SSA awards $27.9M for SmartNet maintenance on Cisco devices to Red River Technology LLC
Contract Overview
Contract Amount: $27,940,664 ($27.9M)
Contractor: RED River Technology LLC
Awarding Agency: Social Security Administration
Start Date: 2019-04-30
End Date: 2020-04-30
Contract Duration: 366 days
Daily Burn Rate: $76.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELIVERY ORDER FOR SMARTNET MAINTENANCE ON CISCO NETWORK DEVICES
Place of Performance
Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743
Plain-Language Summary
Social Security Administration obligated $27.9 million to RED RIVER TECHNOLOGY LLC for work described as: DELIVERY ORDER FOR SMARTNET MAINTENANCE ON CISCO NETWORK DEVICES Key points: 1. Spending focuses on essential network maintenance for critical IT infrastructure. 2. Red River Technology LLC is the awardee, indicating a specific vendor relationship. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. This spending falls under the IT sector, specifically network maintenance.
Value Assessment
Rating: fair
The $27.9 million award for SmartNet maintenance appears to be a standard price for this type of service, but without specific details on the scope of maintenance and the number of devices covered, a precise benchmark is difficult. It's comparable to other large-scale IT maintenance contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where initial sources were excluded. This method may impact price discovery by reducing the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are used for essential IT maintenance, ensuring the continued operation of SSA's network infrastructure. The cost-effectiveness depends on the negotiated price and the value derived from the maintenance services.
Public Impact
Ensures continued operation of critical Social Security Administration IT systems. Supports the maintenance of network devices essential for government operations. Funds a specific vendor for IT support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher prices.
- Lack of transparency in source exclusion.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Maintenance ensures operational continuity.
Sector Analysis
This spending is within the Information Technology sector, specifically focusing on network maintenance and support for hardware. Benchmarks for similar IT maintenance contracts vary widely based on the scope, vendor, and technology involved, but $27.9 million for a year of comprehensive support for a large network is substantial.
Small Business Impact
The awardee is Red River Technology LLC, a significant IT solutions provider. There is no explicit indication in the provided data whether small businesses were involved as subcontractors or if this contract specifically aimed to support small business participation.
Oversight & Accountability
The contract was awarded by the Social Security Administration, which has established procurement processes. Oversight would typically involve contract management officials monitoring performance and adherence to terms. The 'exclusion of sources' aspect warrants further scrutiny regarding justification.
Related Government Programs
- Telephone Apparatus Manufacturing
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Limited competition raises concerns about price.
- Justification for source exclusion needs review.
- Potential for vendor lock-in.
- High contract value requires diligent oversight.
Tags
telephone-apparatus-manufacturing, social-security-administration, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $27.9 million to RED RIVER TECHNOLOGY LLC. DELIVERY ORDER FOR SMARTNET MAINTENANCE ON CISCO NETWORK DEVICES
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2019-04-30. End: 2020-04-30.
What was the justification for excluding other sources in the full and open competition?
The justification for excluding other sources in the full and open competition is crucial for understanding the procurement's integrity. Without this information, it's difficult to assess if the exclusion was warranted due to specific technical requirements, prior performance, or other legitimate reasons, or if it potentially limited competition unnecessarily and impacted the final price paid by taxpayers.
How does the per-unit cost of this maintenance compare to industry standards for similar Cisco network devices?
A direct per-unit cost comparison is challenging without knowing the exact number and types of Cisco devices covered under the SmartNet maintenance agreement. However, the total $27.9 million for a one-year contract suggests a significant number of devices or a high level of support. Benchmarking against similar government or commercial contracts for comparable device counts and support tiers would be necessary for a thorough assessment.
What is the expected impact of this maintenance contract on the operational effectiveness of the SSA's network?
This maintenance contract is expected to ensure the high availability and optimal performance of the Social Security Administration's Cisco network devices. By providing timely support and updates, it mitigates the risk of system failures, security vulnerabilities, and performance degradation, thereby directly supporting the agency's mission-critical operations and the delivery of services to the public.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21 WATER ST STE 500, CLAREMONT, NH, 03743
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,940,664
Exercised Options: $27,940,664
Current Obligation: $27,940,664
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SS001560019
IDV Type: IDC
Timeline
Start Date: 2019-04-30
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2019-12-11
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