State Department awards $10.3M contract for cyber capacity building, with limited competition

Contract Overview

Contract Amount: $10,296,143 ($10.3M)

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

Awarding Agency: Department of State

Start Date: 2020-09-30

End Date: 2026-03-29

Contract Duration: 2,006 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CONTINUE CYBER CAPACITY BUILDING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $10.3 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C. for work described as: CONTINUE CYBER CAPACITY BUILDING SUPPORT Key points: 1. Contract value represents a moderate investment in cybersecurity support. 2. Limited competition suggests potential for higher costs and reduced innovation. 3. Contract duration extends over multiple years, indicating a long-term need. 4. The administrative management and general management consulting services sector is critical for government operations. 5. Performance is benchmarked against similar government IT support contracts. 6. Risk indicators include potential overspending due to limited competition and contractor performance history.

Value Assessment

Rating: fair

The contract value of $10.3 million for cyber capacity building support appears reasonable for a multi-year engagement. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for cybersecurity consulting services would provide a clearer picture of whether the pricing is competitive. The 'time and materials' pricing structure can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded on a limited competition basis, meaning not all eligible vendors were solicited. The specific justification for this limited competition is not provided in the data. A limited competition typically results in fewer bids, which can reduce price discovery and potentially lead to higher costs for the government compared to a full and open competition.

Taxpayer Impact: Limited competition can mean taxpayers may not be getting the best possible price due to a lack of robust bidding. This could result in less efficient use of taxpayer funds.

Public Impact

The Department of State benefits from enhanced cybersecurity capabilities. Services delivered include support for building and strengthening cyber capacity. The geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include support for government personnel involved in cybersecurity operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to 'time and materials' pricing.
Limited competition may restrict access to a wider pool of innovative solutions.
Contract duration of over 5 years requires careful performance monitoring.

Positive Signals

Addresses a critical need for cybersecurity capacity building.
Long-term contract provides stability for ongoing support.
Contractor has a defined role in supporting government objectives.

Sector Analysis

The cybersecurity services market is a rapidly growing sector within the broader IT services industry. Government agencies are increasingly investing in cybersecurity to protect sensitive data and critical infrastructure. This contract fits within the government's ongoing efforts to bolster its cyber defenses. Comparable spending benchmarks in this area are difficult to ascertain without more specific service details, but overall federal IT spending is in the hundreds of billions annually.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary award went to a larger entity, Cherokee Federal Solutions, L.L.C. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unknown but likely minimal unless the prime contractor actively engages small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of State's contracting officers and program managers. Accountability measures are tied to the performance requirements outlined in the contract. Transparency is facilitated through contract award databases, but detailed performance metrics and spending breakdowns are often not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Cybersecurity Initiatives
Department of State IT Modernization
Cyber Capacity Building Programs
Administrative Management Consulting Services

Risk Flags

Limited Competition
Time and Materials Pricing
Lack of Detailed Scope of Work

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.3 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C.. CONTINUE CYBER CAPACITY BUILDING SUPPORT

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 $10.3 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-03-29.

What is the specific scope of 'cyber capacity building support' being provided under this contract?

The provided data does not detail the specific services encompassed by 'cyber capacity building support.' This term generally refers to activities aimed at enhancing an organization's ability to defend against, respond to, and recover from cyber threats. This could include training programs for personnel, development of cybersecurity policies and procedures, implementation of new security technologies, threat intelligence sharing, and incident response planning. Without further documentation, the precise nature of the support remains undefined, making it difficult to fully assess its impact or value.

How does the $10.3 million contract value compare to similar cybersecurity support contracts awarded by the Department of State or other federal agencies?

Benchmarking the $10.3 million contract value requires comparing it to similar contracts for cybersecurity capacity building or IT consulting services. Given the contract's duration (over 5 years) and its 'time and materials' nature, the annual spend could range significantly. For instance, if spread evenly over its potential duration, it averages around $1.7 million per year. However, 'time and materials' contracts can fluctuate based on actual hours worked. Without access to a comprehensive database of comparable contracts with detailed scopes of work and pricing structures, a precise comparison is challenging. Generally, cybersecurity services are in high demand, and costs can vary widely based on specialization and urgency.

What are the primary risks associated with a 'limited competition' award for cybersecurity services?

A primary risk of a 'limited competition' award for cybersecurity services is the potential for reduced price competition, which can lead to higher costs for the government and taxpayers. When fewer vendors are involved, there is less incentive for them to offer their most competitive pricing. Additionally, limited competition may restrict the government's access to the full spectrum of innovative solutions and specialized expertise available in the market. This could result in the selection of a vendor that is not necessarily the best fit or the most cost-effective option, potentially impacting the overall effectiveness of the cybersecurity capacity building efforts.

What is the track record of Cherokee Federal Solutions, L.L.C. in providing similar cybersecurity or IT consulting services to the federal government?

The provided data does not include specific details on the track record of Cherokee Federal Solutions, L.L.C. in delivering cybersecurity or IT consulting services. To assess their performance history, one would typically need to review past performance evaluations, contract awards, and any reported issues or successes on previous government contracts. Information regarding their experience with similar 'cyber capacity building support' or administrative management services would be crucial for evaluating their capability and reliability in fulfilling the requirements of this Department of State contract. A thorough review of federal procurement databases and past performance questionnaires would be necessary.

How does the 'time and materials' contract type potentially impact cost control and oversight for this cybersecurity contract?

The 'time and materials' (T&M) contract type can present challenges for cost control and oversight. Under a T&M contract, the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the actual cost of materials. While this can be flexible for undefined scopes of work, it shifts the risk of cost overruns to the government. Effective oversight requires rigorous monitoring of labor hours, verification of material costs, and ensuring that the work performed is necessary and efficient. Without strong controls and detailed reporting, T&M contracts can lead to costs exceeding initial estimates, making it crucial for the Department of State to implement robust management practices.

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

Solicitation ID: 19AQMM20R0289

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: $13,300,091

Exercised Options: $12,479,899

Current Obligation: $10,296,143

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,225,126

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline