State Department awards $4.38M IT services contract to CAYUSE NATIVE HAWAIIAN VETERANS, LLC for 5 years

Contract Overview

Contract Amount: $4,377,486 ($4.4M)

Contractor: Cayuse Native Hawaiian Veterans, LLC

Awarding Agency: Department of State

Start Date: 2022-03-29

End Date: 2027-03-28

Contract Duration: 1,825 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: EPS TASK

Place of Performance

Location: PENDLETON, UMATILLA County, OREGON, 97801

State: Oregon Government Spending

Plain-Language Summary

Department of State obligated $4.4 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC for work described as: EPS TASK Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Performance period of 5 years suggests a long-term need for these services. 3. The NAICS code 541519 indicates a focus on computer-related services. 4. Award type is a delivery order, implying it's part of a larger indefinite-delivery contract. 5. No small business set-aside was utilized for this award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The sole-source nature raises concerns about whether the government secured the best possible price. Further analysis would require comparing the labor hours and rates to similar IT services contracts awarded by the State Department or other agencies for comparable skill sets. Without this, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific contractor is deemed uniquely qualified or when only one source is available. The lack of competition means potential bidders were not given an opportunity to offer their services, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. This award highlights the importance of ensuring sole-source justifications are robust and that competition is pursued whenever feasible.

Public Impact

The Department of State benefits from specialized IT services to support its operations. The contract likely supports critical IT infrastructure and services necessary for diplomatic and administrative functions. The geographic impact is primarily within the Department of State's operational areas, potentially including domestic and overseas facilities. Workforce implications may involve specialized IT personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the justification for sole-source award.
Long contract duration without competitive re-evaluation could lead to price creep.

Positive Signals

Contract awarded to a company with 'Native Hawaiian Veterans' in its name, potentially indicating a focus on supporting specific veteran groups.
Long-term award suggests a stable and ongoing need for the services provided.
Delivery order structure implies it fits within an existing contracting framework.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support, integration, and consulting. Federal agencies consistently spend billions annually on IT services to maintain and modernize their systems. Comparable spending benchmarks would involve analyzing IT service contracts across various agencies, particularly those for similar support functions and contract values.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The contractor's name suggests a potential focus on veteran-owned businesses, but the award itself does not reflect a formal small business set-aside. Further investigation into the contractor's size status and subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
IT Services (Government-Wide Contracts)
Computer Facilities Management Services
IT Consulting Services

Risk Flags

Sole-source award raises concerns about competition and pricing.
Lack of detailed service description hinders value assessment.
Potential for vendor lock-in due to long-term, sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.4 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC. EPS TASK

Who is the contractor on this award?

The obligated recipient is CAYUSE NATIVE HAWAIIAN VETERANS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2022-03-29. End: 2027-03-28.

What specific IT services are being provided under this contract?

The provided data indicates the NAICS code is 541519, which covers 'Other Computer Related Services.' This is a broad category that can include services such as IT support, network management, system integration, IT consulting, and custom software development. Without more specific details from the contract's statement of work, it is difficult to pinpoint the exact services. However, given the awarding agency is the Department of State, these services likely support the agency's critical IT infrastructure, communication systems, and data management needs essential for diplomatic and administrative functions.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which signifies a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common justifications include that only one responsible source exists, or that the agency's needs can only be met by a specific contractor due to unique capabilities, proprietary data, or urgent and compelling circumstances. A detailed justification document should exist within the agency's procurement file, outlining the specific reasons why competition was not feasible or advantageous for this particular award.

How does the contract's duration and value compare to similar IT services contracts awarded by the Department of State?

The contract has a duration of 1825 days (5 years) and a total value of approximately $4.38 million. This translates to an average annual value of roughly $876,000. Comparing this to similar IT services contracts requires access to a broader dataset of State Department procurements. However, for a 5-year IT services contract of this magnitude, it appears to be a moderate-sized award. Contracts for enterprise-level IT support or major system development could be significantly larger, while smaller, task-specific contracts might be less. The sole-source nature, however, makes direct value comparison less meaningful without understanding the competitive landscape that was bypassed.

What are the potential risks associated with a sole-source IT services contract of this duration?

Several risks are associated with sole-source contracts, particularly for IT services over a long duration. Firstly, the lack of competition can lead to inflated prices and reduced incentive for the contractor to innovate or maintain high service quality. Secondly, the government may become overly reliant on a single vendor, creating vendor lock-in and making it difficult to switch providers if performance issues arise or better solutions become available. Thirdly, without regular competitive re-evaluation, the contract's pricing and terms may not keep pace with market changes. Finally, the justification for sole-source awards can sometimes be weak, raising concerns about fairness and potential waste.

Does the contractor, CAYUSE NATIVE HAWAIIAN VETERANS, LLC, have a significant track record with the Department of State or other federal agencies?

Based solely on the provided data, we know the contractor's name and that they received this specific award from the Department of State. To assess their track record, one would need to query federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to CAYUSE NATIVE HAWAIIAN VETERANS, LLC across all federal agencies. This would reveal the volume, value, type, and duration of their past work, as well as their performance history if available. A contractor with a strong, positive performance history across multiple agencies would generally be considered less risky than one with limited or negative past performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 72632 COYOTE RD, PENDLETON, OR, 97801

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, 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: $5,776,683

Exercised Options: $5,771,683

Current Obligation: $4,377,486

Actual Outlays: $996,167

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM22D0022

IDV Type: IDC

Timeline