DoD's $6.9M meteorological support contract awarded to Redtown Technical Services, LLC

Contract Overview

Contract Amount: $6,903,205 ($6.9M)

Contractor: Redtown Technical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-04

End Date: 2026-04-03

Contract Duration: 729 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REAGAN TEST SITE METEOROLOGICAL SUPPORT SERVICES

Place of Performance

Location: NORMAN, CLEVELAND County, OKLAHOMA, 73072

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to REDTOWN TECHNICAL SERVICES, LLC for work described as: REAGAN TEST SITE METEOROLOGICAL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 729 days suggests a long-term need for these specialized services. 4. The base award amount is $6.9M, with potential for adjustments based on performance and costs. 5. The contractor, Redtown Technical Services, LLC, has a contract status of 'OK' and is located in Oklahoma. 6. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: fair

Benchmarking the value for this specific meteorological support service is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government pays actual costs plus a fixed fee. While the fixed fee provides some predictability, the overall cost can escalate if direct costs are higher than anticipated. Comparing this to similar meteorological support contracts across different agencies or for different geographic locations would be necessary for a more robust value assessment. The base award of $6.9M over two years suggests a significant investment in specialized scientific services.

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'. This designation implies that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, or the exclusion was a result of the evaluation process. Without further details on the exclusion criteria, it's difficult to definitively assess the breadth of competition. However, the 'full and open' aspect suggests that multiple bidders were likely considered.

Taxpayer Impact: The 'full and open' competition, even with exclusions, generally aims to foster price discovery and ensure taxpayers receive competitive pricing. The specific impact on taxpayers depends on the number of responsive bids received and the rigor of the evaluation.

Public Impact

Provides essential meteorological support services to the Department of Defense, likely for operational planning and safety at the Reagan Test Site. Ensures the availability of critical weather data and analysis for military activities. Supports the scientific and technical services sector by engaging a specialized contractor. The contract's geographic impact is centered around the Reagan Test Site, a key defense facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure carries inherent risk of cost escalation if direct costs are not managed effectively.
The 'exclusion of sources' clause requires further scrutiny to understand its potential impact on competition and pricing.
Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The broad NAICS code 541990 offers limited insight into the specific technical expertise required for this contract.

Positive Signals

Awarded through a 'full and open' competition process, suggesting an effort to achieve competitive pricing.
Contractor status is 'OK', indicating compliance with basic requirements.
The contract is for a defined period, allowing for periodic reassessment of needs and performance.
The fixed fee component of the CPFF contract provides some level of cost predictability for the fee portion.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad category of meteorological and related scientific services. The market for such specialized services is often niche, with a limited number of highly qualified providers. Government spending in this area is typically driven by unique operational requirements, such as those found at specialized testing or research facilities like the Reagan Test Site. Benchmarking would involve comparing costs and service levels with other government or private sector contracts for similar advanced meteorological support.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. The prime contractor, Redtown Technical Services, LLC, is not identified as a small business. Analysis of potential subcontracting opportunities for small businesses would require further investigation into the contractor's subcontracting plan, if one exists.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Meteorological Services Contracts
Scientific and Technical Support Services
Department of Defense Research and Development Support
Range Support Services
Weather Forecasting Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited insight into the specific nature of 'excluded sources' impacting competition.
Geographic distance between contractor location and service site may increase logistical costs and risks.
Broad NAICS code limits understanding of specific technical requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to REDTOWN TECHNICAL SERVICES, LLC. REAGAN TEST SITE METEOROLOGICAL SUPPORT SERVICES

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 $6.9 million.

What is the period of performance?

Start: 2024-04-04. End: 2026-04-03.

What is the specific nature of the meteorological support required at the Reagan Test Site, and how does it differ from standard weather forecasting?

The meteorological support required at the Reagan Test Site is likely highly specialized, extending beyond standard weather forecasting to encompass detailed atmospheric data crucial for sensitive operations such as missile testing or satellite launches. This could include high-resolution atmospheric modeling, real-time weather monitoring for specific launch corridors, analysis of atmospheric conditions affecting radar or optical tracking, and prediction of localized weather phenomena that could impact safety or mission success. Standard weather forecasting typically focuses on broader regional or national patterns for general public or aviation use, whereas site-specific, mission-critical meteorological services demand a higher degree of precision, specialized equipment, and tailored data analysis.

How does the Cost Plus Fixed Fee (CPFF) contract structure potentially impact the final cost to the government for these meteorological services?

The Cost Plus Fixed Fee (CPFF) structure means the government reimburses the contractor for all allowable direct and indirect costs incurred in performing the contract, plus a predetermined fixed fee representing profit. While the fixed fee provides cost certainty for the contractor's profit margin, the total cost to the government is variable and depends on the actual costs incurred. If the contractor experiences cost overruns due to unforeseen challenges, inefficiencies, or scope creep, the government bears the burden of these increased costs. Effective oversight and robust cost accounting standards are crucial to mitigate the risk of inflated costs and ensure the government pays only for necessary and reasonable expenses.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' signify regarding the bidding process and potential price outcomes?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a complex procurement history. 'Full and open competition' is the preferred method, aiming to maximize the number of potential bidders and foster robust price discovery. However, the 'after exclusion of sources' qualifier indicates that certain potential offerors were not permitted to bid, possibly due to prior contract issues, specific technical requirements not met, or other pre-defined criteria. While the intent is still competitive, the exclusion of sources could potentially limit the number of bids received, which might, in turn, affect the final price negotiated compared to a scenario with unrestricted competition.

What are the potential risks associated with a contract duration of 729 days (approximately two years) for specialized meteorological support?

A contract duration of approximately two years for specialized meteorological support presents several potential risks. Firstly, technological advancements in meteorological equipment and analysis techniques could render the contracted services or equipment outdated by the end of the term, necessitating costly upgrades or renegotiations. Secondly, long-term contracts can sometimes lead to complacency in performance or a reduced incentive for the contractor to innovate or optimize processes if competition is limited. Lastly, changes in government requirements, budget priorities, or geopolitical situations could arise during the contract period, making the initially defined scope of work less relevant or requiring significant modifications, which can be administratively burdensome and potentially costly.

How does the contractor's location in Oklahoma relate to the service delivery at the Reagan Test Site, presumably in a different geographic area?

The contractor's location in Oklahoma (SN: OKLAHOMA) while performing services at the Reagan Test Site (likely in the Florida Keys or a similar remote testing location) implies that Redtown Technical Services, LLC will incur significant travel, logistical, and potentially facility costs to fulfill the contract. These costs would be factored into their bid and reimbursed under the Cost Plus Fixed Fee structure. This geographic separation could introduce risks related to personnel deployment, equipment transport, and maintaining consistent on-site support. The government will need to ensure that the contract adequately accounts for and manages these logistical complexities to avoid cost overruns and ensure continuous service delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9113M24R0061

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3100 MONITOR AVE, NORMAN, OK, 73072

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, 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: $21,133,970

Exercised Options: $7,966,738

Current Obligation: $6,903,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline