Air Force awards $18.2M for Kadena AB civil engineering support to Cherokee Nation Management & Consulting
Contract Overview
Contract Amount: $18,209,102 ($18.2M)
Contractor: Cherokee Nation Management & Consulting, L.L.C..
Awarding Agency: Department of Defense
Start Date: 2020-09-27
End Date: 2025-08-31
Contract Duration: 1,799 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CIVIL ENGINEER A&AS FOR KADENA AB
Place of Performance
Location: HICKAM AFB, HONOLULU County, HAWAII, 96853
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: CIVIL ENGINEER A&AS FOR KADENA AB Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty but may not capture all potential overruns. 3. Long performance period of nearly 5 years indicates a need for sustained support. 4. Contractor is a large business, with no explicit small business set-aside. 5. Services are critical for base operations and infrastructure maintenance. 6. Geographic location in Hawaii may present logistical and cost considerations.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specific service requirements. The $18.2 million award over nearly five years averages to approximately $3.64 million annually. Without comparable sole-source contracts for similar civil engineering A&AS services at other Air Force bases, a direct value-for-money assessment is difficult. The firm fixed-price structure provides some cost control, but the absence of competitive bidding means potential savings from market forces were not realized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the simplified acquisition procedures, indicating it was awarded on a sole-source basis. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that pricing and service offerings were not tested against market alternatives, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there's less incentive for the contractor to offer the most cost-effective solution.
Public Impact
The primary beneficiaries are the Department of the Air Force and personnel at Kadena Air Base, who receive essential civil engineering and base support services. Services include a broad range of civil engineering support, crucial for maintaining the operational readiness and infrastructure of a major military installation. The geographic impact is concentrated at Kadena Air Base in Okinawa, Japan, supporting its functions and personnel. Workforce implications include potential employment opportunities for individuals with civil engineering and facilities management expertise, though the extent of local hiring is not specified.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Long contract duration may not be optimal if requirements change significantly over time.
- Lack of transparency in the sole-source justification makes it difficult to assess necessity.
- Potential for cost overruns if not managed tightly, despite firm fixed-price structure.
Positive Signals
- Contract awarded to a recognized entity, Cherokee Nation Management & Consulting, suggesting established capabilities.
- Firm Fixed Price contract provides budget certainty for the Air Force.
- Long performance period ensures continuity of essential services for Kadena Air Base.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of government operations and infrastructure management. The market for these services is substantial, encompassing a wide range of maintenance, engineering, and operational support for government facilities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of military base support and the sole-source award. However, large-scale facility management contracts for government installations often run into tens or hundreds of millions of dollars.
Small Business Impact
The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). As a large business award, there are no direct subcontracting requirements for small businesses mandated by this specific contract. This means that opportunities for small businesses to participate in delivering these services are limited unless the prime contractor voluntarily engages them.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is limited due to the sole-source nature of the award, with justifications typically being internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Base Operations Support Services
- Civil Engineering Services
- Facilities Maintenance Contracts
- Department of Defense A&AS Contracts
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for higher costs
- Limited transparency
Tags
defense, department-of-defense, department-of-the-air-force, kadena-air-base, civil-engineering, facilities-support-services, sole-source, firm-fixed-price, large-business, delivery-order, okinawa, hawaii
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... CIVIL ENGINEER A&AS FOR KADENA AB
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 Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $18.2 million.
What is the period of performance?
Start: 2020-09-27. End: 2025-08-31.
What is the track record of Cherokee Nation Management & Consulting with the Department of Defense, particularly in civil engineering support?
Cherokee Nation Management & Consulting, L.L.C. has a history of performing various services for the Department of Defense. While specific details on their civil engineering A&AS performance for Kadena AB prior to this award are not detailed in the provided data, their ability to secure this sole-source contract suggests a prior relationship or demonstrated capability. A deeper dive into their contract history with DoD agencies would reveal the scope, value, and performance ratings of their previous engagements, offering insight into their reliability and expertise in similar service areas. This would include examining past performance evaluations and any reported issues or successes.
How does the annual cost of this contract compare to similar civil engineering support contracts at other Air Force bases?
Direct comparison of the annual cost of this contract ($3.64 million) to similar civil engineering support contracts at other Air Force bases is challenging due to its sole-source nature and the specific requirements of Kadena Air Base. Competitive contracts often yield lower prices due to market forces. Sole-source awards, especially for specialized or long-term needs, may reflect different pricing structures. To benchmark effectively, one would need to identify comparable bases with similar operational scales and infrastructure complexity, and then analyze their competitive contract awards for equivalent civil engineering A&AS services. Without such comparative data, assessing whether this contract represents good value is difficult.
What are the primary risks associated with a sole-source award for essential base support services?
The primary risks associated with a sole-source award for essential base support services include a lack of competitive pricing, potentially leading to higher costs for the government. Without multiple bidders, there is reduced incentive for the awarded contractor to optimize efficiency or offer the most cost-effective solutions. Furthermore, the government has fewer options if performance issues arise, as renegotiating or switching contractors can be complex and costly. Transparency is also reduced, making it harder to justify the award and ensure fair market value was obtained. This can also lead to perceptions of favoritism or missed opportunities for innovation from a broader market.
What is the expected impact of this contract on the operational effectiveness of Kadena Air Base?
This contract is expected to have a positive impact on the operational effectiveness of Kadena Air Base by ensuring the continuity of essential civil engineering and facilities support services. These services are critical for maintaining infrastructure, utilities, and the overall readiness of the base. By providing dedicated A&AS support, the Air Force can ensure that maintenance, repairs, and engineering planning are handled efficiently, allowing base personnel to focus on their primary mission functions. The long duration of the contract suggests a commitment to sustained operational support, minimizing disruptions that could arise from service gaps.
How has federal spending on civil engineering and facilities support services for Air Force bases evolved over the past five years?
Federal spending on civil engineering and facilities support services for Air Force bases has generally remained substantial, reflecting the ongoing need to maintain and modernize extensive infrastructure. While specific figures for civil engineering A&AS fluctuate based on base modernization projects, operational tempo, and infrastructure condition, the overall trend indicates consistent investment. Factors influencing spending include aging facilities requiring upgrades, new construction, and evolving environmental and security standards. The Department of the Air Force consistently allocates significant portions of its budget to facilities sustainment, restoration, and modernization (FSRM), which encompasses services like those provided under this contract.
What are the potential implications of the firm fixed-price contract type on cost control and contractor performance?
The firm fixed-price (FFP) contract type is intended to provide cost control by establishing a ceiling price that the contractor must adhere to. This shifts the risk of cost overruns to the contractor, incentivizing them to manage expenses efficiently. For the government, it offers budget certainty. However, if the scope of work is not clearly defined or if unforeseen issues arise, an FFP contract can sometimes lead to the contractor cutting corners on quality to maintain profitability, or it may result in the contractor demanding higher prices upfront to account for potential risks. Effective oversight is still crucial to ensure both cost adherence and quality performance.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2 W 2ND ST STE 1500-25, TULSA, OK, 74103
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: $18,433,579
Exercised Options: $18,433,579
Current Obligation: $18,209,102
Actual Outlays: $3,044,524
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA521520D0001
IDV Type: IDC
Timeline
Start Date: 2020-09-27
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-19
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