State Department awards $1.16M for staffing support, raising questions about competition and value

Contract Overview

Contract Amount: $1,157,429 ($1.2M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2022-04-15

End Date: 2024-01-16

Contract Duration: 641 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFFING SUPPORT SERVICES

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 $1.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFFING SUPPORT SERVICES Key points: 1. The contract was awarded on a sole-source basis, limiting potential cost savings from a competitive bidding process. 2. The pricing structure is Time and Materials, which can lead to cost overruns if not closely managed. 3. The duration of the contract (641 days) suggests a need for ongoing support services. 4. The awardee, Cherokee Nation System Solutions LLC, is a significant player in government contracting. 5. The contract's value is relatively small in the context of overall federal spending on support services. 6. The lack of a specific Product Service Code (PSC) makes direct benchmarking difficult.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure presents a risk for cost control, as actual hours and rates can fluctuate. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or other similar contracts. The total award amount of $1.16 million over approximately 21 months is moderate, but the value for money is uncertain due to the T&M nature and sole-source award. Further analysis of the labor categories and rates would be needed for a more precise 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 vendor can meet the specific requirements, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that a competitive bidding process could have provided. The rationale for the sole-source award is not detailed in the provided data.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as they bypass the competitive pressure that drives down prices. This limits the government's ability to secure the best possible value for public funds.

Public Impact

The primary beneficiaries are the Department of State personnel who will receive essential staffing support services. The services delivered are critical for the efficient operation of the department's facilities and administrative functions. The geographic impact is concentrated in the District of Columbia, where the Department of State is headquartered. The contract supports jobs within Cherokee Nation System Solutions LLC, contributing to their workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type increases risk of cost overruns without strong oversight.
Sole-source award limits price competition and potential for cost savings.
Lack of detailed performance metrics in provided data makes assessing effectiveness challenging.
Limited information on the specific nature of 'staffing support' makes it hard to gauge necessity and scope.

Positive Signals

Awardee, Cherokee Nation System Solutions LLC, has experience in government contracting.
Contract duration suggests a recognized need for sustained support services.
Award is to an entity that may have specific capabilities relevant to the State Department's mission.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on facilities support and staffing. The federal government spends billions annually on such services to maintain operations across various agencies. Benchmarking this specific $1.16 million contract is challenging without more granular data on the services provided and the labor categories involved. However, it represents a small fraction of the overall federal expenditure on administrative and operational support.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large business prime contractor, and any potential for small business participation would likely be at the discretion of the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of hours, rates, and deliverables is crucial to ensure cost control and prevent scope creep. Transparency is limited by the sole-source nature and the lack of publicly available performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Management Contracts
Government Staffing and Administrative Support
Department of State Operational Support
Sole-Source Service Contracts

Risk Flags

Sole-source award may limit cost-effectiveness.
Time and Materials contract type poses cost overrun risks.
Lack of detailed service description hinders performance assessment.
Limited public information on competition rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $1.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. STAFFING SUPPORT SERVICES

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 $1.2 million.

What is the period of performance?

Start: 2022-04-15. End: 2024-01-16.

What specific staffing support services are being provided under this contract?

The provided data categorizes this contract under 'STAFFING SUPPORT SERVICES' and the North American Industry Classification System (NAICS) code 561210, which corresponds to 'Facilities Support Services'. This suggests the contract likely involves personnel to assist with the operational and administrative functions related to the maintenance, management, and support of facilities. Examples could include administrative assistants, facility coordinators, help desk support, or other personnel crucial for the day-to-day functioning of the Department of State's physical infrastructure and related operations. However, the exact nature of the 'staffing support' is not detailed, making it difficult to ascertain the precise scope of work.

How does the Time and Materials (T&M) pricing structure compare to other similar contracts for staffing support?

Time and Materials (T&M) contracts are common for services where the extent or duration of the work cannot be predetermined, such as certain types of IT support, repairs, or undefined project tasks. However, they carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the actual labor hours and materials used, plus a fee or profit. For staffing support, T&M can be justified if the exact number of hours or specific skill sets needed fluctuates unpredictably. A comparison to similar contracts would ideally involve looking at other State Department or agency contracts for facilities support or staffing, analyzing their pricing structures (T&M vs. fixed-price), labor rates, and overall cost performance to determine if this contract's rates are competitive and if the T&M approach is indeed the most appropriate and cost-effective.

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

The provided data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION', which is synonymous with a sole-source award. Government agencies typically award contracts on a sole-source basis when only one responsible source is available or capable of meeting the agency's needs. Common justifications include unique capabilities, proprietary technology, urgent and compelling requirements where competition is not feasible, or when a previous contract was terminated for default and only one other source exists. Without further documentation from the Department of State, the specific rationale for deeming Cherokee Nation System Solutions LLC the sole source for these staffing support services remains unknown. This lack of competition limits the government's ability to ensure it is receiving the best possible price and value.

What is the track record of Cherokee Nation System Solutions LLC in delivering similar staffing support services?

Cherokee Nation System Solutions LLC (CNSS) is a significant government contractor with a history of performing various service contracts across multiple federal agencies. While the provided data does not detail their performance on this specific contract (as it was awarded in April 2022 and ends in January 2024), CNSS generally has experience in areas such as IT services, facilities management, and operational support. Assessing their track record would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on similar contracts with agencies like the Department of State or others. Their status as a large business suggests they have the capacity and experience to handle substantial government requirements, but specific performance quality on staffing support would require deeper investigation into their contract history.

How does the $1.16 million award compare to historical spending on staffing support by the Department of State?

The $1.16 million award for staffing support services over approximately 21 months (April 2022 - January 2024) represents a moderate expenditure for the Department of State. To contextualize this, one would need to analyze the Department's historical spending patterns on similar services (e.g., facilities support, administrative staffing) over previous fiscal years. The Department of State manages a vast global operation, and its spending on support services can fluctuate based on mission requirements, facility needs, and budget allocations. This particular award, averaging roughly $660,000 per year, is likely a component of a larger support services budget. Without access to historical spending data for comparable contracts or categories, it's difficult to definitively state whether this award is higher or lower than typical, but it does not appear to be an exceptionally large single award in the context of a major federal agency.

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: TIME AND MATERIALS (Y)

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: $1,157,429

Exercised Options: $1,157,429

Current Obligation: $1,157,429

Actual Outlays: $968,071

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