State Department awards $4.19M for staffing support, raising questions about competition and value

Contract Overview

Contract Amount: $4,190,163 ($4.2M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STAFFING SUPPORT SERVICES FOR WHA

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 $4.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFFING SUPPORT SERVICES FOR WHA Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Pricing appears to be based on labor hours, which can be difficult to benchmark without detailed task breakdowns. 3. The contract duration of five years suggests a long-term need for these services. 4. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 5. The contract is for facilities support services, indicating a role in maintaining government infrastructure. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of detailed pricing information and the sole-source award. Without competitive bids, it's difficult to ascertain if the $4.19 million represents a fair market price for the staffing support services provided. The labor hours pricing model necessitates careful monitoring to ensure efficiency and prevent cost overruns. Comparing this to similar facilities support contracts would require access to more granular data on the scope of work and labor rates.

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 vendor can provide the required services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which could have driven down prices and potentially led to a more innovative solution. The justification for this sole-source award would need to be thoroughly reviewed to understand why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

Federal employees and government operations benefit from the continuity of essential staffing support services. The services provided likely contribute to the efficient functioning and maintenance of Department of State facilities. The geographic impact is concentrated in Washington D.C., where the Department of State's primary operations are located. The contract supports a workforce involved in facilities management and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can reduce transparency and accountability.
Labor hour contracts can be susceptible to scope creep and cost overruns if not managed tightly.
The long contract duration (5 years) might not adapt well to changing needs or technological advancements.

Positive Signals

Award to Cherokee Nation System Solutions LLC, a company with federal contracting experience.
The contract aims to ensure continuity of essential support services for a critical government agency.
Delivery order structure implies it fits within a pre-established framework, potentially streamlining acquisition.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is crucial for government agencies to ensure their physical assets are functional and secure. Spending in this area is often steady, reflecting the ongoing need for maintenance, staffing, and operational support. Comparable spending benchmarks would typically look at the total government expenditure on facilities management across various agencies and the average contract values for similar service scopes.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger subcontracting plan by the prime contractor. The absence of a set-aside may indicate that the scope of work was deemed too specialized or the contract value too high for a small business sole-source award, or that the agency opted for a different contracting strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's labor hour structure necessitates close tracking of hours worked and tasks performed to ensure accountability. Transparency could be enhanced through public reporting of performance metrics and detailed justifications for the sole-source award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Facilities Management Services
Staff Augmentation Contracts
Government Support Services
Department of State Operations

Risk Flags

Sole-source award
Lack of competition
Labor hour pricing model

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. STAFFING SUPPORT SERVICES FOR WHA

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SYSTEM SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What is the specific scope of 'staffing support services' covered under this contract?

The provided data indicates the contract is for 'STAFFING SUPPORT SERVICES FOR WHA' and falls under the North American Industry Classification System (NAICS) code 561210, which is Facilities Support Services. While the exact tasks are not detailed, 'staffing support' in this context typically refers to providing personnel to assist with the operational and administrative functions related to facility management. This could include roles such as administrative assistants, facility coordinators, maintenance support staff, security personnel, or other non-technical support roles necessary for the day-to-day functioning of the Department of State's facilities. The 'WHA' likely refers to the Bureau of Western Hemisphere Affairs, suggesting the support is tailored to that specific bureau's facilities or operational needs.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not provided in the abbreviated data. However, common reasons for sole-source awards include situations where only one responsible source can satisfy the agency's needs, such as when a service is unique, proprietary, or requires specialized expertise that only one contractor possesses. Another possibility is an urgent and compelling need where competition is not feasible. The Department of State would have had to document and approve a justification and approval (J&A) for this sole-source award, outlining the rationale and demonstrating why full and open competition was not practicable or not in the government's best interest.

How does the $4.19 million total contract value compare to similar facilities support contracts awarded by the Department of State or other agencies?

Direct comparison of the $4.19 million total contract value is difficult without knowing the precise duration and scope of services. However, for facilities support services, contract values can range significantly based on the size and complexity of the facilities managed, the types of services required (e.g., janitorial, security, maintenance, administrative support), and the geographic location. A five-year contract with a total value of $4.19 million averages approximately $838,000 per year. This figure is moderate for federal facilities support contracts, which can range from tens of thousands to hundreds of millions of dollars annually depending on the scale. Without more specific details on the services rendered and the number of personnel supported, it's hard to definitively benchmark this contract's value against others.

What are the potential risks associated with a sole-source contract for staffing support services?

The primary risk associated with a sole-source contract for staffing support services is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may have less incentive to offer the most competitive pricing. Additionally, there's a risk of reduced innovation, as the government doesn't benefit from the diverse approaches and solutions that multiple bidders might propose. Performance can also be a concern; while the contractor is presumably capable, the absence of competition means the government has fewer alternatives if performance issues arise. Finally, sole-source awards can sometimes be perceived as lacking transparency, potentially leading to scrutiny regarding the fairness and necessity of the procurement process.

What is the track record of Cherokee Nation System Solutions LLC in providing similar services to the federal government?

Cherokee Nation System Solutions LLC (CNSS) is a federal contractor with a history of providing various services to government agencies. Based on publicly available contract data, CNSS has secured numerous contracts across different departments, including IT services, logistics, facilities management, and professional support. Their experience often includes supporting defense, intelligence, and civilian agencies. While specific performance details for individual contracts are not always public, their continued success in winning federal contracts suggests a generally positive track record. For this specific contract, the Department of State would have conducted its own due diligence regarding CNSS's past performance and capabilities before awarding the sole-source delivery order.

How does the duration of this contract (5 years) impact its overall value and risk profile?

A five-year duration for this $4.19 million contract (averaging $838,000 annually) indicates a long-term need for the staffing support services. From a value perspective, a longer contract can provide stability and predictability for both the government and the contractor, potentially leading to better resource planning and a more established working relationship. However, it also increases the risk associated with potential changes in government requirements, technology, or market conditions over the contract's lifespan. A longer term might lock the government into a specific service provider and pricing structure, potentially missing out on cost savings or improved solutions that could emerge later. Careful contract management and potential for re-negotiation or modification are crucial for mitigating risks over such an extended period.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 10838 E MARSHALL ST STE 200-A17, 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: $4,875,344

Exercised Options: $4,648,299

Current Obligation: $4,190,163

Actual Outlays: $1,612,551

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $117,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM20D0126

IDV Type: IDC

Timeline