Department of Energy awards $309K contract for cloud services and DDoS protection to Red River Technology LLC
Contract Overview
Contract Amount: $309,000 ($309.0K)
Contractor: RED River Technology LLC
Awarding Agency: Department of Energy
Start Date: 2024-04-20
End Date: 2027-04-19
Contract Duration: 1,094 days
Daily Burn Rate: $282/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CLOUDFLARE SERVICES AND DDOS PROTECTION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $309,000 to RED RIVER TECHNOLOGY LLC for work described as: CLOUDFLARE SERVICES AND DDOS PROTECTION Key points: 1. Contract value appears modest, suggesting a focused scope or a single delivery order within a larger framework. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The duration of the contract (1094 days) suggests a need for sustained service delivery. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad category of computer-related services. 5. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 6. The small business set-aside flag is false, meaning it was not specifically reserved for small businesses.
Value Assessment
Rating: good
The contract value of $309,000 for approximately three years of service is relatively small in the context of federal IT spending. Without specific details on the services rendered, a direct per-unit cost comparison is difficult. However, the firm fixed-price nature suggests that the government has a clear understanding of the costs involved, and the price is considered fair for the defined scope. Benchmarking against similar cloud services and DDoS protection contracts would require more granular data on service levels and features.
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. The presence of 2 bids indicates that there was some level of competition, though the exact number of bidders can be a limited indicator of true market competitiveness. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. Even with a limited number of bids, the process ensures that the government sought out the best value from the available market.
Public Impact
The Federal Energy Regulatory Commission (FERC) within the Department of Energy is the direct beneficiary of these services. The contract will provide essential cloud services and Distributed Denial of Service (DDoS) protection, crucial for maintaining the operational integrity of FERC's IT infrastructure. The services are delivered within the District of Columbia, impacting the local federal IT landscape. The contract supports the cybersecurity posture of a critical energy regulatory body.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bidders) may not have yielded the lowest possible price.
- The specific scope of 'Other Computer Related Services' is broad and could encompass a wide range of potential costs.
- Lack of detailed performance metrics makes it difficult to assess the effectiveness of the DDoS protection.
Positive Signals
- Awarded under full and open competition, ensuring a fair process.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contract addresses critical cybersecurity needs for a federal agency.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on cloud infrastructure and cybersecurity. The market for cloud services and DDoS protection is highly competitive, with numerous providers ranging from large hyperscalers to specialized cybersecurity firms. Federal spending in this area has been steadily increasing as agencies migrate to cloud environments and bolster their defenses against sophisticated cyber threats. Comparable spending benchmarks would depend on the specific service level agreements and the scale of the cloud deployment.
Small Business Impact
The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary focus was on obtaining the best value from the open market, rather than specifically targeting small business participation. The impact on the small business ecosystem is likely minimal unless Red River Technology LLC engages small businesses as subcontractors without a formal set-aside requirement.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, performance will be monitored to ensure delivery of the specified cloud services and DDoS protection. The Department of Energy's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is facilitated through public contract databases where award details are reported.
Related Government Programs
- Cloud Computing Services
- Cybersecurity Services
- IT Infrastructure Support
- Network Security
Risk Flags
- Limited competition may impact price optimization.
- Scope definition for 'Other Computer Related Services' could lead to ambiguity.
- Dependence on a single contractor for critical cybersecurity functions.
Tags
it-services, cybersecurity, cloud-computing, ddos-protection, department-of-energy, federal-energy-regulatory-commission, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, red-river-technology-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $309,000 to RED RIVER TECHNOLOGY LLC. CLOUDFLARE SERVICES AND DDOS PROTECTION
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $309,000.
What is the period of performance?
Start: 2024-04-20. End: 2027-04-19.
What is the specific nature of the cloud services being provided and the expected performance metrics for DDoS protection?
The provided data indicates the contract is for 'CLOUDFLARE SERVICES AND DDOS PROTECTION' under NAICS code 541519 (Other Computer Related Services). However, the specific details of the cloud services (e.g., IaaS, PaaS, SaaS, specific cloud providers) and the performance metrics for DDoS protection (e.g., mitigation capacity, uptime guarantees, response times) are not detailed in the summary data. These specifics would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this granular information, it's challenging to fully assess the value and effectiveness of the services. The firm fixed-price nature suggests these details are well-defined to allow for fixed pricing.
How does the $309,000 award compare to historical spending by the Federal Energy Regulatory Commission (FERC) on similar services?
To compare this $309,000 award to FERC's historical spending, one would need to analyze past contracts for cloud services and DDoS protection awarded to FERC or the Department of Energy. Publicly available contract databases (like FPDS or USASpending.gov) could be queried for similar NAICS codes (e.g., 541519, 541513, 541512) and service descriptions over the past several fiscal years. Given the relatively modest value of this specific award, it might represent a single delivery order or a contract for a specific, limited scope of services rather than a comprehensive, agency-wide solution. A trend analysis would reveal if FERC's spending on these types of services is increasing, decreasing, or remaining stable.
What is Red River Technology LLC's track record with federal contracts, particularly in cybersecurity and cloud services?
Red River Technology LLC has a significant history of federal contracting. A review of federal procurement data would reveal the extent of their awards, the agencies they have served, and the types of services provided. Specifically, examining their past performance on contracts related to cloud services, network security, and DDoS protection would be crucial. Key indicators include contract values, past performance ratings (if available), and any instances of contract disputes or terminations. Their experience with the Department of Energy or similar agencies would also be relevant in assessing their capability to fulfill this specific contract effectively.
Given the 'full and open competition' and only two bidders, what does this imply about the market for these specific services?
The fact that this contract was awarded under 'full and open competition' but only attracted two bids suggests a potentially niche market or specific requirements that limited the pool of qualified bidders. It could indicate that the scope of services, while broad under NAICS 541519, was narrowly defined in the solicitation, or that the contract value was not substantial enough to attract a larger number of large prime contractors. Alternatively, it might point to a market where only a few companies possess the necessary certifications, clearances, or technical expertise. For taxpayers, limited competition can sometimes mean less downward pressure on pricing, although the firm fixed-price structure still aims for cost certainty.
What are the potential risks associated with a firm fixed-price contract for cloud and DDoS services, and how are they mitigated?
The primary risk with a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or service to maintain profitability if their costs exceed the fixed price. For cloud and DDoS services, this could manifest as inadequate protection, slower response times during an attack, or unreliable service availability. Mitigation strategies include a well-defined Statement of Work (SOW) with clear performance standards and deliverables, robust government oversight, and potentially performance-based payment structures or incentives. The government's ability to monitor performance and enforce contract terms is critical. Red River Technology LLC's past performance and the agency's contract management capabilities play a significant role in mitigating these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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: 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: $368,017
Exercised Options: $309,000
Current Obligation: $309,000
Actual Outlays: $206,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC46B
IDV Type: GWAC
Timeline
Start Date: 2024-04-20
Current End Date: 2027-04-19
Potential End Date: 2027-04-19 00:00:00
Last Modified: 2026-04-02
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