DoD's $23.5M storage operations contract awarded to Cherokee Nation Management & Consulting, L.L.C. via sole-source purchase order

Contract Overview

Contract Amount: $23,538,432 ($23.5M)

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

Awarding Agency: Department of Defense

Start Date: 2024-01-22

End Date: 2024-09-21

Contract Duration: 243 days

Daily Burn Rate: $96.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED STORAGE PROGRAM-OPERATIONS

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: CONSOLIDATED STORAGE PROGRAM-OPERATIONS Key points: 1. Value for money is difficult to assess due to sole-source award and lack of competitive bidding. 2. Competition dynamics are limited, with a sole-source award indicating no other bidders were considered. 3. Risk indicators include potential for overpayment and lack of market-driven pricing due to sole-source nature. 4. Performance context is a short-term contract for storage operations, suggesting immediate needs. 5. Sector positioning is within the warehousing and storage sub-sector of the broader logistics industry.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark without competitive data. The sole-source award to Cherokee Nation Management & Consulting, L.L.C. for $23.5 million over approximately 8 months raises questions about whether the government secured the best possible price. Without a competitive process, it's challenging to determine if the pricing is fair market value compared to similar storage operations contracts. The fixed-price nature provides some cost certainty, but the absence of competition limits the ability to assess overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not conduct a competitive solicitation. This typically occurs when only one responsible source is available or in cases of urgent need. The lack of competition means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to negotiate the most favorable terms.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of a competitive bidding process. Sole-source awards can sometimes lead to higher prices than those achieved through open competition.

Public Impact

The Department of Defense benefits from the provision of essential storage operations. Services delivered include warehousing and storage, crucial for military logistics and readiness. Geographic impact is concentrated in Georgia (GA), supporting regional military operations. Workforce implications may include employment opportunities with the contractor, Cherokee Nation Management & Consulting, L.L.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Short contract duration may indicate a stop-gap measure rather than a long-term strategic solution.
Lack of detailed performance metrics in the provided data makes it hard to assess contractor performance.

Positive Signals

Award to a Native American-owned business (Cherokee Nation Management & Consulting, L.L.C.) aligns with socio-economic contracting goals.
Firm Fixed Price contract type provides cost certainty for the government.
Contract supports critical Department of Defense logistics functions.

Sector Analysis

The contract falls within the 'Other Warehousing and Storage' industry, a segment of the broader logistics and supply chain management sector. This sector is vital for government operations, particularly for defense agencies requiring secure and efficient storage of equipment and supplies. Comparable spending benchmarks are difficult to establish without more specific details on the type and volume of goods stored, but the overall logistics market is substantial, with significant government expenditure.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided information. The award to Cherokee Nation Management & Consulting, L.L.C., a larger entity, suggests a focus on capability rather than small business participation for this specific requirement. Further analysis would be needed to confirm subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure which obligates the contractor to deliver services within the agreed price. Transparency is limited by the sole-source nature of the award; however, contract awards are generally reported in federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Logistics Support Contracts
General Services Administration (GSA) Warehousing Contracts
Military Sealift Command (MSC) Support Services
Defense Logistics Agency (DLA) Storage and Distribution

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on pricing and value for money.
Short contract duration may indicate an urgent or temporary need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... CONSOLIDATED STORAGE PROGRAM-OPERATIONS

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 $23.5 million.

What is the period of performance?

Start: 2024-01-22. End: 2024-09-21.

What is the track record of Cherokee Nation Management & Consulting, L.L.C. in performing similar storage and warehousing contracts for the Department of Defense?

Cherokee Nation Management & Consulting, L.L.C. (CNMC) has a history of performing various services for the Department of Defense, including logistics and base operations support. While specific details on their warehousing and storage performance metrics for past DoD contracts are not readily available in this dataset, CNMC's portfolio often includes facility management, IT services, and program management. Their experience suggests a capacity to handle complex operational requirements. However, a deeper dive into past performance reviews, contract close-outs, and any reported issues or successes on similar warehousing contracts would be necessary for a comprehensive assessment of their track record in this specific domain.

How does the per-unit cost of this contract compare to industry benchmarks for similar warehousing and storage services?

Determining a precise per-unit cost comparison is challenging without more granular data on the specific services provided under this $23.5 million contract. The 'Other Warehousing and Storage' category is broad. Key metrics like cost per square foot, cost per cubic foot, cost per item stored, or cost per handling operation would be needed for a meaningful benchmark. Given the sole-source nature of this award, it's difficult to ascertain if the pricing reflects competitive market rates. Industry benchmarks vary significantly based on location, type of goods stored (e.g., hazardous materials, temperature-controlled), security requirements, and service levels. Without these specifics, any comparison would be speculative.

What are the primary risks associated with a sole-source award for essential storage operations?

The primary risks associated with a sole-source award for essential storage operations include potential overpayment due to the lack of competitive pressure to drive down prices. There's also a risk of reduced innovation and service quality, as the contractor may face less incentive to improve efficiency or offer enhanced services compared to a competitive environment. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. If the selected contractor underperforms, the government's options for recourse or switching providers are limited and potentially costly, especially if the need is urgent and alternatives are scarce.

What is the expected effectiveness of this contract in meeting the Department of the Navy's storage needs over its duration?

The effectiveness of this contract hinges on Cherokee Nation Management & Consulting, L.L.C.'s ability to deliver the contracted storage operations as specified. The firm fixed-price structure incentivizes the contractor to manage costs effectively to maintain profitability. The short duration (approximately 8 months) suggests it's intended to meet a specific, potentially immediate, need rather than a long-term strategic requirement. Its effectiveness will be measured by the reliability, security, and accessibility of the stored goods, and whether these operations align with the Navy's logistical requirements during the contract period. Without defined performance standards or KPIs, assessing effectiveness post-award is difficult.

How does the total spending on 'Other Warehousing and Storage' by the Department of the Navy compare to this specific contract's value?

This contract represents a significant portion of spending within the 'Other Warehousing and Storage' category for the Department of the Navy over its duration, valued at $23.5 million. However, to contextualize this, one would need to examine the Navy's total annual or multi-year spending on warehousing and storage services across all contract types and award methods. The Navy, as a major branch of the DoD, likely has substantial and varied storage needs globally. This $23.5 million award, while substantial for a single contract, might represent a fraction of the Navy's overall investment in logistics infrastructure and services. Historical spending data would reveal trends and the relative importance of this specific contract.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6700424R0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W 2ND ST STE 1500-25, 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: $24,050,864

Exercised Options: $24,050,864

Current Obligation: $23,538,432

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $17,370,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline