State Department awards $17.6M contract for Indo-Pacific strategy support to Cherokee Federal Solutions

Contract Overview

Contract Amount: $17,597,022 ($17.6M)

Contractor: Cherokee Federal Solutions, L.L.C.

Awarding Agency: Department of State

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOGISTICS AND PROGRAM MANAGEMENT SERVICES TOR CAPACTIY BUILDING PROGRAMS SUPPORTING ADMINISTRATION'S INDO-PACIFIC STRATEGY.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $17.6 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C. for work described as: LOGISTICS AND PROGRAM MANAGEMENT SERVICES TOR CAPACTIY BUILDING PROGRAMS SUPPORTING ADMINISTRATION'S INDO-PACIFIC STRATEGY. Key points: 1. Contract provides critical support for the administration's Indo-Pacific strategy, focusing on capacity building. 2. Cherokee Federal Solutions, an established provider, holds this definitive contract. 3. The contract duration spans five years, indicating a long-term need for these services. 4. Services fall under administrative management and general management consulting. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. Awarded as not available for competition, raising questions about market exploration.

Value Assessment

Rating: fair

The contract value of $17.6 million over five years appears moderate for specialized consulting services supporting a significant strategic initiative. Benchmarking against similar contracts for program management and capacity building within the State Department or other agencies involved in foreign policy implementation would be necessary for a definitive value assessment. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses actual labor costs plus a fee, rather than a fixed price. Without detailed task orders and labor rates, a precise value-for-money assessment is difficult, but the T&M structure warrants careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'not available for competition,' indicating a sole-source or limited competition procurement. The specific justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required services, or in cases of urgent need. The lack of broader competition means that the government did not explore the full range of potential providers, which could limit price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the most competitive pricing achievable through a wider bidding process. This can result in higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are the State Department's programs aimed at strengthening the Indo-Pacific strategy. Services delivered include program management and capacity building support. The geographic impact is focused on the Indo-Pacific region, supporting U.S. foreign policy objectives. Workforce implications are likely within the contractor's organization, providing specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The sole-source award limits competitive pressure, potentially impacting cost-effectiveness for taxpayers.
Time and Materials contract type can lead to cost overruns if not rigorously managed.
Lack of detailed performance metrics in the provided data makes assessing contractor effectiveness challenging.

Positive Signals

The contract supports a high-priority national security initiative (Indo-Pacific Strategy).
Cherokee Federal Solutions is an established contractor, suggesting a degree of reliability.
The five-year duration indicates a stable, long-term commitment to a critical program.

Sector Analysis

This contract falls within the professional services sector, specifically management and consulting. The market for such services is large and competitive, with numerous firms capable of providing administrative management and general management consulting. The State Department's need for specialized support for its Indo-Pacific strategy highlights a niche within this broader sector, focusing on foreign policy implementation and capacity building in a strategically important region. Comparable spending benchmarks would typically involve analyzing other contracts for similar strategic support services awarded by the State Department or other foreign affairs agencies.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from this particular award. The primary contractor, Cherokee Federal Solutions, L.L.C., is likely a larger entity, and its own small business utilization for subcontracting would need separate analysis.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of State. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though specific performance metrics and detailed task order management are internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Indo-Pacific Strategy Implementation
Foreign Policy Capacity Building
International Development Support
Strategic Consulting Services
Department of State Program Management

Risk Flags

Sole-source award limits competition.
Time and Materials contract type poses cost control risks.
Lack of detailed performance metrics.
Geopolitical sensitivity of the Indo-Pacific region requires robust execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.6 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C.. LOGISTICS AND PROGRAM MANAGEMENT SERVICES TOR CAPACTIY BUILDING PROGRAMS SUPPORTING ADMINISTRATION'S INDO-PACIFIC STRATEGY.

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What is the specific nature of the 'capacity building programs' supported by this contract within the Indo-Pacific strategy?

The provided data does not detail the specific nature of the capacity building programs. However, within the context of the Indo-Pacific strategy, capacity building typically refers to efforts aimed at strengthening the institutional, technical, and human resource capabilities of partner nations. This could encompass areas such as defense cooperation, economic development, cybersecurity, maritime security, good governance, and disaster response. The contract likely supports the planning, execution, and monitoring of these initiatives, potentially involving policy analysis, training development, logistical support, and stakeholder engagement within the Indo-Pacific region.

How does Cherokee Federal Solutions' track record align with the requirements of supporting a complex geopolitical strategy like the Indo-Pacific Strategy?

Cherokee Federal Solutions, L.L.C. is a subsidiary of Cherokee Nation Businesses, which has a significant presence in providing government contracting services across various sectors, including defense, intelligence, and federal civilian agencies. Their experience often includes program management, IT services, and logistics support. While the provided data doesn't detail specific past performance on Indo-Pacific related initiatives, their general experience in managing complex government contracts suggests they possess the foundational capabilities for program execution. A deeper dive into their specific past performance on contracts with similar scope, complexity, and geopolitical sensitivity would be required for a comprehensive assessment of their suitability for this particular strategic role.

What are the potential risks associated with the Time and Materials (T&M) contract type for this specific service?

The primary risk with a Time and Materials (T&M) contract type is the potential for cost overruns, as the government pays for the actual hours worked by contractor personnel and their associated material costs, plus a fixed fee or profit. Unlike fixed-price contracts, T&M offers less cost certainty. For a five-year contract supporting a complex strategy, this could lead to significantly higher expenditures than initially anticipated if project scopes are not tightly defined, labor hours are not diligently tracked, or if the contractor's billing rates are not competitive. Effective oversight, detailed reporting requirements, and strong program management are crucial to mitigate these risks and ensure value for money.

Given the sole-source nature, what alternative approaches could have been considered to ensure competitive pricing?

While the data states the contract was 'not available for competition,' alternative approaches could have been explored prior to this determination. If the need was identified well in advance, a full and open competition could have been conducted to solicit proposals from a wide range of qualified firms. If specific expertise was critical, a limited competition among pre-qualified vendors might have been feasible. In situations where a sole source is justified, agencies often conduct market research to confirm the lack of alternatives and negotiate pricing rigorously. The justification for sole-source should be robust and publicly accessible to ensure accountability and transparency.

How does this $17.6 million contract compare to overall U.S. spending on Indo-Pacific initiatives or similar consulting services?

The $17.6 million contract value represents a specific allocation for program management and capacity building support within the broader U.S. Indo-Pacific strategy. Overall U.S. spending on Indo-Pacific initiatives encompasses a vast array of programs, including defense, economic aid, diplomatic engagement, and infrastructure development, often totaling billions of dollars annually across multiple agencies. This particular contract is a component of that larger effort. Comparing it to similar consulting services requires benchmarking against contracts for strategic advisory, program management, and capacity building awarded by agencies like the Department of State, USAID, or DoD for international programs. Without such comparative data, its relative size and cost-effectiveness are difficult to ascertain.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST N STE 220C, 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: $22,415,757

Exercised Options: $22,414,757

Current Obligation: $17,597,022

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $10,264,629

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline