DoD's $25.9M laptop award to Iron Bow Technologies shows strong competition and fair pricing

Contract Overview

Contract Amount: $25,942,484 ($25.9M)

Contractor: Iron BOW Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2023-06-27

Contract Duration: 271 days

Daily Burn Rate: $95.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LAPTOPS LCR USARC FY22

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to IRON BOW TECHNOLOGIES, LLC for work described as: LAPTOPS LCR USARC FY22 Key points: 1. Value for money appears strong given the competitive nature of the award. 2. The contract was awarded under full and open competition, indicating a robust market. 3. No immediate risk indicators are apparent from the award data. 4. Performance context is limited to a single delivery order for laptops. 5. This contract falls within the IT hardware procurement sector for the Department of Defense. 6. The award represents a small fraction of overall federal IT spending.

Value Assessment

Rating: good

The contract's value of $25.9 million for laptops appears reasonable, especially considering it was awarded through full and open competition. Benchmarking against similar large-scale IT hardware procurements suggests that the pricing is likely competitive. The firm-fixed-price structure further supports value by shifting cost risk to the contractor. Without detailed line-item pricing, a precise value assessment is difficult, but the competitive award process is a positive indicator.

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. The presence of 8 bidders indicates a healthy level of competition for this requirement. This broad competition is expected to drive down prices and ensure the government receives the best value. The number of bidders suggests the market for these types of IT hardware is robust and accessible.

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 demonstrates that government funds are being used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will receive the new laptops. The contract delivers essential IT hardware, supporting military operations and administrative functions. The geographic impact is likely nationwide, as Army personnel are deployed across various locations. Workforce implications include potential support roles for installation, configuration, and maintenance of the new hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competed.
Risk of outdated technology if procurement cycles are too long.
Dependence on a single vendor for a large quantity of critical hardware.

Positive Signals

Awarded through full and open competition, maximizing market participation.
Firm-fixed-price contract provides cost certainty.
Multiple bidders indicate a competitive marketplace.
Delivery order structure allows for phased deployment.
Contractor has a track record in government IT procurement.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on computer hardware procurement. The federal government is a significant purchaser of IT equipment, with substantial annual spending on laptops, desktops, servers, and networking gear. This award to Iron Bow Technologies is one of many such procurements aimed at equipping federal agencies. Comparable spending benchmarks for large-scale laptop procurements can vary widely based on specifications, volume, and competition, but awards in the tens of millions are common for major agency-wide refresh cycles.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated in this award. The prime contractor, Iron Bow Technologies, is a large business. This means the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless Iron Bow voluntarily engages small businesses as subcontractors. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the contract simplifies oversight by focusing on delivery and acceptance of goods. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or performance phases.

Related Government Programs

General Services Administration (GSA) Schedule IT Hardware
Department of Defense Enterprise Software Initiative (ESI)
Army IT Modernization Programs
Federal Strategic Sourcing Initiative for IT

Risk Flags

Potential for obsolescence if technology refresh cycles are not maintained.
Dependence on contractor for timely delivery and quality assurance.
Cybersecurity risks associated with new hardware deployment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to IRON BOW TECHNOLOGIES, LLC. LAPTOPS LCR USARC FY22

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 $25.9 million.

What is the period of performance?

Start: 2022-09-29. End: 2023-06-27.

What is Iron Bow Technologies' track record with the Department of Defense and other federal agencies for similar IT hardware procurements?

Iron Bow Technologies has a significant track record of securing contracts with the Department of Defense and other federal agencies, particularly for IT hardware and services. They frequently appear on large IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles and win task orders for laptops, desktops, servers, and related equipment. Their past performance often includes awards for large quantities of devices, similar to this $25.9 million delivery order. Analyzing their win rate, contract values, and performance reviews across multiple agencies would provide a comprehensive view of their reliability and competitive positioning in the federal IT market. Their history suggests they are a well-established player capable of handling large-scale government requirements.

How does the per-unit cost of these laptops compare to market rates or other federal procurements?

Without specific model numbers and configurations, a precise per-unit cost comparison is challenging. However, given that this contract was awarded under full and open competition with 8 bidders, it is reasonable to infer that the per-unit cost is competitive. Federal agencies often leverage GSA Schedules or other competitive vehicles that provide pre-negotiated, discounted pricing. If this award was made through such a mechanism, or if the competition drove prices down significantly, the per-unit cost could be at or below market rates for comparable enterprise-grade laptops. Further investigation into the specific laptop model and its typical commercial pricing would be necessary for a definitive benchmark.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this delivery order?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this delivery order. Typically, for hardware procurements like this, KPIs might include on-time delivery rates, adherence to configuration specifications, and warranty support effectiveness. SLAs could cover response times for hardware failures, repair turnaround times, and technical support availability. The firm-fixed-price nature suggests the primary performance metric is successful delivery of the specified quantity and quality of laptops by the end date. The contract's duration of 271 days points towards a focused delivery period rather than ongoing support.

What is the historical spending pattern for similar laptop procurements by the Department of the Army over the last five fiscal years?

Historical spending patterns for similar laptop procurements by the Department of the Army reveal a consistent and substantial investment in end-user devices. Annually, the Army procures tens of thousands, if not hundreds of thousands, of laptops to refresh its aging fleet and equip new personnel. Spending can fluctuate based on modernization initiatives, budget allocations, and specific service branch needs. While individual contract values vary widely based on quantity and specifications, the total annual spend on laptops and related computing devices by the Army typically runs into the hundreds of millions of dollars. This $25.9 million award represents a significant, but not extraordinary, portion of that overall spending for a specific procurement action.

Are there any identified risks related to the contractor's financial stability or past performance issues that could impact this contract?

Based solely on the provided award data, there are no explicit indicators of risk related to the contractor's financial stability or past performance issues for this specific contract. Iron Bow Technologies is a well-established government contractor with a history of winning and performing on significant IT awards. However, a comprehensive risk assessment would require delving into their financial reports, any past performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any ongoing litigation or investigations. Without access to these deeper data points, we assume standard business practices and a generally positive performance history, as is typical for a company winning a competitive, multi-million dollar award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HIG Capital Management, Inc.

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

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

Financial Breakdown

Contract Ceiling: $25,942,484

Exercised Options: $25,942,484

Current Obligation: $25,942,484

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0052

IDV Type: IDC

Timeline