State Department awards $43.9M for ATA Warehouse services, raising questions about competition and value

Contract Overview

Contract Amount: $43,876,625 ($43.9M)

Contractor: Cherokee Nation Solutions Link, L.L.C.

Awarding Agency: Department of State

Start Date: 2021-07-27

End Date: 2026-07-31

Contract Duration: 1,830 days

Daily Burn Rate: $24.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ATA WAREHOUSE

Place of Performance

Location: WINCHESTER, FREDERICK County, VIRGINIA, 22601

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $43.9 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C. for work described as: ATA WAREHOUSE Key points: 1. Contract awarded on a 'not available for competition' basis, limiting price discovery. 2. Significant duration of over 5 years suggests a long-term need for warehousing. 3. Time and Materials pricing structure can lead to cost overruns if not managed closely. 4. The contractor, Cherokee Nation Solutions Link, L.L.C., is a significant player in government contracting. 5. The contract's value is substantial, requiring careful oversight to ensure taxpayer funds are used efficiently. 6. Lack of competition may indicate a specialized need or a failure to explore market alternatives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the 'not available for competition' award type. The Time and Materials pricing model, while flexible, carries inherent risks for cost control. Without comparable contract data or a competitive process, it's difficult to definitively assess if the government is receiving optimal value for the $43.9 million allocated over its duration. The awarded amount of $23,976 for the base period is a starting point, but the total contract value over its extended period requires vigilant monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, indicating that a full and open competition was not pursued. This typically occurs when only one source is capable of meeting the government's needs, or in specific circumstances like urgent requirements or follow-on work where competition is impractical. The lack of multiple bidders means there was no direct price comparison or incentive for bidders to offer their most competitive rates, potentially leading to higher costs for the government.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may not be benefiting from the most cost-effective solution available in the market. This can result in overpayment for services compared to what might have been achieved through a more open and robust competition.

Public Impact

The primary beneficiary is the Department of State, which will receive essential ATA Warehouse services. These services are critical for the storage, management, and potential deployment of assets or materials. The geographic impact is likely concentrated around the State Department's operational areas, particularly in Virginia where the contract is managed. Workforce implications may include the direct employment by the contractor and potential indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits price discovery and potentially increases costs.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Long contract duration (over 5 years) requires sustained vigilance to ensure continued value.
Award justification ('not available for competition') warrants scrutiny to ensure no viable alternatives were overlooked.

Positive Signals

Contract awarded to a known entity (Cherokee Nation Solutions Link, L.L.C.) which may imply established performance history.
The contract addresses a clear operational need for warehousing services within the Department of State.
The duration suggests a stable, long-term requirement that the contractor is expected to fulfill.

Sector Analysis

The ATA Warehouse contract falls within the broader logistics and warehousing sector, a critical component of government operations. This sector supports various agencies by providing essential storage, inventory management, and distribution services. The market for such services is competitive, but specific government requirements, such as security, compliance, and location, can narrow the field. The Department of State's spending in this area is part of its overall operational budget, aimed at ensuring readiness and efficient management of resources. Comparable spending benchmarks are difficult to establish without knowing the exact nature and scale of the 'ATA' materials being warehoused.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, Cherokee Nation Solutions Link, L.L.C., is a large business. While there is no direct set-aside, the potential for subcontracting opportunities with small businesses exists, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether Cherokee Nation Solutions Link actively engages small businesses for specialized services or supplies related to the warehousing operation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) Schedules for Warehousing and Storage
Department of Defense (DoD) Logistics and Supply Chain Management Contracts
Other agency-specific warehousing and inventory management contracts

Risk Flags

Lack of Competition
Time and Materials Pricing
Long Contract Duration
Sole-Source Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.9 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C.. ATA WAREHOUSE

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SOLUTIONS LINK, 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 $43.9 million.

What is the period of performance?

Start: 2021-07-27. End: 2026-07-31.

What specific 'ATA' materials or assets are being warehoused under this contract, and what is their criticality to the Department of State's mission?

The provided data does not specify the nature of the 'ATA' materials. 'ATA' could potentially refer to 'Anti-Terrorism Assistance' materials, 'Automated Target Acquisition' systems, or other agency-specific acronyms. Understanding the nature of these materials is crucial for assessing the criticality of the warehousing services. If they are sensitive, high-value, or mission-essential assets, the importance of secure and reliable warehousing increases significantly. Without this context, it's difficult to fully gauge the operational impact and justify the 'not available for competition' award. Further inquiry into the specific definition of 'ATA' within the Department of State is necessary to understand the full scope and importance of this contract.

What was the justification for awarding this contract on a 'not available for competition' basis, and were alternative sourcing strategies considered?

The justification for awarding this contract as 'not available for competition' (often referred to as sole-source) is not detailed in the provided data. Typically, such justifications are based on factors like the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. For a contract of this magnitude and duration, the Department of State would have had to formally document why a full and open competition was not feasible or practical. This could involve technical uniqueness, proprietary data, or a lack of market availability. Without access to the official justification document (e.g., a Justification and Approval - J&A), it's impossible to independently verify if all reasonable market research was conducted and if alternative sourcing strategies were adequately explored before resorting to a sole-source award.

How does the Time and Materials (T&M) pricing structure for this contract mitigate risks of cost overruns, given its long duration?

Time and Materials (T&M) contracts, by their nature, do not have a ceiling on the total cost. The government pays for the direct labor hours at specified rates and the actual cost of materials. To mitigate cost overrun risks, the Department of State must implement robust oversight. This includes closely monitoring labor hours billed, verifying the necessity and reasonableness of all expenses, and potentially establishing cost not-to-exceed (NTE) clauses or CLINs (Contract Line Item Numbers) with NTEs. Regular audits of contractor records, detailed progress reports, and strong communication channels are essential. The contract's duration of over five years amplifies these risks, necessitating continuous vigilance and proactive management to ensure that costs remain within the anticipated budget and that the contractor is not exploiting the T&M structure.

What is the track record of Cherokee Nation Solutions Link, L.L.C. in performing similar warehousing or logistics contracts for the federal government?

Cherokee Nation Solutions Link, L.L.C. has a significant presence in federal contracting, often performing services across various agencies. While specific details on their warehousing performance history are not in the provided data, their status as a recipient of this substantial Department of State contract suggests a level of capability and past performance that met the agency's requirements. Federal procurement databases (like FPDS or SAM.gov) would contain more detailed information on their contract history, including past performance evaluations, any disputes, or awards in similar service categories. A deeper dive into these public records would provide a clearer picture of their reliability and expertise in managing complex logistics and warehousing operations.

Are there any performance metrics or Key Performance Indicators (KPIs) defined in the contract to measure the effectiveness and efficiency of the ATA Warehouse services?

The provided data does not explicitly list the performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a contract of this nature and value, it is highly probable that such metrics are included in the Statement of Work (SOW) or Performance Work Statement (PWS). These KPIs would typically focus on aspects like inventory accuracy, on-time delivery/retrieval rates, facility maintenance standards, security compliance, and response times. The Department of State's contracting officers would be responsible for monitoring adherence to these KPIs. Failure to meet defined performance standards could trigger contractual remedies, including potential penalties or termination, ensuring accountability for the services rendered.

How does the $43.9 million total contract value compare to historical spending on similar warehousing services by the Department of State or other agencies?

Comparing the $43.9 million total contract value requires context regarding the specific scope and duration of services. Without knowing the exact nature of 'ATA' materials and the required services (e.g., climate control, security levels, volume), a direct comparison is difficult. However, for a five-year contract, this value suggests a significant operational requirement. Historical spending data from the Department of State or other agencies on comparable warehousing contracts (e.g., for sensitive equipment, records, or supplies) would be needed for a robust benchmark. Agencies often use GSA schedules or conduct market research for similar services to establish price reasonableness. The lack of competition here makes external benchmarking even more critical for assessing value.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM21R0155

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 10838 E MARSHALL ST STE 220-J, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $48,784,632

Exercised Options: $48,784,632

Current Obligation: $43,876,625

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline