Department of Energy awards $9.3M IT support contract to Chickasaw Nation Industries via 8(a) tribal set-aside
Contract Overview
Contract Amount: $29,152,868 ($29.2M)
Contractor: CNI Federal Services, LLC
Awarding Agency: Department of Energy
Start Date: 2009-03-24
End Date: 2012-09-23
Contract Duration: 1,279 days
Daily Burn Rate: $22.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CHICKASAW NATION INDUSTRIES NEW CID PENDING SMALL BUSINESS TRIBAL SET-A-SIDE IM-11-001 BLI: IMFM0009D COR: PEGGY L. FULLER THE PURPOSE OF THIS REQUISITION IS TO INITIATE A NEW AWARD TO CNI IN ACCORDANCE WITH THE ATTACHED PWS (COST ESTIMATE OF 9.3 MILLION OVER A 3 YEAR LIFE CYCLE), AND TO FURTHER FUND TASK IM-11-001, A T&M 8(A) TRIBAL SUPPORT SERVICES CONTRACT TO MEET ONGOING CIO MISSION IT REQUIREMENTS. ATTACHMENTS (10): STRIPES REQFORM-CNI NEW 5 YR. AWARD 09.DOC, CNI 09 SURVEILANCE PLAN AWDDOC.DOC, CNI 09 ACQUISITION PLAN 9.3 MILLION AWD DOC.DOC, CNI 09 REVISED GOVERNMENT ESTIMATES LABOR AND COST 2009_2012.DOC, CNI PWS 09 AWD DOC.DOC, CNI 2009 REPS AND CERTS MYFARORCARECORD.PDF, CNI GSA FSS ITSCHNO-GS-35F-0248T.DOC, CNI IT NAIC CODES SB POC.TXT, CNI 09 TASK ASSIGNMENT IM-11-001.DOC, CNI FUNDING CODES FOR IM-11-001 11.21.09
Place of Performance
Location: NORMAN, CLEVELAND County, OKLAHOMA, 73071
State: Oklahoma Government Spending
Plain-Language Summary
Department of Energy obligated $29.2 million to CNI FEDERAL SERVICES, LLC for work described as: CHICKASAW NATION INDUSTRIES NEW CID PENDING SMALL BUSINESS TRIBAL SET-A-SIDE IM-11-001 BLI: IMFM0009D COR: PEGGY L. FULLER THE PURPOSE OF THIS REQUISITION IS TO INITIATE A NEW AWARD TO CNI IN ACCORDANCE WITH THE ATTACHED PWS (COST ESTIMATE OF 9.3 MILLION OVER A 3 YEAR LIFE … Key points: 1. Contract awarded to CNI Federal Services, LLC, a tribal entity, for IT support services. 2. The contract has a 3-year lifecycle with an estimated cost of $9.3 million. 3. This award is a Time and Materials (T&M) contract, which can pose cost control risks. 4. The contract falls under NAICS code 541513 for Computer Facilities Management Services. 5. The contract was awarded on March 24, 2009, and is set to expire on September 23, 2012. 6. The contract is for ongoing CIO mission IT requirements.
Value Assessment
Rating: fair
The estimated cost of $9.3 million over three years for IT support services appears to be within a reasonable range for similar government contracts. However, without specific details on the services provided and the labor rates, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type introduces a degree of uncertainty regarding the final cost, as it is directly tied to the hours worked and the rates charged. Benchmarking against other Computer Facilities Management Services contracts would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under an 8(a) tribal set-aside, which is a sole-source procurement method designed to support small disadvantaged businesses, particularly those owned by Native American tribes. This approach limits competition by design, as the contract is specifically directed to Chickasaw Nation Industries. While it fulfills the objective of supporting tribal enterprises, it bypasses the open market competition that could potentially yield lower prices or a wider range of technical solutions.
Taxpayer Impact: For taxpayers, sole-source awards mean that the potential benefits of competitive bidding, such as price reductions and innovation spurred by multiple offers, are not realized. The government relies on fair pricing negotiations and robust oversight to ensure value.
Public Impact
The primary beneficiary is Chickasaw Nation Industries, a tribal entity, which receives a significant contract to support its IT operations and mission. The contract delivers essential IT support services to meet the ongoing CIO mission requirements of the Department of Energy. The geographic impact is primarily within the operational areas of the Department of Energy where these IT services are required. The contract supports jobs within Chickasaw Nation Industries and contributes to the economic development of the tribal community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
- Sole-source award limits competitive pressure, potentially impacting price and innovation.
- Lack of detailed service scope in the provided data makes it hard to assess performance metrics.
- Contract duration and estimated cost require careful tracking to ensure budget adherence.
Positive Signals
- Award to a tribal entity supports small business and economic development goals.
- Contract addresses ongoing IT requirements, indicating a need for sustained support.
- The contractor, CNI Federal Services, LLC, is established and has existing contracts, suggesting some level of proven capability.
Sector Analysis
The IT services sector, particularly Computer Facilities Management Services (NAICS 541513), is a critical component of government operations. This contract fits within the broader landscape of federal IT spending, which is substantial. The market for these services is competitive, with numerous large and small businesses vying for contracts. However, set-aside programs, like the 8(a) tribal program used here, carve out specific opportunities for targeted businesses. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and complexity, but a $9.3 million, 3-year contract is a mid-tier award.
Small Business Impact
This contract is specifically awarded to Chickasaw Nation Industries under an 8(a) tribal set-aside program. This means it is a sole-source award intended to benefit a small disadvantaged business owned by a Native American tribe. The implications are that this specific contract opportunity is not open to the broader small business community or large businesses. It directly supports the economic development and capacity building of the Chickasaw Nation. There is no explicit mention of subcontracting requirements for other small businesses in the provided data, but such provisions are often included in 8(a) contracts.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The contract's Time and Materials (T&M) nature necessitates diligent monitoring of labor hours, rates, and direct costs to prevent overspending. Transparency is facilitated through contract reporting requirements, though the extent of public disclosure for this specific award is not detailed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- 8(a) Business Development Program
- Tribal Government Contracts
- IT Services Contracts
- Department of Energy IT Modernization Efforts
- Computer Facilities Management Services
Risk Flags
- Time and Materials Contract Type
- Sole-Source Award
- Limited Competition
- Potential for Cost Overruns
Tags
it-services, computer-facilities-management, department-of-energy, 8a-tribal-set-aside, sole-source, time-and-materials, mid-tier-contract, oklahoma, cio-support, cnifederal-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $29.2 million to CNI FEDERAL SERVICES, LLC. CHICKASAW NATION INDUSTRIES NEW CID PENDING SMALL BUSINESS TRIBAL SET-A-SIDE IM-11-001 BLI: IMFM0009D COR: PEGGY L. FULLER THE PURPOSE OF THIS REQUISITION IS TO INITIATE A NEW AWARD TO CNI IN ACCORDANCE WITH THE ATTACHED PWS (COST ESTIMATE OF 9.3 MILLION OVER A 3 YEAR LIFE CYCLE), AND TO FURTHER FUND TASK IM-11-001, A T&M 8(A) TRIBAL SUPPORT SERVICES CONTRACT TO MEET ONGOING CIO MISSION IT REQUIREMENTS. ATTACHMENTS (10): STRIPES REQFORM-CNI NEW 5 YR. AWARD 09.DOC, CNI 09 SURVEILANCE PLAN A
Who is the contractor on this award?
The obligated recipient is CNI FEDERAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2009-03-24. End: 2012-09-23.
What is the specific scope of work for the Computer Facilities Management Services being provided under this contract?
The provided data indicates the contract is to 'meet ongoing CIO mission IT requirements' and references a Performance Work Statement (PWS). However, the PWS itself is not detailed in the extract. Typically, Computer Facilities Management Services encompass a range of activities such as managing data centers, maintaining hardware and software infrastructure, providing network support, ensuring system security, and offering help desk services. Without the PWS, the precise deliverables, service levels, and technical specifications remain undefined, making a thorough assessment of the contract's purpose and expected outcomes challenging.
How does the estimated cost of $9.3 million compare to similar IT support contracts awarded by the Department of Energy or other federal agencies?
Benchmarking the $9.3 million cost over three years requires comparing it to contracts with similar scopes of work, durations, and service levels within the Computer Facilities Management Services (NAICS 541513) category. Federal procurement data from sources like USASpending.gov can provide such comparisons. Given the sole-source nature and the tribal set-aside, direct price comparisons might be less meaningful than assessing the reasonableness of the labor rates and the efficiency of service delivery. However, generally, IT support contracts of this size are common, and the cost is not inherently excessive, provided the services delivered are comprehensive and meet the agency's needs effectively.
What are the potential risks associated with the Time and Materials (T&M) contract type for this IT support service?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the final price is not fixed and depends on the actual labor hours expended and the material costs incurred. For the government, this necessitates robust oversight to ensure that hours are reasonable and necessary, and that rates are fair. Without strict monitoring, contractors may have less incentive to control costs or improve efficiency compared to fixed-price contracts. For this specific contract, ensuring that the T&M structure is appropriate for the defined scope of work and that strong controls are in place is crucial for managing taxpayer funds effectively.
What is the track record of CNI Federal Services, LLC in performing similar IT support contracts for the federal government?
CNI Federal Services, LLC, as part of the Chickasaw Nation Industries, has a history of performing federal contracts. While the provided data doesn't detail their specific performance history on IT support contracts, their ability to secure this award suggests they have met certain eligibility and capability requirements. A deeper dive into their past performance evaluations (e.g., through the Contractor Performance Assessment Reporting System - CPARS) would reveal their success in meeting deadlines, managing costs, and delivering quality services on previous engagements. This information is critical for assessing their reliability and suitability for ongoing IT mission support.
How does the use of an 8(a) tribal set-aside impact the overall competition and potential cost savings for this contract?
The 8(a) tribal set-aside is a sole-source procurement method, meaning competition is intentionally limited to a specific eligible entity, in this case, Chickasaw Nation Industries. This approach prioritizes supporting tribal economic development over achieving the lowest possible price through open competition. While it fulfills important socio-economic goals, it means that taxpayers do not benefit from the price reductions and innovation that can arise from a competitive bidding process involving multiple offerors. The government relies on negotiation and oversight to ensure fair pricing within this framework.
What are the historical spending patterns for Computer Facilities Management Services at the Department of Energy, and how does this contract fit in?
The Department of Energy, like other large federal agencies, spends significant amounts on IT services, including facilities management. Historical spending data would reveal trends in IT outsourcing, infrastructure management, and support services. This $9.3 million, 3-year contract represents a specific allocation for ongoing CIO mission IT requirements. Its size suggests it is a substantial, but not necessarily a flagship, IT support contract within the agency's overall IT budget. Understanding the agency's historical reliance on similar contracts and the evolution of its IT strategy would provide context for this award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chickasaw Nation (UEI: 070848361)
Address: 2600 JOHN SAXON BLVD STE 2219, NORMAN, OK, 04
Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,825,980
Exercised Options: $49,825,980
Current Obligation: $29,152,868
Timeline
Start Date: 2009-03-24
Current End Date: 2012-09-23
Potential End Date: 2012-09-23 00:00:00
Last Modified: 2013-02-14
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