DoD's $43.4M Cisco support contract awarded to Red River Technology LLC
Contract Overview
Contract Amount: $43,388,700 ($43.4M)
Contractor: RED River Technology LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-27
End Date: 2028-05-31
Contract Duration: 1,800 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO ENTERPRISE LICENSE SUPPORT AGREEMENT
Place of Performance
Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743
Plain-Language Summary
Department of Defense obligated $43.4 million to RED RIVER TECHNOLOGY LLC for work described as: CISCO ENTERPRISE LICENSE SUPPORT AGREEMENT Key points: 1. Contract provides essential enterprise license support for Cisco products. 2. Red River Technology LLC, a significant IT solutions provider, secured this award. 3. The contract duration spans nearly five years, indicating a long-term need. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The fixed-price nature of the contract helps manage cost certainty. 6. This agreement supports critical IT infrastructure within the Defense Health Agency.
Value Assessment
Rating: good
The contract value of $43.4 million over approximately five years for enterprise license support appears reasonable given the scope of supporting a large federal agency like the Defense Health Agency. Benchmarking against similar large-scale IT support contracts for enterprise software licenses suggests that pricing is competitive, especially when awarded through full and open competition. The firm-fixed-price structure provides cost predictability for the government, mitigating risks associated with fluctuating service needs or software updates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a healthy level of competition for this type of IT support service. This competitive environment is expected to drive more favorable pricing and service terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more cost-effective solution for essential Cisco enterprise license support.
Public Impact
The Defense Health Agency benefits from uninterrupted access to critical Cisco software licenses and support. This contract ensures the operational continuity of IT systems vital for military healthcare services. The geographic impact is nationwide, supporting DHA facilities across various locations. Workforce implications include the need for skilled IT professionals to manage and utilize the supported Cisco infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specific Cisco technologies.
- Reliance on a single vendor for critical enterprise software support.
- Need for continuous monitoring to ensure service level agreements are met.
Positive Signals
- Award to a reputable IT solutions provider with a track record.
- Firm-fixed-price contract offers budget certainty.
- Full and open competition promotes market-driven pricing.
- Long-term agreement ensures sustained support for critical systems.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on enterprise software licensing and support. The market for IT support and maintenance for major technology providers like Cisco is substantial, with significant government spending allocated annually. This contract represents a portion of the Defense Health Agency's overall IT expenditure, aimed at maintaining its complex technological infrastructure. Comparable spending benchmarks for similar enterprise-level support agreements often run into tens of millions of dollars annually, depending on the scope and number of users.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Red River Technology LLC is a large business. This means the direct economic impact on the small business ecosystem from this specific award is likely minimal, although the prime contractor may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officers and program managers within the Defense Health Agency. Accountability measures are embedded in the firm-fixed-price contract terms and service level agreements. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Health Agency IT Modernization Programs
- Department of Defense Enterprise Software Agreements
- Federal Civilian IT Infrastructure Support Contracts
- Cisco Systems Support and Maintenance Contracts
Risk Flags
- Potential for vendor lock-in
- Reliance on single support provider
- Service Level Agreement (SLA) adherence monitoring required
Tags
it-services, defense, department-of-defense, defense-health-agency, enterprise-license-support, cisco, red-river-technology-llc, firm-fixed-price, full-and-open-competition, it-infrastructure, software-support, new-hampshire
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.4 million to RED RIVER TECHNOLOGY LLC. CISCO ENTERPRISE LICENSE SUPPORT AGREEMENT
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 Health Agency).
What is the total obligated amount?
The obligated amount is $43.4 million.
What is the period of performance?
Start: 2023-06-27. End: 2028-05-31.
What is Red River Technology LLC's past performance record with the Department of Defense, particularly for similar IT support contracts?
Red River Technology LLC has a significant history of contracting with the Department of Defense and other federal agencies. Their past performance often includes large-scale IT solutions, hardware, and support services. For contracts similar to this Cisco enterprise license support agreement, their track record generally indicates successful delivery and adherence to contract terms. Specific details on past performance metrics, such as on-time delivery, quality of service, and customer satisfaction, are typically evaluated during the source selection process and are often documented in government performance assessment reports, though these are not always publicly detailed. However, their consistent awards suggest a generally positive performance history.
How does the $43.4 million contract value compare to other enterprise license support agreements for similar technologies within the federal government?
The $43.4 million contract value for approximately five years of Cisco enterprise license support is within the expected range for large federal agencies. The Defense Health Agency (DHA) manages a vast network and a significant user base, necessitating comprehensive support. When compared to similar agreements for enterprise software licenses and support from other major technology vendors (e.g., Microsoft, Oracle) or for comparable federal entities (e.g., other branches of the DoD, GSA schedules), this figure appears competitive, especially given it was awarded under full and open competition. The firm-fixed-price nature also contributes to its value by providing cost certainty, preventing potential cost overruns common in time-and-materials contracts.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential vendor lock-in with Cisco technologies, reliance on a single provider for critical support, and the possibility of service level agreement (SLA) non-compliance. Mitigation strategies are likely embedded within the contract itself. The firm-fixed-price structure mitigates financial risk for the government. SLAs define performance expectations and remedies for non-performance. The competitive award process suggests that Red River Technology LLC was selected based on a balance of price and technical capability, implying a lower risk of poor performance. Furthermore, the government's ability to potentially re-compete the contract at its expiration provides leverage and reduces long-term dependency risk.
How effective is the Defense Health Agency in leveraging this contract to ensure optimal performance and value from Cisco technologies?
The effectiveness of this contract in ensuring optimal performance and value hinges on the DHA's contract management and technical oversight. The firm-fixed-price structure and defined SLAs provide a framework for accountability. The DHA's program managers and technical experts are responsible for monitoring Red River Technology LLC's performance against these metrics, ensuring that the support provided aligns with the agency's needs and that the Cisco technologies are functioning optimally. Regular performance reviews and proactive engagement with the contractor are crucial for maximizing value and addressing any emerging issues promptly.
What are the historical spending patterns for Cisco enterprise license support within the Defense Health Agency or the broader DoD?
Historical spending patterns for Cisco enterprise license support within the Defense Health Agency and the broader DoD have generally shown a consistent and significant investment in maintaining robust network infrastructure. Agencies like the DHA require reliable and secure communication systems, making ongoing support and licensing for core technologies like Cisco essential. Spending typically fluctuates based on technology refresh cycles, new deployments, and evolving cybersecurity requirements. While specific historical dollar amounts for DHA's Cisco support are not detailed here, it's common for such agreements to represent multi-million dollar annual expenditures, reflecting the critical nature of these IT assets to military operations and healthcare delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001523Q0033
Offers Received: 3
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: $72,665,726
Exercised Options: $43,654,848
Current Obligation: $43,388,700
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC46B
IDV Type: GWAC
Timeline
Start Date: 2023-06-27
Current End Date: 2028-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2026-01-26
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