HHS awards $4.5M for Enterprise Splunk Services to Red River Technology LLC, spanning three years

Contract Overview

Contract Amount: $4,572,629 ($4.6M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-18

End Date: 2024-03-18

Contract Duration: 1,096 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SPLUNK PROFESSIONAL SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.6 million to RED RIVER TECHNOLOGY LLC for work described as: ENTERPRISE SPLUNK PROFESSIONAL SERVICES Key points: 1. Value for money appears reasonable given the three-year duration and fixed-price nature of the contract. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract and a known contractor, but performance details are limited. 4. Performance context is for enterprise Splunk services, a critical data analysis tool for public health. 5. Sector positioning is within IT services, specifically data management and analytics for a major health agency.

Value Assessment

Rating: good

The contract's total value of approximately $4.57 million over three years suggests an average annual spend of around $1.52 million for enterprise Splunk professional services. This is a significant but not exorbitant amount for a large federal agency like HHS, especially considering the critical nature of data analytics. Benchmarking against similar contracts for enterprise-level data platform support would be necessary for a more precise value assessment, but the fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple vendors were allowed to bid after an initial exclusion period. This suggests a robust competitive process was intended. The presence of 5 bids (no=5) further supports the notion of active competition, which typically drives better pricing and service offerings for the government.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services compared to sole-source or limited competition awards.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced data analysis capabilities. Services delivered include professional support for the enterprise Splunk platform, crucial for public health data. Geographic impact is national, supporting the CDC's nationwide operations. Workforce implications include support for IT professionals managing and utilizing the Splunk platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single vendor for critical Splunk expertise could pose a risk if the vendor's performance falters.
Scope creep could increase costs if not managed tightly within the fixed-price contract.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a healthy market for these services.
Contractor (Red River Technology LLC) has a track record with federal agencies.
Long-term contract (3 years) allows for sustained support and knowledge building.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data management and analytics platforms. The market for enterprise data solutions like Splunk is substantial, with numerous vendors offering specialized services. The CDC's spending aligns with broader government trends towards leveraging data for operational efficiency and decision-making. Comparable spending benchmarks would likely show significant investment across various agencies for similar data infrastructure support.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, the prime contractor, Red River Technology LLC, is a significant IT solutions provider that often partners with or utilizes small businesses for subcontracting. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses as part of this award.

Oversight & Accountability

Oversight for this contract would typically reside within the Centers for Disease Control and Prevention's contracting and program management offices. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Enterprise Data Management Services
IT Professional Services
Data Analytics Platforms
Public Health Informatics
Splunk Software Support

Risk Flags

Contract duration is long (3 years), requiring careful performance monitoring.
Fixed-price contract requires diligent scope management to prevent overruns.
Reliance on a single vendor for specialized services can pose a risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.6 million to RED RIVER TECHNOLOGY LLC. ENTERPRISE SPLUNK PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is RED RIVER TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2021-03-18. End: 2024-03-18.

What is Red River Technology LLC's track record with federal contracts, particularly for IT services and data platforms?

Red River Technology LLC has a substantial history of federal contracting, primarily within the IT sector. They have secured numerous awards across various agencies, including the Department of Defense and civilian departments, for a wide range of IT products and services. Their experience often includes hardware, software, cybersecurity, and professional services. For data platforms like Splunk, their track record would likely involve implementation, management, and support, indicating a capability to handle complex enterprise environments. A review of their contract history would reveal the scale and complexity of previous similar engagements, providing context for their ability to fulfill the CDC's requirements.

How does the $4.57 million contract value compare to similar enterprise Splunk support contracts awarded by other federal agencies?

The $4.57 million total contract value for three years of enterprise Splunk professional services at HHS is within a reasonable range for large-scale federal IT support. Annual spending averages around $1.52 million. Similar contracts for major agencies like the Department of Defense or other large civilian departments often range from several hundred thousand to several million dollars annually, depending on the scope, number of users, and specific services required (e.g., advanced analytics, security monitoring, custom development). Factors such as the level of support (24/7 vs. business hours), the complexity of the Splunk deployment, and the specific professional services included (e.g., architecture, integration, training) heavily influence pricing. Without specific details on the scope of services here, direct comparison is challenging, but the amount is consistent with significant enterprise IT investments.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential vendor lock-in, where the government becomes overly reliant on Red River Technology LLC's specific expertise, making future transitions difficult or costly. Another risk is scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to cost overruns despite the fixed-price nature if not managed carefully. Performance issues or a decline in service quality are also risks. Mitigation strategies include clear performance metrics and service level agreements (SLAs) within the contract, regular performance reviews, ensuring knowledge transfer to government personnel or other contractors, and robust contract management by the agency to monitor scope and deliverables.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers in this specific contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach is generally considered a strong method for ensuring value for taxpayers. It allows for broad market participation while potentially streamlining the initial stages of procurement. The fact that there were 5 bids indicates that the market responded well to the opportunity. This level of competition typically drives down prices and encourages vendors to offer their best solutions and service levels to win the contract. For taxpayers, this means the government is likely receiving competitive pricing and high-quality services, as multiple vendors vied for the award, preventing a situation where a single provider could dictate terms and pricing.

What are the historical spending patterns for enterprise Splunk services at HHS or the CDC?

Historical spending data for enterprise Splunk services at HHS or the CDC would provide crucial context for evaluating the $4.57 million award. Analyzing past contracts for similar services would reveal trends in contract values, durations, and the number of competitors. For instance, if previous spending was significantly lower or higher, it would warrant further investigation into the reasons (e.g., increased scope, market price changes, or potential over/under-spending). Understanding the historical investment in Splunk capabilities helps assess whether the current contract represents a reasonable increase in investment aligned with evolving needs or a deviation from established spending patterns that might require closer scrutiny.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-72921

Offers Received: 5

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: $7,704,395

Exercised Options: $4,826,149

Current Obligation: $4,572,629

Actual Outlays: $4,410,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC85B

IDV Type: GWAC

Timeline