State Department awards $2.7M contract for network engineering services to Cayuse Native Hawaiian Veterans, LLC

Contract Overview

Contract Amount: $2,716,237 ($2.7M)

Contractor: Cayuse Native Hawaiian Veterans, LLC

Awarding Agency: Department of State

Start Date: 2024-03-18

End Date: 2026-09-30

Contract Duration: 926 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NETWORK ENGINEERING

Place of Performance

Location: PENDLETON, UMATILLA County, OREGON, 97801

State: Oregon Government Spending

Plain-Language Summary

Department of State obligated $2.7 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC for work described as: NETWORK ENGINEERING Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 926 days suggests a need for sustained network support. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. No small business set-aside, indicating potential missed opportunities for smaller firms. 5. The contract falls under 'Other Computer Related Services', a broad category. 6. Awarded by the Department of State, highlighting critical infrastructure needs.

Value Assessment

Rating: fair

The contract value of $2.7 million for network engineering services over approximately 2.5 years appears reasonable given the scope. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm fixed price structure offers predictability, but the absence of competition means potential savings may have been forgone. Further analysis would require understanding the specific technical requirements and comparing them to industry standards for similar network engineering support.

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 approach is typically used when only one responsible source can provide the required services. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and value. While justified under specific circumstances, sole-source awards generally result in less price discovery compared to full and open competition.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding, which typically drives down costs and encourages innovation.

Public Impact

The Department of State benefits from essential network engineering services to maintain its operational infrastructure. This contract supports the functioning of critical government communication and data systems. The services are likely to have a national impact, ensuring the reliability of state department networks. The contract supports specialized IT workforce needs within the network engineering domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for higher costs due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a service-disabled veteran-owned small business (SDVOSB) if applicable, though not explicitly stated here.
Contract duration suggests a stable, long-term need for services.

Sector Analysis

The IT services sector, particularly network engineering, is a critical component of government operations. This contract falls under the broad category of 'Other Computer Related Services' (NAICS 541519). The market for network engineering services is competitive, with numerous firms offering specialized expertise. However, government procurement processes, especially sole-source awards, can influence market dynamics. Benchmarking this contract's value would ideally involve comparing it to other government or commercial contracts for similar network engineering support, considering factors like scope, duration, and required skill sets.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This means that opportunities for small businesses to compete for or subcontract on this award were not explicitly prioritized through set-aside mechanisms. While the prime contractor, Cayuse Native Hawaiian Veterans, LLC, may be a small business, the absence of a specific set-aside suggests that the procurement was not designed to maximize small business participation. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. Accountability measures are embedded within the firm fixed price contract terms, requiring the contractor to deliver specified network engineering services. Transparency may be limited due to the sole-source nature of the award, with justifications typically available through contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance period.

Related Government Programs

Department of State IT Services Contracts
Network Infrastructure Support Services
Federal IT Procurement
Sole-Source IT Contracts

Risk Flags

Sole-source award may limit cost savings.
Lack of competition could reduce contractor innovation incentives.
Scope of 'Other Computer Related Services' is broad, requiring detailed performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.7 million to CAYUSE NATIVE HAWAIIAN VETERANS, LLC. NETWORK ENGINEERING

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 $2.7 million.

What is the period of performance?

Start: 2024-03-18. End: 2026-09-30.

What specific network engineering services are included in this $2.7 million contract?

The contract details for 'NETWORK ENGINEERING' awarded to CAYUSE NATIVE HAWAIIAN VETERANS, LLC by the Department of State, valued at $2,716,236.74, are for services under NAICS code 541519 (Other Computer Related Services). While the specific tasks are not itemized in the provided data, network engineering typically encompasses the design, implementation, maintenance, and optimization of computer networks. This can include activities such as network architecture planning, hardware and software configuration, network security implementation, performance monitoring, troubleshooting, and support for various network protocols and technologies. The duration of 926 days (approximately 2.5 years) suggests a need for ongoing operational support and potentially project-based enhancements to the State Department's network infrastructure.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION' (ct: NOT AVAILABLE FOR COMPETITION), which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the abbreviated data. Typically, sole-source awards are made when only one responsible contractor can provide the required supplies or services. Reasons can include unique capabilities, urgent and compelling needs where competition is impractical, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. Without the official justification document, the precise rationale remains unknown, but it implies a specific circumstance prevented a competitive solicitation.

How does the firm fixed price (FFP) contract type benefit the Department of State?

A Firm Fixed Price (FFP) contract type, as indicated for this award (pt: FIRM FIXED PRICE), offers significant cost certainty to the Department of State. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means the government knows the total cost upfront, simplifying budgeting and financial planning. It places the risk of cost overruns on the contractor, incentivizing them to manage their expenses efficiently to maintain profitability. For the Department of State, this structure helps prevent unexpected cost increases, making the $2.7 million award a definitive ceiling for the services rendered.

What is the significance of the contract duration (926 days)?

The contract duration of 926 days (dur: 926), which spans approximately 2.5 years, suggests that the Department of State requires sustained and ongoing network engineering support. This extended period indicates that the services are not for a short-term project but rather for the continuous maintenance, operation, and potential evolution of critical network infrastructure. Such durations often reflect the complexity and importance of maintaining secure and reliable communication systems for a government agency like the Department of State. It also implies a stable requirement that the agency anticipates needing fulfilled over a significant timeframe.

What is the market context for 'Other Computer Related Services' (NAICS 541519)?

The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT services not classified elsewhere. This includes services like computer facilities management, computer disaster recovery services, network administration, and IT consulting. The market for these services is vast and highly competitive, with numerous small, medium, and large businesses offering specialized expertise. Government agencies frequently procure services under this code to support their diverse IT needs. The broadness of the code means that specific market benchmarks can vary significantly depending on the precise nature of the services required, making direct comparisons challenging without more granular detail.

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: FIRM FIXED PRICE (J)

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: $3,048,808

Exercised Options: $3,048,808

Current Obligation: $2,716,237

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