DoD's $85M CSP Operations Support contract awarded to Cherokee Nation Management & Consulting, L.L.C. for warehousing

Contract Overview

Contract Amount: $84,845,376 ($84.8M)

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

Awarding Agency: Department of Defense

Start Date: 2020-11-20

End Date: 2024-05-31

Contract Duration: 1,288 days

Daily Burn Rate: $65.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CSP OPERATIONS SUPPORT-

Place of Performance

Location: CATOOSA, ROGERS County, OKLAHOMA, 74015

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $84.8 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: CSP OPERATIONS SUPPORT- Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1288 days indicates a long-term need for these services. 3. The firm fixed-price contract type aims to control costs by setting a predetermined price. 4. The award was made to a single contractor, Cherokee Nation Management & Consulting, L.L.C. 5. The contract falls under the 'Other Warehousing and Storage' category, highlighting a specific operational need. 6. The geographic location of the contractor in Oklahoma may have implications for local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this $84.8 million contract for CSP Operations Support is challenging without specific performance metrics or detailed service descriptions. The firm fixed-price structure suggests an attempt to manage costs, but the overall value for money depends on the efficiency and effectiveness of the warehousing and storage services provided. Comparing this to similar contracts for warehousing and logistics support within the Department of Defense would provide a clearer picture of whether the pricing is competitive and if the government is receiving good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, which can drive down costs and improve service quality through competitive pressures.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which receive essential warehousing and storage support. The services delivered include the management and operation of CSP (Consolidated Storage Program) facilities, ensuring efficient storage and handling of materials. The geographic impact is primarily within Oklahoma, where the contractor is based, potentially creating local employment and economic activity. Workforce implications may include job creation within the contractor's organization, particularly in logistics, warehousing, and management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen operational challenges.
Dependence on a single contractor for critical warehousing operations could pose a risk if performance issues arise.
Limited transparency into the day-to-day operational efficiency and cost-effectiveness of the warehousing services.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps in budget predictability and cost control.
Long contract duration suggests a stable, ongoing need and potentially a reliable service provider.

Sector Analysis

The warehousing and storage sector is a critical component of the logistics and supply chain industry, supporting various government and commercial operations. This contract falls within the broader 'Other Warehousing and Storage' NAICS code, which encompasses establishments primarily engaged in operating merchandise warehouses for storage and handling of goods. The federal government is a significant consumer of these services, particularly for defense, disaster relief, and general supply chain management. Comparable spending benchmarks would typically be found by analyzing other large-scale warehousing contracts awarded by agencies like the Department of Defense or the General Services Administration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to Cherokee Nation Management & Consulting, L.L.C., a large business, suggests that the primary focus was on meeting the operational requirements of the DoD. The absence of small business set-asides or explicit subcontracting goals means there is likely limited direct impact on the small business ecosystem for this particular contract, though the prime contractor may engage small businesses opportunistically.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS, which provide basic information on the contract's value, duration, and contractor. Further oversight might be provided by the DoD Inspector General if specific concerns or allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Logistics Support Contracts
Federal Warehousing and Storage Services
Supply Chain Management Contracts
Consolidated Storage Program (CSP) Operations

Risk Flags

Potential for cost overruns if operational complexities are underestimated.
Risk of performance degradation if contractor faces financial or resource constraints.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.8 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... CSP OPERATIONS SUPPORT-

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 Navy).

What is the total obligated amount?

The obligated amount is $84.8 million.

What is the period of performance?

Start: 2020-11-20. End: 2024-05-31.

What is the track record of Cherokee Nation Management & Consulting, L.L.C. in performing similar warehousing and logistics support contracts for the federal government?

Cherokee Nation Management & Consulting, L.L.C. (CNM&C) has a history of performing various government contracts, including those related to logistics, base operations support, and professional services. While specific details on their warehousing performance for DoD contracts of this magnitude require deeper analysis of past performance reviews and award data, CNM&C's broader portfolio suggests experience in managing complex government requirements. It is important to review their past performance ratings, any past performance questionnaires (PPQs) submitted by previous agencies, and any debriefings from unsuccessful bids to fully assess their suitability and track record for this specific CSP Operations Support contract. Their status as a tribally owned entity may also influence their approach to contract execution and workforce development.

How does the awarded amount of $84.8 million compare to the estimated value or budget for similar CSP Operations Support contracts?

Directly comparing the $84.8 million award to a precise budget or estimated value for this specific CSP Operations Support contract is difficult without access to the government's independent government cost estimate (IGCE) or pre-solicitation market research. However, the contract's duration of approximately 1288 days (around 3.5 years) suggests an average annual value of roughly $24 million. This figure can be benchmarked against other large-scale warehousing, storage, and logistics support contracts awarded by the Department of Defense or other federal agencies. A comprehensive comparison would involve analyzing the scope of services, geographic coverage, and complexity of operations for similar contracts to determine if this award represents a competitive and reasonable price point for the services rendered.

What are the key performance indicators (KPIs) used to measure the success and efficiency of this CSP Operations Support contract?

The specific Key Performance Indicators (KPIs) for this CSP Operations Support contract are not publicly detailed in the award notice. However, typical KPIs for such contracts often include metrics related to inventory accuracy, on-time delivery rates, order fulfillment timeliness, facility maintenance and safety compliance, equipment uptime, and cost control. The firm fixed-price nature of the contract implies that the contractor is incentivized to meet or exceed these performance standards to maximize profitability. The Department of the Navy would likely have established specific metrics within the contract's Performance Work Statement (PWS) to monitor contractor performance and ensure mission requirements are met effectively.

What is the potential risk associated with the firm fixed-price contract type for this extensive warehousing operation?

The primary risk associated with a firm fixed-price (FFP) contract for an extensive operation like CSP support is that the contractor may face financial strain if unforeseen costs arise that were not adequately anticipated in their bid. This could lead to pressure on the contractor to cut corners on service quality, maintenance, or staffing to maintain profitability. Conversely, if the contractor is highly efficient and manages costs effectively, the FFP structure benefits the government by providing cost certainty. The government's risk is mitigated by robust contract oversight and clear performance standards outlined in the Performance Work Statement (PWS).

How does the geographic location of the contractor in Oklahoma impact the operational efficiency and cost of this DoD contract?

The geographic location of Cherokee Nation Management & Consulting, L.L.C. in Oklahoma is a factor in the operational execution of this DoD contract. While the contract is for 'CSP Operations Support,' the specific location of the facilities being supported is not detailed. If the contractor's primary operations base in Oklahoma is distant from the actual DoD facilities requiring warehousing support, it could introduce logistical challenges and increased transportation costs. However, if the contract involves managing facilities within or near Oklahoma, or if the contractor has established a strong regional presence, the location could be advantageous. The firm fixed-price nature suggests that these logistical considerations were factored into the bid price.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6700420R0012

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 777 W CHEROKEE ST, CATOOSA, OK, 74015

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: $84,845,376

Exercised Options: $84,845,376

Current Obligation: $84,845,376

Actual Outlays: $109,562

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,573,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline