HHS Awards $12.3M for CDC IT Support to Kaiva Tech, LLC
Contract Overview
Contract Amount: $12,305,363 ($12.3M)
Contractor: Kaiva Tech, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-27
End Date: 2026-09-28
Contract Duration: 1,462 days
Daily Burn Rate: $8.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CSTLTS IT SUPPORT
Place of Performance
Location: IVINS, WASHINGTON County, UTAH, 84738
State: Utah Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.3 million to KAIVA TECH, LLC for work described as: CSTLTS IT SUPPORT Key points: 1. Contract awarded to Kaiva Tech, LLC for $12.3M. 2. Service category is Computer Systems Design Services (NAICS 541512). 3. Contract duration is 1462 days, ending September 28, 2026. 4. Awarded by the Department of Health and Human Services (CDC). 5. Contract type is Time and Materials.
Value Assessment
Rating: questionable
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount is significant, and without a clear ceiling or fixed price, assessing value is difficult. Benchmarking against similar contracts for Computer Systems Design Services is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs for taxpayers. The specific reasons for limited competition are not provided.
Taxpayer Impact: The lack of competition for this $12.3M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The long duration of the contract could lock the government into potentially outdated services. Reliance on a single vendor for critical IT support can create vendor lock-in and reduce flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials contract type
- Lack of clear cost controls
Positive Signals
- Awarded to a specific company for IT support services
- Long-term contract provides stability for services
Sector Analysis
This contract falls under the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, with significant variation based on complexity and duration. Benchmarking against similar IT support contracts is crucial for value assessment.
Small Business Impact
The contract was awarded to Kaiva Tech, LLC, which is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine if small business participation goals were met or if subcontracting opportunities were provided.
Oversight & Accountability
The limited competition and Time and Materials nature of this contract warrant close oversight to ensure cost-effectiveness and prevent potential waste. Regular performance reviews and cost audits are essential.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Lack of competition
- Time and Materials contract type
- Potential for cost overruns
- Long contract duration
- Lack of detailed justification for limited competition
Tags
computer-systems-design-services, department-of-health-and-human-services, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.3 million to KAIVA TECH, LLC. CSTLTS IT SUPPORT
Who is the contractor on this award?
The obligated recipient is KAIVA TECH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $12.3 million.
What is the period of performance?
Start: 2022-09-27. End: 2026-09-28.
What specific factors justified the limited competition for this IT support contract?
The justification for limited competition is not provided in the data. Typically, such justifications might include unique capabilities of the vendor, urgent needs, or specific legacy system requirements. Without this information, it's impossible to assess if the limited competition was truly warranted or if it represents a missed opportunity for better pricing through open bidding.
How does the Time and Materials pricing structure compare to industry benchmarks for similar IT support services?
Time and Materials contracts are inherently difficult to benchmark directly due to their variable nature. However, for Computer Systems Design Services, agencies often aim for fixed-price or cost-plus-fixed-fee contracts to better control costs. If this T&M contract exceeds typical hourly rates or total project costs for comparable services, it indicates potential overspending.
What is the potential risk of cost escalation given the contract's duration and T&M structure?
The risk of cost escalation is significant. With a 1462-day duration and a Time and Materials pricing model, the total cost can increase substantially if labor hours or material costs are not tightly managed and scrutinized. The absence of a contract ceiling or robust cost controls exacerbates this risk, potentially leading to costs far exceeding initial estimates.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 75D301-22-R-72515
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6060 W 3650 N STE 500, IVINS, UT, 84738
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: $12,305,363
Exercised Options: $12,305,363
Current Obligation: $12,305,363
Actual Outlays: $8,570,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-09-27
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-09-15
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