VA awards $68.7M for Medical Equipment & Services Support to Iron Bow Technologies, LLC

Contract Overview

Contract Amount: $68,721,769 ($68.7M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-07

End Date: 2023-09-06

Contract Duration: 364 days

Daily Burn Rate: $188.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL EQUIPMENT & SERVICES SUPPORT

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $68.7 million to IRON BOW TECHNOLOGIES, LLC for work described as: MEDICAL EQUIPMENT & SERVICES SUPPORT Key points: 1. Contract value of $68.7M for a one-year period indicates significant investment in medical equipment and services. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. The contract duration of 364 days suggests a need for ongoing, consistent support. 4. Focus on electronic computer manufacturing (NAICS 334111) points to a significant IT component within medical support. 5. The award is managed by the Department of Veterans Affairs, highlighting its commitment to veteran healthcare infrastructure. 6. The contract type is Firm Fixed Price, which can offer cost certainty but may limit flexibility.

Value Assessment

Rating: fair

Benchmarking the value of this $68.7 million contract is challenging without specific details on the scope of medical equipment and services provided. However, for a one-year duration, this represents a substantial investment. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Further analysis would require understanding the specific equipment, service levels, and comparison to similar sole-source contracts for comparable federal agencies.

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 considered. This approach is typically used when specific circumstances justify not competing the award, such as the availability of only one responsible source or urgent and compelling needs. The lack of competition limits the government's ability to explore a wider range of pricing and service options from multiple vendors, potentially impacting the final price and the innovation brought to the contract.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. It also reduces transparency in the procurement process.

Public Impact

Veterans will benefit from the reliable provision of medical equipment and associated support services. The contract ensures the continuity of essential healthcare operations within the Department of Veterans Affairs. The geographic impact is primarily within the United States, supporting VA facilities nationwide. Workforce implications may include support roles for installation, maintenance, and technical assistance related to the medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially reduces value for money.
Lack of competition may stifle innovation and prevent the adoption of more cost-effective solutions.
Firm Fixed Price contract might not be optimal if scope changes significantly, leading to potential cost overruns or contractor dissatisfaction.

Positive Signals

Award to a single, established vendor can ensure continuity of critical services.
Firm Fixed Price contract provides cost certainty for the VA within the defined scope.
The contract duration of nearly a year suggests a stable and predictable support environment.

Sector Analysis

The medical equipment and services sector is a critical component of the healthcare industry, encompassing a wide range of products from diagnostic imaging machines to patient monitoring systems and the support services required for their operation. Federal spending in this area is substantial, driven by agencies like the Department of Veterans Affairs and the Department of Defense. This contract, focusing on electronic computer manufacturing related to medical support, fits within the broader IT and healthcare technology market. Comparable spending benchmarks would typically involve analyzing IT support contracts for healthcare systems or large-scale medical equipment maintenance agreements.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions based on the provided data. The absence of small business participation in this sole-source award means that opportunities for subcontracting with small businesses are not explicitly mandated or highlighted. This could limit the direct economic benefit to the small business ecosystem in this specific procurement, although Iron Bow Technologies, LLC may engage small businesses in its broader operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified goods and services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

VA Medical Equipment Procurement
Healthcare IT Services
Federal IT Support Contracts
Medical Device Maintenance Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in contract award process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $68.7 million to IRON BOW TECHNOLOGIES, LLC. MEDICAL EQUIPMENT & SERVICES SUPPORT

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 $68.7 million.

What is the period of performance?

Start: 2022-09-07. End: 2023-09-06.

What specific medical equipment and services are covered under this $68.7 million contract?

The provided data indicates the contract is for 'MEDICAL EQUIPMENT & SERVICES SUPPORT' and falls under NAICS code 334111 (Electronic Computer Manufacturing). This suggests the contract likely involves the provision, maintenance, or support of IT-related medical equipment, such as diagnostic systems, patient monitoring devices with integrated computing capabilities, or the IT infrastructure supporting these medical technologies. Without further details, the exact scope remains broad, but it points towards a significant technology component within the VA's medical support framework. The duration of 364 days implies ongoing operational support rather than a one-time purchase.

How does the $68.7 million value compare to similar VA contracts for medical equipment and services?

Comparing this $68.7 million contract value requires access to a broader dataset of VA procurements. However, for a one-year duration, this amount signifies a substantial investment. The Department of Veterans Affairs manages a vast healthcare system, and large-scale contracts for medical equipment and IT support are common. To assess value, one would typically look at contracts for similar equipment categories, service levels, and contract lengths. Given this is a sole-source award, direct price comparisons with competitively bid contracts would be difficult, but it can be benchmarked against historical sole-source awards for comparable needs to gauge reasonableness.

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

The primary risks associated with a sole-source award of this magnitude include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or offer cost-saving measures, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Additionally, reliance on a single vendor can create risks related to vendor performance, financial stability, or future availability, especially if the vendor's capabilities are highly specialized. The government also misses out on potential benefits from a diverse market response.

What is the track record of Iron Bow Technologies, LLC in fulfilling federal contracts, particularly with the VA?

Iron Bow Technologies, LLC has a significant history of performing federal contracts, including numerous awards from the Department of Veterans Affairs. Their portfolio often includes IT hardware, software, and services, aligning with the NAICS code provided (Electronic Computer Manufacturing). While specific performance metrics for past contracts are not detailed here, their continued success in securing federal awards suggests a generally positive track record. However, a comprehensive assessment would involve reviewing past performance evaluations, any contract disputes, and the overall scope and complexity of their previous engagements with the VA and other agencies.

How does the 'Electronic Computer Manufacturing' NAICS code relate to 'Medical Equipment & Services Support'?

The NAICS code 334111, 'Electronic Computer Manufacturing,' is typically associated with the production of computers and related devices. In the context of 'Medical Equipment & Services Support,' this suggests the contract likely involves medical devices that have a significant computing component or rely heavily on IT infrastructure. This could include advanced diagnostic imaging systems, patient monitoring systems, electronic health record (EHR) interfaces, or other sophisticated medical technologies where the underlying hardware and software are critical. The 'services' aspect would then cover the maintenance, support, and potentially upgrades for this technology.

What are the implications of the 'Firm Fixed Price' contract type for this medical equipment support?

A 'Firm Fixed Price' (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For the VA, this offers cost certainty, as the total expenditure is known upfront, assuming the scope of work remains unchanged. It places the risk of cost overruns on the contractor, incentivizing them to manage their expenses efficiently. However, if the scope of medical equipment and services needs to change significantly, or if unforeseen technical challenges arise, an FFP contract can become rigid. In such cases, modifications or new contracts might be necessary, potentially leading to delays or renegotiations.

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

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: $111,917,379

Exercised Options: $68,721,769

Current Obligation: $68,721,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G21D0016

IDV Type: IDC

Timeline