State Department awards $5.1M for staffing support, raising questions on competition and value

Contract Overview

Contract Amount: $5,150,858 ($5.2M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STAFFING 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 $5.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFFING SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about achieving the best possible value for taxpayer funds. 3. The contract duration of nearly four years suggests a long-term need for these services. 4. Performance is tied to facilities support services, indicating a critical operational function. 5. The awardee, Cherokee Nation System Solutions LLC, has a track record in government contracting. 6. No small business set-aside was utilized, potentially impacting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $5.1 million over approximately four years for staffing support appears moderate. Without specific benchmarks for similar staffing support contracts within the Department of State or comparable agencies, a precise value-for-money assessment is challenging. The sole-source nature of the award also limits the ability to compare pricing against competitive bids. However, the duration suggests a sustained need, and the pricing will be a key factor in evaluating its fairness over the contract's life.

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 responsible source can satisfy the agency's needs. The lack of competition means that multiple bidders were not considered, which can limit the government's ability to negotiate the most favorable pricing and terms. Price discovery is therefore constrained.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the competitive pressure that typically drives down prices. This limits the potential for cost savings.

Public Impact

The Department of State benefits from continuous staffing support to maintain its facilities. Services delivered are essential for the operational continuity of the agency's physical infrastructure. The geographic impact is primarily within the District of Columbia, where the contract is registered. Workforce implications include the employment of individuals by Cherokee Nation System Solutions LLC to fulfill the staffing needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns due to absence of competitive bidding.
Limited opportunities for small businesses to participate in this contract.

Positive Signals

Awardee has experience in government contracting.
Contract supports essential facilities operations for the Department of State.
Clear contract duration provides predictability for service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. The federal government is a significant consumer of these services across various agencies. Benchmarking this contract's value against similar facilities support contracts within the federal government would require detailed analysis of scope, duration, and specific service requirements, but the $5.1 million value over four years is a substantial commitment.

Small Business Impact

The 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 directly participate in this contract are limited. The prime contractor, Cherokee Nation System Solutions LLC, may or may not engage small businesses for subcontracting, but it is not a mandated element of this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award, with less public visibility into the justification and negotiation process compared to a fully competed contract. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed justification for sole-source award limits transparency.
Absence of specific performance metrics in provided data hinders evaluation.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.2 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. STAFFING SUPPORT

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 $5.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, agencies cite reasons such as the existence of only one responsible source, urgent and compelling needs that preclude full and open competition, or specific statutory authority. Without the agency's formal justification document (e.g., a Justification and Approval or J&A), it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source awards, as it limits public understanding of why competitive processes were bypassed.

How does the per-unit cost or hourly rate compare to similar staffing support contracts within the federal government?

The provided data does not include specific per-unit costs or hourly rates, only the total award amount ($5,150,857.60) and contract type (LABOR HOURS). To perform a meaningful comparison, one would need to know the number of labor hours anticipated, the types of labor (e.g., skill levels, roles), and the corresponding rates. Without this granular information, benchmarking against similar federal contracts is not feasible. A comparison would ideally involve analyzing contracts for similar staffing support services awarded by agencies like the General Services Administration (GSA) or other departments with comparable facility management needs, looking at average hourly rates for different labor categories.

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

Cherokee Nation System Solutions LLC (CNSS) is a known entity in federal contracting, often performing IT, logistics, and professional services. While the provided data doesn't detail their performance on this specific contract (as it's a delivery order under a larger award, likely with a prior performance history), CNSS generally has experience supporting government agencies. A thorough assessment would involve reviewing past performance evaluations (e.g., CPARS reports) for CNSS on similar contracts, looking for indicators of successful delivery, adherence to schedules, and client satisfaction. Their history in providing staffing support, particularly in facilities management or related operational areas, would be a key factor in evaluating their suitability and the likely success of this award.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the detailed performance measurement mechanisms for this contract. Typically, contracts for staffing support and facilities services include metrics related to timeliness of staffing, quality of personnel provided, adherence to schedules, responsiveness to requests, and overall client satisfaction. The Department of State's contracting officer and program managers are responsible for monitoring these aspects. Without access to the contract's Performance Work Statement (PWS) or Service Level Agreements (SLAs), a precise understanding of how performance is measured and evaluated is not possible. Regular performance reviews and reporting are standard oversight mechanisms.

How does this contract's spending compare to historical federal spending on facilities support services?

The $5.1 million award for staffing support over approximately four years represents a portion of the federal government's overall spending on facilities support services. Federal spending in this category is substantial, encompassing a wide array of services from maintenance and repair to security and administrative support across numerous agencies. To contextualize this specific contract, one would need to analyze broader federal procurement data. For instance, comparing this contract's annual value (roughly $1.2-1.3 million) against the total federal outlays for NAICS code 561210 (Facilities Support Services) over the contract period would provide perspective. This contract appears to be a moderate-sized award within a large federal spending domain.

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

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: $5,641,952

Exercised Options: $5,641,952

Current Obligation: $5,150,858

Actual Outlays: $861,688

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