HHS Spends $201.6M on Military Vehicles and Generators via Full and Open Competition
Contract Overview
Contract Amount: $201,578,733 ($201.6M)
Contractor: Bowhead Integrated Support Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-07-18
End Date: 2019-09-30
Contract Duration: 1,169 days
Daily Burn Rate: $172.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
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
Plain-Language Summary
Department of Health and Human Services obligated $201.6 million to BOWHEAD INTEGRATED SUPPORT SERVICES LLC for work described as: IGF::CT::IGF RECAP AND RESET ON MILITARY ARMORED VEHICLES AND MILITARY POWER GENERATORS Key points: 1. Significant investment in military hardware and power generation, totaling over $201 million. 2. Contract awarded to Bowhead Integrated Support Services LLC, indicating a specific vendor relationship. 3. Full and open competition was utilized, suggesting a structured procurement process. 4. The contract spans nearly four years, from July 2016 to September 2019. 5. The primary focus is on military armored vehicles and power generators.
Value Assessment
Rating: fair
The total award of $201.6 million over nearly four years appears substantial. Benchmarking against similar contracts for military vehicles and generators is difficult without more specific contract details and performance metrics. The 'labor hours' pricing structure can sometimes lead to cost overruns if not managed tightly.
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,' which is an unusual designation. While 'full and open' implies broad competition, the 'exclusion of sources' part needs clarification to understand if it limited the competitive pool. This method aims for best value but the exclusion might impact price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical military support equipment. The use of full and open competition is generally positive for ensuring fair pricing, but the specific exclusion of sources warrants scrutiny to ensure no undue advantage was given.
Public Impact
Ensures availability of essential military equipment for national defense operations. Supports jobs and economic activity within the defense manufacturing and logistics sectors. Potential for technological advancements in armored vehicles and power generation through competitive contracts. Funds allocated could otherwise be used for domestic programs or other federal priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ambiguity in 'full and open competition after exclusion of sources'.
- Potential for cost creep with 'labor hours' pricing.
- Lack of specific performance metrics for value assessment.
Positive Signals
- Utilized full and open competition, promoting a competitive bidding environment.
- Contract duration of nearly four years provides stability for vendor and planning.
- Focus on critical military infrastructure.
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on military vehicles and power generation. Spending in this sector is often driven by geopolitical needs and technological advancements. Benchmarks are highly variable based on vehicle type, capabilities, and generator specifications.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Bowhead Integrated Support Services LLC, is not typically categorized as a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, which is unusual for military equipment. Oversight would involve ensuring the funds are used appropriately for the stated purpose and that the contractor meets all performance requirements. The Inspector General's office would likely play a role in auditing such expenditures.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Unusual contracting agency (HHS) for military equipment.
- Ambiguous competition type ('full and open competition after exclusion of sources').
- Potential for cost overruns with 'labor hours' pricing.
- Lack of transparency regarding specific vehicle/generator types and performance.
- No clear indication of small business participation.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $201.6 million to BOWHEAD INTEGRATED SUPPORT SERVICES 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 INTEGRATED SUPPORT SERVICES 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 $201.6 million.
What is the period of performance?
Start: 2016-07-18. End: 2019-09-30.
What was the specific justification for excluding certain sources in a 'full and open competition' for military vehicles and generators?
The justification for excluding sources in a 'full and open competition' typically relates to specific technical requirements, existing security clearances, or unique capabilities that only a limited number of vendors possess. Without further details on this specific contract, it's difficult to ascertain the exact reasons. However, such exclusions can sometimes limit competition and potentially impact the final price achieved.
How does the 'labor hours' pricing model for this $201.6 million contract ensure cost-effectiveness and prevent overruns?
The 'labor hours' pricing model can be cost-effective if the agency has strong oversight and the contractor is efficient. However, it carries a risk of cost overruns if the scope of work expands or if labor is not utilized optimally. Robust monitoring of hours, rates, and deliverables is crucial to manage this risk and ensure taxpayer value. Without detailed performance data, it's hard to assess the effectiveness here.
What is the strategic rationale for the Department of Health and Human Services procuring military armored vehicles and generators?
The procurement of military equipment by HHS is unusual and suggests a specific, non-standard requirement. It could be related to supporting federal response efforts during national emergencies, providing logistical support for health-related missions in austere environments, or fulfilling a unique inter-agency agreement. Clarification from HHS on the end-use and strategic purpose is necessary to understand this allocation of funds.
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: 16233SOL00002
Offers Received: 7
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 4900 SEMINARY RD STE 1200, ALEXANDRIA, VA, 22311
Business Categories: 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: $418,979,853
Exercised Options: $239,671,572
Current Obligation: $201,578,733
Actual Outlays: $216,596
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-07-18
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2021-09-29
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