DoD awards $8.8M contract for Fort Knox logistics support to Red River Science & Technology, LLC

Contract Overview

Contract Amount: $8,831,189 ($8.8M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2025-03-06

End Date: 2026-07-21

Contract Duration: 502 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS. THIS SUPPORT WILL FOCUS PRIMARILY ON THE MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES THAT SUPPORT THE INSTALLATION MISSION.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS. THIS SUPPORT WILL FOCUS PRIMARILY ON THE MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES THAT SUPPORT THE INSTALLATION MISSION. Key points: 1. Contract focuses on essential maintenance, supply, and transportation services for Fort Knox's installation mission. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract duration of 502 days suggests a medium-term operational support requirement. 4. The primary contractor, Red River Science & Technology, LLC, will be responsible for critical installation functions. 5. This award falls under Facilities Support Services, a broad category of essential operational support. 6. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee for profit.

Value Assessment

Rating: fair

The contract value of $8.8 million over approximately 1.5 years for comprehensive logistics support at a major military installation appears within a reasonable range. However, without specific benchmarks for similar installation support contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it incentivizes cost incurrence to achieve the fixed fee. Further analysis of the contractor's proposed costs against industry standards for facilities support services would be beneficial.

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,' which is a specific procurement method indicating that while the competition was intended to be broad, certain sources were excluded for defined reasons. The presence of 5 bids suggests a moderate level of competition. A fully open competition typically yields better price discovery and potentially lower costs for the government. The exclusion of sources, if not fully justified, could limit the competitive landscape and potentially impact the final price.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices. However, the 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly restrict competition and lead to higher costs than a truly open process might have achieved.

Public Impact

The primary beneficiaries are the U.S. Army and the personnel stationed at Fort Knox, who will receive uninterrupted logistics support. Services delivered include maintenance, supply chain management, and transportation, crucial for the installation's operational readiness. The geographic impact is concentrated at Fort Knox, Kentucky, ensuring the smooth functioning of this key military facility. Workforce implications include employment opportunities for personnel managed by Red River Science & Technology, LLC, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not closely monitored.
The 'exclusion of sources' in the competition method requires further justification to ensure maximum taxpayer value.
Lack of detailed performance metrics in the award notice makes it difficult to assess expected service quality upfront.

Positive Signals

Awarded through a competitive process, suggesting multiple vendors vied for the contract.
The contract supports critical installation functions, indicating a recognized need for these services.
The contractor, Red River Science & Technology, LLC, is tasked with essential operational support, implying a level of trust and capability.

Sector Analysis

This contract falls within the Facilities Support Services sector, a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of government facilities, including military installations. Spending in this area is consistently high across various agencies, particularly the Department of Defense, to ensure readiness and operational efficiency. Benchmarks for similar contracts are difficult to ascertain without more specific details on the scope of services and location, but large military installations typically require substantial investment in logistics and facility management.

Small Business Impact

The award notice indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means the primary contract was not specifically reserved for small businesses. There is no information provided regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring will be crucial given the CPFF contract type. Transparency is facilitated by the public nature of contract awards, but detailed cost reporting and performance metrics are typically found in internal government documentation. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Fort Knox Installation Support Contracts
Department of Defense Logistics and Maintenance Services
Facilities Management Contracts
Army Installation Readiness Support
Supply Chain Management Services for Military

Risk Flags

Potential for cost overruns due to CPFF contract type.
Effectiveness of 'exclusion of sources' in ensuring optimal competition.
Adequacy of contractor's past performance in similar large-scale installation support.
Potential impact of supply chain disruptions on service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS. THIS SUPPORT WILL FOCUS PRIMARILY ON THE MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES THAT SUPPORT THE INSTALLATION MISSION.

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 $8.8 million.

What is the period of performance?

Start: 2025-03-06. End: 2026-07-21.

What is the track record of Red River Science & Technology, LLC with similar government contracts, particularly within the Department of Defense?

A review of federal procurement data indicates that Red River Science & Technology, LLC has a history of securing contracts with various government agencies, including the Department of Defense. Their contract portfolio often includes services related to IT, logistics, and facilities management. Specific to large-scale installation support, their experience would need to be evaluated against the complexity and scope of the Fort Knox requirements. Analyzing past performance evaluations and any documented issues on previous DoD contracts would provide a clearer picture of their reliability and capability in executing similar logistics and maintenance operations. Without access to detailed performance reports, it's challenging to definitively assess their suitability beyond their general contracting history.

How does the awarded value of $8.8 million compare to similar logistics support contracts for military installations of comparable size and scope?

Benchmarking this $8.8 million contract against similar logistics support contracts for military installations is challenging without more granular data. Factors such as the specific services included (maintenance, supply, transportation), the size and operational tempo of the installation, and the contract duration significantly influence pricing. Generally, contracts for comprehensive support of major installations can range from several million to tens of millions of dollars annually. The duration of this contract (approx. 1.5 years) suggests a moderate investment. To provide a precise comparison, one would need to identify contracts with identical or highly similar scopes of work, geographic locations, and service levels, which are not readily available in the public award notice. The Cost Plus Fixed Fee (CPFF) structure also adds complexity to direct value comparisons.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support services, and how are they mitigated?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not managed rigorously. For facilities support services, risks include unexpected maintenance needs, supply chain disruptions, or inefficient labor utilization, all of which could drive up costs. Mitigation strategies employed by the government typically involve robust oversight, detailed cost accounting standards, regular audits, and clear performance metrics. The contracting officer and technical representatives must diligently monitor expenditures, validate costs, and ensure the contractor adheres to the contract's scope and objectives. Defining the 'fixed fee' appropriately and establishing clear criteria for allowable costs are also critical.

What does the 'full and open competition after exclusion of sources' procurement method imply for the government and taxpayers?

This procurement method implies that the government initially intended to solicit bids from all responsible sources ('full and open competition'). However, specific sources were subsequently excluded based on predefined criteria, which could be due to factors like past performance issues, security concerns, or specific technical requirements not met by all potential bidders. For taxpayers, this method aims to balance achieving broad competition with ensuring that only suitable contractors participate. If the exclusions are well-justified and a sufficient number of qualified bidders remain, it can still lead to competitive pricing. However, if the exclusions significantly limit the pool of potential bidders, it could potentially reduce competition and lead to higher costs than a truly unrestricted competition.

How will the performance of Red River Science & Technology, LLC be monitored to ensure the effective delivery of logistics support at Fort Knox?

Performance monitoring for this contract will likely involve a multi-faceted approach. The Department of the Army will designate a Contracting Officer's Representative (COR) responsible for day-to-day oversight and ensuring the contractor meets performance standards outlined in the contract. This typically includes monitoring key performance indicators (KPIs) related to maintenance response times, supply availability, transportation efficiency, and overall operational readiness support. Regular progress meetings, site inspections, and performance reviews will be conducted. Given the CPFF structure, rigorous financial oversight and auditing of costs will also be paramount to ensure funds are used efficiently and effectively. Any deviations from performance standards could trigger corrective action plans or penalties as stipulated in the contract.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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: $76,888,110

Exercised Options: $19,297,729

Current Obligation: $8,831,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J17G0095

IDV Type: BOA

Timeline