DoD's $42M environmental cleanup contract with Cherokee Nation Strategic Programs shows fair value despite limited competition
Contract Overview
Contract Amount: $42,038,062 ($42.0M)
Contractor: Cherokee Nation Strategic Programs, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2019-02-26
End Date: 2023-04-05
Contract Duration: 1,499 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADVISORY AND ASSISTANCE SERVICES-PROGRAMMATIC, ENVIRONMENTAL CLEANUP PROJECT EXCECUTION AND FINANCIAL SUPPORT TO THE BASE REALIGNMENT AND CLOSURE PROGRAM AT MULTIPLE BASES
Place of Performance
Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C. for work described as: ADVISORY AND ASSISTANCE SERVICES-PROGRAMMATIC, ENVIRONMENTAL CLEANUP PROJECT EXCECUTION AND FINANCIAL SUPPORT TO THE BASE REALIGNMENT AND CLOSURE PROGRAM AT MULTIPLE BASES Key points: 1. The contract's value appears reasonable when benchmarked against similar environmental services, though specific cost breakdowns are not publicly available. 2. Competition was limited, raising questions about potential price inflation and the extent of taxpayer savings. 3. Performance risks are moderate, given the nature of environmental cleanup and the contractor's experience. 4. The contract supports critical environmental remediation efforts for the Base Realignment and Closure (BRAC) program. 5. This spending falls within the broader category of government engineering and environmental consulting services.
Value Assessment
Rating: fair
The total award amount of approximately $42 million over four years suggests a significant investment in environmental remediation. Benchmarking against similar large-scale environmental cleanup contracts indicates that the overall price is within a reasonable range, though without detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides some cost certainty, but the limited competition may have impacted the final negotiated price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while a competitive process occurred, certain sources were excluded. The data specifies three bidders participated. This level of competition is less than ideal for ensuring the most competitive pricing and could suggest that the market for such specialized services is concentrated or that the solicitation had specific requirements that limited broader participation.
Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on contractors to offer their lowest possible bids. The government may not have secured the best possible value compared to a scenario with more robust bidding.
Public Impact
The primary beneficiaries are the Department of Defense and the public, through the environmental cleanup of former military bases. Services delivered include program execution, environmental cleanup, and financial support for the BRAC program. The geographic impact is concentrated in Texas, where the bases undergoing cleanup are located. The contract supports specialized jobs in environmental engineering, project management, and remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher-than-optimal price for taxpayers.
- The exclusion of certain sources, while potentially justified, reduces the overall competitive landscape.
- The long duration of the contract (nearly 5 years) increases the risk of cost overruns if not managed tightly.
Positive Signals
- The contract is firm-fixed-price, providing cost certainty for the government.
- The contractor, Cherokee Nation Strategic Programs, L.L.C., has experience in government contracting.
- The contract addresses critical environmental cleanup needs for the BRAC program, a high-priority initiative.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on environmental remediation and program management for government facilities. The market for environmental consulting and cleanup services is substantial, driven by regulatory requirements and ongoing remediation needs at federal sites. This contract represents a significant portion of spending within this niche, supporting the government's efforts to address legacy environmental issues.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have significant subcontracting requirements explicitly mentioned. The prime contractor is Cherokee Nation Strategic Programs, L.L.C., which may have its own small business utilization goals, but this contract itself does not seem to be a direct vehicle for small business set-asides.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature provides some inherent cost control. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight activities are not publicly detailed. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.
Related Government Programs
- Base Realignment and Closure (BRAC) Program
- Environmental Remediation Services
- Department of Defense Engineering Services
- Federal Environmental Cleanup Contracts
Risk Flags
- Limited competition may impact price competitiveness.
- Potential for unforeseen environmental conditions requiring scope adjustments.
- Contract duration increases exposure to market fluctuations and management challenges.
Tags
engineering-services, environmental-cleanup, department-of-defense, department-of-the-air-force, base-realignment-and-closure, firm-fixed-price, limited-competition, texas, advisory-and-assistance-services, programmatic-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C.. ADVISORY AND ASSISTANCE SERVICES-PROGRAMMATIC, ENVIRONMENTAL CLEANUP PROJECT EXCECUTION AND FINANCIAL SUPPORT TO THE BASE REALIGNMENT AND CLOSURE PROGRAM AT MULTIPLE BASES
Who is the contractor on this award?
The obligated recipient is CHEROKEE NATION STRATEGIC PROGRAMS, 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 $42.0 million.
What is the period of performance?
Start: 2019-02-26. End: 2023-04-05.
What is the track record of Cherokee Nation Strategic Programs, L.L.C. in performing similar environmental cleanup contracts for the federal government?
Cherokee Nation Strategic Programs, L.L.C. (CNSP) has a history of performing various services for the federal government, including those related to environmental management and support services. While specific details on past environmental cleanup contracts of this exact scale and nature are not readily available in this summary, CNSP's broader portfolio often includes base operations, logistics, and technical support. Their experience with government contracts suggests a familiarity with federal procurement processes and compliance requirements. Further investigation into their past performance ratings and specific project completions would be necessary for a comprehensive assessment of their track record in environmental remediation.
How does the per-unit cost or cost-per-service compare to similar environmental cleanup contracts awarded by the DoD or other federal agencies?
A direct per-unit cost comparison is challenging without specific service breakdowns (e.g., cost per acre remediated, cost per cubic yard of soil treated, cost per site assessed). The total award of approximately $42 million over nearly five years averages around $8.4 million annually. Benchmarking this annual spend against other large-scale environmental remediation contracts for the DoD or EPA reveals it to be within a typical range for complex, multi-site cleanup programs. However, the 'limited' competition aspect suggests that the government may not have achieved the lowest possible cost per unit compared to a more robustly competed contract.
What are the primary risk indicators associated with this contract, and how are they being managed?
Key risk indicators include the complexity and potential unknowns inherent in environmental cleanup (e.g., discovering unforeseen contamination), the long contract duration increasing the possibility of scope creep or cost escalation, and the limited competition potentially leading to less favorable pricing. Management of these risks likely involves detailed work plans, regular progress reviews, strict change order controls, and performance monitoring by the Air Force contracting officer's representative. The firm-fixed-price structure itself is a risk mitigation tool for the government, shifting some cost uncertainty to the contractor.
How effective has this contract been in achieving the stated goals of environmental cleanup and financial support for the BRAC program?
Assessing the effectiveness requires access to detailed performance reports, environmental monitoring data, and BRAC program status updates, which are not provided in the summary data. However, the contract's continuation and completion (based on the end date) suggest that the contractor has met baseline performance expectations. The ultimate measure of effectiveness would be the successful remediation of contaminated sites to regulatory standards, enabling the closure and transfer of military bases, which is a long-term process.
What have been the historical spending patterns for environmental cleanup services under the BRAC program, and how does this contract fit within that trend?
The BRAC program has historically involved billions of dollars in environmental cleanup costs across numerous military installations. Spending patterns fluctuate based on the number of bases undergoing closure, the complexity of contamination found, and the phase of cleanup (investigation, remediation, long-term monitoring). This $42 million contract represents a specific, significant allocation for environmental execution and financial support at multiple bases, likely covering a defined scope of work within the broader BRAC initiative. It aligns with the ongoing, substantial federal investment required for environmental restoration.
What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type, and what does it imply for contractor selection and pricing?
This award type signifies that the solicitation was initially intended for full and open competition, but specific sources were later excluded from consideration. This exclusion could be due to various reasons, such as specific technical requirements, past performance issues with certain contractors, or national security concerns. While it still involves competition, the exclusion narrows the field, potentially reducing the number of bidders and the intensity of price competition. It implies that the selected contractor met all requirements and was chosen from a pre-vetted or limited pool, which might influence the final price compared to a scenario with maximum possible bidders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cherokee Nation
Address: 10838 E MARSHALL ST STE 200 E, TULSA, OK, 74116
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: $42,038,062
Exercised Options: $42,038,062
Current Obligation: $42,038,062
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $26,294,627
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS110
IDV Type: IDC
Timeline
Start Date: 2019-02-26
Current End Date: 2023-04-05
Potential End Date: 2023-04-05 00:00:00
Last Modified: 2022-04-02
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