State Department awards $9.6M for staff support, with Cherokee Nation Systems Solutions winning a sole-source contract

Contract Overview

Contract Amount: $9,605,110 ($9.6M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2022-08-01

End Date: 2026-04-30

Contract Duration: 1,368 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFF SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $9.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFF SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's duration of nearly four years suggests a need for sustained support. 3. Time and Materials pricing structure can pose risks if not closely managed. 4. The award is a delivery order under a larger contract vehicle. 5. The contractor, Cherokee Nation Systems Solutions, is a significant player in government contracting. 6. The services provided fall under facilities support, a common government need.

Value Assessment

Rating: fair

Benchmarking the value of this $9.6 million contract is challenging without more detailed service descriptions and comparison points. The Time and Materials (T&M) pricing model, while common for staff augmentation, can lead to cost overruns if not meticulously tracked and managed. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for the government. However, the duration of the contract suggests a stable, ongoing need for these services.

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 typically occurs when a specific contractor is uniquely qualified or when circumstances prevent full and open competition. The lack of multiple bidders means the government did not benefit from price discovery through a competitive bidding process, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government's ability to negotiate the best possible price is diminished in a sole-source scenario.

Public Impact

Federal employees within the Department of State will receive essential staff support services. The services contribute to the smooth operation and administrative functions of the agency. The contract's impact is primarily concentrated within the Department of State's operational framework. Workforce implications include the employment of personnel by Cherokee Nation Systems Solutions to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Time and Materials (T&M) contract type carries inherent risk of cost escalation if not managed stringently.
Lack of transparency in the justification for sole-source award.
Long contract duration could lock in potentially suboptimal pricing if market conditions change.

Positive Signals

Award to a known entity (Cherokee Nation Systems Solutions) suggests a potentially reliable service provider.
Delivery order structure implies it's part of an existing, potentially vetted, contract vehicle.
Focus on staff support indicates a critical operational need being met for the agency.

Sector Analysis

The facilities support services sector is a broad category encompassing a wide range of services essential for the operation of government facilities. This includes maintenance, administrative support, and specialized staffing. The market is competitive, with many firms offering these services. However, specific niche requirements or existing contract vehicles can lead to sole-source awards. The total federal spending on facilities support services is substantial, reflecting the government's extensive real estate footprint.

Small Business Impact

This contract was awarded to Cherokee Nation Systems Solutions, LLC, which is a significant entity. There is no indication of a small business set-aside for this specific award. The implications for the broader small business ecosystem are minimal unless Cherokee Nation Systems Solutions engages in subcontracting opportunities with small businesses, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a delivery order under a larger contract vehicle, there may be existing oversight mechanisms tied to that vehicle. Transparency regarding the justification for the sole-source award and ongoing performance monitoring will be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Sole Source Justification
Time and Materials Pricing Risk
Potential for Cost Overruns
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $9.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. STAFF 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 $9.6 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-04-30.

What is the track record of Cherokee Nation Systems Solutions LLC with the Department of State and similar federal agencies?

Cherokee Nation Systems Solutions LLC (CNSS) has a substantial track record of performing various services for federal agencies, including the Department of State. Their contract history often includes IT services, logistics, and professional support. For the Department of State specifically, CNSS has held contracts related to facilities management, cybersecurity, and program support. Analyzing their past performance ratings, any past performance issues, and the types of contracts they have successfully executed provides insight into their capability to deliver on this current staff support services award. A review of their award history indicates they are a frequent recipient of government contracts, suggesting a level of established trust and capability with various agencies.

How does the $9.6 million value compare to similar staff support contracts awarded by the Department of State or other agencies?

Comparing the $9.6 million value requires understanding the scope and duration. This contract spans approximately 32 months (August 2022 to April 2026), equating to an average annual value of roughly $3 million. Staff support contracts can vary widely in cost depending on the level of expertise required, the number of personnel, and the specific services rendered. For the Department of State, which has a large and complex operational footprint, $3 million annually for specialized staff support is within a reasonable range, especially if it involves critical administrative or operational functions. However, without detailed service descriptions, a precise benchmark against similar contracts is difficult. Contracts for general administrative support might be lower, while those requiring highly specialized technical or policy expertise could be higher.

What are the primary risks associated with a sole-source award for staff support services?

The primary risk associated with a sole-source award for staff support services is the lack of competitive pricing. When a contract is not competed, the government loses the opportunity to leverage market forces to secure the most cost-effective solution. This can lead to inflated prices compared to what might be achieved through open competition. Additionally, sole-source awards can sometimes indicate a lack of available qualified vendors or a rushed procurement process, which might introduce other risks related to vendor capability or contract management. For staff support, there's also the risk that the sole-source provider may not be as incentivized to innovate or improve service quality as they would be in a competitive environment, potentially impacting the long-term value delivered.

What is the potential impact of the Time and Materials (T&M) pricing structure on overall contract cost?

The Time and Materials (T&M) pricing structure presents a significant risk for cost control. Under T&M, the government pays the contractor for the actual labor hours expended at pre-negotiated hourly rates, plus the cost of materials used. While flexible and useful when the scope of work is uncertain, it places the onus on the government to closely monitor labor hours and material usage to prevent cost overruns. If not managed diligently, contractors may bill for excessive hours or inefficient work, driving up the total cost significantly beyond initial estimates. This contrasts with fixed-price contracts, where the contractor assumes more cost risk. For this $9.6 million contract, effective oversight and robust reporting mechanisms are crucial to mitigate the potential for uncontrolled cost growth.

How does this contract fit into the Department of State's broader strategy for facilities and administrative support?

This contract for staff support services likely plays a role in the Department of State's broader strategy to ensure efficient and effective operations across its global facilities and administrative functions. Agencies like the State Department rely heavily on robust support services to maintain their infrastructure, manage personnel, and execute diplomatic missions. By outsourcing specific staff support functions, the Department can focus its internal resources on core diplomatic and foreign policy objectives. The duration and value suggest a sustained need, indicating that these services are considered integral to the agency's ongoing operational requirements rather than a short-term or ad-hoc need. The specific nature of the support (facilities support) points to maintaining the physical and operational integrity of State Department locations.

What are the historical spending patterns for facilities support services at the Department of State?

Historical spending patterns for facilities support services at the Department of State are generally substantial, reflecting the agency's extensive domestic and international presence. The Department manages numerous embassies, consulates, and domestic offices, all requiring ongoing maintenance, security, and administrative support. While specific figures fluctuate annually based on budget allocations, infrastructure needs, and geopolitical events, spending in this category typically represents a significant portion of the agency's operational budget. Contracts for these services range from large, comprehensive facilities management agreements to more specialized support like the one awarded to Cherokee Nation Systems Solutions. Analyzing past spending trends can reveal patterns of reliance on specific types of support, the average duration and value of such contracts, and the prevalence of different contracting vehicles (e.g., sole-source vs. competitive).

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: $11,335,241

Exercised Options: $9,891,567

Current Obligation: $9,605,110

Actual Outlays: $2,133,788

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