VA Awards $73.4M for VHA Web & Mobile App Support to Iron Bow Technologies

Contract Overview

Contract Amount: $73,373,636 ($73.4M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-07

End Date: 2024-09-06

Contract Duration: 365 days

Daily Burn Rate: $201.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VHA WEB & MOBILE MEDICAL APPLICATION MANAGEMENT, ENHANCEMENT, AND REMEDIATION SUPPORT IV

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $73.4 million to IRON BOW TECHNOLOGIES, LLC for work described as: VHA WEB & MOBILE MEDICAL APPLICATION MANAGEMENT, ENHANCEMENT, AND REMEDIATION SUPPORT IV Key points: 1. Significant contract value for application management and enhancement. 2. Sole-source award limits competition and potentially impacts price discovery. 3. Focus on critical VHA applications presents a high-stakes environment. 4. IT sector spending for software development and maintenance is substantial.

Value Assessment

Rating: fair

Pricing is based on a firm-fixed-price contract, which provides cost certainty. However, without competitive bidding, it's difficult to assess if the price is optimal compared to market rates for similar application support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses competitive bidding, potentially leading to higher costs and reduced innovation as there is no market pressure to offer the best value.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore potentially lower-cost or higher-value alternatives.

Public Impact

Ensures continued functionality and improvement of critical web and mobile applications used by the VA. Supports the digital health infrastructure for veterans, impacting access to care and services. Potential for increased costs to taxpayers due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Ensures continuity of critical services
Fixed-price contract provides cost predictability

Sector Analysis

This contract falls within the IT sector, specifically focusing on software development, maintenance, and support. IT spending within the federal government is consistently high, with significant portions allocated to application modernization and sustainment.

Small Business Impact

The data indicates this was a delivery order under an existing contract, and there is no specific information provided regarding small business participation in this particular award. Further investigation would be needed to determine if small businesses were involved.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure the contractor is meeting performance requirements and that the pricing remains reasonable throughout the contract period. The VA should actively monitor deliverables and costs.

Related Government Programs

Electronic Computer Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competitive pricing.
Potential for cost overruns without competitive pressure.
Dependence on a single vendor for critical applications.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $73.4 million to IRON BOW TECHNOLOGIES, LLC. VHA WEB & MOBILE MEDICAL APPLICATION MANAGEMENT, ENHANCEMENT, AND REMEDIATION SUPPORT IV

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 $73.4 million.

What is the period of performance?

Start: 2023-09-07. End: 2024-09-06.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs that preclude full and open competition. Without specific documentation, the exact reason remains unclear, but it implies a lack of readily available alternatives.

How does the cost of this contract compare to similar application management contracts awarded competitively?

Direct comparison is challenging due to the sole-source nature of this award. Competitive contracts often yield lower prices due to market forces. The VA should conduct a price analysis against industry benchmarks and potentially previously competed contracts for similar services to ensure the $73.4 million is justified and represents fair value.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Effective oversight requires clearly defined KPIs related to application uptime, performance, security, and user satisfaction. The VA must have robust mechanisms in place to track these metrics and hold Iron Bow Technologies accountable for meeting or exceeding them. Regular performance reviews are essential to ensure the value delivered aligns with the contract's cost.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: $116,188,255

Exercised Options: $73,373,636

Current Obligation: $73,373,636

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