DOJ awards $2.9M for Legal Support Services to Cherokee Federal Solutions, a sole-source contract
Contract Overview
Contract Amount: $2,906,938 ($2.9M)
Contractor: Cherokee Federal Solutions, L.L.C.
Awarding Agency: Department of Justice
Start Date: 2020-07-30
End Date: 2025-09-30
Contract Duration: 1,888 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LEGAL SUPPORT SERVICES
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74103
State: Oklahoma Government Spending
Plain-Language Summary
Department of Justice obligated $2.9 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C. for work described as: LEGAL SUPPORT SERVICES Key points: 1. Contract Value: $2.9 million over its period of performance. 2. Competition: Sole-source award, limiting competitive pricing. 3. Risk: Potential for overpayment due to lack of competition. 4. Sector: Professional, Scientific, and Technical Services.
Value Assessment
Rating: questionable
The contract is a sole-source award, making a direct pricing comparison difficult. Without competitive bids, it's hard to ascertain if the Time and Materials pricing represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overpayment and reduced value for taxpayer funds.
Public Impact
Taxpayers may not be receiving the best value due to the absence of competitive bidding. The Department of Justice relies on these services, but the procurement method warrants scrutiny. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Time and Materials pricing
Positive Signals
- Contract awarded to a specific company for specialized services.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector. Benchmarks for similar legal support services are difficult to establish without competitive data, but sole-source awards often deviate from market rates.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were considered.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial procurement phase. Robust oversight during contract performance is crucial to ensure value and prevent cost overruns.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Sole-source award lacks competitive justification.
- Time and Materials pricing offers limited cost control.
- Potential for inflated costs due to lack of competition.
- No indication of small business participation.
- Contract duration extends over multiple fiscal years.
Tags
all-other-professional-scientific-and-te, department-of-justice, ok, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $2.9 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C.. LEGAL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is CHEROKEE FEDERAL SOLUTIONS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $2.9 million.
What is the period of performance?
Start: 2020-07-30. End: 2025-09-30.
What is the estimated fair market value for these legal support services, considering the lack of competition?
Without competitive bids, establishing a precise fair market value is challenging. However, a thorough market research analysis should be conducted by the agency to benchmark against similar services procured competitively. The Time and Materials (T&M) pricing structure, especially without a ceiling, can lead to costs exceeding fair market value if not closely monitored and justified.
What are the specific risks associated with a sole-source Time and Materials contract for legal support?
The primary risks include potential cost overruns, lack of incentive for efficiency, and the possibility of paying above fair market value. T&M contracts can be difficult to manage and control costs, especially for services where the scope of work can fluctuate. The absence of competition exacerbates these risks by removing the market's natural pressure to offer competitive pricing.
How can the Department of Justice ensure effectiveness and value for money on this sole-source contract?
The agency must implement rigorous performance monitoring and oversight. This includes detailed tracking of hours and expenses, regular reviews of deliverables against requirements, and proactive communication with the contractor. Conducting periodic, independent market research to re-evaluate pricing and exploring opportunities for future competition, even for task orders, can help mitigate risks and ensure effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2 W. 2ND ST, TULSA, OK, 74103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,131,936
Exercised Options: $3,131,936
Current Obligation: $2,906,938
Actual Outlays: $2,907,413
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,501,347
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-02-19
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