DoD's $28M Wired Telecoms Contract to Iron Bow Technologies Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $28,089,378 ($28.1M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-15

End Date: 2013-01-31

Contract Duration: 1,234 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EQUIPMENT UPGRADE LTP PERIOD 1

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to IRON BOW TECHNOLOGIES, LLC for work described as: EQUIPMENT UPGRADE LTP PERIOD 1 Key points: 1. The contract demonstrates a reasonable value proposition, with spending aligning with industry benchmarks for similar telecommunications services. 2. Competition was limited, with 17 bids received, suggesting potential for price optimization but not necessarily indicating a lack of market interest. 3. Risk indicators appear low, with a firm fixed-price contract type and a history of successful performance. 4. The contract's performance context is within the scope of essential telecommunications infrastructure upgrades for the Department of Defense. 5. Positioned within the IT services sector, specifically focusing on wired telecommunications infrastructure. 6. The contract's duration and value suggest a significant, long-term investment in critical communication systems.

Value Assessment

Rating: good

The contract's total value of approximately $28 million over its period of performance appears reasonable when benchmarked against similar large-scale telecommunications infrastructure projects for federal agencies. The firm fixed-price structure suggests that the contractor bore the primary risk for cost overruns, which is generally favorable for the government. While specific per-unit cost data is not provided, the overall spending aligns with the scope of upgrading and maintaining wired telecommunications networks for a major federal entity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit bids. The receipt of 17 bids suggests a healthy level of interest from the market for this type of telecommunications service. While a robust number of bidders, the specific pricing outcomes would depend on the detailed bid analysis, but the broad competition generally supports competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it maximizes the potential for obtaining the best value by encouraging a wide range of providers to offer their services and pricing, thereby driving down costs.

Public Impact

The primary beneficiary is the Department of Defense, which receives upgraded and maintained wired telecommunications infrastructure essential for its operations. Services delivered include the provision and maintenance of wired telecommunications networks, ensuring reliable communication capabilities. The geographic impact is primarily within the Washington D.C. metropolitan area, supporting the operational needs of the Washington Headquarters Services. Workforce implications include potential support roles for technicians, engineers, and project managers involved in the installation and maintenance of telecommunications equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are implemented without clear exit strategies.
Reliance on a single contractor for critical infrastructure could pose a risk if performance degrades or the contractor faces financial instability.

Positive Signals

Firm fixed-price contract type mitigates cost escalation risks for the government.
Full and open competition suggests a competitive market was engaged, likely leading to favorable pricing.
The contract is for essential infrastructure, indicating a clear and ongoing need for the services provided.

Sector Analysis

The contract falls within the Information Technology sector, specifically the sub-sector of wired telecommunications carriers. This market is characterized by significant infrastructure investment, technological evolution, and a mix of large established providers and specialized firms. Federal spending in this area is crucial for maintaining secure and reliable communication networks, with benchmarks often set by large-scale enterprise deployments and government-specific requirements for security and interoperability.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of telecommunications infrastructure upgrades, it is common for prime contracts to be awarded to larger companies. However, the prime contractor, Iron Bow Technologies, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Washington Headquarters Services. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and equipment. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
General Services Administration (GSA) IT Schedule Contracts
Federal Communications Commission (FCC) Regulatory Filings

Risk Flags

Limited competition analysis needed
Performance history review required
Cost comparison to industry benchmarks recommended

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to IRON BOW TECHNOLOGIES, LLC. EQUIPMENT UPGRADE LTP PERIOD 1

Who is the contractor on this award?

The obligated recipient is IRON BOW TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2009-09-15. End: 2013-01-31.

What is the track record of Iron Bow Technologies with the Department of Defense for similar telecommunications contracts?

Iron Bow Technologies has a significant history of contracting with the Department of Defense and other federal agencies for IT services, including telecommunications. Their portfolio often includes network infrastructure, cybersecurity, and managed IT services. While this specific contract highlights a substantial award, their broader experience suggests a capacity to handle large-scale projects. Analyzing past performance on similar contracts, including on-time delivery, adherence to budget, and technical execution, would provide a more comprehensive view of their reliability. Publicly available contract databases and performance reviews, where accessible, can offer insights into their historical success rates and any past issues encountered on DoD engagements.

How does the per-contract value of $28 million compare to other large-scale wired telecommunications upgrades for federal agencies?

A contract value of $28 million for wired telecommunications upgrades over a period of approximately four years (September 2009 to January 2013) is substantial but falls within the expected range for significant infrastructure modernization projects within large federal organizations like the Department of Defense. Comparable contracts for enterprise-wide network upgrades, data center connectivity, or the deployment of advanced telecommunications systems in major government facilities can range from tens to hundreds of millions of dollars. Factors influencing this value include the scope of services (installation, maintenance, equipment), the number of locations supported, the specific technologies deployed (e.g., fiber optics, advanced switching), and the security requirements. This contract's value appears commensurate with the scale of supporting the Washington Headquarters Services.

What are the primary risks associated with a firm fixed-price contract for telecommunications equipment upgrades?

The primary risk associated with a firm fixed-price (FFP) contract for telecommunications equipment upgrades lies with the contractor, not the government. The contractor assumes the risk of cost overruns due to unforeseen technical challenges, material price increases, or labor cost fluctuations. For the government, the main risk is ensuring the contractor has accurately estimated all costs and built in sufficient profit, which could lead to a higher initial price compared to a cost-reimbursable contract. However, FFP contracts provide budget certainty for the government and incentivize the contractor to manage costs efficiently. Potential risks for the government include the contractor cutting corners on quality to maintain profitability or refusing to perform work outside the defined scope, leading to change order negotiations.

How effective are 'full and open competition' awards in ensuring cost savings for taxpayers on large IT infrastructure projects?

Full and open competition is generally considered the most effective method for ensuring cost savings for taxpayers on large IT infrastructure projects. By allowing all eligible responsible sources to compete, it fosters a competitive environment where multiple vendors vie for the contract. This competition drives down prices as contractors strive to offer the most attractive bids to win the award. Furthermore, it encourages innovation and efficiency as companies seek to differentiate themselves not only on price but also on the quality and value of their proposed solutions. While the initial award price is crucial, the long-term value is also influenced by the contractor's performance, which is often enhanced by the pressure of a competitive bidding process. The presence of numerous bidders also provides a benchmark for fair pricing.

What are the implications of a 17-bidder competition for a wired telecommunications contract?

A competition with 17 bidders for a wired telecommunications contract indicates a robust and healthy market response. This number suggests that the opportunity was attractive enough to draw significant interest from various companies within the industry. For taxpayers, a higher number of bidders generally translates to better price discovery and a higher likelihood of securing competitive pricing. It reduces the risk of collusion and ensures that the government is exposed to a wide array of solutions and cost structures. While managing and evaluating 17 bids can be more resource-intensive for the procuring agency, the potential for cost savings and access to a broader range of capabilities typically outweighs this administrative burden.

What is the typical duration for federal contracts involving significant telecommunications infrastructure upgrades?

Federal contracts involving significant telecommunications infrastructure upgrades typically have durations ranging from one to five years, often with options for extension. The duration is influenced by the complexity of the project, the need for phased implementation, ongoing maintenance requirements, and the pace of technological change. For instance, a project focused on deploying new fiber optic networks might have a longer initial build-out phase, while a contract for maintaining existing systems could be structured with shorter base periods and multiple option years. The contract awarded to Iron Bow Technologies, with a duration of approximately 1234 days (over 3 years), aligns with this typical range for substantial infrastructure modernization efforts, allowing for thorough implementation and initial operational support.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 90

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $117,915,774

Exercised Options: $28,089,378

Current Obligation: $28,089,378

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ07D0010

IDV Type: IDC

Timeline