State Department awards $2M+ for Embassy Cairo O&M services to Cayuse Technologies, LLC

Contract Overview

Contract Amount: $2,008,537 ($2.0M)

Contractor: Cayuse Technologies, LLC

Awarding Agency: Department of State

Start Date: 2024-01-28

End Date: 2027-01-27

Contract Duration: 1,095 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE DEPARTMENT OF STATE (DOS) REQUIRES SERVICES TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR THE U.S EMBASSY, CAIRO, EGYPT AS INDICATED IN THE SOW.

Plain-Language Summary

Department of State obligated $2.0 million to CAYUSE TECHNOLOGIES, LLC for work described as: THE DEPARTMENT OF STATE (DOS) REQUIRES SERVICES TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR THE U.S EMBASSY, CAIRO, EGYPT AS INDICATED IN THE SOW. Key points: 1. Contract awarded for essential operations and maintenance at the U.S. Embassy in Cairo. 2. Cayuse Technologies, LLC selected for this critical service provision. 3. Contract duration spans three years, indicating a medium-term commitment. 4. Service type is Time and Materials, allowing flexibility but requiring careful cost management. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services' NAICS code. 6. No small business set-aside was indicated for this award.

Value Assessment

Rating: fair

The contract value of $2,008,537.04 over three years for embassy O&M services in Cairo appears to be within a reasonable range for such specialized and geographically specific support. Benchmarking against similar overseas embassy O&M contracts would provide a clearer picture of value for money. The Time and Materials pricing structure necessitates close monitoring to ensure costs do not escalate beyond initial projections and that efficient service delivery is maintained.

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 a specific contractor possesses unique capabilities, or in situations where competition is not feasible or practical. The lack of competition means that pricing and service level agreements were negotiated directly with Cayuse Technologies, LLC, potentially limiting opportunities for cost savings that could arise from a competitive bidding process.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive pricing that could have driven down costs. The justification for sole-source procurement needs to be robust to ensure funds are used efficiently.

Public Impact

The U.S. Embassy in Cairo benefits from uninterrupted operations and maintenance services, ensuring a secure and functional environment. Diplomatic and operational continuity is maintained, supporting U.S. foreign policy objectives in Egypt. Local workforce may be indirectly impacted through employment opportunities generated by the contractor. The contract ensures the physical infrastructure of the embassy remains in optimal condition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
Limited transparency into the sole-source justification and negotiation process.

Positive Signals

Award to an established entity for critical infrastructure support.
Clear definition of services required for embassy operations and maintenance.
Defined contract period allows for predictable budgeting and resource allocation.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to facilities management and operational support for government installations abroad. The market for such services is specialized, often requiring security clearances, international experience, and the ability to operate in complex geopolitical environments. While specific market size data for overseas embassy O&M is not readily available, it represents a niche but critical segment of government contracting.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were mandated as part of the competitive process. Further review would be needed to determine if Cayuse Technologies, LLC has any internal small business subcontracting goals or practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers responsible for embassy operations in Cairo. Accountability measures would be defined in the contract's Statement of Work (SOW) and performance metrics. Transparency may be limited due to the sole-source nature of the award, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Overseas Building Operations (OBO) contracts
Embassy Security Services
Facilities Management Contracts
Department of State Operations and Maintenance

Risk Flags

Sole-source award may limit price competition.
Time and Materials contract type requires diligent oversight to control costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.0 million to CAYUSE TECHNOLOGIES, LLC. THE DEPARTMENT OF STATE (DOS) REQUIRES SERVICES TO PROVIDE OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR THE U.S EMBASSY, CAIRO, EGYPT AS INDICATED IN THE SOW.

Who is the contractor on this award?

The obligated recipient is CAYUSE TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-01-28. End: 2027-01-27.

What is the track record of Cayuse Technologies, LLC in performing similar operations and maintenance services for U.S. embassies or other government facilities?

A review of federal procurement data indicates that Cayuse Technologies, LLC has been awarded contracts for various services, including IT support and professional services. Specific details on their experience with large-scale, long-term operations and maintenance for overseas diplomatic missions would require a deeper dive into their contract history and performance evaluations. It is crucial to assess whether their past performance aligns with the complex requirements of maintaining a U.S. embassy, which often involves stringent security protocols, diverse infrastructure management, and adherence to international standards. Understanding their performance on similar contracts, including any past issues or commendations, is key to evaluating their capability for this role.

How does the awarded amount compare to the estimated cost or budget for similar embassy O&M services?

Without access to the government's independent cost estimate or data on comparable embassy O&M contracts, it is challenging to definitively benchmark the value for money. However, the awarded amount of approximately $2 million over three years for a major embassy suggests a significant undertaking. Factors influencing cost include the size and complexity of the facility, the scope of services (e.g., HVAC, electrical, plumbing, groundskeeping, security systems maintenance), local labor costs in Egypt, and any specific security requirements. A comparison with contracts for embassies of similar size and in comparable regions would be necessary for a more precise assessment of cost-effectiveness.

What are the primary risks associated with a sole-source award for critical embassy operations and maintenance?

The primary risks associated with a sole-source award for critical embassy operations and maintenance include a lack of competitive pressure, which can lead to higher prices and potentially lower service quality. There is also a risk that the chosen contractor may not be the most innovative or efficient provider available. Furthermore, the absence of a competitive process can reduce transparency and make it harder to justify the expenditure to taxpayers. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations to mitigate these inherent risks and ensure the government receives fair value.

What specific performance metrics or key performance indicators (KPIs) are likely included in the contract to ensure service quality?

While the specific KPIs are not detailed in the provided data, typical performance metrics for embassy O&M contracts often include response times for emergency repairs, preventative maintenance completion rates, energy efficiency targets, compliance with safety and environmental regulations, and overall facility uptime. The Statement of Work (SOW) would outline these requirements, and performance would likely be assessed through regular reporting, site inspections, and potentially user feedback from embassy staff. Failure to meet these KPIs could result in contractually defined remedies, such as price reductions or termination.

What is the historical spending pattern for operations and maintenance services at the U.S. Embassy in Cairo?

Historical spending data for operations and maintenance services at the U.S. Embassy in Cairo prior to this award is not provided. To establish a historical spending pattern, one would need to access previous contract awards for O&M services at this specific embassy. Analyzing this data would reveal trends in contract values, durations, and awarded contractors over time. Such an analysis could help identify any significant increases or decreases in spending, potential cost efficiencies achieved in the past, or shifts in contracting strategies, providing valuable context for the current award.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM19R0090

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cayuse Holdings, LLC

Address: 72632 COYOTE RD, PENDLETON, OR, 97801

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $3,392,241

Exercised Options: $2,008,537

Current Obligation: $2,008,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0101

IDV Type: IDC

Timeline