HHS awards $2.17M for professional services, with competition driving value

Contract Overview

Contract Amount: $2,166,847 ($2.2M)

Contractor: Cherokee Nation Operational Solutions, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-29

End Date: 2023-03-25

Contract Duration: 361 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IDIQ - OFR SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.2 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C. for work described as: IDIQ - OFR SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period of 361 days indicates a short-term need for services. 4. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional services. 5. The award was a Delivery Order under an IDIQ contract, implying a pre-competed framework. 6. The contractor, Cherokee Nation Operational Solutions, L.L.C., is a significant entity in government contracting.

Value Assessment

Rating: good

Benchmarking the value of this $2.17 million contract requires comparison to similar professional services contracts within the federal government. Given the firm fixed-price structure, the government has a defined cost ceiling. However, without specific details on the services rendered, a precise value-for-money assessment is challenging. The contract's duration of approximately one year suggests a focused scope, which can sometimes lead to more efficient pricing if well-defined.

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 a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving fair market value. The use of an IDIQ (Indefinite Delivery, Indefinite Quantity) contract with a Delivery Order suggests that the initial IDIQ was competed, and this specific order was then placed.

Taxpayer Impact: Full and open competition typically results in more competitive pricing, which is advantageous for taxpayers by ensuring the government is not overpaying for necessary services.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from the professional services provided. The contract supports the agency's mission by procuring 'All Other Professional, Scientific, and Technical Services'. The geographic impact is primarily within Georgia, where the contract is managed. The workforce implications are tied to the contractor's ability to staff the required professional services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of services rendered.
The broad NAICS code (541990) can sometimes obscure the specific nature and complexity of the services procured.
Limited transparency on the number of bidders in the full and open competition makes it hard to gauge the intensity of competition.

Positive Signals

Awarded under full and open competition, indicating a commitment to competitive sourcing.
Firm Fixed Price contract type effectively caps costs for the government.
The contractor, Cherokee Nation Operational Solutions, L.L.C., has experience in federal contracting.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of federal spending. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a wide array of specialized services not classified elsewhere. This contract fits within the broader landscape of federal agencies procuring expert support for diverse operational needs. Comparable spending benchmarks would typically involve analyzing the average cost and duration of similar service contracts across various agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this specific award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the Centers for Disease Control and Prevention. As a Delivery Order under an IDIQ, the initial IDIQ contract likely underwent a review process. Accountability measures are inherent in the Firm Fixed Price structure, requiring the contractor to deliver specified services within the agreed cost. Transparency is facilitated by public contract databases, though detailed performance reports are not always publicly available.

Related Government Programs

Professional, Scientific, and Technical Services
Centers for Disease Control and Prevention Contracts
Department of Health and Human Services Contracts
IDIQ Contracts
Delivery Orders

Risk Flags

Broad NAICS code may obscure specific service details.
Lack of bidder count limits competition intensity assessment.
Performance metrics not detailed, hindering quality assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.2 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C.. IDIQ - OFR SERVICES

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2022-03-29. End: 2023-03-25.

What specific professional, scientific, or technical services were procured under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can include a wide range of specialized support. Without further details from the contract award notice or associated documentation, the precise nature of the services remains unspecified. Examples within this NAICS code could range from laboratory support, data analysis, scientific consulting, to specialized technical assistance. The 'OFR SERVICES' designation in the data might offer a clue, but its meaning is not universally defined without additional context specific to the agency's internal nomenclature.

How does the $2.17 million award compare to other contracts for similar services within the CDC or HHS?

Comparing this $2.17 million award requires access to a broader dataset of CDC and HHS contracts within the 541990 NAICS code or similar service categories. Generally, federal contracts for professional services can range from tens of thousands to hundreds of millions of dollars, depending on the scope, duration, and complexity. A $2.17 million contract for a 361-day period suggests a moderately sized engagement. To assess its comparability, one would need to analyze the average award value, contract duration, and number of bidders for similar services procured by the CDC and HHS over the past few years.

What is the track record of Cherokee Nation Operational Solutions, L.L.C. in performing federal contracts, particularly with HHS?

Cherokee Nation Operational Solutions, L.L.C. is a known entity in federal contracting, often performing services across various agencies, including the Department of Defense and Health and Human Services. Their track record typically involves a range of support services, including logistics, technical support, and professional services. A detailed analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts, and any history of contract disputes or awards. Their presence suggests a level of established capability and experience relevant to government requirements.

What are the potential risks associated with a 'Full and Open Competition' award for professional services?

While 'Full and Open Competition' is generally preferred for maximizing value, potential risks can still exist. If the solicitation documents are not sufficiently detailed or clear, the competition might not attract the most qualified bidders, or bidders may misinterpret requirements, leading to performance issues. Furthermore, even with competition, if the evaluation criteria are not robust, the lowest-priced technically acceptable offer might not always be the best value in terms of long-term performance or innovation. The broadness of the NAICS code 541990 could also pose a risk if the specific needs are highly specialized and not well-understood by a wide range of potential offerors.

How does the Firm Fixed Price (FFP) contract type impact cost control and contractor performance?

The Firm Fixed Price (FFP) contract type is designed to provide the government with cost certainty by establishing a ceiling price that is not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns to the contractor. For the government, this is advantageous for budgeting and financial planning. However, it can incentivize contractors to cut corners on quality or performance to maintain profitability if not adequately monitored. Effective oversight and clear performance standards are crucial to ensure that the contractor meets all requirements despite the FFP structure.

What is the historical spending trend for NAICS code 541990 services at the Centers for Disease Control and Prevention?

Analyzing historical spending trends for NAICS code 541990 at the CDC would require querying federal procurement databases for awards within this specific code over several fiscal years. Generally, spending in this category can fluctuate based on agency priorities, specific project needs, and the availability of internal resources. A trend analysis would reveal whether the CDC's reliance on 'All Other Professional, Scientific, and Technical Services' is increasing, decreasing, or remaining stable. This context helps in understanding the strategic importance and recurring nature of such procurements for the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 10838 E MARSHALL ST STE 220-A, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, 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: $2,466,111

Exercised Options: $2,466,111

Current Obligation: $2,166,847

Actual Outlays: $2,166,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75D30120D07429

IDV Type: IDC

Timeline