DoD's $241.7M Cisco contract with Iron Bow Technologies shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $241,670,386 ($241.7M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-07

End Date: 2026-06-20

Contract Duration: 1,444 days

Daily Burn Rate: $167.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO GEMSS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $241.7 million to IRON BOW TECHNOLOGIES, LLC for work described as: CISCO GEMSS Key points: 1. Value for money appears reasonable given the scope of IT services provided. 2. Competition was limited, potentially impacting price discovery and taxpayer savings. 3. Risk indicators are moderate, with performance context suggesting a need for ongoing monitoring. 4. This contract positions the Defense Information Systems Agency within the broader IT services sector. 5. The firm-fixed-price structure offers some cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of approximately $241.7 million over its period of performance suggests a significant investment in IT services. Benchmarking against similar large-scale IT support contracts within the federal government indicates that the pricing is within a reasonable range, especially considering the specialized nature of the services and the contractor's established role. The firm-fixed-price award type provides a degree of cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. While the data indicates full and open competition, the number of bidders is not specified. A robust competitive process typically involves multiple bidders, which drives down prices and encourages innovation. The absence of specific bidder numbers prevents a definitive assessment of the competition's intensity.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it fosters a competitive environment that can lead to better pricing and service quality. However, the ultimate benefit depends on the number of actual bids received and the effectiveness of the evaluation process.

Public Impact

The Department of Defense, specifically the Defense Information Systems Agency, is the primary beneficiary, receiving critical IT infrastructure and support services. Services delivered include a range of computer-related support, likely encompassing network management, hardware/software maintenance, and potentially cybersecurity solutions. The geographic impact is likely nationwide, supporting DoD operations across various installations. Workforce implications may include support for IT professionals within the DoD and potential subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Cisco products are heavily standardized.
Reliance on a single primary contractor for critical IT infrastructure could pose risks.
Ensuring ongoing cost-effectiveness throughout the contract's duration requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a broad initial market search.
Firm-fixed-price contract provides cost certainty for the government.
Contractor has a significant presence and experience in supporting federal IT needs.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, a critical and expansive market for the federal government. The IT services market encompasses a wide array of offerings, from hardware and software procurement to complex system integration, cybersecurity, and managed services. Federal spending in this sector is substantial, driven by the need to modernize infrastructure, enhance digital capabilities, and maintain secure operations. This specific contract, focused on computer-related services, aligns with the government's ongoing efforts to ensure robust and reliable IT support for its operations.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mandated for small businesses. Consequently, the direct impact on the small business ecosystem from this particular award may be limited, although the prime contractor, Iron Bow Technologies, may engage small businesses as subcontractors if it aligns with their business strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), including defined deliverables, service level agreements (SLAs), and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Federal Enterprise IT Services Procurement
Cisco Systems Federal Contracts
IT Services for Department of Defense

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical services
Need for continuous cost-effectiveness monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $241.7 million to IRON BOW TECHNOLOGIES, LLC. CISCO GEMSS

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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $241.7 million.

What is the period of performance?

Start: 2022-07-07. End: 2026-06-20.

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

Iron Bow Technologies has a notable track record in securing and performing on large federal IT contracts, particularly within the Department of Defense and other civilian agencies. They specialize in providing a wide range of IT solutions, including networking, collaboration, cybersecurity, and cloud services. Their experience often involves complex procurements and the delivery of mission-critical systems. Analyzing their past performance on similar-sized contracts can provide insights into their ability to manage scope, meet deadlines, and maintain quality standards. Publicly available data and past performance reviews, where accessible, can further illuminate their strengths and any areas of concern in prior engagements.

How does the pricing of this contract compare to similar IT services contracts awarded by the DoD?

Benchmarking the pricing of this $241.7 million contract against similar IT services contracts awarded by the DoD requires a detailed analysis of the specific services rendered, the duration of the contract, and the competitive landscape at the time of award. Given that this is a firm-fixed-price contract for 'Other Computer Related Services,' comparisons would ideally be made with contracts of similar scope and complexity. While the provided data suggests the value is 'good' relative to benchmarks, a deeper dive into the unit costs for specific services (e.g., per-hour support, per-device management) and the number of bidders would offer a more precise valuation. Without granular cost breakdowns, the assessment remains at a high level, indicating reasonable overall value.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential vendor lock-in, given the likely reliance on Cisco products and services, which could limit future flexibility and potentially increase long-term costs. Another significant risk is the dependence on a single contractor for critical IT infrastructure; any performance issues or financial instability with Iron Bow Technologies could disrupt DoD operations. Furthermore, ensuring continued cost-effectiveness and value for money throughout the contract's lifespan requires robust oversight to prevent scope creep or unjustified price increases. Finally, cybersecurity risks are inherent in any IT contract, necessitating stringent security protocols and continuous monitoring to protect sensitive defense data.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of IT service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for IT services when the scope of work is well-defined and unlikely to change significantly. For this contract, awarded to Iron Bow Technologies, the FFP structure provides the Department of Defense with cost certainty, as the price is fixed regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. However, the effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the Performance Work Statement (PWS). If unforeseen technical challenges arise or requirements evolve, the FFP structure can sometimes lead to contractor resistance to changes or requests for modifications, potentially impacting flexibility or requiring costly contract modifications.

What is the historical spending trend for 'Other Computer Related Services' within the Defense Information Systems Agency?

Historical spending trends for 'Other Computer Related Services' within the Defense Information Systems Agency (DISA) reflect a consistent and significant investment in maintaining and upgrading its complex IT infrastructure. DISA, as the primary IT provider for the DoD, relies heavily on external contractors for a wide array of services, including network management, system integration, cybersecurity, and specialized technical support. Spending in this category typically fluctuates based on modernization initiatives, cybersecurity threats, and the lifecycle of existing systems. Analyzing multi-year spending data for this specific NAICS code (541519) within DISA would reveal patterns of investment, identify major contract awards, and highlight periods of increased or decreased expenditure, often driven by strategic defense priorities and technological advancements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC108422R0007

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: $334,987,680

Exercised Options: $267,990,010

Current Obligation: $241,670,386

Actual Outlays: $94,881,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC108422D0001

IDV Type: IDC

Timeline