Treasury's IRS Spends $208.6M on Paper Processing Clerical Support with Cherokee Nation Federal Consulting

Contract Overview

Contract Amount: $208,619,494 ($208.6M)

Contractor: Cherokee Nation Federal Consulting, L.L.C.

Awarding Agency: Department of the Treasury

Start Date: 2022-04-21

End Date: 2024-06-30

Contract Duration: 801 days

Daily Burn Rate: $260.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAPER PROCESSING CLERICAL SUPPORT PROGRAM

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64108

State: Missouri Government Spending

Plain-Language Summary

Department of the Treasury obligated $208.6 million to CHEROKEE NATION FEDERAL CONSULTING, L.L.C. for work described as: PAPER PROCESSING CLERICAL SUPPORT PROGRAM Key points: 1. Significant contract value of over $208 million for clerical support services. 2. Competition method indicates a competitive process, but specific details are limited. 3. Potential risk associated with reliance on a single vendor for critical administrative functions. 4. The sector is Office Administrative Services, a common area for government contracting.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a degree of cost control. Benchmarking against similar clerical support contracts would be necessary for a definitive value assessment, but the scale indicates a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific exclusions. This method can impact price discovery by limiting the pool of potential bidders.

Taxpayer Impact: The substantial contract value means taxpayer funds are being allocated to this service. Ensuring efficiency and value for money is crucial for responsible fiscal management.

Public Impact

Taxpayers fund essential administrative services for the IRS. The contract supports the operational efficiency of tax processing. Job creation and economic activity may result from this contract. Ensuring data security and privacy in clerical support is paramount.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in
Reliance on a single vendor for critical functions
Limited transparency on specific service delivery metrics

Positive Signals

Firm fixed price contract
Competitive award process
Long-term service provision

Sector Analysis

The Office Administrative Services sector is vital for government operations, encompassing a wide range of support functions. Spending benchmarks for this category can vary widely based on agency size and specific needs.

Small Business Impact

The contract data indicates the awardee is 'CHEROKEE NATION FEDERAL CONSULTING, L.L.C.' Further analysis would be needed to determine the extent of small business participation or subcontracting within this award.

Oversight & Accountability

The contract's duration and value warrant robust oversight to ensure performance standards are met and funds are used effectively. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Office Administrative Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

High contract value
Long contract duration
Potential for single-vendor dependency
Limited details on specific service metrics
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $208.6 million to CHEROKEE NATION FEDERAL CONSULTING, L.L.C.. PAPER PROCESSING CLERICAL SUPPORT PROGRAM

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION FEDERAL CONSULTING, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $208.6 million.

What is the period of performance?

Start: 2022-04-21. End: 2024-06-30.

What specific clerical support tasks are included in this $208.6 million contract, and how do they align with the IRS's core mission?

The contract covers 'PAPER PROCESSING CLERICAL SUPPORT PROGRAM,' likely encompassing tasks such as document handling, data entry, filing, and other administrative duties related to tax forms and correspondence. These tasks are crucial for the IRS's operational efficiency in processing tax returns and managing taxpayer information, directly supporting its core mission of tax administration and enforcement.

What are the key risks associated with awarding a contract of this magnitude to a single entity for clerical support?

Key risks include potential vendor lock-in, where the government becomes overly dependent on the contractor, making future transitions difficult and potentially costly. There's also a risk of service disruption if the contractor faces financial or operational issues. Furthermore, a lack of ongoing competition could lead to complacency and reduced innovation or efficiency over time.

How effectively does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method ensure optimal value and service quality for this large clerical support contract?

This method suggests a competitive process was initiated, but certain sources were excluded. While it can still yield competitive pricing, the exclusions might limit the range of innovative solutions or the most cost-effective providers. The effectiveness in ensuring optimal value depends heavily on the justification for exclusions and the rigor of the evaluation process for the remaining bidders.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 200E, 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: $313,957,408

Exercised Options: $208,619,494

Current Obligation: $208,619,494

Actual Outlays: $208,619,494

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $730,354,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline