Defense Health Agency awards $26.3M contract for 24/7 operations center support, including COVID-19 response

Contract Overview

Contract Amount: $26,282,862 ($26.3M)

Contractor: Cayuse Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2024-11-27

Contract Duration: 1,156 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEFENSE HEALTH AGENCY OPERATIONS CENTER SUPPORT-24/7 COVERS ALL POLITICAL, ECONOMIC, CIVIL, AND MILITARY OPERATIONS TO MEET THE OPERATIONAL REQUIREMENT OF A 24/7 OPERATIONS CENTER AND THE INCREASED WORKLOAD IN RESPONSE TO COVID-19 MISSION OBJECTIVES.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to CAYUSE TECHNOLOGIES, LLC for work described as: DEFENSE HEALTH AGENCY OPERATIONS CENTER SUPPORT-24/7 COVERS ALL POLITICAL, ECONOMIC, CIVIL, AND MILITARY OPERATIONS TO MEET THE OPERATIONAL REQUIREMENT OF A 24/7 OPERATIONS CENTER AND THE INCREASED WORKLOAD IN RESPONSE TO COVID-19 MISSION OBJECTIVES. Key points: 1. Contract provides critical 24/7 operational support for political, economic, civil, and military operations. 2. Increased workload due to COVID-19 mission objectives is a key driver for this contract. 3. The contract is a definitive contract with a firm fixed price, indicating predictable costs. 4. Awarded to CAYUSE TECHNOLOGIES, LLC, a single vendor. 5. The contract duration is 1156 days, spanning nearly three years. 6. The base award amount is $22.7M, with potential for growth. 7. This contract supports the Defense Health Agency's operational readiness.

Value Assessment

Rating: fair

The contract's value of $26.3 million over approximately three years for 24/7 operations center support appears reasonable given the critical nature of the services. However, without specific performance metrics or comparisons to similar contracts for operations center support, a definitive value-for-money assessment is challenging. The firm fixed-price structure helps control costs, but the lack of competition limits the potential for price discovery and cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded directly to CAYUSE TECHNOLOGIES, LLC. The documentation does not provide a justification for the sole-source award, which limits transparency regarding the procurement process. The absence of competition means that potential cost savings that could arise from a competitive bidding process were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding, as the government did not explore alternative pricing or service models from multiple vendors.

Public Impact

The primary beneficiaries are the Defense Health Agency and the Department of Defense, ensuring continuous operational awareness. Services delivered include 24/7 monitoring and support for all political, economic, civil, and military operations. The contract directly addresses increased workload and mission objectives related to the COVID-19 pandemic. Geographic impact is likely global, supporting worldwide military and health operations. Workforce implications include the potential for direct hires or subcontractors by CAYUSE TECHNOLOGIES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Absence of a clear justification for the sole-source award reduces transparency.
The broad scope of 'all political, economic, civil, and military operations' could lead to scope creep if not tightly managed.

Positive Signals

Provides essential 24/7 operational support critical for national security and public health.
Addresses the urgent need for increased capacity due to the COVID-19 pandemic.
Firm fixed-price contract provides cost certainty for the agency.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting critical operational functions for a government health agency. The market for such specialized 24/7 operational support services is often characterized by a limited number of highly qualified providers. Comparable spending benchmarks are difficult to establish without more detailed service descriptions and performance requirements, but government contracts for critical infrastructure support can range significantly in value.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to CAYUSE TECHNOLOGIES, LLC. There is no information provided regarding subcontracting plans for small businesses. This could limit opportunities for small businesses to participate in supporting this critical defense function.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Defense Health Agency contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Health Agency IT Support Services
Department of Defense Operations Center Modernization
COVID-19 Pandemic Response Support Contracts
24/7 Mission Critical Support Services

Risk Flags

Sole-source award lacks transparency and competitive justification.
Potential for higher costs due to lack of competition.
Scope of services is broad and requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to CAYUSE TECHNOLOGIES, LLC. DEFENSE HEALTH AGENCY OPERATIONS CENTER SUPPORT-24/7 COVERS ALL POLITICAL, ECONOMIC, CIVIL, AND MILITARY OPERATIONS TO MEET THE OPERATIONAL REQUIREMENT OF A 24/7 OPERATIONS CENTER AND THE INCREASED WORKLOAD IN RESPONSE TO COVID-19 MISSION OBJECTIVES.

Who is the contractor on this award?

The obligated recipient is CAYUSE TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2021-09-28. End: 2024-11-27.

What is the specific justification for awarding this contract on a sole-source basis to CAYUSE TECHNOLOGIES, LLC?

The provided data does not include the specific justification for the sole-source award to CAYUSE TECHNOLOGIES, LLC. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or when there is a compelling urgency. Without this justification, it is difficult to assess whether the government adequately explored competitive options or obtained the best possible value. Further investigation into the contract file or agency procurement records would be necessary to determine the rationale behind this procurement approach.

How does the cost of this contract compare to similar 24/7 operations center support contracts within the Department of Defense or other federal agencies?

A direct cost comparison is challenging without detailed service level agreements and performance metrics for other similar contracts. However, the total contract value of $26.3 million over approximately 1156 days (about $22,700 per day) for 24/7 support suggests a significant investment. Factors influencing cost include the complexity of operations monitored, the technology infrastructure required, personnel expertise, and security clearances. Given the sole-source nature, it's difficult to benchmark against competitively bid contracts, which might offer lower prices due to market competition. A thorough benchmark would require analyzing contracts with comparable scope, duration, and criticality.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of CAYUSE TECHNOLOGIES, LLC's support for the operations center?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight of a 24/7 operations center support contract typically relies on measurable metrics such as system uptime, response times to alerts, incident resolution rates, accuracy of reporting, and adherence to security protocols. The Defense Health Agency would likely have established specific KPIs within the contract's statement of work to ensure CAYUSE TECHNOLOGIES, LLC meets the required operational standards. Without access to the contract details, it is impossible to ascertain these specific performance measures.

What is the track record of CAYUSE TECHNOLOGIES, LLC in providing similar 24/7 operational support services to government agencies?

Information regarding CAYUSE TECHNOLOGIES, LLC's specific track record in providing 24/7 operational support services is not detailed in the provided data. As a sole-source awardee, it is presumed that the agency found them capable of meeting the requirements. However, a comprehensive assessment of their past performance, including previous contracts of similar scope and complexity, client satisfaction, and any history of performance issues or awards, would be necessary for a complete understanding of their reliability and expertise in this domain.

How has spending on operations center support evolved within the Defense Health Agency over the past five years, and does this contract represent an increase or decrease?

The provided data focuses on a single contract and does not offer historical spending trends for operations center support within the Defense Health Agency (DHA). To assess the evolution of spending, one would need to analyze DHA's budget allocations and contract awards for similar services over the past five years. This contract's value of $26.3 million represents a significant single award. Whether it signifies an overall increase or decrease in DHA's spending on such services would depend on the aggregate spending on comparable contracts during previous periods and the agency's overall strategic priorities and budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: HT001121R0046

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: $40,912,766

Exercised Options: $26,283,271

Current Obligation: $26,282,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline