Agriculture Dept. awards $5.7M for IT support, with Cherokee Nation Systems Solutions winning a competitive contract

Contract Overview

Contract Amount: $5,756,492 ($5.8M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-07-01

End Date: 2024-06-30

Contract Duration: 730 days

Daily Burn Rate: $7.9K/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: OPERATION & MAINTENANCE - APPLICATION, SOFTWARE, DATABASE & SYSTEMS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.8 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: OPERATION & MAINTENANCE - APPLICATION, SOFTWARE, DATABASE & SYSTEMS SUPPORT Key points: 1. Contract focuses on essential application, software, and database support, crucial for ongoing operations. 2. Competition was robust, indicating potential for good value and fair pricing. 3. Performance period spans two years, allowing for sustained service delivery. 4. Contract type is Firm Fixed Price, providing cost certainty for the government. 5. The awardee, Cherokee Nation System Solutions, has a track record in IT services. 6. This contract falls under IT services, a significant area of federal spending.

Value Assessment

Rating: good

The contract value of $5.76 million over two years for IT application and systems support appears reasonable when benchmarked against similar federal contracts for IT services. The firm fixed-price structure helps manage costs. While specific per-unit cost data is not provided, the overall value suggests a fair price for the scope of work, assuming performance meets expectations. Further analysis would require comparing specific deliverables and service levels to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the exclusion of specific sources suggests a more limited competitive pool than a standard full and open process. The number of bidders is not specified, but the limited nature implies that fewer than the maximum possible number of qualified vendors participated. This could potentially impact price discovery compared to a truly unrestricted competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the absolute lowest possible price achievable through the widest possible vendor engagement. However, the fact that it was competed at all suggests some level of price pressure was applied.

Public Impact

The Agricultural Research Service (ARS) benefits from uninterrupted IT support, ensuring the continuity of its research and data management operations. Services delivered include application, software, database, and systems support, vital for maintaining the integrity and accessibility of ARS's digital infrastructure. The geographic impact is primarily within the District of Columbia, where the agency's headquarters are located, though the IT services may support operations nationwide. The contract supports the IT workforce, likely through the contractor's employees, contributing to the specialized tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to result in higher costs than a fully open bid.
Reliance on a single awardee for critical IT infrastructure support carries inherent risk.
Scope creep could occur if not managed tightly within the fixed-price contract.

Positive Signals

Firm Fixed Price contract provides cost certainty and predictability.
Awardee has experience in IT systems design and support.
Contract duration of two years allows for stable service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The federal government is a major consumer of these services, with significant spending allocated annually to maintain and upgrade its vast IT infrastructure. This contract represents a small but essential component of the Department of Agriculture's IT budget, ensuring the operational stability of critical research applications and databases. Comparable spending benchmarks for similar IT support contracts vary widely based on scope and complexity, but this $5.76 million award over two years is within a typical range for specialized application and systems maintenance.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the awardee, Cherokee Nation System Solutions LLC, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, though the contractor's overall business practices may involve small business partnerships on other endeavors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Agricultural Research Service. Performance monitoring, adherence to service level agreements, and invoice verification are standard oversight mechanisms. As a delivery order under a larger contract vehicle, the initial award process and subsequent oversight are subject to federal procurement regulations. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

IT Operations and Maintenance
Computer Systems Design Services
Application Software Development
Database Management Services
Federal IT Infrastructure Support

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Cybersecurity Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.8 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. OPERATION & MAINTENANCE - APPLICATION, SOFTWARE, DATABASE & SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SYSTEM SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2022-07-01. End: 2024-06-30.

What is the track record of Cherokee Nation System Solutions LLC with federal IT contracts?

Cherokee Nation System Solutions LLC has a significant history of performing federal IT contracts. Data indicates they have been awarded numerous contracts across various agencies, including the Department of Agriculture, Department of Defense, and others. Their portfolio often includes services related to IT support, systems integration, cybersecurity, and cloud services. While specific performance ratings for individual contracts are not detailed here, their consistent award of federal work suggests a generally positive track record and capability to meet government requirements. Further investigation into specific past performance reviews and any documented issues would provide a more granular understanding of their reliability and quality of service.

How does the pricing of this contract compare to similar IT support services?

Benchmarking the pricing of this $5.76 million contract for IT support requires comparing it against similar contracts for application, software, database, and systems support within the federal government. Given the contract is Firm Fixed Price over two years, the annual value is approximately $2.88 million. Without specific details on the number of personnel, skill levels, or service level agreements (SLAs), a precise per-unit cost comparison is difficult. However, based on general market rates for IT support services of this nature, the price appears competitive, especially considering it was awarded under a competitive process. The 'Full and Open Competition After Exclusion of Sources' suggests some level of price negotiation and evaluation occurred, aiming for value.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential vendor lock-in if the contractor develops highly specialized knowledge of the Agricultural Research Service's unique systems, making future transitions costly. Performance risk is also present; any degradation in the quality or timeliness of application, software, database, and systems support could disrupt critical research operations. Furthermore, the 'limited' competition aspect, while still competitive, might mean that the government did not achieve the absolute lowest price possible. Finally, cybersecurity risks are inherent in any IT support contract, requiring robust security protocols from the contractor to protect sensitive agricultural research data.

How effective is this contract in ensuring the continuity of agricultural research IT operations?

This contract is designed to ensure the continuity of agricultural research IT operations by providing essential support for applications, software, databases, and systems. The two-year duration offers stability, allowing the contractor to become familiar with the specific needs of the Agricultural Research Service (ARS). The firm fixed-price nature incentivizes the contractor to deliver services efficiently. Assuming the contractor, Cherokee Nation System Solutions LLC, performs adequately according to the contract's terms and SLAs, the effectiveness should be high in maintaining system uptime and functionality, thereby supporting uninterrupted research activities. However, effectiveness is ultimately measured by the actual performance and impact on ARS's mission.

What are the historical spending patterns for similar IT support services at the Department of Agriculture?

Historical spending patterns for IT support services at the Department of Agriculture (USDA) show a consistent and significant investment in maintaining its complex technological infrastructure. Agencies within USDA, including the Agricultural Research Service (ARS), regularly procure services for application development, maintenance, database management, and overall systems support. Spending in this category typically ranges from millions to tens of millions annually across the department, depending on specific modernization efforts, system upgrades, and operational needs. Contracts like this one, for application and systems support, are recurring requirements. The trend generally reflects an increasing reliance on robust IT systems to manage vast datasets, facilitate research collaboration, and ensure operational efficiency across USDA's diverse mission areas.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1232SA22Q0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 2 W. 2ND ST, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not 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: $5,756,492

Exercised Options: $5,756,492

Current Obligation: $5,756,492

Actual Outlays: $5,756,492

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,675,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0333

IDV Type: GWAC

Timeline