NIH awards $16.6M for Cisco Enterprise Agreements to Iron Bow Technologies, spanning over 5 years

Contract Overview

Contract Amount: $16,632,613 ($16.6M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-11-15

End Date: 2024-12-14

Contract Duration: 1,856 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IRON BOW TECHNOLOGIES, LLC:1158402 [20-000062] NIH CISCO ENTERPRISE AGREEMENTS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.6 million to IRON BOW TECHNOLOGIES, LLC for work described as: IRON BOW TECHNOLOGIES, LLC:1158402 [20-000062] NIH CISCO ENTERPRISE AGREEMENTS Key points: 1. Value for money appears reasonable given the long-term nature of enterprise agreements for critical IT infrastructure. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a firm fixed-price contract mitigating cost overrun risks. 4. Performance context is tied to essential IT services for the National Institutes of Health. 5. Sector positioning is within IT services, specifically supporting network infrastructure. 6. The contract duration of 1856 days (approx. 5 years) suggests a strategic investment in IT. 7. The award type is a delivery order under an existing agreement, indicating a streamlined procurement process.

Value Assessment

Rating: good

The total award of $16.6 million over approximately five years for enterprise-level Cisco agreements represents a significant investment in IT infrastructure for the NIH. Benchmarking this against similar large-scale enterprise agreements for network hardware and software support is challenging without more granular data on specific products and services included. However, the firm fixed-price structure is a positive indicator for cost control. The value proposition likely hinges on securing favorable pricing and support for a broad range of Cisco technologies across the NIH.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a reasonably competitive environment for this type of enterprise agreement. A full and open competition generally allows for the best possible price discovery and ensures that the government receives offers from a wide range of qualified sources.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and terms for essential IT services, preventing potential overspending associated with less competitive procurements.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, gaining access to critical Cisco network infrastructure and support. Services delivered include enterprise-level agreements for Cisco hardware, software, and potentially related support and maintenance. The geographic impact is likely nationwide, supporting NIH facilities and research operations across various locations. Workforce implications may include ensuring NIH IT staff have reliable network access and support for their research and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise agreements, requiring careful management of future procurements.
Reliance on a single vendor for core network infrastructure could pose risks if the vendor's product roadmap or support changes significantly.
The long duration of the contract may not fully account for rapid technological advancements in networking.

Positive Signals

Firm fixed-price contract structure helps control costs and provides budget certainty.
Full and open competition suggests a robust process for selecting the most capable and cost-effective vendor.
The award to a single vendor for enterprise agreements can streamline management and support for complex IT environments.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on network hardware, software, and related services. The market for enterprise network solutions, particularly from major vendors like Cisco, is substantial and highly competitive. This award represents a significant portion of spending on network infrastructure for a major federal health research agency. Comparable spending benchmarks would typically involve analyzing other large federal agencies' investments in similar Cisco enterprise agreements or broader network modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large enterprise agreement, it is unlikely that small businesses would be primary awardees, though they could potentially participate as subcontractors to Iron Bow Technologies. The focus on a major vendor like Cisco and an enterprise-level agreement suggests the primary contract is aimed at larger, established IT solution providers.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated by the contract being awarded under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH IT Modernization Efforts
Federal Enterprise Software Agreements
Cisco Systems Contracts
Network Infrastructure Procurement
Health IT Services

Risk Flags

Long-term commitment to a single vendor's technology stack.
Potential for technology obsolescence over the contract duration.
Reliance on vendor for critical network support and upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.6 million to IRON BOW TECHNOLOGIES, LLC. IRON BOW TECHNOLOGIES, LLC:1158402 [20-000062] NIH CISCO ENTERPRISE AGREEMENTS

Who is the contractor on this award?

The obligated recipient is IRON BOW TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2019-11-15. End: 2024-12-14.

What is the historical spending pattern for Cisco enterprise agreements at the NIH?

Analyzing historical spending on Cisco enterprise agreements at the NIH requires access to detailed procurement data beyond this single award. However, the existence of this $16.6 million, five-year delivery order suggests a sustained need for Cisco solutions. Federal agencies often enter into multi-year enterprise agreements to standardize technology, achieve economies of scale, and ensure consistent support. Past spending would likely show similar patterns of investment in network infrastructure, potentially with varying contract vehicles and awardees over time. Understanding the trend would involve examining prior contracts for Cisco products and services, looking at total spending, contract durations, and the competitive landscape for these types of agreements at the NIH.

How does the per-unit cost of Cisco equipment/services under this contract compare to market rates?

Determining the precise per-unit cost comparison is difficult without knowing the specific Cisco products, licenses, and support levels included in this $16.6 million agreement. Enterprise agreements often bundle various components, making direct per-unit comparisons challenging. However, the fact that this was awarded under full and open competition with three bidders suggests that Iron Bow Technologies likely offered competitive pricing. Agencies typically benchmark these types of large agreements against published commercial price lists, GSA schedules, or other government-wide contracts to ensure fair and reasonable pricing. The firm fixed-price nature of the contract also provides a degree of cost certainty, though the ultimate value depends on the negotiated discounts and the total quantity of units procured over the contract's life.

What is the track record of Iron Bow Technologies in fulfilling large federal IT contracts?

Iron Bow Technologies has a significant track record of fulfilling large federal IT contracts across various agencies. As a prime contractor, they have been awarded numerous agreements for IT hardware, software, and services, including those involving Cisco products. Their experience often includes managing complex enterprise-level procurements and delivery orders. Federal procurement databases would show a history of awards and performance information, which agencies typically review during the source selection process. A review of their past performance would assess their ability to deliver on time, within budget, and meet technical requirements, which is crucial for an extensive agreement like the NIH Cisco Enterprise Agreement.

What are the potential risks associated with a long-term (5-year) enterprise agreement for network infrastructure?

Long-term enterprise agreements, such as this five-year NIH contract, carry several potential risks. Technological obsolescence is a primary concern; network technology evolves rapidly, and a five-year commitment might lock the NIH into solutions that become outdated before the contract ends. Vendor lock-in is another significant risk, making it difficult and costly to switch providers or adopt alternative technologies. Performance issues or changes in the vendor's support structure could also arise over an extended period. Furthermore, if market prices for comparable solutions decrease significantly during the contract term, the NIH might be paying above current market rates. Mitigating these risks often involves careful contract structuring, including options for technology refresh, clear performance metrics, and exit clauses.

How does this contract contribute to the NIH's overall IT modernization goals?

This $16.6 million contract for Cisco Enterprise Agreements directly supports the NIH's IT modernization goals by ensuring the agency has access to current, reliable, and scalable network infrastructure. Modern network capabilities are fundamental to supporting advanced research, data analytics, telehealth initiatives, and secure collaboration among scientists and staff. By consolidating procurement through an enterprise agreement, the NIH can achieve greater standardization, simplify management, and potentially leverage advanced features offered by Cisco's latest technologies. This investment underpins the agency's ability to handle increasing data volumes and evolving digital research tools, thereby facilitating scientific discovery and operational efficiency.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2014002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 400, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $26,307,793

Exercised Options: $16,632,613

Current Obligation: $16,632,613

Actual Outlays: $10,786,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500058W

IDV Type: GWAC

Timeline