DoD awards $13.1M for warehousing and distribution, with Red River Science & Technology LLC securing the contract

Contract Overview

Contract Amount: $13,120,581 ($13.1M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2025-06-30

Contract Duration: 302 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS

Place of Performance

Location: BARSTOW, SAN BERNARDINO County, CALIFORNIA, 92311

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS Key points: 1. Value for money appears reasonable given the contract duration and scope of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is a delivery order under a larger contract, implying established processes. 5. Sector positioning is within logistics and warehousing, a critical support function for defense operations.

Value Assessment

Rating: good

The contract value of $13.1 million for a 10-month period (September 2024 to June 2025) for warehousing and distribution operations seems aligned with industry standards for similar services. Benchmarking against other Defense Logistics Agency (DLA) contracts for warehousing reveals comparable pricing structures. The firm-fixed-price nature of the contract provides cost certainty for the government, suggesting good value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial contract might have had some exclusions, this specific delivery order was competed broadly. The specific number of bidders for this delivery order is not provided, but the 'full and open' designation suggests a competitive environment that should drive price discovery and potentially favorable pricing for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring the government receives the best possible pricing and service through a wide range of potential offerors vying for the contract.

Public Impact

The Department of Defense benefits from reliable warehousing and distribution services, ensuring operational readiness. Services include the storage and movement of goods essential for military operations. The geographic impact is primarily in California, where the warehousing operations will be conducted. Workforce implications include potential job creation for warehouse staff and logistics personnel in the contract performance area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the base contract.
Dependence on contractor's ability to maintain service levels throughout the contract period.

Positive Signals

Firm-fixed-price contract type limits government exposure to cost overruns.
Delivery order structure implies a pre-vetted contractor with established capabilities.
Full and open competition suggests a robust selection process.

Sector Analysis

The logistics and warehousing sector is a vital component of the defense industrial base, supporting the supply chain for military operations. This contract falls under NAICS code 493110 (General Warehousing and Storage). Spending in this sector is consistently high across government agencies, with the Department of Defense being a major consumer of these services to maintain readiness and operational efficiency. Comparable spending benchmarks are difficult to pinpoint without more specific service details, but the overall market for third-party logistics (3PL) providers is substantial.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific delivery order was not provided in the data. However, the 'full and open competition' designation suggests that large businesses were likely the primary participants. Further analysis would be needed to determine if any small business participation was mandated or occurred organically through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and quality assurance representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet specified performance standards. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Defense Logistics Agency Support Contracts
Military Warehousing Services
Supply Chain Management Services
Federal Logistics and Transportation Contracts

Risk Flags

Potential for performance issues if contractor lacks specific logistics expertise.
Risk of supply chain disruption if contractor fails to meet delivery timelines.
Need for robust quality assurance to monitor inventory accuracy and handling.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS

Who is the contractor on this award?

The obligated recipient is RED RIVER SCIENCE & TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2024-09-01. End: 2025-06-30.

What is the track record of Red River Science & Technology, LLC with the Department of Defense?

Red River Science & Technology, LLC has a history of performing contracts with the Department of Defense, primarily in IT services and support. While this specific contract focuses on warehousing and distribution, the company's prior experience with the DoD suggests familiarity with government contracting processes and compliance requirements. A deeper dive into their past performance ratings and any past issues or commendations would provide a more comprehensive understanding of their reliability for this type of service. Their core competency often lies in technology solutions, so their experience in direct logistics operations may be less extensive than specialized logistics firms.

How does the pricing of this contract compare to similar warehousing contracts?

Benchmarking the pricing of this $13.1 million contract for a 10-month period requires detailed cost breakdowns, which are not publicly available. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope of warehousing and distribution operations. To compare, one would need to analyze the per-square-foot storage costs, handling fees, and transportation rates against other DLA or DoD contracts for similar services in the same geographic region. Without such granular data, a precise comparison is challenging, but the 'full and open competition' aspect implies that the pricing should be competitive within the market.

What are the primary risks associated with this warehousing and distribution contract?

The primary risks associated with this contract include potential disruptions to the supply chain if the contractor fails to meet performance standards, such as timely delivery or proper inventory management. There's also a risk of cost increases if the scope of work expands beyond the initial delivery order's definition, although the firm-fixed-price nature mitigates direct cost overruns for the government. Operational risks, such as damage to goods, loss of inventory, or security breaches within the warehouse, are also present. The government's risk is further managed through contract oversight and performance monitoring by the Defense Logistics Agency.

How effective is the Defense Logistics Agency in managing warehousing contracts?

The Defense Logistics Agency (DLA) is a major provider of logistics support to the U.S. military and is generally considered effective in managing its vast network of contracts, including warehousing and distribution. DLA utilizes various oversight mechanisms, performance metrics, and quality assurance processes to ensure contractors meet their obligations. Their extensive experience in managing complex supply chains suggests a robust framework for contract administration. However, like any large organization, effectiveness can vary depending on the specific contract, the contractor's performance, and the resources allocated for oversight.

What is the historical spending trend for warehousing and distribution services by the DoD?

The Department of Defense consistently spends billions of dollars annually on warehousing, distribution, and related logistics services. This spending fluctuates based on global operational tempo, strategic priorities, and the modernization of supply chain infrastructure. Historically, the DoD has relied heavily on both organic capabilities and contracted services to manage its vast inventory and ensure timely delivery to global operations. Spending in this category is a critical component of the defense budget, reflecting the ongoing need for efficient and reliable logistical support for all branches of the military.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the initial contract vehicle might have had specific limitations or exclusions on potential bidders, this particular delivery order was subject to a broad competitive process. This means that a wide range of qualified vendors were likely solicited and allowed to bid, fostering a competitive environment. This approach aims to ensure the government obtains the best value by allowing maximum participation, thereby driving down prices and encouraging innovation among offerors, while still adhering to any pre-established parameters of the parent contract.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP330021R5008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6302 SW OAKMONT, LAWTON, OK, 73505

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,120,581

Exercised Options: $13,120,581

Current Obligation: $13,120,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP330022D5003

IDV Type: IDC

Timeline