Air Force IT Support Contract Awarded to Cherokee Nation Systems Solutions for $31.6M

Contract Overview

Contract Amount: $31,603,991 ($31.6M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $28.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFIMSC IT SUPPORT SERVICE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: AFIMSC IT SUPPORT SERVICE Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. The contract is for Computer Facilities Management Services, a critical IT function. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. The award value of $31.6M over three years warrants scrutiny for value. 5. Small business participation is not explicitly indicated as a requirement.

Value Assessment

Rating: fair

The contract value of $31.6M over three years for IT support services appears within a reasonable range for similar government contracts. However, without specific benchmarks for Computer Facilities Management Services in the Texas region, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This approach may lead to higher prices due to the lack of competitive bidding and price discovery.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these IT support services.

Public Impact

Ensures continued IT infrastructure support for the Department of the Air Force. Potential for reduced competition may impact overall cost-effectiveness for taxpayers. The contract's duration of three years provides stability for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark data

Positive Signals

Firm Fixed Price contract
Long-term stability

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government agencies, with significant variation based on complexity and scope.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were considered or mandated.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance requirements and that the fixed price remains fair throughout the contract term, especially given the limited competition.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition
Potential for price inflation
Lack of small business participation
Contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. AFIMSC IT SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SYSTEM SOLUTIONS LLC.

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 $31.6 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-02-28.

What is the justification for awarding this contract on a limited/non-competitive basis, and what steps were taken to ensure fair pricing?

The justification for a limited or sole-source award typically involves specific circumstances such as unique capabilities, urgent needs, or the unavailability of other sources. Agencies are required to document these justifications thoroughly. To ensure fair pricing, agencies may use historical pricing data, independent government cost estimates, or conduct market research to establish a reasonable price range, even without direct competition.

How does the per-unit cost of this contract compare to industry benchmarks for similar IT support services, considering the firm-fixed-price structure?

Without specific unit cost breakdowns and detailed service level agreements, a direct comparison to industry benchmarks is challenging. However, firm-fixed-price contracts generally aim for cost efficiency by shifting risk to the contractor. If the contractor underperforms or incurs unexpected costs, their profit margin is reduced. Conversely, if they are highly efficient, they retain greater profit, which can be a positive incentive.

What are the potential risks associated with a sole-source IT support contract, and what mitigation strategies are in place?

The primary risks of a sole-source IT support contract include potential overpricing due to lack of competition, reduced incentive for innovation, and vendor lock-in. Mitigation strategies can involve rigorous price negotiation, clearly defined performance metrics and service level agreements, regular performance reviews, and contingency planning for potential service disruptions or the eventual need for competitive re-procurement.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W. 2ND ST, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $37,316,060

Exercised Options: $31,603,991

Current Obligation: $31,603,991

Actual Outlays: $4,860,242

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,810,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline