DoD's $65.7M communications support contract awarded to Bowhead Professional and Technical Solutions LLC

Contract Overview

Contract Amount: $65,716,914 ($65.7M)

Contractor: Bowhead Professional and Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-17

End Date: 2025-09-30

Contract Duration: 1,839 days

Daily Burn Rate: $35.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS IS A COST PLUS FIXED FEE CONTRACT IN SUPPORT OF COMMUNICATIONS AND ELECTRONICS COMMAND (CECOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD). THE CONTRACT HAS A BASE PERIOD OF TWELVE (12) MONTHS AND FOUR TWELVE (12) MONTH OPTIONS.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.7 million to BOWHEAD PROFESSIONAL AND TECHNICAL SOLUTIONS LLC for work described as: THIS IS A COST PLUS FIXED FEE CONTRACT IN SUPPORT OF COMMUNICATIONS AND ELECTRONICS COMMAND (CECOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD). THE CONTRACT HAS A BASE PERIOD OF TWELVE (12) MONTHS AND FOUR TWELVE (12) MONTH OPTIONS. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract has a base period and four option periods, indicating potential for long-term engagement. 3. The specific services provided are related to communications and electronics command security assistance management. 4. The contract was not competed, raising questions about potential price discovery and value for money. 5. The contractor, Bowhead Professional and Technical Solutions LLC, has a history of receiving federal contracts. 6. The contract is managed by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: fair

The contract's total value is $65.7 million over its potential duration. Without specific performance metrics or comparison data for similar services, it is difficult to definitively assess value for money. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means that the government did not benefit from the price reductions or service innovations that can arise from a bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price for these services due to the absence of competitive bidding.

Public Impact

The primary beneficiaries are the Department of the Army's Communications and Electronics Command (CECOM) Security Assistance Management Directorate (SAMD), which receives essential support services. Services delivered include support for communications and electronics command security assistance management, crucial for national defense operations. The contract is geographically focused within Virginia, where the Department of the Army has significant operations. The contract supports a workforce employed by Bowhead Professional and Technical Solutions LLC, contributing to employment in the IT and technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Cost-plus-fixed-fee contracts require robust oversight to prevent cost creep.
The duration of the contract (base plus four options) suggests a long-term reliance on this specific vendor.

Positive Signals

The contract supports critical communications and security assistance functions for the Department of the Army.
The contractor, Bowhead Professional and Technical Solutions LLC, is an established entity within the federal contracting space.
The contract has a defined period of performance, allowing for periodic re-evaluation of needs and potential competition in the future.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on IT support and management for defense-related communications. The market for such specialized services is competitive, but sole-source awards can limit the government's ability to leverage this competition. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT support and security assistance management services within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Bowhead Professional and Technical Solutions LLC voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess its impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army's contracting officers and program managers. They are responsible for monitoring performance, approving costs, and ensuring compliance with contract terms. Transparency is facilitated through contract databases, but the specifics of cost-plus-fixed-fee management require diligent internal review. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Army Communications Support Contracts
Security Assistance Management Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award may limit price competition.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs.
Lack of detailed performance metrics in provided data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.7 million to BOWHEAD PROFESSIONAL AND TECHNICAL SOLUTIONS LLC. THIS IS A COST PLUS FIXED FEE CONTRACT IN SUPPORT OF COMMUNICATIONS AND ELECTRONICS COMMAND (CECOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD). THE CONTRACT HAS A BASE PERIOD OF TWELVE (12) MONTHS AND FOUR TWELVE (12) MONTH OPTIONS.

Who is the contractor on this award?

The obligated recipient is BOWHEAD PROFESSIONAL AND TECHNICAL 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 $65.7 million.

What is the period of performance?

Start: 2020-09-17. End: 2025-09-30.

What is the track record of Bowhead Professional and Technical Solutions LLC with federal contracts, particularly within the Department of Defense?

Bowhead Professional and Technical Solutions LLC has a significant history of receiving federal contracts, primarily within the Department of Defense. Their contract portfolio often includes professional, scientific, and technical services, aligning with the nature of this award. Analysis of their past performance, including any reported issues or successes, is crucial for understanding their reliability and capability in fulfilling the requirements of this specific contract. Federal procurement data indicates they have been awarded numerous contracts across various agencies, suggesting a broad range of experience. However, a detailed review of past performance evaluations and any contract disputes would provide a more comprehensive picture of their track record.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar IT support services?

Cost Plus Fixed Fee (CPFF) contracts are common in government contracting, especially for services where the scope may evolve or is not precisely defined at the outset. For IT support and management services, CPFF allows the government to reimburse the contractor for allowable costs plus a predetermined fixed fee representing profit. While standard, this structure places a significant burden on the government to meticulously track and audit costs to prevent overruns. Industry benchmarks for IT services often show a range of pricing models, including fixed-price and time-and-materials. The effectiveness of CPFF hinges on robust government oversight and clear definition of 'allowable costs' and the 'fixed fee' to ensure it represents fair value compared to market rates for comparable services.

What are the specific risks associated with a sole-source award for this type of service?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may pay more than it would in an open market scenario. Another risk is reduced innovation, as the contractor may have less incentive to find cost-saving efficiencies or introduce novel solutions. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, which can create dependency and limit future flexibility. Ensuring the necessity and justification for the sole-source designation is critical to mitigate these risks.

What performance metrics are in place to ensure the effectiveness of the services provided under this contract?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) established for this contract. For a Cost Plus Fixed Fee contract, particularly one supporting critical functions like security assistance management, robust performance metrics are essential. These metrics should objectively measure the contractor's delivery of services against agreed-upon standards, such as response times, system uptime, accuracy of information, and overall support effectiveness. Without visibility into these metrics and the associated quality assurance surveillance plans, it is challenging to assess the program's effectiveness and the value derived from the expenditure.

How does this contract's total value and duration compare to historical spending on similar communications and security assistance support within the Department of the Army?

The total potential value of $65.7 million over approximately five years (base plus four 12-month options) provides a benchmark for this specific contract. To assess its historical context, one would need to compare this figure against previous contracts awarded by the Department of the Army for similar communications and security assistance management support. Analyzing trends in contract values, durations, and award types (competed vs. sole-source) for comparable services over the past several years would reveal whether this award is within historical norms, represents an increase or decrease in spending, and whether it reflects a shift in procurement strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91CRB20R5015

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, 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: $65,716,914

Exercised Options: $65,716,914

Current Obligation: $65,716,914

Actual Outlays: $531,676

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $39,904,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline