VA's $236M Cisco Enterprise Agreement with Red River Technology LLC: A 5-Year Deal

Contract Overview

Contract Amount: $236,315,664 ($236.3M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-10-01

End Date: 2019-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $129.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF REQUIREMENT IS FOR THE PROCUREMENT OF AN ENTERPRISE SERVICE AGREEMENT COVERING ALL DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY MANAGED CISCO EQUIPMENT AND APPLICATIONS WORLDWIDE.

Place of Performance

Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $236.3 million to RED RIVER TECHNOLOGY LLC for work described as: IGF::OT::IGF REQUIREMENT IS FOR THE PROCUREMENT OF AN ENTERPRISE SERVICE AGREEMENT COVERING ALL DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY MANAGED CISCO EQUIPMENT AND APPLICATIONS WORLDWIDE. Key points: 1. The Department of Veterans Affairs (VA) awarded a significant contract for enterprise-wide Cisco equipment and application management. 2. The contract value stands at $236 million over five years, indicating substantial investment in IT infrastructure. 3. Competition was conducted under 'Full and Open Competition after Exclusion of Sources,' suggesting a specific justification for limiting initial bidders. 4. The sector is dominated by large IT providers, with potential for consolidation and vendor lock-in. 5. Risk factors include potential cost overruns and the need for continuous technology updates.

Value Assessment

Rating: fair

The contract value of $236 million over five years averages to approximately $47.2 million annually. Benchmarking against similar large-scale enterprise IT agreements is difficult without specific service details, but this appears to be a substantial investment.

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 innovation.

Taxpayer Impact: The $236 million expenditure represents a significant allocation of taxpayer funds towards maintaining and managing critical IT infrastructure for the VA.

Public Impact

Veterans may experience improved IT services and application performance due to standardized Cisco equipment management. The contract's duration of five years suggests a long-term commitment to a specific technology ecosystem. Potential for job creation within Red River Technology LLC and its subcontractors to support the VA's IT needs. Ensuring data security and privacy for veteran information managed through these Cisco systems is paramount.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification
Potential for vendor lock-in
Long-term commitment to specific technology

Positive Signals

Enterprise-wide standardization
Potential for improved IT service delivery
Significant investment in critical infrastructure

Sector Analysis

This contract falls within the IT services sector, specifically focusing on managed equipment and applications. Spending benchmarks for enterprise-wide IT agreements of this scale can vary widely based on the scope of services, number of users, and specific technologies involved.

Small Business Impact

The data indicates that the prime contractor is Red River Technology LLC, a large business. There is no explicit mention of small business participation in this specific contract award, which could be a missed opportunity for subcontracting.

Oversight & Accountability

Oversight will be crucial to ensure Red River Technology LLC meets performance metrics and manages the Cisco infrastructure effectively. The VA's Office of Information and Technology is responsible for monitoring this agreement.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of detailed service scope
Potential for vendor lock-in
Limited initial competition
Risk of technology obsolescence
Dependency on a single vendor ecosystem

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $236.3 million to RED RIVER TECHNOLOGY LLC. IGF::OT::IGF REQUIREMENT IS FOR THE PROCUREMENT OF AN ENTERPRISE SERVICE AGREEMENT COVERING ALL DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY MANAGED CISCO EQUIPMENT AND APPLICATIONS WORLDWIDE.

Who is the contractor on this award?

The obligated recipient is RED RIVER TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $236.3 million.

What is the period of performance?

Start: 2014-10-01. End: 2019-09-30.

What specific services are included in the 'enterprise service agreement' for Cisco equipment and applications?

The provided data lacks specific details on the services covered. An enterprise service agreement typically includes maintenance, support, software updates, and potentially hardware refresh cycles for Cisco equipment and applications. Understanding the exact scope is critical for assessing value and performance.

What was the justification for excluding sources in the 'Full and Open Competition after Exclusion of Sources' method?

The justification for excluding sources is not detailed in the provided data. This procurement method suggests that while competition was sought, specific criteria or prior relationships may have led to the exclusion of certain potential bidders, impacting the overall competitive landscape and potentially the final price.

How does the VA ensure the long-term cost-effectiveness and adaptability of this Cisco-centric agreement given rapid technological advancements?

The VA's strategy for ensuring long-term cost-effectiveness and adaptability likely involves contract clauses for technology refresh, performance-based metrics, and regular reviews of emerging technologies. However, a five-year commitment to a specific vendor's ecosystem inherently carries risks of obsolescence and requires proactive management to mitigate.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $243,965,664

Exercised Options: $236,315,664

Current Obligation: $236,315,664

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline