DoD's $24.9M IT contract awarded to Iron Bow Technologies shows strong competition and fair pricing

Contract Overview

Contract Amount: $24,893,954 ($24.9M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-28

End Date: 2017-12-31

Contract Duration: 278 days

Daily Burn Rate: $89.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: S17-0164 ITCH IGF::OT::IGF

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to IRON BOW TECHNOLOGIES, LLC for work described as: S17-0164 ITCH IGF::OT::IGF Key points: 1. Value for money appears favorable given the firm-fixed-price structure and competitive award. 2. The contract was awarded under full and open competition, indicating a robust bidding process. 3. Risk indicators are low due to the fixed-price nature and established contractor. 4. Performance context is within IT hardware and services for the Department of the Army. 5. This contract fits within the broader IT services sector for federal agencies.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) structure suggests a commitment to cost control. Benchmarking against similar IT hardware and services contracts for the Department of Defense indicates that the awarded price of approximately $24.9 million falls within a reasonable range for the scope of work. The presence of multiple bidders further supports the likelihood of a competitive and fair price being established.

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 a bid. The data indicates two bids were received, suggesting a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, two bids are sufficient to establish a competitive baseline and prevent price gouging.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing for necessary IT equipment and services.

Public Impact

The Department of the Army benefits from the acquisition of essential IT hardware and services. This contract supports the operational readiness and technological infrastructure of military units. The geographic impact is likely widespread, supporting various Army installations. Workforce implications include the potential for IT support roles and the use of advanced technology by military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware/software is mandated without clear exit strategies.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance degrades.

Positive Signals

Firm-fixed-price contract type limits cost overrun risks for the government.
Award to an established IT solutions provider suggests a higher likelihood of successful delivery.
Full and open competition indicates a structured procurement process designed to achieve best value.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on electronic computer manufacturing and related services. The federal IT market is substantial, with agencies consistently investing in hardware, software, and services to maintain and upgrade their technological capabilities. This contract represents a portion of the Department of Defense's ongoing IT procurement, aiming to equip its personnel with necessary tools for operations and administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus was on securing the best overall value through open competition, which may have favored larger, established vendors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under a larger contract vehicle, its execution is monitored by the Department of the Army. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's performance or award.

Related Government Programs

Department of Defense IT Procurement
Army Enterprise IT Services
Electronic Computer Manufacturing Contracts
Information Technology Hardware Acquisition

Risk Flags

Moderate competition level (2 bidders) may indicate limited market choices or high barriers to entry for this specific IT requirement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to IRON BOW TECHNOLOGIES, LLC. S17-0164 ITCH IGF::OT::IGF

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 Army).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2017-03-28. End: 2017-12-31.

What is the track record of Iron Bow Technologies with the Department of Defense?

Iron Bow Technologies has a significant history of contracting with the Department of Defense and other federal agencies. They specialize in providing IT hardware, software, and services, including network infrastructure, cybersecurity solutions, and unified communications. Their past performance with the DoD includes numerous awards across various branches and commands, often related to modernizing IT systems and providing end-user support. Analyzing their broader contract portfolio reveals a consistent ability to deliver on complex IT requirements, though specific performance metrics for individual contracts would require deeper investigation into past performance evaluations and any reported issues.

How does the $24.9 million contract value compare to similar IT hardware contracts awarded by the Army?

The $24.9 million contract value for IT hardware and services awarded to Iron Bow Technologies is a substantial but not extraordinary figure within the context of large federal IT procurements. The Department of the Army, being one of the largest federal agencies, frequently awards contracts in the tens to hundreds of millions of dollars for IT modernization, sustainment, and new technology integration. To provide a precise comparison, one would need to analyze contracts with similar scope (e.g., enterprise hardware, specific product lines, service bundles) and duration awarded within a similar timeframe. However, given the firm-fixed-price nature and competitive award, this amount suggests a well-defined scope that was competitively priced, likely falling within the expected range for significant IT investments by a major military branch.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract are relatively low due to its structure and the nature of the award. The firm-fixed-price (FFP) contract type shifts most of the cost overrun risk to the contractor, Iron Bow Technologies. Potential risks could include performance issues, where the contractor fails to deliver the specified IT hardware or services to the required standards or timelines. Another risk is obsolescence, as IT hardware can quickly become outdated, potentially impacting the long-term value if not managed proactively. Dependence on a single vendor for a critical IT function could also pose a risk if the vendor's financial stability or operational capacity were to falter, though this is mitigated by the competitive nature of the initial award and the possibility of future competition.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for taxpayer money in IT procurements?

The firm-fixed-price (FFP) contract type is generally considered highly effective in ensuring value for taxpayer money, particularly for IT procurements where the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes the risk of cost overruns, meaning the government pays a set price regardless of the contractor's actual costs. This incentivizes the contractor to manage their expenses efficiently and deliver the product or service within budget. For IT hardware, where specifications are clear, FFP provides cost certainty. However, for complex IT services with evolving requirements, FFP can sometimes lead to contractors being less flexible or potentially cutting corners if unforeseen challenges arise, which is why careful scope definition and oversight remain crucial.

What does the number of bidders (2) suggest about the competition level and its impact on pricing?

Receiving two bids for this contract suggests a moderate level of competition. While more bidders generally lead to more competitive pricing and a wider range of solutions, two bids are sufficient to establish a baseline price discovery. It indicates that at least two companies were capable and interested in fulfilling the requirement. If there were only one bid, it would raise concerns about market competitiveness and potentially higher pricing. With two bids, the government has a basis for comparison and negotiation, likely resulting in a fair market price. However, it also suggests that the market for this specific IT requirement might be concentrated among a few key players, or that the requirements were highly specialized, deterring a broader range of potential bidders.

Industry Classification

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

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4800 WESTFIELDS BLVD STE 300, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $24,893,954

Exercised Options: $24,893,954

Current Obligation: $24,893,954

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0014

IDV Type: IDC

Timeline