DoD's $188M Software Maintenance Contract with Red River Technology LLC: A Full and Open Competition Analysis
Contract Overview
Contract Amount: $188,429,924 ($188.4M)
Contractor: RED River Technology LLC
Awarding Agency: Department of Defense
Start Date: 2012-06-28
End Date: 2014-09-28
Contract Duration: 822 days
Daily Burn Rate: $229.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE MAINTENANCE
Place of Performance
Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743
Plain-Language Summary
Department of Defense obligated $188.4 million to RED RIVER TECHNOLOGY LLC for work described as: SOFTWARE MAINTENANCE Key points: 1. The contract awarded to Red River Technology LLC for software maintenance represents a significant investment by the Department of Defense. 2. Competition was conducted under a 'Full and Open Competition After Exclusion of Sources' method, indicating a specific justification for limiting initial bidders. 3. The contract duration of 822 days and a base value of $188.4M suggest a substantial, long-term need for these services. 4. The 'Other Computer Related Services' NAICS code points to a broad category, requiring further detail to assess specific market dynamics. 5. The absence of small business participation is noted, which could be a point of concern for broader economic impact.
Value Assessment
Rating: fair
The contract's base value of $188.4M over 822 days suggests a significant expenditure. Benchmarking against similar software maintenance contracts within the DoD is necessary to determine if this pricing is competitive. The provided data lacks specific unit costs for comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This method implies that while the competition was open, certain sources were initially excluded, potentially impacting the breadth of price discovery and the final negotiated price.
Taxpayer Impact: The competitive process, even with exclusions, aims to secure fair market value. However, the specifics of the exclusion could influence the ultimate benefit to taxpayers.
Public Impact
Ensures continued operation and support for critical defense software systems. Potential for innovation and service improvements through competitive bidding. Impacts the IT services market, particularly for companies capable of supporting large government contracts. Highlights the ongoing need for robust cybersecurity and software updates within defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for limited competition due to source exclusion.
- Need for detailed cost breakdown to assess value.
Positive Signals
- Awarded through full and open competition.
- Addresses critical software maintenance needs.
- Long-term contract provides stability.
Sector Analysis
The Department of Defense's IT spending is substantial, with software maintenance being a critical component. This contract falls under 'Other Computer Related Services,' a broad category. Benchmarks for similar large-scale software maintenance contracts within the federal government would provide context for the $188.4M award.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as 'sb' is false. This suggests that the prime contractor is likely a large business, and further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a key component of the DoD's IT infrastructure. Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money throughout the contract lifecycle.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of transparency on specific software systems covered.
- No explicit mention of small business subcontracting.
- Need for detailed cost-benefit analysis to validate value.
Tags
other-computer-related-services, department-of-defense, nh, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $188.4 million to RED RIVER TECHNOLOGY LLC. SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $188.4 million.
What is the period of performance?
Start: 2012-06-28. End: 2014-09-28.
What specific software systems are covered under this maintenance contract, and what is the criticality of these systems to defense operations?
The provided data does not specify the exact software systems covered. However, given the awarding agency (DISA) and the substantial value, it is likely related to critical command, control, communications, computers, and intelligence (C4I) systems. Understanding the specific software is crucial for assessing operational risk and the necessity of the maintenance provided.
How did the 'Exclusion of Sources' clause impact the final price and the range of technical solutions considered?
The 'Exclusion of Sources' clause suggests that certain vendors were not considered, potentially limiting the competitive landscape and the diversity of proposed solutions. This could lead to a higher price than if all potential sources were included. A review of the justification for exclusion is needed to understand its impact on price discovery and overall value.
What is the projected return on investment or efficiency gain expected from this software maintenance contract?
The data does not provide metrics for ROI or efficiency gains. Typically, software maintenance contracts aim to ensure system uptime, security, and performance, thereby preventing costly disruptions and supporting operational effectiveness. Quantifying these benefits would require access to performance metrics and cost-avoidance data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC102812R0045
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21 WATER ST STE 500, CLAREMONT, NH, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $479,358,256
Exercised Options: $188,429,924
Current Obligation: $188,429,924
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-28
Current End Date: 2014-09-28
Potential End Date: 2017-06-28 00:00:00
Last Modified: 2014-09-25
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