Cherokee Nation awarded $38.3M for technical and trade schools, with limited competition

Contract Overview

Contract Amount: $38,258,968 ($38.3M)

Contractor: Cherokee Nation

Awarding Agency: Department of Labor

Start Date: 2019-02-15

End Date: 2024-03-31

Contract Duration: 1,871 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: IGF::OT::IGF CONTRACT AWARD OF THE TALKING LEAVES JCC

Place of Performance

Location: TAHLEQUAH, CHEROKEE County, OKLAHOMA, 74464

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $38.3 million to CHEROKEE NATION for work described as: IGF::OT::IGF CONTRACT AWARD OF THE TALKING LEAVES JCC Key points: 1. The contract value of $38.3 million over its period of performance suggests a significant investment in vocational training. 2. The award to Cherokee Nation, a tribal entity, may indicate a focus on specific demographic groups or geographic regions. 3. The 'NOT COMPETED' status raises questions about the procurement process and potential missed opportunities for cost savings through broader competition. 4. The fixed-price incentive contract type suggests an attempt to align contractor performance with specific outcomes, though details are limited. 5. The contract duration of 1871 days (approximately 5 years) indicates a long-term commitment to the services provided. 6. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities for smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the number of individuals served. However, a $38.3 million award over nearly five years for technical and trade school services represents a substantial investment. The fixed-price incentive structure aims to control costs, but the lack of competitive bidding makes it difficult to assess if the pricing is optimal compared to market rates or alternative providers. Further analysis would require understanding the specific training programs and their outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, or for specific reasons related to tribal organizations or national security. The lack of competition means that the government did not receive multiple bids, which can limit price discovery and potentially lead to higher costs than if a competitive process had been employed.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing, potentially resulting in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade skills through programs administered by the Cherokee Nation. The services delivered include vocational training and education, aiming to enhance workforce readiness. The geographic impact is likely concentrated in Oklahoma, where the Cherokee Nation is based and where the services are presumably delivered. Workforce implications include the potential for increased employment opportunities for individuals who complete the training programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Limited transparency into the specific services and outcomes achieved.
Potential for higher costs due to sole-source award.

Positive Signals

Award to a tribal entity can support specific government objectives related to Native American economic development.
Long-term contract duration provides stability for program delivery.
Fixed-price incentive contract type aims to link payment to performance.

Sector Analysis

The contract falls within the broader 'Education and Training Services' sector, specifically focusing on vocational and technical education. This sector is crucial for workforce development, providing individuals with the skills needed for various industries. Comparable spending benchmarks would depend on the scale and scope of the training programs, but significant government investment in such services is common to address skill gaps and promote economic mobility. The award to a tribal entity also places it within the context of government-to-tribal contracting initiatives.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' flag is false. This indicates that small businesses were not specifically targeted for this award. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities, which is not detailed in the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures would be tied to the terms of the fixed-price incentive contract, focusing on performance outcomes. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Labor Workforce Development Programs
Tribal Economic Development Initiatives
Vocational Rehabilitation Services
Federal Grants for Education and Training

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific services and outcomes.
Potential for unbenchmarked pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $38.3 million to CHEROKEE NATION. IGF::OT::IGF CONTRACT AWARD OF THE TALKING LEAVES JCC

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2019-02-15. End: 2024-03-31.

What specific technical and trade skills are being taught under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 611519, which covers 'Other Technical and Trade Schools.' This broad category suggests a range of vocational programs, potentially including but not limited to fields like automotive repair, welding, culinary arts, healthcare support, information technology, or advanced manufacturing. However, the specific curriculum, skill sets, and trades covered by this particular $38.3 million contract are not detailed in the award information. A deeper dive into the contract's statement of work or associated documentation would be necessary to identify the precise training offerings and their alignment with current labor market demands.

How does the $38.3 million contract value compare to similar technical and trade school contracts awarded by the federal government?

Directly comparing the $38.3 million value of this contract to similar federal awards for technical and trade schools is difficult without more specific parameters. The size and scope of vocational training contracts can vary significantly based on the number of individuals served, the duration of the programs, the complexity of the skills taught, and the geographic reach. This contract, awarded to Cherokee Nation over approximately five years, represents a substantial investment. To establish a benchmark, one would need to identify other federal contracts for vocational training, filter them by duration, target population (e.g., veterans, disadvantaged youth, specific industries), and the type of institution providing the training. The sole-source nature of this award also complicates direct value-for-money comparisons against competitively bid contracts.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. Without multiple bidders vying for the contract, the government may not secure the most cost-effective solution or the highest quality service available in the market. There's also a risk that the chosen contractor, while capable, may not be the absolute best fit or may lack the incentive to continuously improve services compared to a contractor who had to win the award through a competitive process. Furthermore, sole-source awards can sometimes raise concerns about fairness and equal opportunity for other potential providers, potentially leading to perceptions of favoritism if not adequately justified.

What performance metrics or outcomes are likely being tracked under this fixed-price incentive contract?

Under a fixed-price incentive (FPI) contract, the government and contractor agree on a target cost, target profit, and a price ceiling. The final price is adjusted based on the contractor's actual cost performance relative to the target cost, up to the ceiling. For a contract focused on technical and trade schools, performance metrics likely include trainee enrollment rates, course completion rates, job placement rates post-training, average starting salaries of placed graduates, and potentially employer satisfaction with the skills of the graduates. The 'incentive' aspect means that the contractor is motivated to achieve these outcomes efficiently, as their final profit is tied to their cost savings and performance against targets. Specific metrics would be detailed in the contract's Statement of Work.

What is the historical spending pattern for technical and trade school services by the Department of Labor or similar agencies?

Historical spending on technical and trade school services by the Department of Labor (DOL) and related federal agencies is substantial, reflecting a consistent commitment to workforce development. The DOL, through various programs like the Employment and Training Administration (ETA), allocates significant funds to vocational training, apprenticeships, and skill development initiatives. Spending patterns can fluctuate based on economic conditions, legislative priorities, and specific workforce needs (e.g., demand for skilled trades in infrastructure projects or technology sectors). While this specific $38.3 million contract is a single award, it represents a portion of a larger federal investment aimed at equipping individuals with job-ready skills. Analyzing historical DOL budgets and specific program expenditures would provide a broader context for this contract's place within federal workforce development efforts.

What is the significance of awarding this contract to the Cherokee Nation, a tribal entity?

Awarding contracts to tribal entities like the Cherokee Nation often aligns with federal policies aimed at promoting economic self-sufficiency and development within Native American communities. There are specific government contracting programs and preferences designed to support businesses owned and operated by Native Americans. These preferences can sometimes allow for sole-source awards or other streamlined procurement processes, provided the tribal entity meets certain criteria and can demonstrate capability. This approach not only fulfills the government's need for services but also contributes to the economic well-being and capacity building of the tribal organization and its members, potentially creating jobs and fostering business growth within the community.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 17675 SOUTH MUSKOGEE AVE, TAHLEQUAH, OK, 74464

Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $46,949,752

Exercised Options: $46,769,752

Current Obligation: $38,258,968

Actual Outlays: $32,811,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline