DoD Awards $37.5M for Production Equipment in Corpus Christi, TX to Redtown Technical Services

Contract Overview

Contract Amount: $37,522,999 ($37.5M)

Contractor: Redtown Technical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2024-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRODUCTION EQUIPMENT WITH INTEGRATION FOR BUILDING 1700.02 CORPUS CHRISTI, TX.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.5 million to REDTOWN TECHNICAL SERVICES, LLC for work described as: PRODUCTION EQUIPMENT WITH INTEGRATION FOR BUILDING 1700.02 CORPUS CHRISTI, TX. Key points: 1. The contract value of $37.5M is significant for specialized production equipment. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. The long duration (5 years) and firm fixed price contract present potential risks and rewards. 4. The sector is Other Building Equipment Contractors, a niche but essential area for defense infrastructure.

Value Assessment

Rating: fair

The contract value of $37.5M for production equipment appears substantial. Benchmarking against similar, highly specialized equipment contracts is difficult without more detail on the specific equipment and integration services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific criteria that led to excluding some potential bidders. This method aims for best value while ensuring a degree of market reach.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure fair pricing for taxpayers. However, the long-term nature and fixed-price structure warrant monitoring for cost overruns or scope creep.

Public Impact

Ensures critical production capabilities are available for a specific defense facility. Supports jobs and economic activity in the Corpus Christi, Texas region. The long contract duration implies a sustained need for this equipment and associated services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) increases risk of price escalation or obsolescence.
Firm Fixed Price contract can lead to contractor risk if costs exceed estimates.
Exclusion of sources in competition may limit ultimate price discovery.

Positive Signals

Full and open competition after exclusion suggests a structured procurement process.
Definitive contract type implies a clear scope of work.
Awarded to a single entity, potentially allowing for specialized expertise.

Sector Analysis

This contract falls within the 'Other Building Equipment Contractors' sector, which supports the installation and integration of specialized machinery and systems for facilities. Spending in this area is often project-specific and tied to infrastructure development or modernization efforts.

Small Business Impact

The award went to Redtown Technical Services, LLC, a single entity. There is no explicit indication of small business participation or subcontracting in the provided data, suggesting this may not have been a primary focus for this specific award.

Oversight & Accountability

The contract is managed by the Department of the Army. Oversight would typically involve contract officers, technical representatives, and potentially quality assurance personnel to ensure delivery and performance align with requirements.

Related Government Programs

Other Building Equipment Contractors
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for technology obsolescence over the 5-year contract term.
Risk of contractor financial strain due to fixed-price nature if costs escalate unexpectedly.
Limited visibility into the specific equipment and its unique value proposition.
The 'exclusion of sources' clause warrants scrutiny to ensure fair competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.5 million to REDTOWN TECHNICAL SERVICES, LLC. PRODUCTION EQUIPMENT WITH INTEGRATION FOR BUILDING 1700.02 CORPUS CHRISTI, TX.

Who is the contractor on this award?

The obligated recipient is REDTOWN TECHNICAL SERVICES, 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 $37.5 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-30.

What specific production equipment is being procured, and how does its functionality align with the stated needs of Building 1700?

The provided data lacks specifics on the 'PRODUCTION EQUIPMENT.' Understanding the exact nature of this equipment, its technological sophistication, and its integration requirements is crucial for assessing its value. Without this detail, it's difficult to determine if the $37.5M price tag is justified or if it represents a fair market value for the capabilities it enables within Building 1700.

What were the specific reasons for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this impact the final price?

The exclusion of sources typically occurs when only a limited number of contractors possess the necessary technical qualifications, security clearances, or specialized capabilities. The rationale behind these exclusions is critical for understanding if the competition was genuinely broad or narrowed by specific prerequisites. This process can impact price discovery; while aiming for competition, it might inadvertently limit the pool of bidders, potentially affecting the final negotiated price.

How will the long-term performance and potential obsolescence of the production equipment be managed under this 5-year firm fixed-price contract?

Managing long-term performance and obsolescence under a 5-year firm fixed-price contract requires proactive oversight. The government must ensure clear performance metrics and acceptance criteria are established. The contractor bears the risk of cost overruns due to unforeseen issues or price increases, but the government risks receiving outdated technology if the contract doesn't include provisions for upgrades or if the equipment's lifecycle is shorter than anticipated.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W58RGZ19R0252

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Redtown Technical Services LLC

Address: 2005 W WRANGLER BLVD STE A, SEMINOLE, OK, 74868

Business Categories: Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,426,987

Exercised Options: $37,522,999

Current Obligation: $37,522,999

Actual Outlays: $6,533,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline