Treasury's $6.2M Appian Cloud Migration contract awarded to Redhawk IT Solutions, highlighting IT modernization efforts

Contract Overview

Contract Amount: $6,198,003 ($6.2M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-12-29

End Date: 2026-12-28

Contract Duration: 1,095 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPIAN PLATFORM CLOUD MIGRATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $6.2 million to REDHAWK IT SOLUTIONS, LLC for work described as: APPIAN PLATFORM CLOUD MIGRATION Key points: 1. The contract's value of $6.2 million for cloud migration suggests a significant investment in modernizing the Appian platform. 2. Full and open competition after exclusion of sources indicates a deliberate process to ensure fair market access while potentially addressing specific technical needs. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 1095 days (3 years) allows for a phased and comprehensive migration process. 5. The award to Redhawk IT Solutions, LLC, contributes to the IT services sector's growth within the federal government. 6. The contract's focus on cloud migration aligns with broader government initiatives for digital transformation and enhanced data accessibility.

Value Assessment

Rating: good

The contract value of $6.2 million for a three-year cloud migration project appears reasonable given the scope of modernizing a platform like Appian. Benchmarking against similar large-scale cloud migration projects for enterprise software platforms suggests this falls within expected cost ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. Without specific details on the complexity of the Appian instance and the scope of data to be migrated, a precise value-for-money assessment is challenging, but the overall investment seems aligned with strategic IT modernization goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the competition was intended to be open, specific criteria or circumstances led to the exclusion of some potential bidders. This could be due to specialized requirements, existing vendor relationships for support, or a desire to leverage prior successful performance. With 10 bidders, the competition level was substantial, indicating market interest and a degree of price discovery. However, the exclusion of sources warrants further examination to ensure no viable, competitive alternatives were overlooked.

Taxpayer Impact: The substantial number of bidders (10) in a competitive process, even with exclusions, generally benefits taxpayers by driving down prices and encouraging innovation. The exclusion of sources, however, could potentially limit the full benefit of open competition if it inadvertently restricts the pool of highly competitive vendors.

Public Impact

Federal employees within the Office of the Comptroller of the Currency (OCC) will benefit from a modernized and potentially more efficient Appian platform. The services delivered include the migration of the Appian platform to a cloud environment, enhancing its accessibility, scalability, and security. The geographic impact is primarily within the District of Columbia, where the Office of the Comptroller of the Currency is located. The contract supports the IT workforce by engaging Redhawk IT Solutions, LLC, and potentially their subcontractors, in a critical technology modernization effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen cloud environment or migration strategy is highly proprietary.
Risk of cost overruns if unforeseen technical challenges arise during the migration process, despite the fixed-price contract.
Dependence on Redhawk IT Solutions' expertise for a successful and secure migration, requiring robust oversight.

Positive Signals

The firm fixed-price contract provides cost certainty and incentivizes efficient performance.
The award followed a competitive process with 10 bidders, suggesting a vetted and potentially cost-effective solution.
The multi-year duration allows for a structured and thorough migration, reducing the risk of rushed or incomplete implementation.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to cloud computing and application modernization. This contract falls within the 'Other Computer Related Services' NAICS code, encompassing a broad range of IT support and integration activities. The Appian platform is a low-code process automation software used by many government agencies for workflow management and application development. Migrating such platforms to the cloud is a common trend driven by the need for greater scalability, agility, and cost-efficiency compared to on-premise solutions. Comparable spending benchmarks for similar cloud migration projects can vary widely based on platform complexity and data volume, but multi-million dollar investments are typical for enterprise-level systems.

Small Business Impact

This contract does not appear to have a small business set-aside (SS is false, SB is false). The award was made to Redhawk IT Solutions, LLC, which may be a small business itself, but the contract was not specifically set aside for small businesses. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the broader small business ecosystem would depend on whether Redhawk IT Solutions utilizes small business subcontractors for specialized services or support during the migration.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Comptroller of the Currency (OCC) contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including milestones, deliverables, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Appian Platform Support
Cloud Migration Services
IT Modernization Projects
Enterprise Application Services
Federal IT Infrastructure Upgrades

Risk Flags

Potential for scope creep if not managed tightly.
Reliance on vendor expertise requires strong government oversight.
Data security during migration is a critical concern.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $6.2 million to REDHAWK IT SOLUTIONS, LLC. APPIAN PLATFORM CLOUD MIGRATION

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2023-12-29. End: 2026-12-28.

What is the specific scope of the Appian platform being migrated, and what are the key functionalities it supports for the OCC?

The provided data does not detail the specific scope or functionalities of the Appian platform being migrated. However, Appian is generally known as a low-code platform used for developing enterprise applications, automating workflows, and managing business processes. For the Office of the Comptroller of the Currency (OCC), it could be supporting critical functions such as regulatory compliance, financial analysis, internal operations management, or case management. Understanding these specific uses is crucial for assessing the impact and success of the migration. A detailed review of the Performance Work Statement (PWS) or Statement of Objectives (SOO) would be necessary to ascertain the exact scope and critical functionalities.

How does the $6.2 million cost compare to similar cloud migration projects for enterprise platforms within the federal government?

The $6.2 million cost for a three-year cloud migration of an enterprise platform like Appian is within a reasonable range for federal IT projects. Cloud migration projects can vary significantly in cost based on factors such as the complexity of the existing system, the volume of data to be migrated, the chosen cloud provider (AWS, Azure, GCP), the level of customization of the platform, and the required downtime. For a platform supporting critical government functions, a budget in the millions is not uncommon. For instance, similar projects involving migration of large COTS (Commercial Off-The-Shelf) software or custom-built applications to the cloud have ranged from a few million to tens of millions of dollars over several years, depending on scale and complexity. This contract's value appears aligned with industry norms for such undertakings.

What are the primary risks associated with this cloud migration contract, and what mitigation strategies are in place?

Primary risks include potential data security breaches during migration, unexpected technical challenges leading to cost overruns or schedule delays (despite the fixed-price nature), performance degradation post-migration, and vendor lock-in with the chosen cloud service provider. Mitigation strategies likely involve robust security protocols, phased migration approaches with thorough testing at each stage, detailed performance benchmarking before and after migration, and clear contract clauses defining responsibilities and service level agreements (SLAs). The government's oversight team will play a critical role in monitoring progress, identifying issues early, and ensuring adherence to security and performance standards. The selection of a reputable vendor and a well-defined PWS are also key risk mitigation factors.

What is the track record of Redhawk IT Solutions, LLC in handling large-scale cloud migration projects for federal agencies?

The provided data does not include specific details on Redhawk IT Solutions, LLC's track record with large-scale federal cloud migration projects. To assess their capability, one would need to examine their past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and technical execution. Information on their past performance can often be found in federal procurement databases (like SAM.gov or FPDS) through contract history searches, or through agency performance evaluations if publicly available. Given this is a significant contract, it implies the agency performed due diligence on the contractor's capabilities and past performance.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact potential cost savings for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of open competition with specific agency needs. While it starts with the principle of broad competition, the exclusion of certain sources means the pool of potential bidders is narrowed. This could potentially limit the number of highly competitive offers, possibly leading to less aggressive pricing than a truly unrestricted full and open competition. However, if the exclusions were based on essential technical requirements or past performance criteria that genuinely narrowed the field to highly capable and efficient providers, the resulting competition among the remaining bidders could still yield good value. The key is whether the exclusions were justified and did not unduly restrict competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW24Q00030

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,554,098

Exercised Options: $6,198,003

Current Obligation: $6,198,003

Actual Outlays: $6,198,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline