Department of State awards $163.6M administrative support contract to Cherokee Nation Strategic Programs, LLC

Contract Overview

Contract Amount: $163,627,846 ($163.6M)

Contractor: Cherokee Nation Strategic Programs, L.L.C.

Awarding Agency: Department of State

Start Date: 2019-06-01

End Date: 2024-12-30

Contract Duration: 2,039 days

Daily Burn Rate: $80.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CLOSELY ASSOCIATED - ADMINISTRATIVE SUPPORT SERVICES FOR THE DEPARTMENT OF STATE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $163.6 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C. for work described as: CLOSELY ASSOCIATED - ADMINISTRATIVE SUPPORT SERVICES FOR THE DEPARTMENT OF STATE Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 2039 days suggests a long-term need for these services. 3. Time and Materials contract type can pose cost control challenges if not managed closely. 4. Administrative Management and General Management Consulting Services are critical for agency operations. 5. The contract's value places it as a substantial award within its service category. 6. Awardee has a track record with federal contracts, requiring review of past performance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The Time and Materials (T&M) pricing structure, while common for evolving needs, can lead to higher costs if not meticulously managed and monitored for efficiency. The absence of a competitive bidding process also means that the price may not reflect the most economical option available in the market. Further analysis of the specific labor categories and rates billed under this T&M contract would be necessary to provide a more definitive value assessment.

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 responsible source is available or capable of meeting the requirement. The lack of competition means that the Department of State did not benefit from a range of proposals and pricing strategies that would typically emerge from a full and open competition. This can limit the government's ability to secure the best possible pricing and innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not leverage competitive pressures to drive down prices. It also raises questions about whether the requirement was structured in a way that unnecessarily restricted competition.

Public Impact

The Department of State benefits from continuous administrative support services, ensuring operational efficiency. Federal employees and potentially contractors receive support services essential for their daily tasks. The contract supports administrative functions across various departments within the State Department. Workforce implications include the potential for direct hires by the contractor or use of subcontractors to fulfill service needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited transparency and accountability inherent in sole-source contract awards.
Risk of contractor performance not meeting expectations without competitive pressure.
Dependency on a single contractor for critical administrative functions.

Positive Signals

Awardee is an established entity, potentially bringing relevant experience.
Contract duration suggests a stable, long-term partnership for essential services.
Services provided are fundamental to the operational continuity of the Department of State.

Sector Analysis

Administrative support services are a critical component of government operations, encompassing a wide range of functions from general management to specialized consulting. The market for these services is vast and competitive, with numerous firms offering expertise. This contract falls within the professional services sector, specifically administrative and management consulting. Comparable spending benchmarks would typically involve analyzing other large-scale administrative support contracts awarded across federal agencies to gauge pricing and scope.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is marked as false. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals for small businesses explicitly stated in this summary. Further review of the contract details would be needed to confirm the extent of small business involvement, if any, through prime contracting or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given it's a sole-source award, the justification for this procurement method should be well-documented and accessible. Transparency would be enhanced by public reporting of contract performance metrics and any modifications. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Department of State Operations Support
Federal Agency Administrative Functions

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials contract type poses cost control risks.
Long contract duration increases performance risk over time.
Potential for lack of transparency in sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $163.6 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C.. CLOSELY ASSOCIATED - ADMINISTRATIVE SUPPORT SERVICES FOR THE DEPARTMENT OF STATE

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $163.6 million.

What is the period of performance?

Start: 2019-06-01. End: 2024-12-30.

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

The justification for a sole-source award typically stems from circumstances where only one responsible source can satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or specific statutory requirements. For this Department of State contract, the exact justification would need to be reviewed in the contract's official documentation, such as a Justification and Approval (J&A) document. Without access to this specific J&A, it's impossible to definitively state the reason, but common factors include specialized expertise or a lack of viable alternatives in the market at the time of procurement.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar administrative support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost control, as the final price is not predetermined. For administrative support, FFP contracts are often preferred when requirements are stable and well-defined, allowing for better budget certainty. However, if the nature of the support is dynamic or requires rapid adaptation, T&M can be appropriate, provided robust oversight is in place to manage labor hours and material costs effectively.

What is the historical spending pattern for administrative support services at the Department of State?

Analyzing historical spending patterns for administrative support services at the Department of State is crucial for context. This involves examining previous contracts awarded for similar services, their values, durations, and the contractors involved. A trend of consistently awarding large, sole-source T&M contracts for administrative support might indicate a systemic issue with requirements definition or market analysis within the agency. Conversely, a history of competitive bidding and fixed-price awards for similar services would make this sole-source T&M award stand out as an anomaly requiring closer scrutiny. Without specific historical data, it's difficult to establish a pattern, but such an analysis would reveal if this contract represents a deviation or a continuation of established practices.

What are the potential risks associated with a sole-source, Time and Materials contract of this magnitude and duration?

A sole-source, Time and Materials (T&M) contract of this magnitude ($163.6M) and duration (over 5 years) presents several significant risks. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to optimize efficiency. Secondly, the T&M structure, while flexible, lacks a ceiling on costs, making it susceptible to cost overruns if not rigorously monitored. Unfettered billing of labor hours and material costs can significantly exceed initial estimates. Thirdly, the long duration increases the risk of contractor performance degradation over time, as the lack of re-competition reduces accountability. Finally, there's a risk that the government may become overly dependent on a single provider, hindering its ability to pivot or seek alternative solutions if performance issues arise or needs change.

How does the awarded contractor, Cherokee Nation Strategic Programs, LLC, perform on other federal contracts?

Assessing the past performance of Cherokee Nation Strategic Programs, LLC on other federal contracts is vital for understanding their capability and reliability. This involves reviewing their performance history, including on-time delivery, quality of work, adherence to budget, and responsiveness to issues on previously awarded contracts. Federal procurement regulations often require agencies to consider past performance as a significant factor in award decisions, especially for sole-source procurements where competition is limited. A review of their contract database (e.g., Federal Procurement Data System - FPDS) and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their track record, identifying any recurring issues or consistent successes that might inform the current contract's oversight strategy.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM19R0163

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 200E, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $329,882,886

Exercised Options: $311,567,114

Current Obligation: $163,627,846

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $255,120,225

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline