DoD's $31.6M Cloud Management Contract Awarded to Red River Technology LLC

Contract Overview

Contract Amount: $31,627,042 ($31.6M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-29

End Date: 2021-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CLOUD SERVICE MANAGEMENT

Place of Performance

Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to RED RIVER TECHNOLOGY LLC for work described as: IGF::OT::IGF CLOUD SERVICE MANAGEMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for cloud management services. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, Red River Technology LLC, has secured this significant award from the Department of the Navy.

Value Assessment

Rating: good

Benchmarking the value of this $31.6 million contract requires comparison to similar cloud management services procured by the Department of Defense. Given the 5-year duration, the annual value is approximately $6.3 million. Without specific details on the scope of services, it's challenging to definitively assess pricing. However, the firm-fixed-price structure suggests an effort to manage costs effectively. Further analysis would involve comparing the per-unit costs of specific cloud services or management tasks against industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it is designed to secure the best value by encouraging multiple vendors to offer their most competitive pricing and solutions.

Public Impact

The Department of the Navy benefits from enhanced cloud management services, potentially improving IT infrastructure efficiency and security. This contract supports the delivery of critical IT services essential for naval operations. The geographic impact is primarily within the Department of Defense's operational footprint, though cloud services can have a distributed effect. Workforce implications may include the need for specialized cloud engineers and IT professionals, both within the contractor's organization and potentially within the Navy for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary cloud solutions are mandated.
Risk of cost overruns if the scope of work expands beyond initial estimates without proper change control.
Dependence on contractor performance for critical IT infrastructure availability and security.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type helps control costs.
Long-term contract duration suggests a stable and ongoing requirement, potentially leading to economies of scale.
The contractor, Red River Technology LLC, has experience in government contracting.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on cloud service management. The market for cloud services and management is substantial and rapidly growing, driven by government-wide initiatives to modernize IT infrastructure and leverage cloud capabilities for efficiency and scalability. Comparable spending benchmarks would involve analyzing other large-scale cloud service contracts awarded by federal agencies for similar management and support functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Red River Technology LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Cloud Computing Services
IT Management Services
Department of Defense IT Contracts
Navy IT Modernization Programs
Information Technology Professional Services

Risk Flags

Potential for scope creep without clear definition of services.
Dependence on contractor for critical IT infrastructure.
Need for robust oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to RED RIVER TECHNOLOGY LLC. IGF::OT::IGF CLOUD SERVICE MANAGEMENT

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2016-09-29. End: 2021-09-28.

What specific cloud platforms or services are managed under this contract?

The provided data does not specify the exact cloud platforms (e.g., AWS, Azure, Google Cloud) or the granular services (e.g., IaaS, PaaS, SaaS management, security monitoring, performance optimization) covered by this contract. The NAICS code 541519, 'Other Computer Related Services,' is broad. A detailed statement of work (SOW) or contract modifications would be necessary to ascertain the specific technologies and services involved. Understanding this is crucial for assessing the technical scope and potential risks associated with managing diverse cloud environments.

How does the $31.6 million total contract value compare to similar cloud management contracts awarded by the DoD?

The total contract value of $31.6 million over five years equates to an average annual value of approximately $6.3 million. To benchmark this, one would need to compare it against other DoD contracts for cloud management services with similar scopes and durations. For instance, larger enterprise-wide cloud migration or management contracts could easily exceed hundreds of millions or even billions of dollars. This $31.6 million award appears to be for a specific set of services or a particular program within the Navy, rather than a comprehensive, agency-wide cloud strategy. Its relative size depends heavily on the specific services rendered.

What is Red River Technology LLC's track record with similar government contracts?

Red River Technology LLC has a history of performing government contracts, including those with the Department of Defense. While this specific award is for cloud management, their broader experience likely encompasses various IT services. A deeper dive into their contract history would reveal past performance ratings, any significant contract disputes or awards, and their expertise in areas like cybersecurity, network infrastructure, and IT solutions. Their ability to secure this $31.6 million contract suggests a demonstrated capability to meet DoD requirements, but a thorough review of past performance is essential for a complete risk assessment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected performance standards for cloud management services, such as uptime guarantees, response times for issue resolution, security compliance metrics, and cost-efficiency targets. The absence of this information in the summary means that the effectiveness and value derived from the contract cannot be fully assessed without consulting the full contract documentation or associated performance work statements.

What is the historical spending trend for cloud management services within the Department of the Navy?

The provided data focuses on a single contract award and does not offer historical spending trends for cloud management services within the Department of the Navy. To analyze trends, one would need to examine aggregated spending data over multiple fiscal years, looking at various contracts for cloud services, infrastructure, and management. Such an analysis would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify major vendors and contract types dominating the landscape. This single award suggests a specific investment, but broader trends require a more comprehensive dataset.

Are there any specific security requirements or compliance mandates tied to this cloud management contract?

While not explicitly detailed in the summary data, any cloud management contract with the Department of Defense, especially one valued at $31.6 million, would invariably be subject to stringent security requirements and compliance mandates. These typically include adherence to NIST (National Institute of Standards and Technology) guidelines, FedRAMP authorization for cloud services, DISA (Defense Information Systems Agency) security controls, and potentially specific DoD cybersecurity policies. The contractor would be responsible for ensuring the cloud environments they manage meet these rigorous standards to protect sensitive government data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003916R1001

Offers Received: 5

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,734,210

Exercised Options: $43,807,955

Current Obligation: $31,627,042

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HHSN316201500065W

IDV Type: GWAC

Timeline