HHS awards $3.4M for Splunk Enterprise support, with 7 bidders vying for the contract

Contract Overview

Contract Amount: $3,398,193 ($3.4M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-19

End Date: 2026-06-18

Contract Duration: 821 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSPO ENTERPRISE SPLUNK PRO

Place of Performance

Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743

State: New Hampshire Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.4 million to RED RIVER TECHNOLOGY LLC for work described as: CSPO ENTERPRISE SPLUNK PRO Key points: 1. The contract value appears reasonable given the scope of enterprise software support. 2. Strong competition suggests potential for competitive pricing and good value. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. This award is part of ongoing IT infrastructure support for critical public health functions. 5. The contractor, Red River Technology LLC, has a track record in federal IT. 6. The duration of the contract provides stability for service delivery.

Value Assessment

Rating: good

The contract value of $3.4 million over approximately 2.7 years for enterprise software support is within a reasonable range for similar federal IT contracts. Benchmarking against other Splunk support contracts of similar scope and duration would provide a more precise value-for-money assessment. The firm-fixed-price structure indicates that the government has secured a defined cost for the services, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bidders submitting proposals. This level of competition is a positive indicator, suggesting that multiple vendors were interested and capable of providing the required services. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value solution for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured the government received a competitive offer for essential IT services.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced data management and security capabilities. Services delivered include support for the Splunk Enterprise platform, crucial for data analysis and operational insights. The geographic impact is primarily within the CDC's operational centers, supporting national public health initiatives. Workforce implications include ensuring IT staff have the necessary tools and support for data-driven decision-making.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single software platform (Splunk) could pose integration challenges with other systems.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition indicates a healthy market and potential for good value.
Contract duration provides stability for essential IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise software support and data analytics platforms. The market for specialized software support, like Splunk, is significant within the federal government, as agencies increasingly rely on data for decision-making and operational efficiency. Comparable spending benchmarks would involve analyzing other contracts for enterprise software licenses, maintenance, and professional services across various federal agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, Red River Technology LLC, is a significant entity, there is no explicit information provided regarding subcontracting opportunities for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) within the CDC, responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature provides a degree of accountability by tying payment to deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Data Management Services
IT Infrastructure Support
Software Licensing and Maintenance
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Systems Support

Risk Flags

Potential for cost overruns if scope is not well-defined for fixed-price contract.
Contractor performance risk: ensuring timely and effective support.
Dependency on a single software vendor (Splunk).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to RED RIVER TECHNOLOGY LLC. CSPO ENTERPRISE SPLUNK PRO

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 $3.4 million.

What is the period of performance?

Start: 2024-03-19. End: 2026-06-18.

What is Red River Technology LLC's past performance record with the federal government, particularly on similar IT support contracts?

Red River Technology LLC has a substantial history of federal contracting, including numerous awards for IT products and services across various agencies. Their past performance on similar contracts, particularly those involving enterprise software support and managed IT services, would be a key factor in the evaluation process for this award. A review of their contract history in the Federal Procurement Data System (FPDS) would reveal the types of services rendered, contract values, and any performance ratings or disputes. Agencies typically assess a contractor's ability to meet technical requirements, manage schedules, and control costs based on prior experience. For this specific contract, the CDC would have evaluated Red River's demonstrated capability in supporting complex IT platforms like Splunk.

How does the awarded price of $3.4 million compare to market rates for similar Splunk Enterprise support contracts?

Benchmarking the $3.4 million award against market rates for similar Splunk Enterprise support requires detailed analysis of contract scope, duration, and service levels. Factors such as the number of users, data volume, required support hours (e.g., 24/7 vs. business hours), and specific modules or features being supported significantly influence pricing. Generally, enterprise-level software support contracts can range from tens of thousands to millions of dollars annually, depending on complexity. The firm-fixed-price nature of this contract suggests the government aimed to establish a predictable cost. A comparative analysis with other federal or commercial contracts for comparable Splunk support would be necessary to definitively assess if this price represents good value for money, considering the competitive bidding process that likely influenced the final negotiated cost.

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

Key risks for this contract include potential performance issues by the contractor, such as failure to meet service level agreements (SLAs) or provide timely support, and the risk of cost overruns if the fixed-price contract was not adequately scoped. Another risk is the potential for vendor lock-in if future renewals are not competitively re-bid. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price model shifts cost risk to Red River Technology LLC. The full and open competition process helps ensure a capable vendor is selected. The CDC's Contracting Officer's Representative (COR) will monitor performance against contract requirements and SLAs. Clear deliverables, reporting requirements, and potential remedies for non-performance are standard contractual mitigations.

How effective is the Splunk Enterprise platform in supporting the CDC's data analysis and public health mission?

Splunk Enterprise is widely recognized as a powerful platform for machine data aggregation, searching, monitoring, analysis, and visualization. For the CDC, it can be instrumental in processing vast amounts of public health data from various sources, enabling real-time monitoring of disease outbreaks, tracking public health trends, analyzing operational data, and enhancing cybersecurity. Its effectiveness hinges on proper implementation, configuration, and ongoing support, which this contract aims to provide. The platform's ability to ingest and analyze diverse datasets supports the CDC's mission by providing critical insights for informed decision-making, resource allocation, and rapid response to public health emergencies. The success of the platform is directly tied to the quality of support and maintenance it receives.

What has been the historical spending trend for Splunk Enterprise support at the CDC or HHS?

Analyzing historical spending trends for Splunk Enterprise support at the CDC or HHS is crucial for understanding budget allocation and identifying potential increases or decreases in investment. Without specific historical data for this contract or related efforts, a general trend can be inferred. As federal agencies increasingly adopt data-driven approaches and invest in advanced analytics capabilities, spending on platforms like Splunk has generally seen an upward trend. This includes spending on licenses, maintenance, professional services, and specialized support. The $3.4 million award represents a significant investment, suggesting a continued or expanded reliance on Splunk for critical data functions within the CDC. A detailed review of past contracts would reveal specific spending patterns and justifications.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-24-Q-77483

Offers Received: 7

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: $5,705,741

Exercised Options: $3,398,193

Current Obligation: $3,398,193

Actual Outlays: $2,681,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC46B

IDV Type: GWAC

Timeline