HHS Awards $707M Contract for Unaccompanied Child Care Services to Cherokee Nation Management & Consulting

Contract Overview

Contract Amount: $706,894,848 ($706.9M)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-27

End Date: 2021-11-19

Contract Duration: 206 days

Daily Burn Rate: $3.4M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING DIRECT CARE AND SUPERVISION, INTAKE PROCESSING, CLOTHING, HYGIENE KITS, INTERIOR SECURITY, CASE MANAGEMENT AND MEDICAL SERVIC

Place of Performance

Location: POMONA, LOS ANGELES County, CALIFORNIA, 91768

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $706.9 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING DIRECT CARE AND SUPERVISION, INTAKE PROCESSING, CLOTHING, HYGIENE KITS, INTERIOR SECURITY, CASE MANAGEMENT AND MEDICAL SERVIC Key points: 1. Significant award for essential child welfare services. 2. Sole-source award raises questions about competition and price discovery. 3. High contract value presents potential for taxpayer risk if not managed effectively. 4. Focus on emergency relief services within the social services sector.

Value Assessment

Rating: questionable

The contract value of $707 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than a competitively awarded contract.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to inefficient use of taxpayer funds.

Public Impact

Provides critical care and supervision for unaccompanied children in ORR custody. Services include intake, medical care, case management, and security. Contract duration is relatively short (206 days), suggesting an urgent need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Addresses critical need for child welfare services
Experienced contractor likely involved

Sector Analysis

This contract falls within the Emergency and Other Relief Services sector, specifically related to the care of vulnerable populations. The award amount is high for this type of service, especially given its non-competitive nature.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight is crucial to ensure service quality, cost control, and accountability to taxpayers.

Related Government Programs

Emergency and Other Relief Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Sole-source award limits price competition.
High contract value increases financial risk.
Potential for cost overruns without competitive pressure.
Need for strong oversight to ensure service quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $706.9 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING DIRECT CARE AND SUPERVISION, INTAKE PROCESSING, CLOTHING, HYGIENE KITS, INTERIOR SECURITY, CASE MANAGEMENT AND MEDICAL SERVIC

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 Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $706.9 million.

What is the period of performance?

Start: 2021-04-27. End: 2021-11-19.

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

The justification for a sole-source award typically involves a critical need, lack of available sources, or specific capabilities possessed by only one contractor. For unaccompanied child care, urgent humanitarian needs might have driven this decision, but a detailed justification is required to assess its validity and ensure it wasn't a missed opportunity for competition.

How will the government ensure cost-effectiveness and prevent overspending on this sole-source contract?

Ensuring cost-effectiveness without competition requires rigorous contract management, including detailed performance monitoring, regular cost reviews, and potentially independent cost analyses. The government should establish clear performance metrics and financial controls to hold the contractor accountable and mitigate risks associated with a lack of price discovery.

What measures are in place to guarantee the quality of care provided to the children under this contract?

Given the sensitive nature of caring for unaccompanied children, stringent quality assurance measures are paramount. This includes regular site visits, performance evaluations against service level agreements, child welfare expert reviews, and mechanisms for addressing any complaints or incidents promptly to ensure the well-being and safety of the children.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

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: $842,777,894

Exercised Options: $706,894,848

Current Obligation: $706,894,848

Actual Outlays: $341,687,435

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $206,064,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline