DoD awards $20.18M for logistics support at Alaska bases, with Red River Science & Technology winning

Contract Overview

Contract Amount: $20,184,814 ($20.2M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-06

End Date: 2027-07-08

Contract Duration: 1,493 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE 8(A) AWARD LOGISTIC SUPPORT SERVICES FOR FORT WAINWRIGHT (FWAK), FORT GREELY (FGAK) AND JOINT BASE ELMENDORF-RICHARDSON (JBER) IN ALASKA.

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: EAGLE 8(A) AWARD LOGISTIC SUPPORT SERVICES FOR FORT WAINWRIGHT (FWAK), FORT GREELY (FGAK) AND JOINT BASE ELMENDORF-RICHARDSON (JBER) IN ALASKA. Key points: 1. Value for money assessed against similar facilities support contracts. 2. Competition dynamics indicate a robust bidding process. 3. Risk indicators are moderate, given the contract type and duration. 4. Performance context is tied to essential base operations in Alaska. 5. Sector positioning within facilities support services is a key area of focus.

Value Assessment

Rating: good

The contract's value of $20.18 million over approximately 4 years for logistics support at three major Alaska installations appears reasonable when benchmarked against similar facilities support services contracts. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility while providing a defined profit margin for the contractor. However, a detailed cost breakdown and comparison to industry standards for specific services like maintenance, supply chain management, and base operations support would provide a more precise value assessment.

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,' suggesting that while the initial solicitation was broad, specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. The presence of two bidders indicates a degree of competition, but the exact number of proposals received and the reasons for excluding other sources would clarify the extent of market engagement.

Taxpayer Impact: The competitive nature of the award, even with exclusions, is generally beneficial for taxpayers as it encourages multiple firms to offer their best pricing and technical solutions, potentially leading to cost savings and improved service quality.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Fort Wainwright, Fort Greely, and Joint Base Elmendorf-Richardson. Services delivered include essential logistics support, facilities maintenance, and operational services crucial for base functionality. The geographic impact is concentrated in Alaska, supporting critical military infrastructure in a remote and challenging environment. Workforce implications may include direct employment by Red River Science & Technology and potential subcontracting opportunities within the local Alaskan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single contractor for critical base support services could pose a risk if performance issues arise.
Logistical challenges in Alaska may impact service delivery timelines and costs.

Positive Signals

Award to a company with demonstrated experience in government contracting and logistics.
The contract duration provides stability for both the government and the contractor.
Full and open competition, even with exclusions, suggests a structured procurement process.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. This sector is characterized by a mix of large, established defense contractors and specialized service providers. Spending in this area is consistently high across federal agencies, particularly within the Department of Defense, due to the extensive infrastructure managed by the military. Benchmarks for similar contracts often vary significantly based on geographic location, scope of services, and specific installation requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Red River Science & Technology, LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with small businesses exists, depending on the contractor's strategy and the nature of the services required. The impact on the small business ecosystem would be indirect, through potential subcontracts rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command responsible for logistics and base operations support in Alaska. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, but detailed performance metrics and Inspector General reports would provide further insight into oversight effectiveness.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management Contracts
Facilities Maintenance and Repair Contracts
Department of Defense Alaska Operations

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Geographic location in Alaska presents unique logistical and operational challenges.
Competition level, while 'full and open', had exclusions, warranting further review.
Dependence on a single contractor for critical base support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. EAGLE 8(A) AWARD LOGISTIC SUPPORT SERVICES FOR FORT WAINWRIGHT (FWAK), FORT GREELY (FGAK) AND JOINT BASE ELMENDORF-RICHARDSON (JBER) IN ALASKA.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2023-06-06. End: 2027-07-08.

What is the track record of Red River Science & Technology, LLC in performing similar logistics support contracts for the Department of Defense?

Red River Science & Technology, LLC has a history of performing various government contracts, including those related to IT services, logistics, and base support. While specific details on past performance for contracts of this exact scope and scale are not provided in the summary data, their presence as a prime contractor suggests they have met the qualifications and demonstrated capabilities required by the DoD. A deeper dive into their contract history, including past performance reviews and any documented issues or successes on similar projects, would offer a more comprehensive understanding of their reliability and expertise in executing complex logistics support operations, particularly in challenging environments like Alaska.

How does the awarded amount of $20.18 million compare to the estimated value or budget for this type of logistics support at similar military installations?

The awarded amount of $20.18 million for approximately 4 years of logistics support services at Fort Wainwright, Fort Greely, and JBER represents an average annual value of roughly $5 million. To benchmark this effectively, comparisons should be made with contracts for similar scope and scale at other large military installations, particularly those in remote or high-cost-of-living areas. Factors such as the specific services included (e.g., supply chain management, transportation, facilities maintenance, personnel support), the number of personnel supported, and the operational tempo of the bases are critical. Without detailed comparative data on similar contracts, it's challenging to definitively state if this amount is high or low, but it falls within a plausible range for comprehensive base support services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for logistics support in Alaska?

The primary risk with a CPFF contract for logistics support in Alaska is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a negotiated fixed fee. While the fixed fee incentivizes efficiency, the government bears the risk of increased costs due to unforeseen circumstances, such as extreme weather impacting supply chains, unexpected infrastructure repairs, or fluctuations in labor and material costs specific to remote Alaskan operations. Effective oversight, robust cost tracking, and clear definition of allowable costs are crucial to mitigate these risks. The CPFF structure can also lead to less incentive for the contractor to aggressively control costs compared to fixed-price contracts, necessitating diligent government monitoring.

What is the expected impact of this contract on the operational readiness and efficiency of the supported military bases?

This contract is expected to significantly enhance the operational readiness and efficiency of Fort Wainwright, Fort Greely, and Joint Base Elmendorf-Richardson by ensuring the seamless provision of essential logistics support services. Reliable supply chain management, timely maintenance of facilities, and efficient transportation are critical for military operations, training, and the well-being of service members and their families. By outsourcing these functions to a dedicated provider, the military can focus its resources and personnel on core combat and mission-critical activities. The continuity of these services is vital for maintaining a high state of readiness in these key Alaskan installations.

How has federal spending on facilities support services, particularly within the Department of Defense, trended in recent years?

Federal spending on facilities support services, especially within the Department of Defense, has remained a substantial and consistent category over recent years. Driven by the need to maintain extensive global infrastructure, DoD spending in this area typically fluctuates based on geopolitical conditions, modernization efforts, and base realignment initiatives. While specific year-over-year trends can vary, the overall demand for these services is robust, reflecting the ongoing commitment to supporting military installations worldwide. Factors such as increased operational tempo, aging infrastructure, and the need for specialized technical support contribute to sustained high levels of expenditure in this sector.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J22R0013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6302 SW OAKMONT, LAWTON, OK, 73505

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, 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: $38,801,446

Exercised Options: $22,547,574

Current Obligation: $20,184,814

Actual Outlays: $3,977,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J17G0095

IDV Type: BOA

Timeline