Department of Labor awards $35.5M to Cherokee Nation for technical training, facing limited competition

Contract Overview

Contract Amount: $35,554,739 ($35.6M)

Contractor: Cherokee Nation

Awarding Agency: Department of Labor

Start Date: 2008-07-01

End Date: 2013-11-30

Contract Duration: 1,978 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE TALKING LEAVES JCC

Place of Performance

Location: TAHLEQUAH, CHEROKEE County, OKLAHOMA, 74465

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $35.6 million to CHEROKEE NATION for work described as: OPERATION OF THE TALKING LEAVES JCC Key points: 1. Significant contract value of $35.5 million awarded to Cherokee Nation. 2. Limited competition raises questions about price discovery and potential value. 3. Contract duration of nearly 5 years suggests a substantial, ongoing need. 4. Focus on technical and trade schools indicates investment in workforce development.

Value Assessment

Rating: questionable

Contract type is Cost Plus Incentive Fee, which can incentivize cost overruns. Without a competitive benchmark, assessing pricing fairness is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source award. This limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The lack of competition may result in higher costs than a fully competitive process, impacting taxpayer value.

Public Impact

Investment in workforce development through technical and trade schools. Support for the Cherokee Nation, potentially fostering economic development. Long-term commitment to a specific service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Incentive Fee contract type
Lack of available benchmark data

Positive Signals

Addresses workforce development needs
Supports a specific tribal nation

Sector Analysis

The contract falls under 'Other Technical and Trade Schools,' a sector focused on vocational training. Spending benchmarks for this specific niche are not readily available, but significant federal investment in workforce development is common.

Small Business Impact

The data indicates this contract was awarded to Cherokee Nation, a tribal entity, not a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract type and limited competition warrant further oversight to ensure fair pricing and effective service delivery. Accountability for performance against the incentive fee structure is crucial.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for overpayment due to limited competition.
Risk of cost overruns with CPIF contract type.
Lack of transparency regarding competition justification.
Unclear performance metrics for incentive fee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.6 million to CHEROKEE NATION. OPERATION OF THE TALKING LEAVES JCC

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2008-07-01. End: 2013-11-30.

What specific technical and trade skills are being developed, and how does this align with current labor market demands?

The contract focuses on 'Other Technical and Trade Schools,' implying vocational training. A detailed analysis would require examining the specific curriculum and training programs outlined in the contract. Understanding the alignment with current labor market demands is critical to assessing the long-term value and effectiveness of this investment in workforce development.

What was the justification for limiting competition on this $35.5 million contract?

The justification for limiting competition is not provided in the data. Typically, such limitations require a strong rationale, such as unique capabilities, urgent needs, or specific statutory requirements. Without this justification, it's difficult to assess if the government received the best possible value and pricing.

How is the 'incentive fee' structured, and what performance metrics are used to determine its payout?

The contract is a Cost Plus Incentive Fee (CPIF) type. The specific structure of the incentive fee and the performance metrics used to trigger payouts are not detailed in the provided data. Understanding these elements is crucial for evaluating how effectively the fee structure incentivizes the contractor to achieve desired outcomes and control costs.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: S08F6OK004

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 17675 SOUTH MUSKOGEE AVE, TAHLEQUAH, OK, 74464

Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,617,856

Exercised Options: $35,554,739

Current Obligation: $35,554,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline