NIH awards $4.07M contract for IT services to Red River Technology LLC, emphasizing full and open competition

Contract Overview

Contract Amount: $4,069,170 ($4.1M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-11

End Date: 2027-03-31

Contract Duration: 1,815 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RED RIVER COMPUTER CO:1105831 [22-001466]

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 $4.1 million to RED RIVER TECHNOLOGY LLC for work described as: RED RIVER COMPUTER CO:1105831 [22-001466] Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1815 days indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized computer-related services. 5. The award was made by the National Institutes of Health (NIH), a key health research agency. 6. The contract value is relatively modest, suggesting it may be for a specific project or service line.

Value Assessment

Rating: good

The contract value of $4.07 million over approximately five years appears reasonable for IT services, especially given the competitive bidding process. Without specific details on the services rendered, a direct comparison to similar contracts is challenging. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (6) provides some benchmark for pricing, indicating that the awarded price was likely competitive within the market for these specialized IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Six bids were received, indicating a healthy level of interest and competition for this requirement. The presence of multiple bidders generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government received multiple offers and selected the best value. This process helps to drive down costs compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely researchers and staff within the National Institutes of Health (NIH) who will utilize the IT services provided. The contract supports the operational needs of NIH, enabling its mission of advancing health and well-being. The services are expected to be delivered within New Hampshire, potentially impacting the local IT workforce. The contract contributes to the broader IT services sector, supporting jobs and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract type helps control costs.
Long contract duration suggests a stable, ongoing need, potentially leading to efficiency gains.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of specialized capabilities. This contract, under NAICS code 541519 (Other Computer Related Services), falls into a segment focused on non-IT infrastructure support, consulting, and integration. Government spending in this area is substantial, driven by the need for advanced technological solutions across various agencies. Benchmarks for similar IT service contracts vary widely based on scope, duration, and complexity, but the $4.07 million award over five years suggests a mid-sized engagement.

Small Business Impact

This contract does not appear to have a small business set-aside (indicated by 'sb': false). Therefore, the primary contractor, Red River Technology LLC, is not obligated to subcontract a specific portion to small businesses under this award. The impact on the small business ecosystem will depend on Red River's own subcontracting practices, which are not detailed here. However, the absence of a set-aside means direct opportunities for small businesses through this specific contract are unlikely unless they are prime bidders or chosen as subcontractors by Red River.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the National Institutes of Health (NIH). The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the HHS IG would likely have oversight authority over contracts awarded by NIH, particularly concerning fraud, waste, and abuse.

Related Government Programs

NIH IT Support Services
Federal IT Services Contracts
Health IT Modernization
Computer Systems Design Services

Risk Flags

Long-term contract duration could lead to vendor lock-in.
Dependence on a single vendor for critical IT services.
Scope creep potential if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to RED RIVER TECHNOLOGY LLC. RED RIVER COMPUTER CO:1105831 [22-001466]

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2022-04-11. End: 2027-03-31.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 541519, which covers 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions beyond core infrastructure, such as IT consulting, systems integration, custom software development, data processing services, and IT support. Without further details from the contract itself, it's difficult to pinpoint the exact services. However, given the awarding agency is the National Institutes of Health (NIH), these services likely support their research, administrative, or operational IT needs, potentially including areas like data management, specialized software support, or IT project management.

How does the awarded price of $4.07 million compare to similar IT service contracts awarded by NIH or other health agencies?

Comparing the $4.07 million award to similar contracts requires access to a broader dataset of federal IT procurements. However, considering the contract duration of approximately five years (1815 days), the average annual value is roughly $814,000. This figure falls within a common range for IT service contracts supporting specific agency functions or projects. Contracts for enterprise-wide IT infrastructure or large-scale system development could be significantly higher, while smaller, task-order-based contracts would be lower. The fact that this contract was awarded under full and open competition with six bidders suggests the pricing was competitive within its specific service category and scope.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected quality, timeliness, and performance standards for the services rendered by Red River Technology LLC. Typically, for IT service contracts, KPIs might include system uptime, response times for technical support, project completion rates, or data security compliance metrics. SLAs would outline the specific targets for these KPIs and potential remedies or penalties if they are not met. These details are usually found within the contract's statement of work or performance work statement.

What is Red River Technology LLC's track record with federal IT contracts, particularly with the Department of Health and Human Services?

Red River Technology LLC has a significant track record of federal contracting. While the provided data focuses on this specific award, a broader search would reveal their history with various agencies. Their past performance with the Department of Health and Human Services (HHS) and its sub-agencies like the National Institutes of Health (NIH) would be a key factor in their selection for this contract. Federal procurement systems often include past performance evaluations as a significant scoring criterion. A review of their contract history would indicate the types of services they have provided, their performance ratings on previous contracts, and any issues encountered, providing insight into their reliability and capability.

What is the historical spending trend for 'Other Computer Related Services' at NIH over the past five years?

Analyzing the historical spending trend for NAICS code 541519 ('Other Computer Related Services') at the National Institutes of Health (NIH) over the past five years would require accessing and aggregating federal procurement data. This type of analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable. An increasing trend might suggest a growing reliance on external IT service providers or an expansion of IT-dependent research initiatives. Conversely, a decreasing trend could indicate a shift towards in-house capabilities or a consolidation of services. The $4.07 million award in 2022 should be viewed within this broader context to understand its significance relative to NIH's overall IT service expenditures.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,069,170

Exercised Options: $4,069,170

Current Obligation: $4,069,170

Actual Outlays: $3,188,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500065W

IDV Type: GWAC

Timeline