DoD Awards $23.6M for Navy ERP Transition Support to Red River Resources LLC
Contract Overview
Contract Amount: $23,618,859 ($23.6M)
Contractor: RED River Resources LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-19
End Date: 2026-07-18
Contract Duration: 729 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OPNAV N1 ERP TRANSITION SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $23.6 million to RED RIVER RESOURCES LLC for work described as: OPNAV N1 ERP TRANSITION SUPPORT Key points: 1. Contract awarded to Red River Resources LLC for $23.6M. 2. Service category is Computer Systems Design Services. 3. Full and open competition was utilized. 4. Contract duration is 729 days. 5. This award represents a small portion of the overall defense IT spending.
Value Assessment
Rating: good
The contract value of $23.6M for 729 days appears reasonable for specialized ERP transition support. Benchmarking against similar large-scale IT system implementation contracts suggests this pricing is within expected ranges, though specific service components would require deeper analysis.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.
Public Impact
Ensures continuity of critical Navy personnel systems. Supports modernization of defense enterprise resource planning. Potential for improved operational efficiency within the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in complex ERP transitions.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type limits cost overruns.
- Experienced vendor likely selected.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on enterprise resource planning (ERP) systems for the Department of the Navy. Defense IT spending is substantial, and ERP modernization is a key area for improving efficiency and data integration across military branches.
Small Business Impact
The data indicates this contract was not awarded to a small business. While this specific award did not benefit small businesses, the Department of Defense generally has set-aside goals for small business participation across its broader contracting portfolio.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for contract performance and financial management. Further oversight details would depend on the specific contract clauses and reporting requirements.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in if transition is not managed carefully.
- Complexity of ERP systems can lead to unforeseen challenges.
- Dependence on vendor expertise for critical system migration.
- Cybersecurity risks associated with sensitive personnel data.
Tags
computer-systems-design-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to RED RIVER RESOURCES LLC. OPNAV N1 ERP TRANSITION SUPPORT
Who is the contractor on this award?
The obligated recipient is RED RIVER RESOURCES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.6 million.
What is the period of performance?
Start: 2024-07-19. End: 2026-07-18.
What are the key performance indicators (KPIs) for this ERP transition support contract, and how will success be measured?
Key performance indicators would likely include successful data migration, system integration timelines, user adoption rates, and reduction in system downtime during the transition. Success measurement would involve regular progress reports, milestone achievement tracking, and post-implementation reviews against predefined targets to ensure the ERP system meets operational requirements and user needs effectively.
What are the primary risks associated with this ERP transition, and what mitigation strategies are in place?
Primary risks include data integrity issues during migration, user resistance to the new system, integration challenges with existing infrastructure, and potential schedule delays. Mitigation strategies typically involve rigorous data validation protocols, comprehensive user training programs, phased implementation approaches, dedicated change management teams, and robust contingency planning for technical issues.
How will the effectiveness of this ERP transition support be evaluated post-implementation in terms of operational efficiency gains for the Navy?
Effectiveness will be evaluated by comparing pre- and post-implementation metrics such as processing times for key personnel functions, data accuracy, reporting capabilities, and overall system performance. User satisfaction surveys and feedback mechanisms will also be employed. Quantifiable improvements in areas like personnel readiness tracking and administrative task automation will demonstrate the system's value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018924QZ310
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10805 RANCHO BERNARDO RD, SAN DIEGO, CA, 92127
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $36,019,630
Exercised Options: $23,618,859
Current Obligation: $23,618,859
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA20D0063
IDV Type: FSS
Timeline
Start Date: 2024-07-19
Current End Date: 2026-07-18
Potential End Date: 2027-07-18 00:00:00
Last Modified: 2025-08-20
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