State Department awards $23.7M for professional support services to Cherokee Nation System Solutions LLC

Contract Overview

Contract Amount: $23,716,796 ($23.7M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2022-09-29

End Date: 2026-06-25

Contract Duration: 1,365 days

Daily Burn Rate: $17.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PM/DDTC PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74116

State: Oklahoma Government Spending

Plain-Language Summary

Department of State obligated $23.7 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: PM/DDTC PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost savings. 2. The contract duration of nearly four years suggests a long-term need for these services. 3. Services are categorized under Facilities Support, indicating a focus on operational infrastructure. 4. The award method, 'NOT AVAILABLE FOR COMPETITION', warrants further investigation into the justification. 5. The contract's value is moderate within the context of large federal service procurements. 6. Performance and payment status are marked as 'OK', suggesting no immediate issues.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable market rates. The 'NOT AVAILABLE FOR COMPETITION' award type often leads to higher prices than fully competed contracts. However, the contract value of $23.7 million over approximately 3.75 years averages to about $6.3 million annually, which is a moderate sum for professional support services in a federal agency. Without a competitive process, it's difficult to definitively assess if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT AVAILABLE FOR COMPETITION' method, indicating that a full and open competition was not conducted. This typically means that only one source was considered capable of meeting the agency's needs, or that specific circumstances justified a non-competitive award. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, which can limit price discovery.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This award method can potentially lead to higher costs compared to contracts that undergo robust competition.

Public Impact

The Department of State benefits from the provision of professional support services essential for its operations. These services likely contribute to the smooth functioning of facilities and administrative processes within the agency. The geographic impact is primarily within the Department of State's operational areas, likely concentrated in Washington D.C. and potentially other global locations. The contract supports the workforce by providing necessary professional services, potentially freeing up government personnel for core mission activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
The 'NOT AVAILABLE FOR COMPETITION' award type requires scrutiny to ensure proper justification.
Limited transparency into the specific services and performance metrics without a competitive baseline.

Positive Signals

Contract is with a recognized entity, Cherokee Nation System Solutions LLC.
Performance and payment status are currently marked as 'OK', indicating satisfactory execution to date.
The contract duration suggests a stable, ongoing need for these services.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on facilities support. The federal government is a significant consumer of such services, contracting for everything from building maintenance and management to administrative and operational support. The market for these services is competitive, but specific niche requirements or urgent needs can sometimes lead to non-competitive awards. The value of this contract is modest compared to larger, multi-billion dollar federal service contracts but represents a significant award for the contractor.

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 the prime contractor, Cherokee Nation System Solutions LLC.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of State's contracting and program management offices. Accountability measures are typically defined in the contract's statement of work and performance standards. Transparency is limited due to the non-competitive award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Professional Services Contracts
Federal Facilities Support Services
Non-Competitive Contract Awards
IT and Facilities Management Support

Risk Flags

Non-competitive award requires justification review.
Potential for cost overruns due to lack of competition.
Need for detailed performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.7 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. PM/DDTC PROFESSIONAL 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 $23.7 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-06-25.

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

The provided data categorizes this contract under NAICS code 561210, which corresponds to Facilities Support Services. This typically includes a range of services such as building operation and maintenance, cleaning services, grounds maintenance, and potentially administrative support related to facility management. However, the exact scope of work, specific tasks, deliverables, and performance metrics are not detailed in the provided summary. Further review of the contract's Statement of Work (SOW) would be necessary to understand the precise nature and extent of the professional support being rendered by Cherokee Nation System Solutions LLC to the Department of State.

What is the justification for awarding this contract on a non-competitive basis?

The contract was awarded under the 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION) category. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, in cases of urgent and compelling need, or when a specific national defense requirement exists. Without access to the Justification for Other than Full and Open Competition (JOFOC) document, the precise reason for this sole-source award remains unknown. This justification is critical for understanding why a competitive process was bypassed and is a key area for oversight.

How does the pricing of this contract compare to similar federal facilities support services contracts?

Direct price comparison is difficult without knowing the specific services rendered and their associated labor categories and rates. However, contracts awarded on a non-competitive basis often carry a higher risk of being priced above fair market value compared to those that undergo full and open competition. The total award value of $23.7 million over approximately 1365 days (about 3.75 years) suggests an average annual value of roughly $6.3 million. To perform a true benchmark, one would need to compare the labor hours, rates, and overhead applied to this contract against similar facilities support contracts awarded competitively by the Department of State or other agencies for comparable services.

What is the track record of Cherokee Nation System Solutions LLC in performing federal contracts?

Cherokee Nation System Solutions LLC (CNSS) is a significant federal contractor. While the provided data indicates the current contract's status is 'OK' (ST: OK, SN: OKLAHOMA), a comprehensive assessment of their track record would involve reviewing their past performance on other federal contracts. This includes examining past performance evaluations, any instances of contract disputes, timely delivery, quality of work, and overall client satisfaction across their portfolio. CNSS, as a subsidiary of the Cherokee Nation, often leverages its status to secure government contracts, particularly in areas like IT, logistics, and professional services.

What are the potential risks associated with this contract, given its non-competitive nature?

The primary risk associated with this contract is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not achieve the most favorable pricing. Other risks include potential for scope creep if the requirements are not tightly managed, and a reduced incentive for the contractor to innovate or provide exceptional service beyond the minimum requirements. Furthermore, the justification for the non-competitive award itself needs to be robust to ensure taxpayer funds are being used appropriately and that the agency genuinely could not obtain the services through a competitive process.

How does this contract fit into the Department of State's overall spending on facilities support?

This $23.7 million contract represents a portion of the Department of State's broader spending on facilities support and related professional services. The Department operates numerous facilities globally, requiring significant investment in maintenance, operations, and security. While this specific award is substantial, it needs to be viewed in the context of the agency's total budget and its overall contracting landscape. Understanding the agency's historical spending trends in this category and how this contract compares to previous awards or other ongoing contracts for similar services would provide better context.

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: $34,969,735

Exercised Options: $34,969,735

Current Obligation: $23,716,796

Actual Outlays: $4,588,204

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,619,437

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