Army awards $14M+ for hazardous materials logistics, with 6 bidders competing

Contract Overview

Contract Amount: $13,991,483 ($14.0M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD OF ENHANCED ARMY GLOBAL LOGISTICS ENTERPRISE (EAGLE) LOGISTICS SUPPORT SERVICES FOR ARMY SUSTAINMENT COMMAND HAZARDOUS MATERIALS SUPPLY OPERATIONS (HMSO).

Place of Performance

Location: FORT NOVOSEL, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: AWARD OF ENHANCED ARMY GLOBAL LOGISTICS ENTERPRISE (EAGLE) LOGISTICS SUPPORT SERVICES FOR ARMY SUSTAINMENT COMMAND HAZARDOUS MATERIALS SUPPLY OPERATIONS (HMSO). Key points: 1. The contract focuses on critical logistics support for hazardous materials, ensuring operational readiness. 2. A competitive award process with six bidders suggests a healthy market for these specialized services. 3. The firm-fixed-price structure aligns costs and provides predictability for the government. 4. This award is part of a larger enterprise-level contract for Army logistics, indicating strategic sourcing. 5. The duration of the order (5 years) suggests a long-term need for these services. 6. Performance will be monitored to ensure efficient and safe handling of hazardous materials.

Value Assessment

Rating: good

The award amount of over $13.9 million for five years of logistics support for hazardous materials appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for hazardous material management and logistics within the Department of Defense would provide a more precise value assessment. The firm-fixed-price contract type helps control costs, but the ultimate value depends on the contractor's efficiency and the actual volume of services required.

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. The presence of six bidders suggests a competitive environment for this type of specialized logistics support. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential hazardous materials logistics services.

Public Impact

The U.S. Army, specifically the Army Sustainment Command, benefits from enhanced logistics support for hazardous materials. Services delivered include the management and supply chain operations for hazardous materials, crucial for military readiness. The geographic impact is primarily within Alabama, where the contractor is located, but supports Army-wide operations. This contract supports a specialized segment of the logistics workforce involved in handling dangerous goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the nature of hazardous materials.
Dependence on a single contractor for critical hazardous material logistics could pose a risk if performance issues arise.
Ensuring compliance with all safety and environmental regulations for hazardous materials is paramount.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration suggests a stable and ongoing requirement, allowing for efficient resource planning.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on the complex logistics of hazardous materials. The market for such specialized services is often characterized by a limited number of highly qualified providers due to stringent regulatory and safety requirements. Comparable spending benchmarks would likely be found within defense logistics and hazardous waste management contracts, where specialized expertise is essential.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates no small business participation. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this particular award. Future contract actions under the EAGLE program may offer different opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Army Sustainment Command personnel. Accountability measures will be tied to the performance work statement and the firm-fixed-price terms. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Global Logistics Enterprise (AGLE)
Logistics Support Services
Hazardous Materials Management
Supply Chain Operations
Defense Logistics Agency Contracts

Risk Flags

Potential safety and environmental risks associated with hazardous materials.
Contractor performance and reliability in a critical logistics function.
Ensuring continued compliance with evolving regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. AWARD OF ENHANCED ARMY GLOBAL LOGISTICS ENTERPRISE (EAGLE) LOGISTICS SUPPORT SERVICES FOR ARMY SUSTAINMENT COMMAND HAZARDOUS MATERIALS SUPPLY OPERATIONS (HMSO).

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 $14.0 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of RED RIVER SCIENCE & TECHNOLOGY, LLC in performing similar logistics support services, particularly for hazardous materials?

Assessing the track record of RED RIVER SCIENCE & TECHNOLOGY, LLC requires a review of their past performance on federal contracts, specifically those involving logistics, supply chain management, and the handling of hazardous materials. Information on past performance can often be found in federal procurement databases like the Contractor Performance Assessment Reporting System (CPARS). A positive track record would include successful completion of similar contracts, adherence to safety and regulatory standards, and positive performance evaluations from previous government clients. Conversely, any history of performance issues, safety violations, or contract disputes would be a significant concern and would warrant closer scrutiny of their capabilities for this EAGLE contract.

How does the awarded amount compare to the estimated value or budget for these hazardous materials logistics services?

The awarded amount of approximately $13.9 million for the EAGLE logistics support services needs to be compared against the government's initial cost estimates or budget allocations for this requirement. Without access to the government's internal estimates, a direct comparison is difficult. However, the fact that it was awarded under full and open competition with six bidders suggests that the pricing was competitive. If the awarded price is significantly below or above the government's estimate, it could indicate either exceptional negotiation and competition or potential issues with the initial estimate or the contractor's pricing strategy. Further analysis would involve examining the details of the solicitation and any pre-award cost data available.

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

The primary risks associated with this contract revolve around the safe and compliant handling of hazardous materials, potential supply chain disruptions, and ensuring cost-effectiveness over the five-year period. Specific risks include accidents during transport or storage, non-compliance with environmental and safety regulations (e.g., EPA, OSHA), and potential cost increases due to unforeseen logistical challenges or changes in material volume. Mitigation strategies likely include stringent performance work statement requirements, regular safety audits, robust tracking and inventory management systems, and the firm-fixed-price contract type which incentivizes the contractor to manage costs efficiently. The government's oversight and the contractor's own safety protocols are critical mitigation elements.

How effective is the Army Sustainment Command in managing and overseeing contracts of this nature?

The effectiveness of the Army Sustainment Command (ASC) in managing and overseeing contracts like this one is crucial for mission success. ASC is responsible for providing comprehensive logistics, maintenance, and sustainment support to Army forces worldwide. Their effectiveness in contract oversight is typically measured by their ability to ensure contractor performance meets requirements, manage contract modifications judiciously, enforce compliance with regulations, and achieve desired outcomes within budget. Past performance reviews of ASC's contract management practices, including their utilization of contract specialists, quality assurance personnel, and reporting mechanisms, would provide insight into their capabilities. The success of this specific contract will be a reflection of their oversight.

What are the historical spending patterns for hazardous materials logistics support within the Department of the Army?

Analyzing historical spending patterns for hazardous materials logistics support within the Department of the Army is essential for contextualizing this $13.9 million award. This involves examining aggregate spending data over several fiscal years on similar contracts, identifying key contractors, and understanding the average contract values and durations. Such analysis can reveal trends in demand, identify periods of increased or decreased spending, and highlight any significant shifts in procurement strategies or service providers. Understanding these patterns helps in assessing whether current spending levels are consistent with historical norms, indicative of growth, or represent a departure from previous approaches, potentially signaling changes in operational tempo or strategic priorities.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the contractor's success in this EAGLE contract?

The specific performance metrics and Key Performance Indicators (KPIs) for this EAGLE contract are critical for ensuring the successful delivery of hazardous materials logistics support. While not detailed in the award abstract, these typically include metrics related to on-time delivery, accuracy of inventory management, compliance with safety regulations (e.g., zero safety incidents), proper documentation and reporting, and responsiveness to Army requirements. The firm-fixed-price nature of the contract implies that meeting these KPIs is directly tied to the contractor's profitability. The government's quality assurance personnel will monitor these metrics throughout the contract period, providing feedback and potentially withholding payment or applying other remedies if performance falls short.

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: 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, 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: $22,957,510

Exercised Options: $13,991,483

Current Obligation: $13,991,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J17G0095

IDV Type: BOA

Timeline