OPM Awards $29.8M Network Operations Contract to Kaiyuh Information Technologies Amidst Limited Competition

Contract Overview

Contract Amount: $29,758,170 ($29.8M)

Contractor: Kaiyuh Information Technologies, LLC

Awarding Agency: Office of Personnel Management

Start Date: 2022-04-04

End Date: 2025-02-03

Contract Duration: 1,036 days

Daily Burn Rate: $28.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EIS NETWORK OPERATIONS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $29.8 million to KAIYUH INFORMATION TECHNOLOGIES, LLC for work described as: EIS NETWORK OPERATIONS SUPPORT Key points: 1. Contract Value: $29.8 million over approximately 3 years. 2. Competition: Awarded under a 'NOT AVAILABLE FOR COMPETITION' status, raising questions about price discovery. 3. Risk: Limited competition can lead to higher costs and reduced innovation. 4. Sector: Information Technology (IT) services, specifically Computer Facilities Management.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without competitive benchmarks. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of market testing, potentially leading to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited approach to competition. This limits the government's ability to ensure the best possible price and value through market forces.

Taxpayer Impact: Taxpayer funds may not have been used as efficiently as possible due to the lack of a competitive bidding process.

Public Impact

Federal employees rely on stable network operations for daily tasks. Potential for increased costs due to lack of competition impacts taxpayer burden. Ensuring robust cybersecurity is critical for sensitive government data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmarks
Potential for cost overruns

Positive Signals

Definitive contract provides clear terms
Firm Fixed Price contract limits cost uncertainty

Sector Analysis

This contract falls within the IT sector, specifically focusing on computer facilities management. Spending in this area is crucial for government operations, but competitive sourcing is vital for cost efficiency.

Small Business Impact

The contract was awarded to Kaiyuh Information Technologies, LLC. Information regarding the company's size or its status as a small business is not provided, but the contract was not set aside for small businesses.

Oversight & Accountability

The Office of Personnel Management is responsible for overseeing this contract. The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny to ensure the justification for limited competition is sound and that the pricing is fair.

Related Government Programs

Computer Facilities Management Services
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited vendor innovation
Questionable price reasonableness without market validation

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $29.8 million to KAIYUH INFORMATION TECHNOLOGIES, LLC. EIS NETWORK OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is KAIYUH INFORMATION TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $29.8 million.

What is the period of performance?

Start: 2022-04-04. End: 2025-02-03.

What is the justification for awarding this contract on a non-competitive basis, and how was the price determined to be fair and reasonable?

The justification for a non-competitive award is critical. Agencies must demonstrate that only one responsible source can satisfy the agency's needs. Without competition, price reasonableness is typically determined through cost analysis, comparison to historical data, or market research. The lack of competition here raises concerns about whether the government secured the best possible value.

What are the potential risks associated with awarding a significant IT contract without full and open competition?

Awarding IT contracts without full and open competition carries several risks. These include potentially higher costs due to the absence of market pressure, reduced innovation as vendors have less incentive to offer cutting-edge solutions, and a diminished ability to ensure the best quality services. It can also set a precedent for future non-competitive awards.

How does this contract's structure and limited competition impact the long-term effectiveness of OPM's network operations?

The long-term effectiveness hinges on the vendor's performance and the agency's oversight. While a firm fixed price offers cost certainty, the lack of competition might limit OPM's leverage to drive service improvements or adopt new technologies. Continuous monitoring and clear performance metrics are essential to mitigate these risks and ensure sustained operational effectiveness.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 24322622R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gana-A' YOO, Limited

Address: 1001 E BENSON BLVD STE 201, ANCHORAGE, AK, 99508

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,758,170

Exercised Options: $29,758,170

Current Obligation: $29,758,170

Actual Outlays: $29,746,048

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline