DoD's $23.3M wired telecommunications contract awarded to Iron Bow Technologies for equipment

Contract Overview

Contract Amount: $23,310,967 ($23.3M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-10

End Date: 2010-10-08

Contract Duration: 28 days

Daily Burn Rate: $832.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EQUIPMENT REQUIRED FOR SANTECH REFRESH

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to IRON BOW TECHNOLOGIES, LLC for work described as: EQUIPMENT REQUIRED FOR SANTECH REFRESH Key points: 1. Value-for-money assessment indicates a fair price given the short duration and fixed-price nature. 2. Competition dynamics show a robust full and open process with 17 bidders. 3. Risk indicators are low due to the fixed-price contract type and established contractor. 4. Performance context is limited by the short duration, suggesting a specific, immediate need. 5. Sector positioning places this within the broader IT and telecommunications infrastructure for defense. 6. The contract's value is moderate within the context of large-scale federal IT procurements.

Value Assessment

Rating: fair

The contract's total value of $23.3 million for a 28-day period suggests a significant per-day cost. However, as a firm-fixed-price contract, the government's financial risk was capped. Benchmarking against similar short-term, high-value equipment procurements is challenging due to the specific nature of 'EQUIPMENT REQUIRED FOR SANTECH REFRESH'. The price appears reasonable for specialized, immediate-need equipment under a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of 17 bidders suggests a healthy level of market interest and a competitive environment. This broad competition is generally expected to drive prices down and encourage innovative solutions, leading to better value for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective offer.

Public Impact

The Department of the Navy benefits from the acquisition of necessary telecommunications equipment. Essential wired telecommunications services are likely supported or upgraded by this equipment. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications are minimal, as this is an equipment purchase rather than a service contract requiring extensive labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (28 days) may indicate a rushed procurement or a temporary need, potentially leading to higher unit costs.
Lack of detailed information on 'EQUIPMENT REQUIRED FOR SANTECH REFRESH' makes it difficult to assess the necessity and appropriateness of the procured items.

Positive Signals

Awarded under full and open competition with 17 bidders, suggesting a competitive price was achieved.
Firm Fixed Price contract type limits the government's financial exposure.
Contract awarded to a single entity, Iron Bow Technologies, LLC, implying a clear point of accountability.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically related to wired network infrastructure. The North American Industry Classification System (NAICS) code 517110, Wired Telecommunications Carriers, encompasses companies that provide telecommunications services and infrastructure. Federal spending in this area is substantial, supporting military communications, data networks, and operational command and control systems. Comparable spending benchmarks would typically involve larger, multi-year contracts for network upgrades or maintenance, making this a relatively small, short-term procurement.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Iron Bow Technologies voluntarily engages small businesses in its supply chain.

Oversight & Accountability

As a Department of Defense contract awarded through full and open competition, it is subject to standard federal procurement oversight. The firm-fixed-price nature provides a degree of financial accountability. Transparency is facilitated by the public award notice. Further oversight would typically be managed by the contracting officer and potentially the DoD Inspector General if specific performance or financial irregularities were identified.

Related Government Programs

Defense Information Systems Agency (DISA) procurements
General Services Administration (GSA) IT Schedule contracts
Wired Network Infrastructure Upgrades
Telecommunications Equipment Procurement

Risk Flags

Short contract duration
Lack of detailed equipment specification
High per-day cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to IRON BOW TECHNOLOGIES, LLC. EQUIPMENT REQUIRED FOR SANTECH REFRESH

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2010-09-10. End: 2010-10-08.

What is the specific nature of the 'EQUIPMENT REQUIRED FOR SANTECH REFRESH' and why was it needed urgently?

The provided data does not specify the exact nature of the 'EQUIPMENT REQUIRED FOR SANTECH REFRESH'. The term 'SANTECH' could refer to a specific system, project, or facility within the Department of the Navy. The urgency is implied by the very short contract duration of 28 days. This suggests a critical need for immediate deployment, possibly to replace failing equipment, support a time-sensitive operation, or bridge a gap before a larger, long-term solution is implemented. Without further details from the contract award documents or associated justifications, the precise reason for the refresh and the specific equipment procured remain unknown.

How does the per-day cost of this contract compare to typical federal telecommunications equipment rentals or purchases?

Calculating a precise per-day cost requires dividing the total award amount by the contract duration. For this contract, $23,310,967.21 / 28 days results in approximately $832,535 per day. This daily rate is exceptionally high for standard telecommunications equipment. However, it's crucial to consider that this was a firm-fixed-price award for specific, potentially specialized equipment needed for a 'refresh' within a very short timeframe. Standard federal benchmarks often involve longer-term leases or bulk purchases of more common equipment, which would have significantly lower daily costs. This high per-day figure likely reflects the specialized nature of the equipment, the compressed delivery/installation timeline, and the competitive bidding process for an immediate requirement, rather than a typical ongoing operational cost.

What is Iron Bow Technologies, LLC's track record with the Department of Defense and specifically the Department of the Navy?

Iron Bow Technologies, LLC has a significant track record of contracting with the U.S. federal government, including the Department of Defense (DoD) and its various branches like the Department of the Navy (DoN). They are a well-established IT solutions provider often winning contracts related to network infrastructure, cybersecurity, cloud services, and telecommunications. Their history with the DoD suggests they possess the necessary clearances, capabilities, and experience to handle complex government IT requirements. While this specific contract was for a short duration, Iron Bow likely has numerous other, potentially larger and longer-term, contracts with these agencies, indicating a sustained and generally positive working relationship.

Given the short duration, what are the potential risks associated with this contract's execution and performance?

The primary risk associated with this short-duration contract is the potential for rushed implementation and inadequate testing, given the 28-day timeframe. If the 'SANTECH REFRESH' involved complex integration or deployment, the compressed schedule could lead to performance issues or operational disruptions. Another risk is the possibility that the procured equipment may not fully meet long-term needs if the 'refresh' was a stop-gap measure. Furthermore, the high daily cost, while potentially justified by urgency and competition, could represent a less cost-effective solution compared to a planned, longer-term procurement strategy. The firm-fixed-price nature mitigates financial risk for the government, but performance risks remain tied to the successful and timely delivery and functionality of the equipment.

How does this contract's value compare to other federal spending on wired telecommunications carriers (NAICS 517110) in recent years?

The $23.3 million award value for this 28-day contract is relatively modest when compared to the overall federal spending on wired telecommunications carriers (NAICS 517110). Federal agencies, particularly the DoD, often engage in multi-year, multi-million or even billion-dollar contracts for large-scale network infrastructure, upgrades, and managed services. This specific contract appears to be an isolated, short-term requirement for specific equipment. While significant on a daily basis, its total value places it as a smaller procurement within the broader landscape of federal telecommunications spending, which is dominated by larger, ongoing service agreements and infrastructure projects.

Industry Classification

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

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

Parent Company: Apptis Holdings Inc. (UEI: 165295606)

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 90

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

Financial Breakdown

Contract Ceiling: $23,310,967

Exercised Options: $23,310,967

Current Obligation: $23,310,967

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ07D0010

IDV Type: IDC

Timeline