GSA renews $22.3M Cisco IT services contract with Red River Technology LLC, awarded via full and open competition

Contract Overview

Contract Amount: $22,257,844 ($22.3M)

Contractor: RED River Technology LLC

Awarding Agency: General Services Administration

Start Date: 2015-07-01

End Date: 2017-06-30

Contract Duration: 730 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO CONSOLIDATED SERVICES AGREEMENT RENEWAL

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $22.3 million to RED RIVER TECHNOLOGY LLC for work described as: CISCO CONSOLIDATED SERVICES AGREEMENT RENEWAL Key points: 1. Contract provides IT hardware and services, aligning with GSA's mission to modernize federal IT infrastructure. 2. The renewal suggests satisfactory performance and value delivered under the previous contract period. 3. Competition was robust, indicating potential for competitive pricing and a wide range of vendor capabilities. 4. The fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 5. This contract supports the Electronic Computer Manufacturing sector, a key area for federal technology acquisition. 6. The duration of 730 days allows for sustained IT support and potential for long-term planning.

Value Assessment

Rating: good

The contract value of $22.3 million over two years for IT hardware and services appears reasonable given the scope. Benchmarking against similar consolidated IT service agreements managed by GSA would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed service level agreements and performance metrics, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 10 bids suggests a healthy level of competition for this IT services requirement. A competitive bidding process generally leads to better price discovery and encourages vendors to offer their best terms and pricing to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors vied for the contract, driving down prices. This approach maximizes the government's ability to obtain high-quality services at competitive rates.

Public Impact

Federal agencies utilizing GSA's Federal Acquisition Service benefit from streamlined IT procurement and access to Cisco hardware and services. The contract supports the modernization of federal IT infrastructure, enhancing operational capabilities for various government departments. Employees within the General Services Administration and potentially other federal agencies will have access to updated technology and support. The contract's geographic impact is national, as GSA serves federal agencies across the United States, with specific delivery likely to South Carolina. The IT sector workforce, particularly those involved in hardware and network services, may see continued employment opportunities through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the consolidated services are highly integrated and difficult to transition away from.
Reliance on a single vendor for consolidated IT services could create vulnerabilities if the vendor experiences financial distress or operational failures.
The fixed-price nature might disincentivize the contractor from proactively suggesting cost-saving innovations during the contract period.

Positive Signals

The renewal indicates a positive working relationship and likely satisfaction with the contractor's performance and service delivery.
Consolidated services can lead to efficiencies and simplified management for the contracting agency compared to multiple disparate contracts.
The firm fixed-price contract type provides budget certainty for the government, minimizing the risk of unexpected cost increases.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on electronic computer manufacturing and related services. The IT sector is a significant area of federal spending, with agencies constantly seeking to upgrade hardware, software, and network infrastructure to maintain operational effectiveness and cybersecurity. Consolidated service agreements like this one aim to streamline procurement and potentially achieve economies of scale for common IT needs across multiple agencies or within a large agency like GSA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Red River Technology LLC, may engage small businesses as subcontractors, depending on their subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger, established companies were the primary focus of this procurement.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), specifically through its Federal Acquisition Service. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. The purchase order format suggests adherence to specific GSA ordering procedures. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight would typically fall under the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

GSA IT Schedule 70
Consolidated IT Services Contracts
Federal Civilian IT Procurement
Network Infrastructure Services
Computer Hardware Procurement

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical IT services
Contract performance monitoring complexity for consolidated services

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.3 million to RED RIVER TECHNOLOGY LLC. CISCO CONSOLIDATED SERVICES AGREEMENT RENEWAL

Who is the contractor on this award?

The obligated recipient is RED RIVER TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2015-07-01. End: 2017-06-30.

What is the historical spending trend for Red River Technology LLC with the General Services Administration?

Analyzing historical spending data for Red River Technology LLC with the GSA reveals a pattern of consistent engagement, particularly through IT Schedule contracts. Prior to this $22.3 million consolidated services agreement renewal, the company likely held various task orders or smaller contracts under GSA's IT Schedule 70, which is a primary vehicle for federal IT procurement. The sustained relationship, culminating in this significant renewal, suggests a track record of successful performance and competitive pricing that aligns with GSA's procurement objectives. Further investigation into specific award amounts, contract types, and the services rendered under previous GSA agreements would provide a more granular understanding of their performance and the evolution of their business relationship with the agency.

How does the per-unit cost of services under this contract compare to similar GSA IT service agreements?

A direct per-unit cost comparison for this consolidated services agreement is challenging without a detailed breakdown of the specific services and hardware included, as well as their respective quantities. GSA IT contracts often encompass a wide array of offerings, from hardware provisioning to complex managed services. However, the fact that this contract was awarded under full and open competition with 10 bidders suggests that the pricing achieved is likely competitive within the market for such consolidated IT solutions. To perform a robust benchmark, one would need to identify comparable GSA Schedule 70 contracts or other agency-specific IT service agreements with similar scope, duration, and service level agreements, and then analyze their unit pricing for specific components like laptops, servers, software licenses, or managed IT support hours.

What are the key performance indicators (KPIs) used to evaluate Red River Technology LLC's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a consolidated IT services agreement of this nature, typical KPIs would likely include metrics related to service availability, response times for technical support, hardware delivery timelines, system uptime, and customer satisfaction. For instance, metrics such as '99.9% network uptime,' 'support tickets resolved within 4 business hours,' or 'hardware delivered within 10 business days of order' are common. The renewal of the contract suggests that Red River Technology LLC has met or exceeded the performance expectations set forth in the original agreement, implying satisfactory performance against these unstated KPIs.

What is the risk profile associated with this contract, considering its duration and scope?

The risk profile for this $22.3 million consolidated IT services contract is moderate. Key risks include potential vendor lock-in due to the consolidated nature of the services, which could make future transitions to different providers more complex and costly. Performance risk is mitigated by the firm fixed-price contract type, which places the onus on the contractor to deliver within budget. However, there's a residual risk that the contractor might cut corners on service quality to maintain profitability. The two-year duration (730 days) is standard for such agreements, balancing the need for sustained support with the opportunity to re-evaluate the market and technology landscape. The reliance on a single vendor for a broad range of IT needs also presents a concentration risk; any disruption to the vendor's operations could impact multiple federal agencies.

How has federal spending on consolidated IT services evolved, and where does this contract fit in?

Federal spending on consolidated IT services has been on an upward trend as agencies seek efficiencies and simplified management of their technology infrastructure. The government increasingly favors 'as-a-service' models and consolidated contracts to reduce administrative overhead, leverage bulk purchasing power, and ensure consistent service delivery across disparate units. This $22.3 million contract with Red River Technology LLC for Cisco services fits squarely within this trend. It represents a strategic move by the GSA to bundle essential IT hardware and support, likely serving multiple internal GSA needs or acting as a model for other agencies. Such contracts are crucial for modernizing federal IT, enhancing cybersecurity, and adopting new technologies more rapidly than through fragmented procurement approaches.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID40150131

Offers Received: 10

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,723,366

Exercised Options: $22,257,844

Current Obligation: $22,257,844

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline