DoD's $45.7M DHMSM OCONUS Support Contract Awarded to Cherokee Nation Operational Solutions
Contract Overview
Contract Amount: $45,693,944 ($45.7M)
Contractor: Cherokee Nation Operational Solutions, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2024-09-30
Contract Duration: 731 days
Daily Burn Rate: $62.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DHMSM OCONUS WAVE SUPPORT/MHS GENESIS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.7 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C. for work described as: DHMSM OCONUS WAVE SUPPORT/MHS GENESIS Key points: 1. The contract supports the Defense Health Agency's Military Health System Genesis program. 2. Awarded to Cherokee Nation Operational Solutions, L.L.C., a non-small business. 3. The contract is for Other Computer Related Services, NAICS 541519. 4. It is a firm-fixed-price contract with a duration of 731 days. 5. The contract was not competed under the Simplified Acquisition Procedures.
Value Assessment
Rating: fair
The award amount is $45.7 million. Without specific comparable contracts for OCONUS DHMSM wave support, a precise pricing assessment is difficult. However, the contract type (firm fixed price) suggests a defined scope and risk allocation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP,' indicating it was likely procured through other than full and open competition. This method may limit price discovery and potentially lead to higher costs compared to a fully competitive process.
Taxpayer Impact: The $45.7 million expenditure represents taxpayer funds allocated to support a critical defense health system. The lack of full competition raises questions about the optimal use of these funds.
Public Impact
Ensures continued support for the MHS Genesis electronic health record system in OCONUS locations. Impacts military personnel and their families relying on the modernized health system. Supports the operational readiness of the Defense Health Agency. Contributes to the broader digital transformation within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition
- Award to a non-small business
- Limited transparency on price justification
Positive Signals
- Supports critical MHS Genesis program
- Firm-fixed-price contract type
- Defined contract duration
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer related services for healthcare systems. Spending benchmarks for similar OCONUS IT support contracts can vary widely based on scope and location.
Small Business Impact
The contract was awarded to Cherokee Nation Operational Solutions, L.L.C., which is identified as a non-small business. There is no indication of small business participation or subcontracting requirements in the provided data.
Oversight & Accountability
The contract was not competed under SAP, suggesting it may have undergone some level of review, but the specific oversight mechanisms for this limited competition award are not detailed. Accountability for the $45.7 million expenditure rests with the Defense Health Agency.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for higher costs due to limited competition
- Lack of transparency regarding sole-source justification
- Award to a non-small business raises questions about small business utilization
- No clear indication of performance metrics or oversight details
Tags
other-computer-related-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C.. DHMSM OCONUS WAVE SUPPORT/MHS GENESIS
Who is the contractor on this award?
The obligated recipient is CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $45.7 million.
What is the period of performance?
Start: 2022-09-30. End: 2024-09-30.
What was the justification for not competing this contract under SAP or through full and open competition?
The provided data states the contract was 'NOT COMPETED UNDER SAP.' A full justification would typically involve factors like urgency, specific technical requirements, or the existence of only one responsible source. Without this detailed justification, it's difficult to assess if alternative procurement methods would have yielded better value or if the chosen method was appropriate.
How does the $45.7 million cost compare to similar OCONUS IT support contracts for large-scale health systems?
Benchmarking this specific contract is challenging without access to proprietary cost data or a database of comparable OCONUS IT support contracts for health systems. Factors like geographic location, specific services required (e.g., integration, maintenance, training), and the number of users significantly influence pricing. A firm-fixed-price contract suggests the government sought to control costs, but the absence of competitive bids limits direct comparison.
What are the key performance indicators (KPIs) and success metrics for this contract to ensure effective delivery of DHMSM OCONUS wave support?
The provided data does not specify the key performance indicators (KPIs) or success metrics for this contract. Effective delivery would likely be measured by system uptime, user satisfaction, successful integration of new waves, timely issue resolution, and adherence to security protocols. The Defense Health Agency would be responsible for monitoring these metrics to ensure the contractor meets its obligations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10838 E MARSHALL ST STE 220-A, TULSA, OK, 74116
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, 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: $50,260,792
Exercised Options: $45,693,944
Current Obligation: $45,693,944
Actual Outlays: $286,679
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $9,087,072
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-30
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-07-02
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