DoD awards $53.7M for Letterkenny Army Depot labor support, focusing on military asset recapitalization

Contract Overview

Contract Amount: $53,667,464 ($53.7M)

Contractor: Bowhead Integrated Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $147.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SUPPORT AT LETTERKENNY ARMY DEPOT TO ASSIST WITH THE RECAPITIALIZATION AND RESET OF VARIOUS MILITARY ASSETS.

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to BOWHEAD INTEGRATED SUPPORT SERVICES LLC for work described as: LABOR SUPPORT AT LETTERKENNY ARMY DEPOT TO ASSIST WITH THE RECAPITIALIZATION AND RESET OF VARIOUS MILITARY ASSETS. Key points: 1. Contract provides essential labor for military asset recapitalization and reset. 2. The contract was awarded through full and open competition after exclusion of sources. 3. Performance period spans one year, indicating a focused operational scope. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The awardee, Bowhead Integrated Support Services LLC, is a key provider in this sector. 6. The geographic focus is Pennsylvania, aligning with Letterkenny Army Depot's location. 7. This contract supports the Army's readiness and maintenance objectives.

Value Assessment

Rating: fair

The contract value of $53.7 million for one year of labor support appears within a reasonable range for large-scale military asset recapitalization. However, the Time and Materials (T&M) contract type warrants scrutiny. T&M contracts can lead to cost overruns if not managed diligently, as they reimburse actual labor hours and material costs. Benchmarking against similar T&M contracts for depot support services would be necessary for a more precise value assessment. The provided data does not include specific labor rates or material markups, which are crucial for a detailed price analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes be used when specific capabilities or past performance are critical. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may have resulted in a less competitive pricing environment, potentially leading to higher costs for taxpayers compared to a truly unrestricted full and open competition.

Public Impact

Benefits military readiness by ensuring the recapitalization and reset of various military assets. Services delivered include essential labor support for depot operations. Geographic impact is concentrated in Pennsylvania, supporting the Letterkenny Army Depot. Workforce implications include employment opportunities for skilled labor in the region. Enhances the operational effectiveness of the U.S. Army's equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely monitored.
Limited competition due to 'exclusion of sources' may impact price competitiveness.
Lack of detailed cost breakdown makes independent value assessment challenging.

Positive Signals

Awarded to a single contractor, potentially streamlining management and execution.
Supports critical military asset readiness, a key government objective.
Contract duration of one year allows for focused performance evaluation.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically supporting military depot operations. The market for depot maintenance and recapitalization services is significant, driven by the U.S. military's need to maintain and modernize its vast array of assets. Comparable spending benchmarks would involve analyzing other large-scale depot support contracts awarded by the Department of Defense, particularly those focused on equipment reset and modernization. The scale of this contract suggests it is a substantial undertaking within this specialized sector.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The focus appears to be on securing the necessary capabilities for a large-scale military support operation, rather than prioritizing small business engagement through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) at Letterkenny Army Depot. Accountability measures would be tied to the performance work statement and the terms of the Time and Materials contract. Transparency is facilitated through contract award databases, but detailed operational oversight and inspector general jurisdiction would focus on ensuring compliance with contract terms and preventing fraud, waste, and abuse.

Related Government Programs

Military Depot Maintenance
Army Logistics Modernization
Defense Readiness Programs
Equipment Recapitalization Services
Facilities Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may impact price competitiveness.
Need for robust oversight to manage contractor performance and costs.
Dependence on contractor's ability to provide skilled labor for critical tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to BOWHEAD INTEGRATED SUPPORT SERVICES LLC. LABOR SUPPORT AT LETTERKENNY ARMY DEPOT TO ASSIST WITH THE RECAPITIALIZATION AND RESET OF VARIOUS MILITARY ASSETS.

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $53.7 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

What is the track record of Bowhead Integrated Support Services LLC in performing similar large-scale military asset recapitalization contracts?

Bowhead Integrated Support Services LLC has a history of performing various support services for the U.S. military, including logistics, maintenance, and facilities management. While specific details on their track record for large-scale asset recapitalization at depots like Letterkenny are not fully elaborated in this data, their presence in the defense contracting space suggests experience. A deeper dive into their past performance evaluations, contract history with the Department of Defense, and any reported issues or successes on similar projects would be necessary to fully assess their capability and reliability for this specific $53.7 million contract. Reviewing contract award databases and performance assessment reports would provide more granular insights.

How does the $53.7 million value compare to similar labor support contracts for military asset recapitalization?

The $53.7 million value for a one-year labor support contract for military asset recapitalization at a major depot like Letterkenny is substantial. To benchmark this value effectively, one would need to compare it against other definitive contracts awarded by the Department of the Army or other branches for similar services. Factors such as the scope of work (e.g., types of assets, complexity of repairs), duration, and contract type (Time and Materials in this case) significantly influence pricing. Without access to a broader dataset of comparable contracts, it's challenging to definitively state if this represents excellent, fair, or concerning value. However, the scale suggests a significant operational requirement.

What are the primary risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk associated with a Time and Materials (T&M) contract for labor support in military asset recapitalization is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual hours worked and the cost of materials used, plus a fixed fee or labor rate. If the scope of work expands, if inefficiencies arise, or if the contractor does not manage resources effectively, costs can escalate beyond initial estimates. Robust oversight, detailed tracking of labor hours and materials, and clear definition of 'best efforts' or 'level of effort' are crucial to mitigate these risks and ensure taxpayer funds are used efficiently. The government must actively manage the contractor's performance and expenditures.

What is the expected program effectiveness and impact on military readiness from this contract?

The expected program effectiveness hinges on the contractor's ability to provide skilled labor that successfully supports the recapitalization and reset of various military assets at Letterkenny Army Depot. Successful execution of this contract should directly contribute to improved military readiness by ensuring that equipment is maintained, modernized, and returned to operational status efficiently. The 'recapitalization and reset' implies bringing aging or degraded assets back to a high state of readiness. The effectiveness will be measured by the timely completion of tasks, the quality of the work performed, and the resulting improvement in the operational availability and reliability of the military assets supported.

What are the historical spending patterns for labor support at Letterkenny Army Depot or similar facilities?

Historical spending patterns for labor support at Letterkenny Army Depot or similar facilities would reveal trends in contract values, types of services procured, and contractor performance over time. Analyzing past contracts would help establish baseline costs for depot operations and maintenance. For instance, understanding the average annual spend on labor support, the prevalence of T&M versus fixed-price contracts, and the typical duration of such agreements provides context for the current $53.7 million award. Significant deviations from historical spending could indicate changes in operational tempo, asset condition, or market pricing, warranting further investigation.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method affect competition and pricing?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach to procurement. It signifies that the solicitation was made available to all responsible prospective sources, but specific sources were excluded based on pre-determined criteria, often related to capability, security, or past performance. While it aims for broad competition, the exclusion inherently limits the pool of bidders compared to unrestricted full and open competition. This limitation can potentially reduce competitive pressure, leading to less aggressive pricing. The justification for excluding sources is critical; if exclusions are well-founded and necessary for mission success, the trade-off might be acceptable. However, if exclusions are arbitrary, they can stifle competition and increase costs for the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911N219R0028

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6564 LOISDALE CT STE 900, SPRINGFIELD, VA, 22150

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,667,464

Exercised Options: $53,667,464

Current Obligation: $53,667,464

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline