DoD awards $52.8M for facilities support, with 6 bidders vying for the contract

Contract Overview

Contract Amount: $52,784,996 ($52.8M)

Contractor: RED River Science & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-01

End Date: 2026-06-30

Contract Duration: 1,125 days

Daily Burn Rate: $46.9K/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: MOB DIVISION OPERATIONS

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79916

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $52.8 million to RED RIVER SCIENCE & TECHNOLOGY, LLC for work described as: MOB DIVISION OPERATIONS Key points: 1. The contract value appears reasonable given the scope of facilities support services. 2. Strong competition was present, indicating a healthy market for these services. 3. Potential risks include performance variations across the contract duration. 4. This contract supports essential base operations for the Department of the Army. 5. The services fall within the broad category of facilities management and support. 6. The contract type suggests a focus on managing costs while achieving fixed objectives.

Value Assessment

Rating: good

The contract's value of $52.8 million for facilities support services over approximately three years appears to be within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar contracts for base operations and maintenance at military installations suggests that the pricing structure, a Cost Plus Fixed Fee (CPFF), is common for complex service requirements where precise costs are difficult to predict upfront. The presence of six bidders further supports the notion that the pricing was likely competitive and reflective of market rates.

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 all responsible prospective contractors were permitted to submit offers. The participation of six bidders suggests a robust level of competition for these facilities support services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to provide the best value, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Army personnel and operations at the supported installation. Services delivered include a wide range of facilities support, crucial for maintaining operational readiness. The geographic impact is concentrated in Texas, where the contract is being performed. Workforce implications include the potential for significant employment opportunities for skilled labor in facilities management and related trades.

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.
Ensuring consistent service quality across all aspects of facilities management over the contract's life.
Managing the transition of services if performance issues arise or at contract end.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract is for essential base operations, supporting critical military functions.
The fixed fee component of the contract provides some cost certainty for the government.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, represent a significant segment of the government contracting market, encompassing a wide array of services necessary for the operation and maintenance of government facilities. This contract fits within the broader defense sector's need for robust base support to ensure mission readiness. Comparable spending benchmarks for similar base operations and maintenance contracts within the Department of Defense often run into tens or hundreds of millions of dollars annually, depending on the size and complexity of the installation.

Small Business Impact

There is no indication that this contract included specific small business set-aside provisions, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Red River Science & Technology, LLC, a company that may or may not be a small business itself, does not automatically imply a focus on subcontracting to the small business ecosystem for this particular award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command, with technical oversight provided by government representatives at the installation level. Performance metrics and regular reporting requirements are standard mechanisms for accountability. Transparency is generally maintained through contract award databases, though detailed performance data may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Department of Defense Infrastructure Management

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Performance Variability
Dependency on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.8 million to RED RIVER SCIENCE & TECHNOLOGY, LLC. MOB DIVISION OPERATIONS

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 $52.8 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-06-30.

What is the track record of Red River Science & Technology, LLC with Department of Defense contracts, particularly in facilities support?

A review of federal procurement data indicates that Red River Science & Technology, LLC has a history of receiving contracts from various government agencies, including the Department of Defense. While specific details on their performance for facilities support contracts would require a deeper dive into contract performance reports and past performance evaluations, their continued award of contracts suggests a level of capability and reliability. It is important to note that contract performance can vary significantly based on the specific requirements, duration, and oversight of each individual contract. Further investigation into their specific experience with similar scope and scale contracts would provide a more comprehensive understanding of their track record.

How does the awarded amount compare to similar facilities support contracts at other military installations?

The awarded amount of $52.8 million for approximately three years of facilities support services is within the expected range for contracts of this nature at Department of Defense installations. The size and scope of military bases vary considerably, impacting the cost of comprehensive facilities support. Contracts for large installations can easily exceed this amount annually, while smaller bases might have significantly lower values. Factors such as geographic location, labor costs, specific service requirements (e.g., maintenance of specialized equipment, environmental services, security integration), and the level of infrastructure complexity all influence the total contract value. Without knowing the specific installation this contract supports, a precise comparison is difficult, but the value appears commensurate with the general needs of a mid-to-large sized military facility.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost' portion is reimbursable. If the contractor's actual costs exceed initial estimates, the government bears that additional expense. This necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable. For facilities support, risks include unexpected infrastructure failures, fluctuating material costs, or inefficient labor practices that can drive up the 'cost' component. Effective risk mitigation relies on strong contract administration, detailed performance monitoring, and clear communication channels to address issues proactively.

What is the expected impact of this contract on the operational readiness of the supported military unit?

This contract is expected to have a positive and significant impact on the operational readiness of the supported military unit. Facilities support services are fundamental to maintaining the infrastructure required for training, housing, and logistical operations. By ensuring that buildings are maintained, utilities are functional, grounds are kept, and essential support services are provided, this contract directly contributes to a safe and functional environment. This allows military personnel to focus on their primary mission objectives without being hindered by infrastructure deficiencies. Reliable facilities support is a critical enabler for sustained operational tempo and overall mission effectiveness.

How has spending on facilities support services by the Department of the Army trended over the past five years?

Spending on facilities support services by the Department of the Army has generally remained substantial over the past five years, reflecting the ongoing need to maintain a vast network of installations worldwide. While specific figures fluctuate based on budget allocations, modernization efforts, and operational tempo, the overall trend indicates a consistent and significant investment in these essential services. Factors such as aging infrastructure, evolving security requirements, and environmental regulations can influence year-to-year spending. The Department of the Army consistently allocates billions of dollars annually towards base operations and maintenance, with facilities support being a core component of that expenditure. This contract represents a portion of that ongoing commitment.

What are the key performance indicators (KPIs) likely to be monitored under this contract?

Key Performance Indicators (KPIs) for this facilities support contract would likely focus on service delivery, response times, and cost management. Examples include: response times for emergency facility repairs, completion rates for scheduled maintenance tasks, energy consumption efficiency, waste management performance, pest control effectiveness, and customer satisfaction ratings from installation personnel. For a CPFF contract, monitoring the 'cost' aspect closely against established baselines and ensuring that all expenditures are justified and reasonable would also be a critical KPI for the government. Adherence to safety regulations and environmental compliance would also be paramount.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9124J20R0005

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: $191,607,328

Exercised Options: $157,532,996

Current Obligation: $52,784,996

Actual Outlays: $10,575,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J20D0031

IDV Type: IDC

Timeline