GSA's $36.5M Cisco SmartNet Renewal with Red River Technology LLC: A Firm Fixed Price Agreement
Contract Overview
Contract Amount: $36,470,684 ($36.5M)
Contractor: RED River Technology LLC
Awarding Agency: General Services Administration
Start Date: 2017-07-01
End Date: 2020-12-31
Contract Duration: 1,279 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO SMARTNET CONSOLIDATED SERVICES AGREEMENT RENEWAL
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
General Services Administration obligated $36.5 million to RED RIVER TECHNOLOGY LLC for work described as: CISCO SMARTNET CONSOLIDATED SERVICES AGREEMENT RENEWAL Key points: 1. The contract is a renewal for Cisco SmartNet consolidated services, indicating ongoing reliance on Cisco technology. 2. Red River Technology LLC is the awardee, suggesting a competitive process for this service. 3. The firm fixed price contract type provides cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 334210 relates to Telephone Apparatus Manufacturing, which aligns with network hardware support.
Value Assessment
Rating: good
The contract value of $36.5M over approximately 3.5 years appears reasonable for consolidated Cisco SmartNet services. Benchmarking against similar large-scale network support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures continued operational support for critical Cisco network infrastructure across federal agencies. Supports government's reliance on advanced communication and networking technologies. Potential for service disruptions if support is not maintained. Impacts agencies utilizing Cisco equipment for their IT operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Cisco products.
- Reliance on a single service provider for critical network support.
Positive Signals
- Firm fixed price contract provides budget predictability.
- Awarded through full and open competition, suggesting competitive pricing.
Sector Analysis
This contract falls within the Information Technology sector, specifically supporting network hardware maintenance. Spending benchmarks for IT support services vary widely based on scope and technology.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting or prime award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service, indicating established oversight mechanisms for federal IT procurement.
Related Government Programs
- Telephone Apparatus Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for price escalation in future renewals.
- Dependence on a single technology vendor (Cisco).
- Risk of service level agreement (SLA) breaches.
- Need for ongoing monitoring of service performance.
Tags
telephone-apparatus-manufacturing, general-services-administration, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $36.5 million to RED RIVER TECHNOLOGY LLC. CISCO SMARTNET 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 $36.5 million.
What is the period of performance?
Start: 2017-07-01. End: 2020-12-31.
What is the specific scope of 'consolidated services' covered under this Cisco SmartNet agreement?
The scope of 'consolidated services' typically includes technical support, hardware replacement, software updates, and access to Cisco's knowledge base for network devices. Specifics would be detailed in the contract's statement of work, outlining covered equipment models and service level agreements (SLAs) to ensure operational continuity and performance.
What are the potential risks associated with a multi-year renewal of a Cisco SmartNet contract?
Key risks include vendor lock-in, where agencies become dependent on Cisco's ecosystem and pricing. There's also a risk of price increases in subsequent renewals, and potential obsolescence of supported hardware. Ensuring competitive re-competition at the end of the term is crucial to mitigate these risks and secure favorable terms.
How does this contract contribute to the government's overall IT infrastructure effectiveness?
This contract ensures the continued operational effectiveness of critical Cisco network infrastructure, which underpins many government IT systems. Reliable support minimizes downtime, maintains network performance, and allows agencies to leverage advanced networking capabilities essential for modern government operations and service delivery.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID04170091
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: $36,470,684
Exercised Options: $36,470,684
Current Obligation: $36,470,684
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: FA873213D0033
IDV Type: IDC
Timeline
Start Date: 2017-07-01
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2020-06-18
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