DoD awards $12.6M for civil engineering services at Kadena Air Base, Japan, with no competition

Contract Overview

Contract Amount: $12,623,168 ($12.6M)

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

Awarding Agency: Department of Defense

Start Date: 2021-03-10

End Date: 2025-08-28

Contract Duration: 1,632 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS TASK ORDER IS FOR THE PROFESSIONAL CIVIL ENGINEERING SERVICES ON KADEN AIR BASE, JAPAN.

Plain-Language Summary

Department of Defense obligated $12.6 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: THIS TASK ORDER IS FOR THE PROFESSIONAL CIVIL ENGINEERING SERVICES ON KADEN AIR BASE, JAPAN. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Long performance period of over four years suggests a need for sustained support. 3. The absence of competition raises concerns about potential overpayment and limited innovation. 4. Services are critical for maintaining infrastructure at a key strategic military installation. 5. This contract falls under facilities support services, a broad category with many providers. 6. The sole-source nature limits opportunities for small businesses to participate.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. Without comparison to other proposals or market rates for similar civil engineering services at overseas bases, it's difficult to definitively assess if the $12.6 million price represents good value for money. The firm-fixed-price structure provides some cost certainty, but the absence of competition means there was no market pressure to drive down costs. Further analysis would require access to detailed cost breakdowns and comparable contract data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The data provided states it was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically implies a direct award without soliciting multiple offers. The lack of competition means there were no other bidders, and therefore no price discovery through a bidding process. This approach can be justified under specific circumstances, such as urgent needs or when only one contractor can provide the required services, but it limits the government's ability to secure the best possible price.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding. The government missed an opportunity to leverage market competition to potentially lower the overall cost of these essential engineering services.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Kadena Air Base, Japan, through the maintenance of essential facilities. Services delivered include professional civil engineering support crucial for infrastructure upkeep and development. The geographic impact is concentrated at Kadena Air Base, a significant U.S. military installation in the Indo-Pacific region. Workforce implications are likely to involve specialized engineering personnel, potentially including both U.S. and local hires, managed by the prime contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency and potential for innovation from other firms.
Performance risks are concentrated with a single contractor without competitive pressure.
Long contract duration without competition could mask inefficiencies over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Cherokee Nation Management & Consulting, L.L.C. may support a specific socio-economic goal if applicable.
Services are essential for maintaining critical military infrastructure.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services related to the operation and maintenance of physical infrastructure. The market for these services is substantial, with numerous companies offering specialized engineering and maintenance capabilities. Government spending in this area is consistently high, particularly for maintaining military installations both domestically and abroad. Comparable spending benchmarks would typically involve analyzing other civil engineering support contracts awarded to similar overseas bases, considering factors like scope of work, duration, and location.

Small Business Impact

The contract data indicates that small business participation was not a factor, as the award was sole-source and the prime contractor is Cherokee Nation Management & Consulting, L.L.C., which may or may not be classified as a small business depending on its size standards. The lack of competition inherently limits subcontracting opportunities for small businesses. Without a competitive bidding process that includes small business set-aside goals or requirements, the potential for small businesses to contribute to this specific contract is minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense. Accountability measures are established through the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award, as fewer details are typically made public compared to competed contracts. Inspector General jurisdiction would apply to investigate any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support (BOS)
Military Construction (MILCON)
Facilities Engineering Services
Overseas Infrastructure Support
Defense Contract Management Agency (DCMA) oversight

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... THIS TASK ORDER IS FOR THE PROFESSIONAL CIVIL ENGINEERING SERVICES ON KADEN AIR BASE, JAPAN.

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 $12.6 million.

What is the period of performance?

Start: 2021-03-10. End: 2025-08-28.

What is the track record of Cherokee Nation Management & Consulting, L.L.C. in performing similar civil engineering services for the Department of Defense?

Assessing the track record of Cherokee Nation Management & Consulting, L.L.C. requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without access to this specific performance data, it is difficult to provide a detailed assessment. However, the Department of Defense typically conducts pre-award reviews of contractor past performance, especially for sole-source awards, to ensure capability. The duration and value of this contract suggest a level of trust or established relationship, but independent verification of their performance history is crucial for a complete understanding of their reliability in delivering these critical civil engineering services.

How does the $12.6 million cost compare to similar civil engineering contracts at overseas military bases?

Directly comparing the $12.6 million cost to similar contracts is challenging without more specific data on the scope of work, duration, and location of comparable contracts. However, given the firm-fixed-price nature and the over four-year performance period (March 2021 to August 2025), the annual cost averages around $3 million. This figure needs to be contextualized by the specific engineering needs at Kadena Air Base, which is a large and strategically important installation. Factors such as labor costs in Japan, material availability, and the complexity of the required services would influence the overall price. A comprehensive benchmark analysis would involve identifying contracts for similar services at bases of comparable size and strategic importance, adjusting for regional economic differences and specific project requirements.

What are the primary risks associated with a sole-source award for essential civil engineering services?

The primary risks associated with a sole-source award for essential civil engineering services include potential cost inefficiencies, reduced innovation, and a lack of competitive pressure to ensure optimal performance. Without competition, the government may pay a higher price than necessary because there is no market mechanism driving down costs. Furthermore, the absence of multiple bidders can stifle innovation, as there is less incentive for the contractor to propose novel or more efficient solutions. Performance risks are also concentrated; if the sole contractor underperforms, the government has limited immediate alternatives. This can lead to project delays, cost overruns, and potential impacts on the operational readiness of the military installation.

What is the expected effectiveness of these civil engineering services in supporting Kadena Air Base's mission?

The effectiveness of these civil engineering services is expected to be high, given their critical role in maintaining the infrastructure of Kadena Air Base, a vital U.S. military installation. Professional civil engineering support is essential for ensuring the safety, functionality, and longevity of facilities, runways, utilities, and other critical assets. By providing these services, the contract directly contributes to the operational readiness and mission accomplishment of the Air Force personnel stationed there. The long performance period suggests a recognized need for sustained support, implying that the services are integral to the base's ongoing operations and future development plans. The effectiveness will ultimately depend on the contractor's performance quality and adherence to project requirements.

How has federal spending on facilities support services like this evolved over the past five years?

Federal spending on facilities support services has generally seen a consistent or increasing trend over the past five years, driven by the need to maintain aging infrastructure across various government agencies, particularly within the Department of Defense. Factors such as increased global security concerns, modernization efforts at military installations, and the general upkeep of government buildings contribute to this demand. While specific figures for 'Facilities Support Services' can fluctuate based on agency priorities and budget allocations, the overall category remains a significant portion of federal procurement. Spending patterns are influenced by geopolitical events, infrastructure investment initiatives, and the lifecycle of existing government facilities. Analyzing historical spending data for NAICS code 561210 (Facilities Support Services) would provide a clearer picture of the year-over-year trends and agency-specific allocations.

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: $12,859,793

Exercised Options: $12,859,793

Current Obligation: $12,623,168

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $84,912

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA521520D0001

IDV Type: IDC

Timeline