Agriculture Department awards $18.3M for financial statement support, with limited competition

Contract Overview

Contract Amount: $18,312,879 ($18.3M)

Contractor: Chickasaw Strategic Pointe, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-01-31

End Date: 2026-07-31

Contract Duration: 1,642 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CREDIT REFORM ACCOUNTING AND FINANCIAL STATEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.3 million to CHICKASAW STRATEGIC POINTE, LLC for work described as: CREDIT REFORM ACCOUNTING AND FINANCIAL STATEMENT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the specialized nature of financial statement support. 2. Limited competition raises concerns about potential overpayment and reduced innovation. 3. Contract duration of over four years suggests a need for stable, long-term support. 4. Performance context is critical to assess if the contractor is meeting objectives. 5. Sector positioning is within professional services supporting government financial operations.

Value Assessment

Rating: fair

The contract value of $18.3 million over approximately four years for financial statement support services is difficult to benchmark without specific details on the scope of work. However, compared to similar large-scale financial support contracts, the per-year cost seems within a plausible range. The fixed-price nature of the contract suggests a defined scope, but the absence of competitive bidding limits the ability to definitively assess value for money. Further analysis of the specific deliverables and contractor performance would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits the opportunity for multiple vendors to bid, which can drive down prices and encourage innovation. The rationale for a sole-source award is not provided in the data, but typically it is due to unique capabilities or a lack of available alternatives. Without a competitive process, it is challenging to ascertain if the government secured the best possible pricing and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing. The lack of competition prevents market forces from driving down costs, potentially leading to higher overall expenditures for this service.

Public Impact

The primary beneficiaries are the Department of Agriculture's financial management offices, ensuring accurate financial reporting. Services delivered include accounting, auditing, and financial statement preparation support. Geographic impact is primarily within Washington D.C., where the agency is headquartered. Workforce implications include the need for skilled accounting and financial professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the availability of alternative providers or the justification for this specific award.
Long contract duration without competition could reduce incentives for contractor efficiency.

Positive Signals

Contract provides essential financial support to a major government agency.
Fixed-price contract structure can provide cost certainty if scope is well-defined.
Contractor is likely selected for specific expertise required for the agency's financial operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting and financial services. The government procurement of such services is substantial, driven by the need for compliance, auditing, and financial management across numerous agencies. Comparable spending benchmarks are difficult to establish without detailed scope, but large federal agencies often contract for billions in financial support services annually. This contract represents a small fraction of that overall market.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Chickasaw Strategic Pointe, LLC, suggests a focus on larger, potentially more specialized firms for this type of service. This means the direct economic impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor has its own robust small business subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers. Accountability measures are usually tied to performance metrics outlined in the contract statement of work. Transparency is limited by the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Financial Statement Auditing Services
Government Accounting Support
Federal Financial Management Systems
Contract Audit Readiness
Department of Agriculture Financial Operations

Risk Flags

Sole-source award lacks competitive pricing.
Potential for reduced value for money.
Limited transparency into award justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.3 million to CHICKASAW STRATEGIC POINTE, LLC. CREDIT REFORM ACCOUNTING AND FINANCIAL STATEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHICKASAW STRATEGIC POINTE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2022-01-31. End: 2026-07-31.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when a compelling urgency, national security, or unique capability requirement exists. For financial statement support services, this could stem from a highly specialized system knowledge, a critical ongoing project requiring seamless transition, or a lack of other qualified contractors meeting specific agency needs. Without further documentation from the Department of Agriculture, the precise reason remains speculative, but it implies a deliberate decision that competition was not feasible or advantageous in this instance.

How does the contract value compare to similar financial statement support services procured by other federal agencies?

Direct comparison of the $18.3 million contract value for financial statement support services is challenging without a detailed breakdown of the scope of work, deliverables, and service levels. However, federal agencies frequently procure similar services, with contract values ranging from hundreds of thousands to tens of millions of dollars annually, depending on agency size and complexity. For a contract spanning over four years, $18.3 million suggests an average annual value of approximately $4.5 million. This figure appears within a reasonable range for specialized financial support for a large department like Agriculture, assuming a comprehensive scope of services is included. Benchmarking would require access to detailed statements of work for comparable contracts.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) or metrics for evaluating Chickasaw Strategic Pointe, LLC's performance. In a contract for financial statement support services, typical KPIs would likely include accuracy and timeliness of financial reporting, adherence to Generally Accepted Accounting Principles (GAAP) and relevant federal regulations, successful completion of audit support tasks, and responsiveness to agency inquiries. The contract's fixed-price nature suggests that performance will be measured against the defined scope of work and delivery schedules. The contracting officer's representative (COR) would be responsible for monitoring these aspects and ensuring the contractor meets contractual obligations.

What is the track record of Chickasaw Strategic Pointe, LLC in performing similar federal contracts?

Information regarding Chickasaw Strategic Pointe, LLC's specific track record in performing similar federal contracts is not detailed in the provided data. However, as a recipient of a sole-source award valued at $18.3 million, it is implied that the company possesses specialized capabilities or has demonstrated prior success relevant to the Department of Agriculture's needs. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any publicly available information on the company's experience in government financial services.

What are the potential risks associated with a sole-source award for these critical financial services?

The primary risk associated with a sole-source award for critical financial services is the potential for reduced value for money due to the absence of competition. This can lead to higher costs for taxpayers and potentially less incentive for the contractor to innovate or operate with maximum efficiency. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult or costly. Furthermore, without competitive pressure, there's a risk that service quality could stagnate if not rigorously overseen. The agency must ensure robust oversight and performance management to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12FPC222R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD STE 2209, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, 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: $18,315,975

Exercised Options: $18,315,975

Current Obligation: $18,312,879

Actual Outlays: $12,473,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline