DOT's FAA Awards $2.7M for HP Server Conversion to Support Lift Initiative
Contract Overview
Contract Amount: $2,724,505 ($2.7M)
Contractor: RED River Technology LLC
Awarding Agency: Department of Transportation
Start Date: 2026-04-10
End Date: 2027-04-30
Contract Duration: 385 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURCHASE HP DL380 GEN12 S ECG SYSTEM CONVERSION FROM TDM TO IP FOR THE LIFT INITIATIVE
Place of Performance
Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405
Plain-Language Summary
Department of Transportation obligated $2.7 million to RED RIVER TECHNOLOGY LLC for work described as: PURCHASE HP DL380 GEN12 S ECG SYSTEM CONVERSION FROM TDM TO IP FOR THE LIFT INITIATIVE Key points: 1. Significant investment in IT infrastructure upgrades for the FAA's Lift Initiative. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to successful system integration and vendor performance. 4. IT hardware procurement sector, with specific focus on server technology.
Value Assessment
Rating: good
The contract value of $2.7M for HP DL380 Gen12 servers appears reasonable given the quantity and specifications. Benchmarking against similar large-scale server procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of vendors to participate. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure upgrades, aiming for improved operational efficiency within the FAA.
Public Impact
Enhances critical FAA infrastructure supporting the Lift Initiative. Modernizes IT systems, potentially improving data processing and operational capabilities. Supports technological advancement within a key federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for integration challenges with existing FAA systems.
- Dependence on vendor for successful conversion and support.
Positive Signals
- Awarded through full and open competition.
- Supports a key government initiative (Lift Initiative).
- Utilizes modern server technology.
Sector Analysis
This procurement falls within the IT hardware sector, specifically server manufacturing and deployment. Benchmarks for similar large-scale server system conversions are typically in the millions of dollars, depending on scale and complexity.
Small Business Impact
While the primary awardee is RED RIVER TECHNOLOGY LLC, the contract details do not specify any set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting it has undergone some level of prior review. Oversight will be crucial to ensure timely delivery, successful conversion, and adherence to specifications.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for integration complexity.
- Vendor dependency for successful conversion.
- Long-term support and maintenance costs.
- Cybersecurity implications of new hardware.
Tags
electronic-computer-manufacturing, department-of-transportation, nj, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $2.7 million to RED RIVER TECHNOLOGY LLC. PURCHASE HP DL380 GEN12 S ECG SYSTEM CONVERSION FROM TDM TO IP FOR THE LIFT INITIATIVE
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2026-04-10. End: 2027-04-30.
What is the expected impact of this server conversion on the FAA's Lift Initiative operational efficiency?
The conversion from TDM to IP for the HP DL380 Gen12 servers is expected to enhance the Lift Initiative's operational efficiency by enabling more robust data transmission, improved network capabilities, and better integration with modern IP-based systems. This modernization should facilitate faster data processing and more reliable communication channels, crucial for the initiative's success.
What are the primary risks associated with this specific server hardware procurement and conversion?
Primary risks include potential technical challenges during the TDM to IP conversion process, such as compatibility issues with existing infrastructure or data migration problems. Vendor performance and adherence to the delivery schedule are also key risks. Furthermore, the long-term reliability and support of the HP DL380 Gen12 systems post-conversion will impact sustained operational effectiveness.
How does this investment align with broader federal IT modernization goals and benchmarks?
This investment aligns with broader federal IT modernization goals by upgrading aging infrastructure to more current and capable technology. Procuring modern server hardware and transitioning to IP-based systems reflects a move towards more agile and secure IT environments, consistent with federal directives. The value appears competitive for enterprise-grade server solutions, though specific benchmarks against similar agency-wide upgrades would offer deeper insight.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $2,724,505
Exercised Options: $2,724,505
Current Obligation: $2,724,505
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 692M1519D00014
IDV Type: IDC
Timeline
Start Date: 2026-04-10
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-04-10
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