DHS awards $20M for PM support to Cherokee Nation Management & Consulting, a sole-source definitive contract

Contract Overview

Contract Amount: $19,958,416 ($20.0M)

Contractor: Cherokee Nation Management & Consulting, L.L.C..

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-30

End Date: 2024-05-24

Contract Duration: 1,332 days

Daily Burn Rate: $15.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PM SUPPORT

Place of Performance

Location: EULESS, TARRANT County, TEXAS, 76040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.0 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: PM SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of 1332 days suggests a long-term need for these services. 3. Fixed-price contract type aims to control costs, but the lack of competition is a concern. 4. Services fall under Administrative Management and General Management Consulting, a broad category. 5. Awarded by U.S. Customs and Border Protection, indicating a focus on border security operations. 6. The contract value of approximately $20 million over its term warrants close performance monitoring.

Value Assessment

Rating: fair

The contract value of $19.96 million over approximately 3.6 years (1332 days) for administrative management and general management consulting services is difficult to benchmark without more specific service details. Given the sole-source nature, a direct comparison to competitively bid contracts is not feasible. The firm-fixed-price structure provides some cost certainty, but the absence of competition raises questions about whether the government achieved the best possible value. Further analysis would require understanding the specific deliverables and the contractor's performance history.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or authorized by statute. The lack of competition means that multiple bidders did not have the opportunity to offer their services and pricing, which can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing, potentially resulting in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS). The contract provides essential administrative management and general management consulting services to support CBP operations. Services are likely delivered within CBP's operational areas, primarily impacting its administrative and program management functions. The contract supports the workforce by providing management and consulting expertise, potentially improving efficiency and effectiveness of operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competition.
Contract duration is substantial, requiring sustained oversight.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded to a specific entity (Cherokee Nation Management & Consulting, L.L.C.) which may have specialized capabilities.
Contract supports critical functions within U.S. Customs and Border Protection.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under management consulting. This sector is a significant part of federal spending, supporting a wide range of government functions. The market for these services is competitive, but sole-source awards, like this one, represent a segment where specific circumstances dictate the procurement method. Benchmarking would typically involve comparing rates for similar consulting services across government agencies, adjusted for scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Cherokee Nation Management & Consulting, L.L.C., is an entity that may itself be considered a small business or a large business depending on its size standards, but the contract itself was not awarded under a small business set-aside program.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific justification for the sole-source award and ongoing performance monitoring would be key accountability measures. The Inspector General for the Department of Homeland Security may also have jurisdiction for audits or investigations if concerns arise regarding waste, fraud, or abuse.

Related Government Programs

DHS Program Management Support Contracts
CBP Administrative Services
Federal Management Consulting Services
Sole-Source Professional Services Awards

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Long contract duration requires sustained oversight.
Specific services and deliverables not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.0 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... PM SUPPORT

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C...

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2020-09-30. End: 2024-05-24.

What is the specific justification for awarding this contract on a sole-source basis to Cherokee Nation Management & Consulting, L.L.C.?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions, but also provides exceptions for non-competitive procurements. Common justifications for sole-source awards include that only one responsible source is available, or that the agency is specifically authorized by statute to use non-competitive procedures. Without access to the contract's justification and approval (J&A) document, the precise reason remains unknown. This document would detail why full and open competition was not feasible or not in the government's best interest for this specific requirement.

How does the firm-fixed-price (FFP) contract type mitigate risks in a sole-source award?

A firm-fixed-price (FFP) contract type is generally considered advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP contract, the contractor agrees to a total price for a well-defined scope of work, and is responsible for controlling costs to achieve profitability. This means the government's financial obligation is fixed, regardless of the contractor's actual costs. While FFP is beneficial for cost control, it does not inherently address the potential for inflated pricing that can arise from a lack of competition in a sole-source scenario. Therefore, robust performance monitoring and negotiation are still critical.

What is the typical cost range for similar Administrative Management and General Management Consulting Services contracts within DHS or CBP?

Benchmarking the cost of this $19.96 million contract requires detailed comparison with similar services. General Management Consulting Services (NAICS code 541611) can vary widely in price based on the specific services rendered, the level of expertise required, the duration, and the geographic location. Contracts for program management support, strategic planning, organizational analysis, and process improvement can range from tens of thousands to tens of millions of dollars. Without knowing the specific tasks, deliverables, and labor categories involved in this particular contract, providing a precise cost range is challenging. However, for a multi-year, comprehensive support contract within a major agency like DHS, a value in the tens of millions is not uncommon, though the sole-source nature warrants scrutiny.

What are the potential performance risks associated with a sole-source contract of this duration?

Sole-source contracts, especially those with a long duration like this 1332-day (approx. 3.6 years) award, carry specific performance risks. Without the pressure of ongoing competition, there's a potential for complacency or reduced incentive for the contractor to innovate or maintain peak performance. The government must implement rigorous performance management and oversight to ensure the contractor consistently meets or exceeds expectations. Key risks include potential scope creep if not managed tightly, contractor lock-in where switching providers becomes difficult or costly, and a diminished focus on delivering exceptional value over the contract's life. Regular performance reviews and clear metrics are essential to mitigate these risks.

How does the contractor's track record influence the assessment of this sole-source award?

A contractor's track record is a critical factor in assessing the risk and potential value of any award, particularly a sole-source one. If Cherokee Nation Management & Consulting, L.L.C. has a history of successful performance on similar contracts, delivering high-quality services on time and within budget, it lends credibility to the decision to award them this contract without competition. Conversely, a poor track record would raise significant concerns about the wisdom of a sole-source award. The government should have evaluated past performance data, client feedback, and any history of disputes or contract terminations when justifying the sole-source decision. Without this performance history, the assessment remains incomplete.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 70B01C20R00000154

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 777 W CHEROKEE ST, CATOOSA, OK, 74015

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: $24,284,240

Exercised Options: $19,958,416

Current Obligation: $19,958,416

Actual Outlays: $9,682,544

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,476,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline