Social Security Administration renews Cisco network maintenance for $27.1M, awarded to Red River Technology LLC

Contract Overview

Contract Amount: $27,140,228 ($27.1M)

Contractor: RED River Technology LLC

Awarding Agency: Social Security Administration

Start Date: 2021-04-30

End Date: 2022-04-30

Contract Duration: 365 days

Daily Burn Rate: $74.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL OF MAINTENANCE ON CISCO NETWORK DEVICES.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $27.1 million to RED RIVER TECHNOLOGY LLC for work described as: RENEWAL OF MAINTENANCE ON CISCO NETWORK DEVICES. Key points: 1. Value for money assessed by comparing pricing to similar maintenance contracts and market rates for Cisco support. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a potentially competitive award. 3. Risk indicators include the reliance on a single vendor for critical network maintenance and the potential for price increases upon renewal. 4. Performance context is tied to the ongoing operational needs of the Social Security Administration's network infrastructure. 5. Sector positioning places this contract within the IT services sector, specifically focusing on network hardware maintenance.

Value Assessment

Rating: fair

The contract value of $27.1 million for one year of maintenance on Cisco network devices appears to be within a reasonable range for enterprise-level IT support. However, a precise value-for-money assessment requires benchmarking against similar contracts for comparable Cisco equipment and support levels. Without specific details on the scope of services and the exact models of Cisco devices covered, it is difficult to definitively state if the pricing is optimal. The firm fixed-price nature of the contract provides cost certainty, but it does not inherently guarantee the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method suggests that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, or the exclusion was a result of the solicitation process itself. The number of bidders is not specified, but the 'exclusion of sources' phrasing implies a potentially narrower competitive field than a standard full and open competition. This could impact price discovery and potentially lead to less aggressive bidding.

Taxpayer Impact: The limited competition, even with an initial open approach, may mean taxpayers did not benefit from the lowest possible price that could have been achieved with broader participation. The exclusion of sources warrants further investigation to ensure fairness and maximize taxpayer value.

Public Impact

The primary beneficiaries are the employees and citizens who rely on the Social Security Administration's online services and internal systems, ensuring their continued availability. The services delivered include essential maintenance and support for critical Cisco network devices, preventing downtime and ensuring network integrity. The geographic impact is national, supporting the SSA's widespread operational footprint across the United States. Workforce implications are indirect, as reliable network infrastructure supports the productivity of SSA employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized Cisco maintenance.
Reliance on a single vendor for critical network uptime.
Limited transparency into the specific services included in the maintenance package.
Risk of price escalation in future renewals if competition remains limited.

Positive Signals

Awarded to Red River Technology LLC, a known IT solutions provider.
Firm fixed-price contract provides cost predictability.
Maintenance ensures continuity of essential government IT services.
Contract duration of one year allows for periodic re-evaluation of needs and competition.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on the maintenance and support of network hardware, a critical component of any large organization's IT infrastructure. The market for IT maintenance services, particularly for established vendors like Cisco, is substantial. Spending benchmarks for such contracts can vary widely based on the scale of the network, the specific hardware models, and the level of support required. This contract represents a significant investment in maintaining the operational integrity of the SSA's network.

Small Business Impact

The data indicates that small business participation (ss and sb fields are false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless Red River Technology LLC voluntarily engages small businesses for specific support roles not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Social Security Administration's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified maintenance services. Transparency is generally facilitated through contract award databases like FPDS, though detailed service level agreements and performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cisco Network Hardware Maintenance Contracts
Federal IT Infrastructure Support Services
Social Security Administration IT Procurement
Enterprise Network Maintenance Agreements

Risk Flags

Limited competition may impact price.
Reliance on single vendor for critical infrastructure.
Potential for price increases in future renewals.
Lack of detailed device information hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $27.1 million to RED RIVER TECHNOLOGY LLC. RENEWAL OF 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 $27.1 million.

What is the period of performance?

Start: 2021-04-30. End: 2022-04-30.

What is the historical spending pattern for Cisco network device maintenance at the Social Security Administration?

Analyzing historical spending on Cisco network device maintenance at the Social Security Administration is crucial for understanding trends and identifying potential cost efficiencies or escalations. Without access to specific historical contract data beyond this single award, a comprehensive analysis is not possible. However, if this $27.1 million contract represents a renewal or continuation of previous maintenance services, it would be important to compare its value against prior years' spending. Factors such as inflation, changes in network scope, and evolving support requirements would need to be considered. A significant year-over-year increase, not attributable to expanded services or market conditions, could signal a need for renegotiation or a more competitive solicitation process in the future. Conversely, stable or decreasing costs might indicate effective contract management and competitive pricing.

How does the cost of this contract compare to similar Cisco maintenance contracts awarded by other federal agencies?

Benchmarking this $27.1 million contract against similar Cisco network maintenance agreements across federal agencies is essential for assessing value for money. A direct comparison would ideally involve contracts for the same or comparable Cisco hardware models, similar support levels (e.g., 24/7 response, advance hardware replacement), and equivalent contract durations. Agencies with large, complex networks, such as the Department of Defense or the IRS, might have contracts of similar scale, providing a useful reference point. If this contract's per-device or per-year cost is significantly higher than comparable contracts, it could indicate suboptimal pricing. Conversely, if it aligns with or is lower than benchmarks, it suggests competitive pricing. The 'limited' competition noted in the award justification might suggest a higher price than a fully open competition could yield.

What specific Cisco network devices are covered under this maintenance contract, and what is their age?

The specific Cisco network devices covered under this $27.1 million maintenance contract are not detailed in the provided data. This information is critical for a thorough value assessment. Knowing the exact models (e.g., routers, switches, firewalls) and their quantities allows for a more accurate comparison to market rates and other government contracts. Furthermore, the age of the devices is a significant factor; older equipment may require more frequent maintenance or be subject to higher support costs, especially if they are nearing end-of-life or end-of-support from Cisco. If the contract covers aging infrastructure, the agency might consider refresh cycles as a long-term cost-saving strategy. Without this granularity, it's difficult to ascertain if the maintenance cost is justified by the technology's lifecycle stage.

What are the performance metrics and service level agreements (SLAs) associated with this maintenance contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) tied to this $27.1 million maintenance contract. These are crucial components for evaluating the effectiveness and value of the service. Key SLAs typically include response times for hardware failures, hardware replacement turnaround times, and availability guarantees for the network infrastructure. Without these details, it's challenging to assess whether Red River Technology LLC is contractually obligated to meet specific performance standards and what remedies exist if those standards are not met. Robust SLAs ensure that the significant investment in maintenance directly translates into reliable network operations for the Social Security Administration, thereby safeguarding critical citizen services.

What is the justification for the 'exclusion of sources' in the competition for this contract?

The justification for the 'exclusion of sources' in the competition for this $27.1 million contract is not provided in the data. This specific procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies that while the intent was open competition, certain potential bidders were prevented from participating. Reasons for such exclusions can vary, including specific technical requirements that only a limited number of vendors can meet, prior performance issues with certain contractors, or unique circumstances related to the specific equipment or service. Understanding the rationale behind this exclusion is vital for assessing whether it was a necessary measure to ensure mission success or if it potentially limited competition unnecessarily, possibly impacting the final price paid by taxpayers. Further investigation into the agency's justification documentation would be required.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

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: $27,140,228

Exercised Options: $27,140,228

Current Obligation: $27,140,228

Actual Outlays: $27,140,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001560019

IDV Type: IDC

Timeline