DHS Awards $52.4M for Network Equipment as a Service to Red River Technology LLC
Contract Overview
Contract Amount: $52,444,697 ($52.4M)
Contractor: RED River Technology LLC
Awarding Agency: Department of Homeland Security
Start Date: 2019-09-23
End Date: 2025-09-23
Contract Duration: 2,192 days
Daily Burn Rate: $23.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NETWORK EQUIPMENT AS A SERVICE
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $52.4 million to RED RIVER TECHNOLOGY LLC for work described as: NETWORK EQUIPMENT AS A SERVICE Key points: 1. Significant contract value of $52.4 million over five years. 2. Red River Technology LLC is the sole awardee. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. The service category is 'Other Computer Related Services', suggesting IT infrastructure support.
Value Assessment
Rating: fair
The contract value of $52.4M over 5 years averages to approximately $10.5M annually. Benchmarking against similar network equipment as a service contracts is difficult without more specific details on the scope of services and equipment provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was intended, specific circumstances led to excluding some potential bidders. The pricing discovery may have been impacted by this limited competition.
Taxpayer Impact: Taxpayer funds are being used for essential network equipment and services for U.S. Customs and Border Protection, a critical function of DHS.
Public Impact
Ensures critical network infrastructure for border security operations. Supports the modernization of IT systems within U.S. Customs and Border Protection. Provides a service-based model for network equipment, potentially offering flexibility and reduced upfront capital expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about best value.
- Lack of detailed service scope makes direct cost comparison difficult.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Long-term award supports sustained operational capability.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on network equipment provision and management. Spending benchmarks for similar 'Network Equipment as a Service' contracts can vary widely based on scale, technology, and service level agreements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Department of Homeland Security (DHS) for U.S. Customs and Border Protection. Oversight would involve monitoring service delivery, performance metrics, and adherence to contract terms to ensure accountability and value for taxpayer money.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for higher long-term costs compared to outright purchase.
- Dependence on vendor for critical network infrastructure.
- Limited competition may have resulted in a suboptimal price.
- Lack of detailed service scope hinders comprehensive analysis.
Tags
other-computer-related-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $52.4 million to RED RIVER TECHNOLOGY LLC. NETWORK EQUIPMENT AS A SERVICE
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $52.4 million.
What is the period of performance?
Start: 2019-09-23. End: 2025-09-23.
What specific network equipment and services are included in this 'as a service' model, and how do they compare to traditional procurement methods in terms of total cost of ownership?
The provided data lacks specifics on the exact network equipment and services covered. A 'Network Equipment as a Service' model typically includes hardware, software, maintenance, and support bundled into a recurring fee. Comparing its total cost of ownership to traditional procurement requires a detailed breakdown of the service agreement, including equipment lifecycle, upgrade paths, and included support levels, which are not available here.
Given the 'limited' competition, what was the justification for excluding other sources, and how was the pricing validated to ensure it represents fair market value?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, existing infrastructure compatibility, or specific urgent needs. Fair market value validation would likely involve price analysis techniques, comparing the proposed price to historical prices, other government contracts, or commercial price lists, though the effectiveness of this is reduced with limited competition.
How does this 'Network Equipment as a Service' contract contribute to the overall IT modernization goals of U.S. Customs and Border Protection, and what are the key performance indicators for success?
This contract likely supports IT modernization by providing access to updated network technology without large capital outlays, enabling agility and scalability. Key performance indicators would typically include network uptime, latency, bandwidth availability, response times for technical support, and successful integration with existing CBP systems. Measuring these against defined targets ensures the service meets operational and modernization objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14111 PARK MEADOW DR STE 120, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,444,697
Exercised Options: $52,444,697
Current Obligation: $52,444,697
Actual Outlays: $24,326,761
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC85B
IDV Type: GWAC
Timeline
Start Date: 2019-09-23
Current End Date: 2025-09-23
Potential End Date: 2025-09-23 16:16:03
Last Modified: 2025-09-25
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