DoD's $10.8M Contract for Client Systems Technician Services Awarded to Red Canyon Technologies, LLC
Contract Overview
Contract Amount: $10,857,918 ($10.9M)
Contractor: RED Canyon Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-26
End Date: 2026-05-25
Contract Duration: 1,003 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CLIENT SYSTEMS TECHNICIAN SERVICES
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to RED CANYON TECHNOLOGIES, LLC for work described as: CLIENT SYSTEMS TECHNICIAN SERVICES Key points: 1. The contract value is $10.8 million over its period of performance. 2. Red Canyon Technologies, LLC is the sole awardee, indicating a lack of competition. 3. The contract is for Computer Facilities Management Services, a critical IT support function. 4. The award method is 'NOT AVAILABLE FOR COMPETITION', raising potential concerns about price discovery.
Value Assessment
Rating: fair
The contract is a Firm Fixed Price award. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if the pricing is optimal. Benchmarking against similar services would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to leverage market forces to achieve the best possible price and service.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services compared to what might have been achieved through a competitive process.
Public Impact
Ensures continued IT support for client systems within the Air Force. Potential for higher costs due to the absence of competitive bidding. Limited transparency into the justification for sole-source award. Impacts the ability of other vendors to compete for this type of service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in award justification.
- Potential for inflated pricing due to no competition.
Positive Signals
- Provides essential IT support services.
- Firm Fixed Price contract type can offer cost predictability.
Sector Analysis
This contract falls under IT services, specifically Computer Facilities Management. Spending in this sector is substantial across government agencies, with benchmarks varying widely based on service scope and complexity. Sole-source awards in IT can sometimes be justified for specialized skills or existing infrastructure integration.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. A thorough review of the justification for not competing the contract is essential to ensure proper use of taxpayer funds and adherence to procurement regulations.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of competitive pricing.
- Limited transparency regarding the necessity of sole-source award.
- No small business participation indicated.
Tags
computer-facilities-management-services, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to RED CANYON TECHNOLOGIES, LLC. CLIENT SYSTEMS TECHNICIAN SERVICES
Who is the contractor on this award?
The obligated recipient is RED CANYON TECHNOLOGIES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2023-08-26. End: 2026-05-25.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data states the award was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. A comprehensive review of the contract file would be necessary to ascertain the specific justification, such as unique capabilities, urgent need, or lack of sources. Adequate documentation is crucial for ensuring compliance with federal acquisition regulations and demonstrating responsible stewardship of funds.
How does the pricing of this sole-source contract compare to industry benchmarks for similar client systems technician services?
Without access to detailed pricing breakdowns or comparable contract awards, a direct price comparison is challenging. However, sole-source contracts often carry a risk of higher costs due to the absence of competitive pressure. An independent analysis comparing the per-unit costs or labor rates against market data for similar IT support services would be needed to assess value for money.
What mechanisms are in place to ensure the effectiveness and quality of services provided by Red Canyon Technologies, LLC under this contract?
As a Firm Fixed Price contract, the vendor is incentivized to deliver services within the agreed-upon price. However, effectiveness and quality depend on robust performance metrics, clear deliverables, and active government oversight. The Department of the Air Force should have established performance standards and regular evaluations to ensure the services meet the required technical and operational needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8840 E CHAPARRAL RD, SCOTTSDALE, AZ, 85250
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,338,883
Exercised Options: $10,857,918
Current Obligation: $10,857,918
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA860423DB005
IDV Type: IDC
Timeline
Start Date: 2023-08-26
Current End Date: 2026-05-25
Potential End Date: 2028-05-25 00:00:00
Last Modified: 2026-01-15
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)