VA awards $67M telehealth contract to Iron Bow Technologies, highlighting a sole-source procurement

Contract Overview

Contract Amount: $67,067,685 ($67.1M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-07

End Date: 2022-09-06

Contract Duration: 364 days

Daily Burn Rate: $184.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TELEHEALTH

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67.1 million to IRON BOW TECHNOLOGIES, LLC for work described as: TELEHEALTH Key points: 1. Contract value represents a significant investment in telehealth infrastructure. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Contract duration of one year suggests a focus on immediate needs or a bridge to future solutions. 4. Firm-fixed-price structure aims to provide cost certainty for the government. 5. The award falls within the broader context of increasing federal investment in digital health services.

Value Assessment

Rating: fair

Benchmarking the value of this $67 million telehealth contract is challenging without comparable sole-source awards for similar services. The firm-fixed-price structure provides some cost predictability. However, the lack of competition inherent in a sole-source award means there's no direct market comparison to assess if the pricing is optimal or if taxpayers received the best possible value. Further analysis would require understanding the specific services delivered and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Iron Bow Technologies, LLC, was solicited. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without a competitive bidding process, it is difficult to ascertain the full range of potential vendors or the impact on price discovery. This approach limits the government's ability to leverage market forces for potentially better pricing or innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competition, such as lower prices and improved service offerings, are forgone. It also limits transparency in the procurement process.

Public Impact

Veterans will benefit from enhanced telehealth services, improving access to care. The contract supports the delivery of electronic health record management and related IT services. The primary geographic impact is within the VA system, potentially nationwide. This contract likely supports IT professionals and healthcare support staff within the VA and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source justification needs thorough review to ensure necessity.
Performance monitoring is critical to ensure value delivery without competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Focus on telehealth aligns with modern healthcare delivery trends.
Award to an established vendor may ensure continuity of service.

Sector Analysis

The telehealth sector is a rapidly growing segment of the healthcare industry, driven by technological advancements and increasing demand for remote patient care. Federal spending in this area has surged, particularly post-pandemic, as agencies like the VA seek to modernize their health IT infrastructure. This contract fits within the broader trend of digital transformation in healthcare, aiming to improve patient access and operational efficiency through technology.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award to a single, likely larger, prime contractor may limit direct opportunities for small businesses to participate in this specific procurement. However, the prime contractor might engage small businesses for specific services or components, which would be detailed in their subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is limited due to the sole-source nature of the award, but contract performance data and any associated Inspector General reports would provide further insight into oversight effectiveness.

Related Government Programs

VA Electronic Health Record Modernization
Federal Telehealth Initiatives
Healthcare IT Services Contracts

Risk Flags

Sole-source procurement limits price competition.
NAICS code mismatch requires clarification on service scope.
Contract duration is relatively short, potentially indicating a transitional need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67.1 million to IRON BOW TECHNOLOGIES, LLC. TELEHEALTH

Who is the contractor on this award?

The obligated recipient is IRON BOW TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $67.1 million.

What is the period of performance?

Start: 2021-09-07. End: 2022-09-06.

What specific telehealth services are covered under this $67 million contract?

The provided data indicates the contract is related to 'TELEHEALTH' and has a North American Industry Classification System (NAICS) code of 334111 for Electronic Computer Manufacturing. While the specific services aren't detailed, this suggests the contract likely encompasses the provision, maintenance, or integration of electronic health record systems, computer hardware, and potentially software solutions that enable telehealth delivery. This could include infrastructure, platforms, or devices necessary for remote patient monitoring, virtual consultations, and secure data transmission within the VA healthcare system.

How does the $67 million award compare to previous VA telehealth spending?

Without historical spending data specifically for this contract vehicle or comparable sole-source telehealth awards, a direct comparison is difficult. However, the $67 million figure indicates a substantial investment by the VA in telehealth capabilities during the contract period (September 2021 - September 2022). Federal spending on telehealth has generally increased across agencies, driven by the need for accessible healthcare solutions, especially following the COVID-19 pandemic. This award likely reflects a strategic push to enhance the VA's digital health infrastructure.

What are the risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award, especially one valued at $67 million, is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may not be receiving the best possible value for their money. Additionally, there's a risk that the chosen contractor may not be the most innovative or efficient provider available in the market. Ensuring robust oversight and performance management becomes critical to mitigate these risks and ensure the VA receives the required services effectively.

What is the track record of Iron Bow Technologies, LLC with the VA?

Iron Bow Technologies, LLC has a history of contracting with the Department of Veterans Affairs. While this specific $67 million award is for telehealth services, the company has previously secured contracts with the VA for various IT solutions and services. Analyzing their past performance, contract modifications, and compliance history with the VA would provide a clearer picture of their reliability and effectiveness in delivering complex IT projects for the agency. Accessing VA contract databases and performance reports would offer more granular details.

What does the 'Electronic Computer Manufacturing' NAICS code imply for this telehealth contract?

The NAICS code 334111, 'Electronic Computer Manufacturing,' associated with this contract might seem unusual for a telehealth service award. It suggests that the contract's primary focus, from a manufacturing or primary product perspective, involves electronic computing equipment. This could mean the contract involves the procurement and integration of specific hardware, servers, workstations, or related computing infrastructure essential for supporting the telehealth platform and its operations, rather than solely software or services. It highlights a hardware-centric component to the telehealth solution.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HIG Capital Management, Inc.

Address: 2121 COOPERATIVE WAY STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,764,456

Exercised Options: $67,067,685

Current Obligation: $67,067,685

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G21D0016

IDV Type: IDC

Timeline