GSA awards $12.3M IT Help Desk contract to Cayuse Technologies, LLC for 2-year period

Contract Overview

Contract Amount: $12,297,172 ($12.3M)

Contractor: Cayuse Technologies, LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-26

End Date: 2026-09-25

Contract Duration: 729 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANGRC IT HELP DESK SUPPORT SERVICES

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $12.3 million to CAYUSE TECHNOLOGIES, LLC for work described as: ANGRC IT HELP DESK SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT support infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract is two years, allowing for sustained support. 5. The service falls under computer systems design, a critical area for federal IT operations. 6. The awardee, Cayuse Technologies, LLC, is a key player in this service domain.

Value Assessment

Rating: good

The contract value of $12.3 million over two years for IT help desk support appears reasonable given the scope of services typically required for federal agencies. Benchmarking against similar contracts for IT support services indicates that this pricing is within expected ranges. The firm-fixed-price structure helps mitigate cost overrun risks for the government. Further analysis would involve comparing the specific service level agreements and the number of users supported to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The process allows for a broad range of qualified contractors to submit proposals, fostering a competitive environment. The number of bidders and the evaluation criteria would determine the extent of price discovery achieved. A robust competition generally leads to more favorable pricing and better service offerings for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. It provides the best opportunity for the government to secure high-quality services at the most competitive rates available.

Public Impact

Federal employees across various departments will benefit from enhanced IT support services. The contract ensures the delivery of essential IT help desk functions, including troubleshooting and technical assistance. The primary geographic impact is within Maryland, where the contractor is based, but services likely extend to users nationwide. The contract supports the IT workforce by providing essential tools and services for efficient operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently excellent, limiting future competitive opportunities.
Dependence on a single vendor for critical IT support could pose a risk if the vendor faces operational challenges.

Positive Signals

Award through full and open competition suggests a strong initial vetting of capabilities.
Firm-fixed-price contract provides cost certainty and predictability for the government.
The contract duration allows for stable and consistent IT support delivery.
The specific NAICS code (541512) indicates a focus on specialized IT systems design services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing a wide range of support, development, and infrastructure services. This contract for help desk support falls under the 'Computer Systems Design Services' category, which is a significant sub-sector. Federal spending in this area is consistently high due to the increasing reliance on technology across all government functions. Comparable spending benchmarks for IT support services vary widely based on scope, user base, and service level agreements, but this contract's value is within a typical range for a medium-sized federal IT support requirement.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Cayuse Technologies, LLC, is not listed as a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that larger, established companies were the primary focus of the competition. This could limit opportunities for smaller IT service providers to engage with this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Help Desk Services
Computer Systems Design Services
IT Support Contracts
General Services Administration IT Procurement

Risk Flags

Potential for performance issues impacting user productivity.
Risk of data security breaches if contractor fails to implement adequate safeguards.
Dependence on a single vendor for critical IT support.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.3 million to CAYUSE TECHNOLOGIES, LLC. ANGRC IT HELP DESK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CAYUSE TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-09-25.

What is the track record of Cayuse Technologies, LLC with federal IT support contracts?

Cayuse Technologies, LLC has a history of performing IT services for the federal government. While specific details on their track record for help desk support require deeper investigation into past performance evaluations and contract histories, their ability to secure this contract suggests they meet the necessary qualifications and have demonstrated competence in relevant IT service areas. A thorough review would involve examining past contract performance metrics, any reported issues or disputes, and client feedback from previous federal engagements to fully assess their reliability and expertise in delivering IT help desk solutions.

How does the per-user cost of this contract compare to industry benchmarks?

Determining the precise per-user cost requires knowing the total number of users supported under this contract, which is not provided in the summary data. However, the total contract value of $12.3 million over two years (730 days) equates to approximately $16,850 per day. If we assume a significant user base, such as several thousand federal employees, the per-user cost could be relatively low. To provide a concrete comparison, we would need to know the exact number of users and the specific service level agreements (SLAs) in place. Industry benchmarks for IT help desk support can range from a few dollars to tens of dollars per user per month, depending on the complexity of support required and the scope of services.

What are the primary risks associated with this IT help desk contract?

Key risks include potential service disruptions if the contractor fails to meet performance standards, leading to decreased productivity for federal employees. There's also a risk of cost escalation if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges or increased demand, although this is mitigated by the contract type. Vendor lock-in is another concern, where the government becomes heavily reliant on Cayuse Technologies, potentially limiting future flexibility. Furthermore, data security and privacy risks are inherent in IT support roles, requiring robust safeguards to protect sensitive government information.

How effective is the firm-fixed-price contract type in managing costs for this service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for IT help desk services because it shifts the risk of cost overruns to the contractor. The government agrees to pay a set price for the defined scope of work, providing budget certainty. This encourages the contractor to manage their resources efficiently and control their own costs to maximize profit. For services like help desk support, where the scope can be reasonably defined, FFP is a suitable choice for cost control. However, it requires careful initial scope definition to avoid disputes or change orders if requirements evolve significantly.

What is the historical spending trend for similar IT help desk services by the GSA?

Historical spending data for IT help desk services by the GSA indicates a consistent and significant investment in such support functions. The GSA, through its various acquisition vehicles like the Federal Acquisition Service (FAS), procures a wide array of IT services to support its own operations and those of other federal agencies. Spending in this category typically fluctuates based on agency needs, technology upgrades, and contract expirations. Analyzing past GSA contracts for similar IT help desk services would reveal trends in contract values, durations, and the types of competition utilized, providing context for the current award to Cayuse Technologies, LLC.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA24R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $34,416,633

Exercised Options: $13,168,161

Current Obligation: $12,297,172

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0057

IDV Type: GWAC

Timeline