State Department awards $7.5M IT support contract to Cherokee Nation System Solutions, a sole-source purchase order

Contract Overview

Contract Amount: $7,525,739 ($7.5M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2022-07-01

End Date: 2025-07-31

Contract Duration: 1,126 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROFESSIONAL IT SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $7.5 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: PROFESSIONAL IT SUPPORT SERVICES Key points: 1. Contract awarded via sole-source purchase order, limiting price competition and potentially increasing costs. 2. Firm Fixed Price contract type provides cost certainty but may not capture efficiencies. 3. Duration of over 3 years suggests a need for stable, long-term IT support. 4. NAICS code 541511 indicates custom computer programming services, a critical IT function. 5. No small business set-aside or subcontracting noted, potentially excluding smaller firms. 6. Awarded by the Department of State, indicating a need for specialized IT services within a federal agency.

Value Assessment

Rating: questionable

Benchmarking the value of this $7.5 million contract is challenging without more detailed service descriptions and comparison points. The sole-source nature of the award means there was no direct price competition to establish a market-driven rate. However, the firm fixed-price structure provides a degree of cost predictability for the agency. The duration of the contract (over three years) suggests a significant scope of work, and the per-unit cost would depend heavily on the specific IT services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed openly. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means that the Department of State did not benefit from multiple bids to drive down prices or explore a wider range of solutions.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the best possible value for the services rendered.

Public Impact

Federal employees within the Department of State will benefit from reliable IT support, ensuring operational continuity. Services delivered include custom computer programming and IT support, crucial for agency operations. The geographic impact is primarily within the Department of State's operational locations, likely concentrated in Virginia. Workforce implications include the direct employment of IT professionals by Cherokee Nation System Solutions to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of small business participation may limit opportunities for smaller, specialized IT firms.
Contract duration and value suggest a significant reliance on a single vendor for critical IT functions.

Positive Signals

Firm Fixed Price contract provides budget certainty for the Department of State.
Award to a specific contractor suggests a potentially established relationship or unique capability.
Long-term contract indicates a recognized need for sustained IT support services.

Sector Analysis

The IT services sector is highly dynamic, with significant government spending allocated to custom computer programming and IT support. This contract falls within the broader IT services market, which is characterized by a mix of large prime contractors and specialized small businesses. Government agencies often rely on these services for maintaining legacy systems, developing new software, and ensuring network security and operational efficiency. Benchmarks for similar contracts vary widely based on scope, complexity, and security requirements.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of mandatory small business subcontracting. This means that opportunities for small businesses to participate in this specific contract were likely limited. The award to a larger entity, Cherokee Nation System Solutions, suggests that the primary focus was on securing the required IT services rather than specifically fostering small business growth through this procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts. The Inspector General for the Department of State would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Support Contracts
Custom Computer Programming Services Contracts
Sole-Source IT Procurement Vehicles

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.5 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. PROFESSIONAL IT 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 $7.5 million.

What is the period of performance?

Start: 2022-07-01. End: 2025-07-31.

What is the track record of Cherokee Nation System Solutions with the Department of State or similar federal agencies?

Cherokee Nation System Solutions (CNSS) has a history of performing IT services for various federal agencies, including the Department of State. Their past performance often includes areas like cybersecurity, network engineering, and software development. Analyzing their specific contract history with the State Department, including past performance reviews and any documented issues, would provide further insight into their reliability and capability for this specific IT support role. Without access to detailed performance metrics and past award data, a comprehensive assessment of their track record is limited to general industry knowledge of their service offerings and federal contracting presence.

How does the value of this contract compare to similar IT support contracts awarded by the Department of State or other agencies?

Direct comparison of this $7.5 million contract's value is difficult without knowing the precise scope and duration of services. However, federal IT support contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on the complexity, number of users supported, and specific technical requirements. Given this contract's duration of over three years and its sole-source nature, it suggests a significant, potentially specialized, IT support requirement. If this contract covers a broad range of custom programming and ongoing support for a large user base, its value might be within the expected range for such services. Conversely, if the scope is narrower, the lack of competition could have inflated the price relative to what a competitive bid might have yielded.

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

The primary risk associated with a sole-source award for IT support services is the potential for inflated costs due to the absence of competitive pricing. Without multiple vendors vying for the contract, the government may not achieve the best possible value for its money. Another risk is a potential lack of innovation, as the sole provider may have less incentive to introduce new technologies or efficiencies. Furthermore, reliance on a single vendor can create vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or market conditions change. This also concentrates risk, as any disruption with the sole provider could significantly impact the agency's operations.

What is the expected effectiveness of this contract in ensuring the Department of State's IT operational continuity?

The effectiveness of this contract in ensuring IT operational continuity hinges on the contractor's ability to deliver the specified custom computer programming and support services reliably and efficiently. The firm fixed-price structure provides a clear expectation of cost, but the actual effectiveness will depend on the quality of service, responsiveness to issues, and the contractor's technical expertise. Given the sole-source nature, the Department of State has likely assessed Cherokee Nation System Solutions as having the unique capability or existing relationship necessary to maintain continuity. However, ongoing performance monitoring and clear service level agreements are crucial to ensure the contract meets its objectives and maintains the agency's IT operations without interruption.

How has federal spending on custom computer programming services (NAICS 541511) trended in recent years, and where does this contract fit?

Federal spending on custom computer programming services (NAICS 541511) has generally trended upwards over the past decade, reflecting the increasing reliance of government agencies on specialized software and IT solutions to meet evolving mission requirements. This category encompasses a wide range of services, from developing new applications to modifying existing software. This $7.5 million contract for the Department of State fits within this trend, representing a specific investment in tailored IT capabilities. While the total federal spending in this category is in the billions, individual contracts like this one are essential components of agencies' IT infrastructure and modernization efforts. The sole-source nature of this award, however, means it represents a specific, non-competitive allocation within this broader spending category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM22Q0081

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 200-A17, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, 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: $13,475,422

Exercised Options: $13,475,422

Current Obligation: $7,525,739

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline