DoD's $14.3M Warehousing Contract Awarded to Red River Science & Technology for 364 Days

Contract Overview

Contract Amount: $14,331,486 ($14.3M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $39.4K/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 $14.3 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS Key points: 1. Contract focuses on essential warehousing and distribution services, critical for supply chain operations. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 364 days indicates a short-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 493110 points to general warehousing and storage. 6. The award amount of $14.3M appears reasonable for a year-long, comprehensive warehousing operation.

Value Assessment

Rating: good

The contract value of $14.3 million for a 364-day period for warehousing and distribution operations appears to be within a reasonable range for the scope of services. Benchmarking against similar contracts for large-scale logistics and warehousing services would provide a more precise assessment, but the fixed-price nature of the contract suggests a degree of cost control. The absence of specific performance metrics in the provided data makes a detailed value-for-money assessment challenging, but the competitive award process is a positive indicator.

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,' indicating that the solicitation was made available to all responsible prospective contractors. This suggests a robust competitive environment, which typically leads to better pricing and service offerings for the government. The number of bidders is not specified, but the designation implies that multiple entities had the opportunity to compete for this requirement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation, ensuring the government receives the best value for its investment.

Public Impact

The Department of Defense benefits from reliable warehousing and distribution operations, ensuring the efficient flow of goods. Military personnel and operations are supported through the timely availability of supplies and equipment. The contract supports the Defense Logistics Agency's mission to provide logistical support to the armed forces. The geographic impact is centered in California, where the warehousing operations will be conducted. The contract likely supports jobs within the logistics and warehousing sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor performance beyond contract completion.
The specific nature of 'distribution operations' is broad and could encompass various complexities not detailed here.
Potential for increased costs if unforeseen logistical challenges arise within the 364-day period.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Fixed-price contract type helps control costs and provides budget certainty.
Contract duration is clearly defined, allowing for focused operational planning.
The contractor, Red River Science & Technology, LLC, is a known entity in the federal contracting space.

Sector Analysis

This contract falls within the General Warehousing and Storage sector, a critical component of the broader logistics and supply chain industry. The federal government, particularly the Department of Defense, relies heavily on such services to manage vast inventories and ensure timely delivery of goods. The market for warehousing and distribution services is competitive, with numerous private sector providers capable of meeting government requirements. This contract represents a portion of the government's overall spending on logistics support, which is a significant category within federal procurement.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors, depending on their own procurement practices and the specific needs of the warehousing and distribution operations.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which is responsible for ensuring that contract terms and performance standards are met. Accountability measures are typically embedded within the contract's statement of work and performance requirements. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Logistics Support
General Warehousing Services
Supply Chain Management Contracts
Defense Logistics Agency Operations

Risk Flags

Potential for supply chain disruptions
Inventory management accuracy concerns
Dependence on contractor performance
Geographic concentration risk (California)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 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 $14.3 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of Red River Science & Technology, LLC in performing similar warehousing and distribution contracts for the federal government?

Red River Science & Technology, LLC has a history of federal contracting, though specific details on their warehousing and distribution performance require deeper analysis of past contract awards and performance evaluations. Examining their contract history with agencies like the Defense Logistics Agency (DLA) or other branches of the Department of Defense (DoD) would reveal their experience in managing similar operations. Key indicators to look for include contract values, durations, types of services rendered, and any reported performance issues or commendations. A review of past performance questionnaires (PPQs) or CPARS (Contractor Performance Assessment Reporting System) reports, if publicly available, would offer direct insights into their reliability, quality of service, and adherence to schedules and budgets in previous logistics-related contracts.

How does the awarded amount of $14.3 million compare to market rates for similar warehousing and distribution services in California?

To benchmark the $14.3 million award against market rates for warehousing and distribution in California, one would need to analyze the specific scope of services, facility size, labor requirements, and duration. California has a high cost of living and doing business, which generally translates to higher operational costs for logistics providers compared to other regions. Factors such as the volume of goods handled, inventory management complexity, transportation integration, and value-added services (e.g., kitting, assembly) significantly influence pricing. A comparison would involve looking at industry reports on warehousing costs per square foot, labor rates for warehouse staff, and typical markups for distribution services in the specific geographic area within California. Without these granular details, a precise comparison is difficult, but the competitive nature of the award suggests the price is likely aligned with prevailing market conditions for comparable government contracts.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this warehousing and distribution contract include potential disruptions to the supply chain, inventory management errors, security breaches, and failure to meet delivery timelines. Given the 364-day duration, risks related to fluctuating market conditions for labor and resources are also present. Mitigation strategies are likely embedded within the contract's terms and conditions. The fixed-price nature of the contract shifts some financial risk to the contractor. Performance standards outlined in the Statement of Work (SOW) and the potential for contract termination for default or convenience serve as accountability mechanisms. The Defense Logistics Agency's oversight and quality assurance processes are crucial for identifying and addressing performance issues proactively. Furthermore, the contractor's own risk management protocols, including contingency planning for unforeseen events, are vital.

What is the expected effectiveness of these warehousing and distribution services in supporting the Department of Defense's mission?

The effectiveness of these warehousing and distribution services is critical for the seamless functioning of the Department of Defense's supply chain. Reliable storage and timely distribution ensure that military units have the necessary equipment, supplies, and materials when and where they are needed, directly impacting operational readiness and mission accomplishment. Efficient logistics operations reduce waste, minimize lead times, and contribute to cost savings. The contract's focus on general warehousing and distribution implies a foundational role in managing the flow of goods, from receipt and storage to order fulfillment and dispatch. The success of these services will be measured by the contractor's ability to maintain inventory accuracy, ensure the integrity of stored goods, and meet delivery schedules, thereby directly contributing to the DoD's overall logistical efficiency and operational capability.

How does this contract's value and duration compare to historical spending patterns for similar services by the Defense Logistics Agency?

Comparing this $14.3 million, 364-day contract to historical spending patterns requires access to historical contract data for the Defense Logistics Agency (DLA) and similar services. DLA manages a vast array of logistics and supply chain functions, often involving significant investments in warehousing and distribution. Annual spending on such services can fluctuate based on operational tempo, strategic priorities, and the consolidation or expansion of logistical footprints. A single contract of this value might represent a routine operational requirement or a specific project need. Analyzing trends over several fiscal years would reveal whether spending on warehousing and distribution is increasing, decreasing, or remaining stable. It would also indicate the typical duration and value of contracts awarded for comparable services, providing context for whether this award is typical, unusually large, or small.

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: $14,881,008

Exercised Options: $14,881,008

Current Obligation: $14,331,486

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