Treasury's IRS awards $14.7M contract for physical security and surveillance systems to Cherokee Federal Solutions

Contract Overview

Contract Amount: $14,664,919 ($14.7M)

Contractor: Cherokee Federal Solutions, L.L.C.

Awarding Agency: Department of the Treasury

Start Date: 2023-10-20

End Date: 2026-10-19

Contract Duration: 1,095 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL SECURITY AND SURVEILLANCE SYSTEMS SERVICE (PS4)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.7 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C. for work described as: PHYSICAL SECURITY AND SURVEILLANCE SYSTEMS SERVICE (PS4) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for physical security and surveillance systems services, a critical area for government facilities. 3. The duration of 1095 days (3 years) indicates a medium-term need for these services. 4. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The fixed-price contract type helps manage cost certainty for the government. 6. The contractor, Cherokee Federal Solutions, L.L.C., is a known entity in the federal contracting space.

Value Assessment

Rating: good

Benchmarking the value of this $14.7 million contract requires more specific data on the scope of services and the systems deployed. However, the firm fixed-price structure provides cost certainty. Comparing this to similar physical security and surveillance contracts across federal agencies would offer a clearer picture of value for money. The contract's duration and the nature of the services suggest a standard market rate is likely being applied, but without detailed service level agreements or system specifications, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a delivery order suggests it might be part of a broader IDIQ contract that was itself competed. The number of bidders (2) is on the lower side for a full and open competition, which could potentially limit price discovery, but it still represents a competitive process.

Taxpayer Impact: A competitive award process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Public Impact

The Internal Revenue Service (IRS) will benefit from enhanced physical security and surveillance capabilities. Services delivered include the maintenance, operation, and potentially installation of physical security and surveillance systems. The geographic impact is focused on IRS facilities within the District of Columbia. The contract supports jobs within the security services sector, likely benefiting a specialized workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential barriers to entry or a niche market.
The specific scope of 'physical security and surveillance systems services' is broad and requires detailed understanding to fully assess value and performance.
Reliance on a single delivery order for a significant amount necessitates understanding the underlying IDIQ or contract vehicle's performance history.

Positive Signals

Awarded through full and open competition, demonstrating a commitment to market-based procurement.
Firm fixed-price contract type offers budget predictability for the IRS.
The contractor, Cherokee Federal Solutions, L.L.C., has experience in federal contracting, suggesting a level of established capability.

Sector Analysis

The physical security and surveillance systems market is a significant sector within the broader government contracting landscape. This contract falls under engineering services (NAICS 541330) but is specifically focused on security technology and services. The federal government is a major consumer of these services, driven by national security needs, protection of critical infrastructure, and safeguarding sensitive information and facilities. Spending in this area is often influenced by threat assessments and evolving technological capabilities in surveillance and access control.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Cherokee Federal Solutions, L.L.C. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this delivery order. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor's overall subcontracting practices would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the IRS and the Department of the Treasury. Accountability is established through the firm fixed-price contract terms, performance metrics, and delivery schedules. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Physical Security Services
Surveillance Systems
Facilities Management Contracts
Department of the Treasury Contracts
IRS Procurement

Risk Flags

Limited number of bidders in competition.
Potential for undefined scope in 'security services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.7 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C.. PHYSICAL SECURITY AND SURVEILLANCE SYSTEMS SERVICE (PS4)

Who is the contractor on this award?

The obligated recipient is CHEROKEE FEDERAL SOLUTIONS, 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 $14.7 million.

What is the period of performance?

Start: 2023-10-20. End: 2026-10-19.

What is the specific scope of 'physical security and surveillance systems services' covered under this contract?

The provided data does not detail the specific services included under 'PHYSICAL SECURITY AND SURVEILLANCE SYSTEMS SERVICE (PS4)'. Typically, such contracts can encompass a wide range of activities including the installation, maintenance, repair, and monitoring of security systems such as CCTV, access control systems, intrusion detection systems, and alarm systems. It may also include security assessments, system upgrades, and integration services. A thorough understanding of the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order would be necessary to define the precise scope and deliverables.

How does the $14.7 million award compare to historical spending on similar services by the IRS or Treasury?

Without access to historical spending data specifically for physical security and surveillance systems at the IRS or Treasury, a direct comparison is not possible. However, $14.7 million over three years represents an average annual expenditure of approximately $4.9 million. This figure should be benchmarked against the agency's overall security budget and the number and size of facilities requiring these services. If the IRS operates numerous high-security facilities, this amount might be considered moderate. Conversely, if the scope is limited, it could represent a significant investment. Further analysis would require examining past contract awards for similar services within these agencies.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These critical elements are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a physical security and surveillance contract, common KPIs might include system uptime percentages, response times to security alerts, successful detection rates, and timely completion of maintenance tasks. SLAs would define the expected standards for these metrics, and failure to meet them could result in penalties or corrective actions, impacting contractor performance evaluations.

What is Cherokee Federal Solutions, L.L.C.'s track record with the IRS and similar federal agencies for security services?

Cherokee Federal Solutions, L.L.C. is a known entity in the federal contracting space, often performing work across various agencies. To assess their track record specifically with the IRS and for security services, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). Their history with similar surveillance and security system contracts for agencies like the Department of Homeland Security, FBI, or other law enforcement and intelligence agencies would also be relevant indicators of their capability and reliability in this domain.

Given the firm fixed-price contract type, what is the risk of cost overruns or scope creep for the government?

The firm fixed-price (FFP) contract type generally shifts the risk of cost overruns to the contractor, which is advantageous for the government. However, risks can still emerge. Scope creep, where the government requests additional work beyond the original agreement, can lead to contract modifications and increased costs, even under an FFP structure. The government must carefully manage the scope and resist informal changes. If the contractor underestimated costs due to unforeseen complexities or market changes, they bear the loss, potentially impacting their motivation or ability to perform future work effectively. Clear definition of the initial scope is paramount to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2032H8-23-Q-00003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Federal Solutions L.L.C.

Address: 2 W. 2ND ST., TULSA, OK, 74103

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $31,523,709

Exercised Options: $19,356,040

Current Obligation: $14,664,919

Actual Outlays: $12,784,740

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,321,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA19D005Y

IDV Type: FSS

Timeline