VA awards $22M for medical equipment support to Iron Bow Technologies, a sole-source contract

Contract Overview

Contract Amount: $21,999,650 ($22.0M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-01

End Date: 2024-08-31

Contract Duration: 365 days

Daily Burn Rate: $60.3K/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 $22.0 million to IRON BOW TECHNOLOGIES, LLC for work described as: MEDICAL EQUIPMENT & SERVICES SUPPORT Key points: 1. Contract awarded to a single vendor suggests potential for higher pricing due to lack of competition. 2. The contract's duration of one year with a firm-fixed-price structure provides cost certainty for the VA. 3. No small business set-aside was utilized, indicating potential missed opportunities for smaller businesses. 4. The specific NAICS code (334111) points to a focus on electronic computer manufacturing, which may be a component of the broader medical equipment support. 5. Geographic location of the vendor in Virginia may influence logistics and support response times. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, though details are not provided.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific medical equipment and services covered. However, a sole-source award often leads to less competitive pricing compared to fully competed contracts. The $22 million value over one year for specialized support services is significant, and a thorough review of pricing against market rates for similar equipment and support would be warranted to ensure value for money. The firm-fixed-price nature provides budget predictability.

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. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they generally limit price discovery and can result in higher costs for the government compared to contracts awarded through full and open competition with multiple bidders.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as competition is a key driver for cost savings in government procurement.

Public Impact

Veterans Affairs medical facilities will benefit from continued support and maintenance of critical medical equipment. Ensures the operational readiness and reliability of essential healthcare technology for patient care. The services delivered are crucial for maintaining a high standard of healthcare delivery within the VA system. Workforce implications are likely related to the technical support staff provided by Iron Bow Technologies, ensuring skilled personnel are available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition on this sole-source award raises concerns about potential overpayment and suboptimal pricing.
The specific nature of 'medical equipment and services support' is broad; a lack of detailed scope could lead to scope creep or unfulfilled needs.
Reliance on a single vendor for critical support could pose a risk if the vendor experiences financial instability or performance issues.

Positive Signals

The firm-fixed-price contract type offers budget certainty for the Department of Veterans Affairs.
The contract is awarded to an established vendor, Iron Bow Technologies, LLC, which may indicate a history of performance.
The contract duration of one year allows for periodic reassessment of needs and vendor performance.

Sector Analysis

The medical equipment and services support sector is a critical component of the healthcare industry, encompassing a wide range of products and services necessary for patient care. This contract falls within the broader IT and healthcare services market. Spending in this area is substantial across federal agencies, particularly within the Department of Defense and Department of Veterans Affairs, to ensure the operational readiness of medical facilities. Comparable spending benchmarks would typically involve analyzing contracts for similar equipment maintenance, IT support for medical devices, and related services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract, either as the prime contractor or as subcontractors, were not explicitly prioritized. The absence of set-asides could limit the direct economic benefit to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a delivery order, it is likely managed under a broader IDIQ contract, which would have its own oversight mechanisms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Medical Equipment Maintenance Contracts
Healthcare IT Services
Veterans Affairs IT Procurement
Federal Medical Supply Contracts

Risk Flags

Sole-source award may indicate limited competition, potentially leading to higher costs.
Lack of small business set-aside may limit opportunities for small businesses.
Broad service description ('medical equipment and services support') could lead to ambiguity in scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.0 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 $22.0 million.

What is the period of performance?

Start: 2023-09-01. End: 2024-08-31.

What is the specific scope of 'medical equipment and services support' covered by this contract, and how does it align with the NAICS code 334111 (Electronic Computer Manufacturing)?

The provided data indicates the contract is for 'MEDICAL EQUIPMENT & SERVICES SUPPORT' with NAICS code 334111, which pertains to 'Electronic Computer Manufacturing.' This suggests the support may be heavily focused on IT infrastructure and electronic components within medical equipment, or potentially the manufacturing of specific computer hardware used in medical devices. A detailed statement of work (SOW) would clarify the exact services, which could include maintenance, repair, upgrades, and potentially lifecycle management of computer systems integrated into or supporting medical equipment. Without the SOW, it's difficult to ascertain the precise alignment, but it implies a significant IT or electronic hardware component to the medical support being procured.

How does the $22 million award compare to historical spending by the VA for similar medical equipment support services?

To compare this $22 million award to historical VA spending, one would need to analyze past contracts for 'medical equipment and services support' over several fiscal years. This would involve identifying contracts with similar scopes of work, vendor types (if possible), and contract vehicles. A trend analysis could reveal if this award represents an increase, decrease, or stable level of spending. Given this is a sole-source award, historical data from competitively bid contracts would be crucial for benchmarking whether this price point is reasonable in the broader market context. Without access to historical contract databases and specific scope details, a precise comparison is not feasible based solely on the provided data.

What are the potential risks associated with a sole-source award for critical medical equipment support, and what mitigation strategies are in place?

The primary risk of a sole-source award for critical medical equipment support is the potential for inflated pricing due to the absence of competitive pressure. This can lead to reduced value for taxpayer money. Other risks include vendor lock-in, where the agency becomes overly dependent on a single provider, potentially limiting flexibility and innovation. Furthermore, if the sole-source vendor faces performance issues, financial instability, or supply chain disruptions, it could critically impact the availability and maintenance of essential medical equipment. Mitigation strategies, though not explicitly detailed here, typically involve rigorous price analysis by the contracting officer, clear performance metrics in the contract, and potentially establishing a path to competition for future contract renewals or similar requirements.

What is Iron Bow Technologies, LLC's track record with the Department of Veterans Affairs and other federal agencies for similar services?

Iron Bow Technologies, LLC has a significant track record of contracting with the federal government, including the Department of Veterans Affairs. Publicly available contract data indicates they have received numerous awards across various agencies for IT hardware, software, and services. Their experience often includes large-scale deployments and support for complex IT environments. For the VA specifically, their past awards suggest a familiarity with the agency's needs and procurement processes. Assessing their specific performance on prior medical equipment support contracts, if any, would require a deeper dive into contract performance reports and past performance evaluations. Generally, their presence as a recipient of substantial federal contracts implies a level of established capability and experience.

Given the firm-fixed-price structure, what are the implications for cost control and potential overruns if the scope of services changes?

A firm-fixed-price (FFP) contract structure is designed to provide cost certainty for the government. Under an FFP agreement, the contractor, Iron Bow Technologies, LLC, assumes the risk of cost overruns. This means that the agreed-upon price of $22 million is generally fixed, regardless of the contractor's actual costs incurred. However, if the scope of services significantly changes or expands beyond what was originally defined in the contract, a formal contract modification (change order) would be required. These modifications would typically involve negotiation and could lead to an increase in the contract price. The implication for cost control is that the government is protected from cost increases due to contractor inefficiency, but changes to the fundamental requirements necessitate a renegotiation of the price, which must be carefully managed to ensure continued value.

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: $21,999,650

Exercised Options: $21,999,650

Current Obligation: $21,999,650

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