DHA Patient Safety Program Contract Awarded to Cherokee Nation Defense Solutions for $26.4M

Contract Overview

Contract Amount: $26,369,014 ($26.4M)

Contractor: Cherokee Nation Defense Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-18

End Date: 2026-06-19

Contract Duration: 1,036 days

Daily Burn Rate: $25.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DHA PATIENT SAFETY PROGRAM

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to CHEROKEE NATION DEFENSE SOLUTIONS LLC for work described as: DHA PATIENT SAFETY PROGRAM Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant value of $26.4 million over its period of performance. 3. Competition was limited, raising potential concerns about price discovery. 4. The IT sector is a key area for defense health agency operations.

Value Assessment

Rating: fair

The contract's value of $26.4 million for administrative and management consulting services appears high given the lack of available pricing data. Benchmarking against similar contracts for these services is difficult without more detailed information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted the government's ability to secure the most favorable pricing.

Taxpayer Impact: The limited competition for this contract raises questions about whether taxpayers received the best possible value for the $26.4 million expenditure.

Public Impact

Impacts the Defense Health Agency's patient safety initiatives. Ensures continued administrative and management support for critical health programs. Potential for improved patient care through enhanced program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting, which is crucial for the operational efficiency of large government agencies like the Defense Health Agency. Spending benchmarks for similar services can vary widely.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight of this contract will be managed by the Defense Health Agency. The firm-fixed-price structure provides some cost control, but the limited competition warrants close monitoring of performance and value.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to CHEROKEE NATION DEFENSE SOLUTIONS LLC. DHA PATIENT SAFETY PROGRAM

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION DEFENSE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2023-08-18. End: 2026-06-19.

What specific patient safety improvements are expected from this contract?

The contract aims to enhance patient safety through improved administrative and management consulting services for the DHA Patient Safety Program. While specific metrics are not detailed, the expectation is that better program management will lead to more effective implementation of safety protocols, reduced medical errors, and ultimately, improved patient outcomes within military healthcare facilities.

What are the risks associated with awarding a large contract with limited competition?

Awarding a $26.4 million contract with limited competition carries risks of inflated pricing, reduced innovation, and potential for contractor complacency. Without competitive pressure, the contractor may have less incentive to offer the most cost-effective solutions or to proactively seek efficiencies. This also limits the government's ability to explore alternative approaches or providers.

How does this contract contribute to the overall effectiveness of the Defense Health Agency?

This contract is intended to bolster the effectiveness of the Defense Health Agency by ensuring robust administrative and management support for its critical patient safety initiatives. By leveraging specialized consulting services, the DHA can strengthen its program management, improve operational processes, and enhance the quality of care delivered to service members and their families.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT942523R0033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W. 2ND ST., SUITE 1500-21, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, 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: $34,970,249

Exercised Options: $26,369,014

Current Obligation: $26,369,014

Actual Outlays: $3,348,808

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $12,388,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-08-18

Current End Date: 2026-06-19

Potential End Date: 2027-06-19 00:00:00

Last Modified: 2025-12-29

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