DoD awards $56.7M for Ft. Knox logistics, with 6 bidders competing for facilities support services

Contract Overview

Contract Amount: $56,732,312 ($56.7M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2020-01-02

End Date: 2025-08-21

Contract Duration: 2,058 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $56.7 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS Key points: 1. The contract value represents a significant investment in maintaining essential logistics functions at Ft. Knox. 2. Competition among six bidders suggests a healthy market for these specialized facilities support services. 3. The contract duration of over five years indicates a long-term need and potential for sustained performance. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful monitoring of costs. 5. Facilities Support Services are critical for the operational readiness and efficiency of military installations. 6. The award to Red River Science & Technology, LLC, positions them as a key provider for this DoD requirement.

Value Assessment

Rating: good

Benchmarking the $56.7 million award for Facilities Support Services at Ft. Knox against similar contracts is challenging without more specific service details. However, the presence of six bidders suggests competitive pricing was likely achieved. The cost-plus-fixed-fee structure, while common for complex services, necessitates diligent oversight to ensure value for money and prevent cost overruns. The contract's duration of over five years implies a substantial scope of work, and its value appears reasonable within the context of large-scale military installation support.

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 multiple potential offerors were solicited and evaluated. The participation of six bidders suggests a robust competitive environment for these facilities support services. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, benefiting the government.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received the best value for its investment in critical logistics support at Ft. Knox.

Public Impact

Military personnel and their families at Ft. Knox benefit from the reliable provision of essential logistics and facilities support. The contract ensures the smooth operation of base facilities, including maintenance, supply, and other support services. The geographic impact is concentrated at Ft. Knox, Kentucky, supporting the installation's mission. The contract supports jobs within the facilities management and logistics sectors, potentially including local hires in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require vigilant oversight to manage costs effectively and prevent scope creep.
The long contract duration necessitates performance monitoring to ensure sustained quality of services over time.
Ensuring adequate subcontracting opportunities, if applicable, is important for broader economic impact.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract addresses critical logistics requirements for a major military installation.
The selected contractor, Red River Science & Technology, LLC, has a track record with government contracts.

Sector Analysis

Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services industry. This sector encompasses a wide range of activities crucial for the operation and maintenance of government facilities, including military installations. Spending in this area is often driven by the need for specialized expertise in areas like maintenance, logistics, and operational support. Comparable spending benchmarks would typically be found within large-scale government contracts for base operations support (BOS) or facility management services.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides. Therefore, the direct impact on small business set-asides appears limited for this specific award. However, the prime contractor, Red River Science & Technology, LLC, may utilize small businesses for subcontracting, which would be a key factor in assessing the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers responsible for Ft. Knox operations. Accountability measures are typically embedded within the contract's performance work statement (PWS) and require adherence to specific service levels and quality standards. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management Services
Facilities Maintenance and Repair
Department of Defense Procurement
Army Installation Management

Risk Flags

Cost-Plus-Fixed-Fee contract requires diligent oversight
Long-term contract necessitates sustained performance monitoring
Potential for cost escalation in complex service contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.7 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. AWARD OF FT. KNOX LRC LOGISTICS REQUIREMENTS

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 $56.7 million.

What is the period of performance?

Start: 2020-01-02. End: 2025-08-21.

What is the track record of Red River Science & Technology, LLC with similar DoD contracts?

Red River Science & Technology, LLC has a history of performing various services for the Department of Defense. While specific details on prior logistics requirements contracts at installations of similar size and scope to Ft. Knox would require deeper analysis, their engagement in this award suggests they possess the necessary qualifications and experience. Reviewing their past performance evaluations and contract history within federal procurement databases would provide a more comprehensive understanding of their capabilities and reliability in delivering complex support services to military branches.

How does the $56.7 million award compare to historical spending on logistics at Ft. Knox?

To accurately compare this $56.7 million award to historical spending on logistics at Ft. Knox, one would need to examine prior contract vehicles and their total values over comparable periods. This current award covers a period from January 2020 to August 2025, spanning over five years. Analyzing historical data for Facilities Support Services or similar logistics contracts awarded to previous vendors for Ft. Knox would reveal trends in spending, potential increases or decreases, and the overall investment in maintaining the installation's operational readiness. Without that historical context, it's difficult to definitively state if this award represents an increase or decrease in spending.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for facilities support is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of actual costs incurred. This necessitates robust oversight and auditing by the government to ensure costs are reasonable, allocable, and allowable. Scope creep is another significant risk; if the requirements are not clearly defined or if changes occur without proper modification, costs can escalate beyond initial projections. Contractor performance is also a risk, as the government relies on the contractor to deliver services effectively within the agreed-upon cost structure.

How effective are facilities support services in ensuring military readiness?

Facilities support services are fundamentally critical to ensuring military readiness. They encompass a wide range of functions, from maintaining infrastructure and utilities to managing supply chains and providing essential base services. Without reliable facilities support, military personnel cannot effectively train, deploy, or operate. This includes ensuring that barracks are habitable, training grounds are maintained, communication systems are functional, and logistical pipelines are robust. The efficiency and effectiveness of these support services directly translate into the operational capability and readiness of the armed forces.

What is the typical duration for contracts of this nature?

Contracts for large-scale facilities support services at military installations, like the one awarded for Ft. Knox, often have durations ranging from three to five years, with options for extensions. This particular contract has a base period and subsequent periods extending to August 2025, totaling over five years. This extended duration is typical because it allows for stability in service provision, reduces the administrative burden of frequent re-competition, and enables contractors to make necessary investments in personnel and equipment to meet long-term operational needs.

How does the number of bidders impact the final contract price?

A higher number of bidders generally leads to a more competitive environment, which tends to drive down the final contract price. When multiple qualified companies vie for a contract, they are incentivized to offer more attractive pricing and terms to win the award. In this case, with six bidders competing for the Ft. Knox logistics requirements, it suggests that the Department of the Army likely benefited from competitive pressure, resulting in a more favorable price for the government compared to a scenario with fewer bidders or a sole-source award.

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

Offers Received: 6

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: $113,059,456

Exercised Options: $56,732,312

Current Obligation: $56,732,312

Actual Outlays: $615,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J17G0095

IDV Type: BOA

Timeline