Treasury's Bureau of Engraving and Printing awards $3.4M contract for outpatient care to Cayuse Health LLC

Contract Overview

Contract Amount: $3,386,912 ($3.4M)

Contractor: Cayuse Health LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-04-10

End Date: 2026-04-30

Contract Duration: 385 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DCF HEALTH SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.4 million to CAYUSE HEALTH LLC for work described as: DCF HEALTH SERVICES Key points: 1. Contract value appears reasonable given the scope of services, though direct comparisons are limited. 2. The contract was awarded on a sole-source basis, raising questions about potential price overruns. 3. The duration of the contract (over a year) suggests a need for ongoing services. 4. The service category (Outpatient Care Centers) is essential for employee well-being. 5. The contractor, Cayuse Health LLC, is positioned to provide specialized healthcare services.

Value Assessment

Rating: fair

The contract value of $3.4 million for a period of approximately 13 months for outpatient care services is difficult to benchmark without more specific details on the scope of services and patient volume. However, given the specialized nature of healthcare services, the price may be within a reasonable range. Further analysis would require comparing this contract to similar sole-source awards for comparable services within federal agencies or the private sector, considering factors like patient load, types of services offered, and geographic location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of providing the required services, often due to unique qualifications or existing infrastructure. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered a wider range of solutions. This raises concerns about whether the best possible value was obtained.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's ability to negotiate favorable terms and potentially overpays for services.

Public Impact

Employees of the Bureau of Engraving and Printing will benefit from access to outpatient healthcare services. The contract ensures the provision of essential medical services, contributing to workforce health and productivity. Services will be delivered within the District of Columbia, impacting federal employees in that region. The contract supports the healthcare sector by engaging a specialized provider for federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award requires further scrutiny.
Limited data on contractor performance history for similar federal contracts.

Positive Signals

Contract addresses a critical need for employee healthcare services.
The fixed-price contract type provides cost certainty for the government.
The contract duration allows for sustained provision of necessary services.

Sector Analysis

The healthcare services sector is a significant area of federal spending, encompassing a wide range of medical and support services. Contracts for outpatient care are crucial for maintaining the health and readiness of federal employees. Benchmarking this contract would involve comparing its value and scope to other federal contracts for similar outpatient services, considering the size of the employee population served and the specific medical specialties offered. The market for such services is competitive, but sole-source awards can bypass typical market dynamics.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Furthermore, the contract is awarded to Cayuse Health LLC, and there is no information provided regarding subcontracting plans. The impact on the small business ecosystem is therefore likely minimal unless Cayuse Health LLC engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Engraving and Printing's contracting and program management offices. Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract, requiring Cayuse Health LLC to deliver the specified outpatient care services. Transparency is limited due to the sole-source nature of the award; however, contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Employee Health Benefits Program
Occupational Health Services
Employee Assistance Programs
Department of Defense Healthcare Contracts
Veterans Affairs Healthcare Services

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed justification for sole-source award requires further investigation.
Limited public information on contractor's past performance in federal contracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.4 million to CAYUSE HEALTH LLC. DCF HEALTH SERVICES

Who is the contractor on this award?

The obligated recipient is CAYUSE HEALTH LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2025-04-10. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis to Cayuse Health LLC?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or a critical need that cannot be fulfilled through a competitive process within the required timeframe. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reasons remain unknown. This lack of competition raises concerns about whether the government secured the best possible price and value.

How does the per-unit cost of services compare to market rates for similar outpatient care centers?

The provided data does not include specific per-unit cost breakdowns for the services rendered under this contract. The total award amount is $3,386,912.04 for a period of approximately 13 months (from April 10, 2025, to April 30, 2026). To compare per-unit costs to market rates, we would need to know the expected volume of services (e.g., number of patient visits, types of procedures, duration of consultations) and the pricing structure associated with each. Without this granular data, a direct per-unit cost comparison to market rates for similar outpatient care centers is not feasible. The contract type is 'FIRM FIXED PRICE,' which implies that the price is set regardless of the actual cost incurred by the contractor, but it doesn't reveal the underlying unit economics.

What is the track record of Cayuse Health LLC in performing similar federal healthcare contracts?

Information regarding the specific track record of Cayuse Health LLC in performing similar federal healthcare contracts is not provided in the data summary. To assess their performance history, one would typically look at past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Given this is a sole-source award, it might suggest the agency has prior positive experience with the contractor or believes they possess unique qualifications. However, without access to their performance history on federal contracts, it is difficult to definitively assess their reliability and capability in this context. Further research into federal procurement databases and performance review systems would be necessary.

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

The primary risk associated with a sole-source award for essential employee healthcare services is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not achieve the most favorable pricing or terms. Another risk is a lack of innovation or service improvement, as the contractor may face less pressure to enhance their offerings. Furthermore, if the sole-source provider experiences performance issues or financial instability, the agency has limited immediate alternatives for service continuity, potentially disrupting essential healthcare access for employees. The reliance on a single provider can also create a vulnerability if that provider's capabilities become insufficient or their pricing becomes uncompetitive over time.

How does this contract's value compare to overall federal spending on healthcare services for employees?

The contract value of approximately $3.4 million for outpatient care services for the Bureau of Engraving and Printing is a relatively small component of the overall federal spending on healthcare. Federal agencies collectively spend billions of dollars annually on healthcare for federal employees, retirees, and their dependents through programs like the Federal Employees Health Benefits (FEHB) program, as well as direct provision of services. This specific contract addresses a localized need for a particular agency's workforce. While significant for the Bureau of Engraving and Printing, it represents a fraction of the total federal healthcare expenditure, which also includes insurance premiums, medical facility operations, and specialized health programs across numerous departments and agencies.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $8,845,856

Exercised Options: $3,386,912

Current Obligation: $3,386,912

Actual Outlays: $834,117

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline