State Department awards $9.1M facilities support contract to Cherokee Nation System Solutions LLC

Contract Overview

Contract Amount: $9,091,361 ($9.1M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2029-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EAP STAFF SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $9.1 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: EAP STAFF SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 5 years suggests a need for stable, long-term support. 3. Services fall under facilities support, a common but critical government function. 4. Contract type is Time and Materials, which can pose cost control challenges. 5. Awardee is a large business, with no explicit small business set-aside noted. 6. Geographic location in Virginia may indicate support for a specific regional facility.

Value Assessment

Rating: fair

The contract value of $9.1 million over five years averages to approximately $1.8 million annually. Without specific benchmarks for facilities support services at this scale and location, a direct value-for-money assessment is challenging. The Time and Materials pricing structure, while flexible, requires diligent oversight to ensure costs remain reasonable and do not escalate beyond initial expectations. Comparison to similar contracts for facilities management at Department of State facilities or other federal agencies of comparable size would be necessary for a more robust valuation.

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 a specific contractor possesses unique capabilities, or when circumstances necessitate an immediate award without a competitive process. The lack of competition means that potential savings from a bidding process were not realized, and the government did not benefit from the price discovery that open competition provides.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The Department of State benefits from essential facilities support services, ensuring operational continuity. Services likely include maintenance, repair, and management of government facilities. The contract's impact is primarily concentrated in Virginia, where the services are rendered. Workforce implications include employment opportunities for individuals in facilities management and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns without strong oversight.
Sole-source award limits competitive pressure, potentially leading to suboptimal pricing.
Lack of detailed performance metrics in the provided data makes assessing service quality difficult.

Positive Signals

Award to Cherokee Nation System Solutions LLC, an established entity, suggests a degree of reliability.
Long-term contract duration (5 years) indicates a stable and ongoing need for these services.
The contract supports critical government functions, ensuring operational readiness.

Sector Analysis

Facilities Support Services (NAICS 561210) represent a significant segment of the government contracting market, encompassing a wide range of services from building maintenance and operations to groundskeeping and custodial work. Federal spending in this sector is substantial, driven by the vast real estate portfolio managed by various agencies. This contract fits within the broader category of professional, scientific, and technical services, often awarded to specialized firms. Benchmarking would involve comparing this contract's value and scope to other similar facilities management contracts awarded by the Department of State or other agencies with comparable facility needs.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside, and the prime contractor, Cherokee Nation System Solutions LLC, is a large business. This suggests that opportunities for small businesses would likely be through subcontracting, if any are planned by the prime. The absence of a specific small business subcontracting goal in the provided data makes it difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, material costs, and adherence to the scope of work is crucial to ensure accountability and prevent cost overruns. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are not publicly available without further inquiry. The Inspector General's office for the Department of State would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Facilities Operations and Maintenance
Government Property Management
Base Operations Support
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award limits price competition.
Time and Materials contract type requires strong oversight to control costs.
Lack of detailed performance metrics hinders assessment of service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $9.1 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. EAP STAFF 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 $9.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-09-29.

What is the track record of Cherokee Nation System Solutions LLC in performing similar facilities support contracts for the federal government?

Cherokee Nation System Solutions LLC (CNSS) has a history of performing various government contracts, including those related to IT, logistics, and professional services. While specific details on their facilities support performance for the Department of State are not immediately available in this data, CNSS is a significant federal contractor. A deeper dive into their contract history, past performance reviews, and any reported issues on similar facilities support contracts would be necessary to fully assess their track record. This would involve reviewing databases like the Federal Procurement Data System (FPDS) and potentially agency-specific performance management systems to gauge their reliability and effectiveness in delivering services comparable to those required under this award.

How does the estimated annual cost of this contract compare to similar facilities support contracts awarded by the Department of State?

The estimated annual cost for this contract is approximately $1.82 million ($9.1M / 5 years). To benchmark this effectively, we would need to compare it against similar facilities support contracts awarded by the Department of State or other agencies for facilities of comparable size, complexity, and geographic location. Factors such as the scope of services (e.g., maintenance, security, janitorial, groundskeeping), the specific types of facilities supported (e.g., office buildings, embassies, specialized installations), and the prevailing labor rates in the Virginia area would influence cost comparisons. Without access to a database of comparable contracts with detailed service scopes and pricing, a precise comparison is difficult. However, the annual value suggests a substantial contract, likely covering comprehensive support for a significant facility or complex.

What are the primary risks associated with a Time and Materials (T&M) contract for facilities support services?

Time and Materials (T&M) contracts, like the one awarded to Cherokee Nation System Solutions LLC, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure can lead to cost overruns if not managed diligently, as there is less incentive for the contractor to control labor hours or material costs compared to a fixed-price contract. Key risks include scope creep, inefficient labor practices, inflated material costs, and potential for fraudulent billing. Effective risk mitigation requires robust government oversight, detailed tracking of hours and materials, clear definition of tasks, and strong negotiation of labor rates and material markups.

What is the potential impact of this sole-source award on future competition for similar facilities support services?

A sole-source award, by definition, bypasses the competitive bidding process. This means that other qualified contractors did not have the opportunity to propose their services and pricing for this specific requirement. While there might be justifiable reasons for a sole-source award (e.g., unique capabilities, urgent need), it can potentially discourage future competition if potential bidders perceive that opportunities are not being openly competed. Over time, a pattern of sole-source awards could lead to a less dynamic market for these services, potentially resulting in higher prices or reduced innovation as contractors face less pressure to differentiate themselves. The Department of State should ensure that sole-source justifications are robust and that competitive opportunities are pursued whenever feasible.

How does the duration of this contract (5 years) align with typical federal contracting practices for facilities support?

A five-year contract duration, including any option periods, is relatively common for federal service contracts, particularly those involving ongoing operational needs like facilities support. This duration allows for stability and continuity of services, which is crucial for maintaining government facilities. It also provides the contractor with a reasonable period to recoup investments and achieve economies of scale. Federal Acquisition Regulation (FAR) Part 17 addresses multiyear contracting, and while this specific award might not be a formal multiyear contract, its length reflects a strategic decision to secure long-term support. The duration is generally considered appropriate for services requiring specialized knowledge and consistent performance, balancing the need for stability with the government's ability to re-evaluate requirements periodically.

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: $18,155,465

Exercised Options: $9,091,361

Current Obligation: $9,091,361

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