the contracting officer and the DHA.

Related Government Programs

Defense Health Agency IT Modernization Programs
Federal Civilian Health IT Services
IT Management Consulting Services
Enterprise Resource Planning (ERP) System Support

Risk Flags

Potential performance risk due to limited contractor track record in similar large-scale contracts.
Moderate competition level may limit price optimization.
Scope definition clarity for 'transition and sustainment' is critical to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.8 million to GOLDEN WOLF, LLC. DEFENSE HEALTH AGENCY'S ENTERPRISE SUSTAINMENT MANAGEMENT SYSTEM TRANSITION AND SUSTAINMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GOLDEN WOLF, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2024-03-30. End: 2027-03-29.

What is the specific track record of Golden Wolf, LLC in managing large-scale federal IT sustainment contracts?

Golden Wolf, LLC appears to be a relatively new entrant or less prominent player in the federal contracting space, particularly concerning large-scale IT sustainment. A review of public federal procurement data (e.g., FPDS) does not immediately reveal a substantial history of managing contracts of this magnitude or complexity. While they may have experience in related areas, their specific track record in enterprise-level IT sustainment and transition support for a critical agency like the Defense Health Agency warrants further investigation. This lack of extensive, publicly visible experience could represent a risk factor that requires careful monitoring of their performance throughout the contract lifecycle.

How does the awarded value of $26.8 million compare to similar IT sustainment contracts for defense health systems?

Comparing the $26.8 million value requires understanding the specific scope of 'Enterprise Sustainment Management System Transition and Sustainment Support Services.' IT sustainment contracts for defense health systems can vary significantly in cost based on the criticality, complexity, and age of the systems involved. Contracts for maintaining electronic health records (EHRs), enterprise resource planning (ERP) systems, or network infrastructure within the Department of Defense can range from a few million to hundreds of millions of dollars annually. Without detailed service level agreements (SLAs) and system inventories for this specific contract, a precise benchmark is difficult. However, $26.8 million over approximately three years suggests a moderate-sized contract, likely focused on specific systems rather than the entirety of DHA's IT infrastructure.

What are the primary risks associated with this contract, given the awardee and competition level?

The primary risks associated with this contract include potential performance issues stemming from the awardee's (Golden Wolf, LLC) potentially limited track record in managing large-scale federal IT sustainment. The moderate competition level (two bidders) also presents a risk, as it may have limited the government's ability to achieve the most competitive pricing. Furthermore, the complexity of 'transition and sustainment' for enterprise management systems implies a risk of scope creep or misinterpretation of requirements, which could lead to cost overruns or schedule delays if not managed meticulously. Ensuring clear communication and robust oversight will be crucial to mitigate these risks.

How effective is the firm-fixed-price contract type likely to be in ensuring value for money for this IT sustainment service?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and performance requirements are clear. For IT sustainment services, FFP provides cost certainty to the government, shifting the risk of cost overruns to the contractor. This encourages the contractor to manage resources efficiently. However, the effectiveness hinges on the clarity of the SOW and performance metrics. If the scope is ambiguous or prone to change, an FFP contract could lead to contractor resistance to necessary modifications or, conversely, disputes over scope. For sustainment, where requirements are often ongoing, robust performance monitoring is key to ensuring the contractor delivers the agreed-upon services at the fixed price.

What are the historical spending patterns for similar IT sustainment support services within the Defense Health Agency or related DoD entities?

Historical spending patterns for IT sustainment support services within the Defense Health Agency (DHA) and broader Department of Defense (DoD) entities show a consistent and significant investment. Agencies like DHA rely heavily on complex IT systems for managing healthcare, personnel, and logistics. Spending in this category often includes contracts for maintaining electronic health records (EHRs), network infrastructure, cybersecurity, and specialized management systems. These contracts can range from millions to hundreds of millions of dollars annually, often awarded through competitive processes but also sometimes through sole-source or limited competition vehicles for highly specialized or legacy systems. The trend is towards modernization and cloud migration, but sustainment of existing critical systems remains a substantial budgetary item.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: 47QFWA24Q0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 401 N PARSONS AVE, BRANDON, FL, 33510

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $27,163,939

Exercised Options: $27,163,939

Current Obligation: $26,793,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D0067

IDV Type: FSS

Timeline