HHS awarded $176.8M for military vehicles and generators, with Bowhead Support Group LLC as the primary contractor

Contract Overview

Contract Amount: $176,803,206 ($176.8M)

Contractor: Bowhead Support Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-10-01

End Date: 2016-07-17

Contract Duration: 1,020 days

Daily Burn Rate: $173.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: IGF::CT::IGF RECAP AND RESET ON MILITARY ARMORED VEHICLES AND MILITARY POWER GENERATORS

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $176.8 million to BOWHEAD SUPPORT GROUP LLC for work described as: IGF::CT::IGF RECAP AND RESET ON MILITARY ARMORED VEHICLES AND MILITARY POWER GENERATORS Key points: 1. The contract's value of $176.8 million represents a significant investment in military support equipment. 2. The award was made under a 'full and open competition after exclusion of sources' clause, suggesting a complex procurement history. 3. The contract type, 'definitive contract' with 'labor hours' pricing, indicates a focus on services and personnel rather than fixed goods. 4. The duration of the contract, spanning from October 2013 to July 2016, suggests a medium-term project. 5. The primary contractor, Bowhead Support Group LLC, has a track record that warrants examination for performance and reliability in similar contracts. 6. The contract's focus on military armored vehicles and power generators places it within a specialized niche of defense support services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services rendered and the exact nature of the military vehicles and generators procured. The 'labor hours' pricing model can sometimes lead to cost overruns if not managed tightly. Comparing it to similar contracts for military support equipment would require detailed analysis of scope, duration, and performance metrics. The total award amount of $176.8 million is substantial, implying a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements, prior performance, or security considerations. The number of bidders is not specified, but the exclusion clause suggests a potentially narrowed field compared to a truly unrestricted open competition. This could impact price discovery and potentially lead to higher costs if the excluded sources represented significant competition.

Taxpayer Impact: Taxpayers may have faced higher costs due to the exclusion of certain potential bidders. The rationale for exclusion needs to be clearly documented to ensure fairness and optimal use of public funds.

Public Impact

The primary beneficiaries are likely military units requiring specialized armored vehicles and reliable power generation capabilities. The services delivered would encompass maintenance, repair, logistical support, and potentially manufacturing or modification of military equipment. The geographic impact is likely concentrated around military bases or operational theaters where these vehicles and generators are deployed. Workforce implications include employment for skilled technicians, mechanics, and support staff involved in military equipment maintenance and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to 'labor hours' pricing if not rigorously monitored.
The 'exclusion of sources' in competition raises questions about the breadth of market engagement and potential impact on price.
Lack of specific details on the types of vehicles and generators makes it difficult to assess the true value and necessity of the procurement.

Positive Signals

Award to a single contractor (Bowhead Support Group LLC) can streamline management and communication for complex support services.
The contract duration suggests a stable, long-term need for these military support capabilities.
The procurement falls under the Department of Health and Human Services, Office of the Assistant Secretary for Administration, indicating administrative oversight for specialized support.

Sector Analysis

This contract operates within the defense industrial base, specifically focusing on the manufacturing and support of military vehicles and power generation equipment. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity, stringent quality requirements, and long development cycles. Spending in this sector is driven by national defense needs and geopolitical factors. Comparable spending benchmarks would involve analyzing other large-scale contracts for military hardware and support services awarded by various defense agencies.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as 'ss' (small business set-aside) and 'sb' (small business) are both false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, Bowhead Support Group LLC, is likely a large business, and the contract may not have specific provisions to drive subcontracting opportunities to the small business ecosystem. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration (ASA). The 'definitive contract' type and 'labor hours' pricing necessitate robust administrative oversight to ensure adherence to terms, manage performance, and control costs. Transparency would depend on the public availability of contract performance reports and any audits conducted. Inspector General jurisdiction would likely reside with the HHS Office of Inspector General, responsible for investigating fraud, waste, and abuse within the department.

Related Government Programs

Military Vehicle Procurement
Defense Logistics Support
Power Generation Equipment Contracts
Government Services Administration (GSA) Schedules (if applicable)
Department of Defense (DoD) Support Contracts

Risk Flags

Competition Concerns: 'Full and open competition after exclusion of sources' warrants scrutiny.
Pricing Structure Risk: 'Labor hours' pricing requires diligent oversight to prevent cost overruns.
Lack of Specificity: Details on vehicles and generators are minimal, hindering value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $176.8 million to BOWHEAD SUPPORT GROUP LLC. IGF::CT::IGF RECAP AND RESET ON MILITARY ARMORED VEHICLES AND MILITARY POWER GENERATORS

Who is the contractor on this award?

The obligated recipient is BOWHEAD SUPPORT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $176.8 million.

What is the period of performance?

Start: 2013-10-01. End: 2016-07-17.

What is the specific nature of the 'military armored vehicles and military power generators' procured under this contract?

The provided data does not specify the exact models or types of military armored vehicles and power generators. The contract, identified by NAICS code 336992 (Military Armored Vehicle, Tank, and Tank Component Manufacturing), suggests a focus on these categories. However, without further details, it's impossible to ascertain if this includes new manufacturing, refurbishment, spare parts, or specialized support services for existing equipment. The 'labor hours' pricing model implies that a significant portion of the contract value is allocated to the personnel performing services related to these assets, rather than the direct purchase of the hardware itself.

What was the justification for excluding certain sources in the 'full and open competition after exclusion of sources' award?

The rationale for excluding specific sources in a 'full and open competition after exclusion of sources' award is typically documented within the procurement file. Common reasons include prior performance issues with certain contractors, specialized technical requirements that only a limited number of firms can meet, national security concerns, or the need to leverage existing relationships or intellectual property developed under previous contracts. Without access to the detailed procurement documentation for this specific contract (NAICS 336992), the precise reasons for exclusion remain unknown. This lack of transparency can be a concern for ensuring maximum competition and best value for taxpayer dollars.

How does the 'labor hours' pricing structure compare to other contract types for similar military support services?

Contracts priced on 'labor hours' (often referred to as Time and Materials or Labor Hour contracts) are common for services where the scope of work is not clearly defined at the outset or is expected to evolve. This contrasts with fixed-price contracts, which offer greater cost certainty for the government but require a well-defined scope. For military support services, labor hour contracts can be advantageous for unpredictable maintenance, repair, or technical support needs. However, they carry a higher risk of cost escalation if not managed diligently, as the government pays for the time and materials consumed. Benchmarking requires comparing the effective hourly rates and total costs against similar services procured under different contract types, considering the complexity and criticality of the equipment supported.

What is the track record of Bowhead Support Group LLC in fulfilling similar government contracts, particularly in defense logistics or equipment support?

Bowhead Support Group LLC has a history of receiving government contracts, including those related to defense and support services. Analyzing their past performance requires reviewing contract databases for awards, completion status, and any reported issues such as contract disputes, performance deficiencies, or termination for cause. Specific to military armored vehicles and power generators, their experience would be a key indicator of their capability. A thorough assessment would involve examining the size and complexity of previous contracts, client feedback (if available), and any awards or commendations received. Without a detailed performance review, it's difficult to definitively assess their track record for this specific $176.8 million award.

What are the potential risks associated with a definitive contract of this size and duration for military equipment support?

Risks associated with a definitive contract of this magnitude ($176.8M) and duration (approx. 3 years) for military equipment support include: 1) Cost Overruns: The 'labor hours' pricing model inherently carries a risk of exceeding the estimated cost if work is inefficient or scope creeps. 2) Performance Degradation: Maintaining consistent quality and performance over a multi-year period can be challenging, especially with complex equipment. 3) Contractor Viability: The long duration means the contractor's financial stability and operational capacity must remain robust throughout the contract term. 4) Technological Obsolescence: Military equipment can evolve rapidly; the contract needs to accommodate potential upgrades or changes in requirements. 5) Dependency: The government may become overly reliant on a single contractor for critical support, reducing flexibility.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 13233SOL00292

Offers Received: 17

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 801, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $204,803,206

Exercised Options: $176,803,206

Current Obligation: $176,803,206

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline