State Department awards $61.5M contract for staffing support services to Cherokee Nation System Solutions LLC

Contract Overview

Contract Amount: $61,505 ($61.5K)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2024-09-28

End Date: 2025-09-27

Contract Duration: 364 days

Daily Burn Rate: $169/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 $61,504.72 to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFFING SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Pricing structure is Time and Materials, which can lead to cost overruns if not managed closely. 3. The contract duration is one year, suggesting a need for ongoing operational support. 4. The awardee, Cherokee Nation System Solutions LLC, is a significant player in government contracting. 5. The service category, Facilities Support Services, is critical for agency operations. 6. The contract value is substantial, indicating a significant operational requirement.

Value Assessment

Rating: fair

The contract value of $61.5 million for one year of staffing support services appears to be within a reasonable range for a federal agency of the State Department's size and scope. However, without specific details on the services provided and the labor categories involved, a precise value-for-money assessment is difficult. The Time and Materials pricing model introduces inherent risk for cost escalation, making vigilant oversight crucial to ensure fair pricing against market rates for similar support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive bidding process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not achieve the most competitive pricing available in the market.

Public Impact

The primary beneficiary is the Department of State, which will receive essential staffing support services. These services are crucial for the day-to-day operations and administrative functions of the agency. The contract's impact is concentrated in the District of Columbia, where the agency's facilities are located. The contract supports jobs within the awarded company, contributing to the workforce in the government contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs and potential overruns.
Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed service scope makes it difficult to benchmark performance and value.
Contract duration of one year may indicate a short-term need or a strategy to avoid longer-term commitments without performance data.

Positive Signals

Award to a known entity like Cherokee Nation System Solutions LLC suggests a level of established performance.
The contract addresses a clear operational need for staffing support.
The value, while substantial, is for a defined one-year period, allowing for reassessment.

Sector Analysis

Staffing support services fall under the broader professional, scientific, and technical services sector, which is a significant component of federal spending. This contract specifically relates to facilities support, a common requirement across many government agencies. The market for these services is competitive, but sole-source awards bypass typical market dynamics. Benchmarking this contract's value is challenging without detailed service descriptions, but similar large-scale support contracts can range from tens to hundreds of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, and the awardee is not a small business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs will be essential to ensure compliance and prevent cost overruns. Transparency regarding the specific services rendered and the justification for the sole-source award would enhance accountability.

Related Government Programs

Facilities Management Services
Administrative Support Services
Professional and Technical Services
Government Staff Augmentation

Risk Flags

Sole-source award limits price competition.
Time and Materials pricing introduces cost overrun risk.
Lack of detailed service scope hinders performance and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $61,504.72 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 $61,504.72.

What is the period of performance?

Start: 2024-09-28. End: 2025-09-27.

What specific staffing support services are included under this contract?

The provided data indicates the contract is for 'STAFFING SUPPORT SERVICES' under NAICS code 561210 (Facilities Support Services). However, the specific tasks, roles, and deliverables are not detailed in the summary. Typically, such contracts can encompass a wide range of support, including administrative personnel, facility maintenance staff, security personnel, or specialized technical support. A comprehensive understanding of the service scope is crucial for evaluating performance, cost-effectiveness, and the necessity of a sole-source award.

How does the Time and Materials pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. While flexible, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. For well-defined services, fixed-price contracts generally offer better cost certainty and incentivize contractor efficiency. The State Department's choice of T&M suggests either a highly variable need or a potential lack of detailed scope definition at the time of award.

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

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal regulations permit sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without further documentation from the agency, the precise justification for this sole-source award to Cherokee Nation System Solutions LLC remains unclear. This lack of competition limits the government's ability to leverage market forces for the best possible price and value.

What is the track record of Cherokee Nation System Solutions LLC with the Department of State?

Cherokee Nation System Solutions LLC (CNSS) is a significant government contractor with a history of performing various services for federal agencies, including the Department of State. While specific details of their past performance with State are not provided in this data snippet, CNSS generally holds numerous prime contracts across different departments. Their experience suggests a capacity to manage complex requirements. A deeper dive into their performance history, including past performance evaluations and any disputes or contract modifications, would provide a more robust assessment of their reliability for this specific staffing support role.

How does the $61.5 million annual value compare to historical spending on similar services by the Department of State?

The $61.5 million annual value for staffing support services is a substantial figure. To benchmark this against historical spending, one would need to analyze the Department of State's procurement history for similar facilities support and staffing augmentation contracts over previous fiscal years. Comparing this award to the total budget allocated for such services, as well as the number and value of similar contracts awarded to other vendors, would provide context. Without this historical data, it's difficult to definitively state whether this represents an increase, decrease, or stable level of spending for these types of services.

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

Solicitation ID: 19AQMM20R0327

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: $74,505

Exercised Options: $74,505

Current Obligation: $61,505

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