State Department awards $11.8M task order for computer services to Cayuse Native Hawaiian Veterans, LLC

Contract Overview

Contract Amount: $11,816,365 ($11.8M)

Contractor: Cayuse Native Hawaiian Veterans, LLC

Awarding Agency: Department of State

Start Date: 2023-05-30

End Date: 2027-05-19

Contract Duration: 1,450 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NEW TASK ORDER

Place of Performance

Location: PENDLETON, UMATILLA County, OREGON, 97801

State: Oregon Government Spending

Plain-Language Summary

Department of State obligated $11.8 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC for work described as: NEW TASK ORDER Key points: 1. Value for money is difficult to assess without a competitive benchmark. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, given the sole-source nature and lack of competition. 4. Performance context is limited to 'Other Computer Related Services'. 5. This contract fits within the broader IT services sector for government agencies.

Value Assessment

Rating: fair

The awarded amount of $11.8 million for 'Other Computer Related Services' lacks a direct competitive benchmark due to its sole-source nature. Without comparison to similar contracts or market rates for these specific services, assessing value for money is challenging. The pricing structure, based on labor hours, can be variable and requires careful monitoring to ensure efficiency and prevent cost overruns. Further analysis would be needed to determine if the proposed rates align with industry standards for comparable government IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services. The lack of competition means that taxpayers did not benefit from the potential cost savings that could arise from a bidding process. It also limits the government's ability to explore a wider range of solutions or innovative approaches that might be offered by other qualified contractors.

Taxpayer Impact: The sole-source award means taxpayers may not have received the best possible price for these services. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The Department of State is the primary beneficiary, receiving computer-related services. The services delivered are categorized under 'Other Computer Related Services', implying support for IT infrastructure or operations. The geographic impact is likely focused on the locations where the Department of State operates, potentially domestically or internationally. Workforce implications are tied to the contractor's employees providing these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Lack of detailed service description makes performance assessment difficult.
Potential for cost creep in labor-hour contracts if not closely managed.

Positive Signals

Contract awarded to a firm focused on Native Hawaiian Veterans, potentially supporting a specific socio-economic goal.
Contract duration provides stability for service delivery.

Sector Analysis

The IT services sector for the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract for 'Other Computer Related Services' falls within this broad category. Comparable spending benchmarks are difficult to establish without more specific service details, but the overall federal IT spending is in the hundreds of billions annually. This contract represents a small portion of that overall expenditure.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, it does not directly contribute to subcontracting opportunities for small businesses through this specific award. The prime contractor, Cayuse Native Hawaiian Veterans, LLC, may have its own small business subcontracting goals as part of its broader business practices, but this contract itself is not designated for small business participation.

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 in the contract terms and conditions, focusing on service delivery and performance. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Information Technology Services

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of detailed service description hinders performance assessment.
Potential for vendor lock-in due to single-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.8 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC. NEW TASK ORDER

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 $11.8 million.

What is the period of performance?

Start: 2023-05-30. End: 2027-05-19.

What is the specific nature of the 'Other Computer Related Services' being provided under this task order?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT functions not specifically covered by other computer-related NAICS codes. Examples could include IT consulting, computer facilities management, IT support services, or custom software development services that do not fit into more specific categories. Without further details from the contract statement of work, the precise services remain unspecified. This lack of specificity makes it challenging to benchmark costs or assess the true value and impact of the contract.

How does the awarded amount compare to similar sole-source IT service contracts awarded by the Department of State?

Direct comparison of this $11.8 million sole-source award to similar contracts is difficult without more specific service details and a competitive baseline. Sole-source awards inherently lack a competitive benchmark, making value assessment challenging. To perform a robust comparison, one would need to identify other sole-source contracts for 'Other Computer Related Services' or similar IT support functions awarded by the Department of State or other agencies of comparable size and mission. Analyzing the contract duration, labor categories, and estimated hours would be crucial. However, the absence of competition means that any comparison would be against potentially inflated or non-optimized pricing, rather than a market-tested rate.

What are the potential risks associated with a sole-source award for essential IT services?

Sole-source awards for essential IT services carry several risks. Primarily, there is a risk of paying a premium price due to the lack of competition, as the contractor may not feel pressured to offer the most cost-effective solution. Secondly, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility and innovation. Without competitive pressure, there can also be a reduced incentive for the contractor to maintain high service levels or proactively address emerging technological needs. Finally, the government may miss out on potentially better solutions or more efficient service delivery models that could have been identified through a competitive bidding process.

What is the track record of Cayuse Native Hawaiian Veterans, LLC in performing federal IT service contracts?

Information regarding the specific track record of Cayuse Native Hawaiian Veterans, LLC in performing federal IT service contracts is not detailed in the provided data. To assess their track record, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any publicly available information on their project successes and challenges. Given this is a task order under a larger contract vehicle (implied by 'delivery order'), their performance on previous task orders under that vehicle, or other federal contracts, would be indicative. A thorough review would look for consistent on-time delivery, adherence to budget, quality of service, and positive client feedback.

How does the contract duration and value align with typical IT service support needs for a federal agency?

The contract has an estimated duration of approximately 1450 days (around 4 years) from the start date of May 30, 2023, to the end date of May 19, 2027, with a total value of $11.8 million. This duration and value are within the typical range for IT service support contracts supporting federal agencies. Many federal IT support needs are ongoing and require multi-year commitments to ensure continuity. The value suggests a moderate level of support, potentially covering a specific program, a division, or a set of critical IT functions. The labor-hour pricing model allows for flexibility in scaling services up or down based on evolving agency needs over the contract period.

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: $19,783,741

Exercised Options: $16,017,598

Current Obligation: $11,816,365

Actual Outlays: $1,200,017

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