DoD's $16.7M Logistics Consulting Contract Awarded to Cherokee Nation Management & Consulting Under Sole Source Basis

Contract Overview

Contract Amount: $16,694,099 ($16.7M)

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

Awarding Agency: Department of Defense

Start Date: 2021-03-10

End Date: 2026-03-25

Contract Duration: 1,841 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CENTRAL ISSUE FACILITY SUPPORT SERVICES

Place of Performance

Location: CATOOSA, ROGERS County, OKLAHOMA, 74015

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C.. for work described as: CENTRAL ISSUE FACILITY SUPPORT SERVICES Key points: 1. The contract's value of $16.7 million over its duration suggests a significant need for specialized logistics support. 2. Awarded on a sole-source basis, the lack of open competition raises questions about potential price efficiencies and broader market engagement. 3. The firm-fixed-price structure aims to control costs, but the absence of competition may limit downward pressure on pricing. 4. Performance is rated 'OK' by the agency, indicating satisfactory delivery of services to date. 5. The contract focuses on process, physical distribution, and logistics consulting, a critical area for military operations. 6. The duration of 1,841 days (approximately 5 years) points to a long-term strategic requirement for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the sole-source award and lack of readily available comparable contracts for similar niche logistics consulting services within the Department of Defense. The firm-fixed-price contract type suggests an attempt to manage costs, but without competitive bids, it's difficult to ascertain if the pricing reflects optimal market value. The 'OK' performance rating indicates the contractor is meeting expectations, but doesn't necessarily imply exceptional value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other qualified vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive process. The lack of multiple bidders means that price discovery through market forces was not utilized, potentially leading to a higher price than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these services due to the absence of competitive bidding. The government did not leverage market competition to drive down costs, which could result in a less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring specialized logistics and process improvement support. The services delivered are expected to enhance the efficiency and effectiveness of physical distribution and logistics operations. The geographic impact is likely concentrated within the operational areas and facilities managed by the Department of the Navy, with potential reach to other DoD installations. The contract supports a specialized consulting workforce, contributing to the professional services sector within the federal contracting landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially reduces value for money.
Lack of transparency in the justification for sole-source award.
Performance rating of 'OK' suggests adequacy but not necessarily excellence, warranting closer monitoring.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty.
Award to a Native American-owned business (Cherokee Nation Management & Consulting) may align with socio-economic goals.
Contractor has a stated performance rating of 'OK', indicating satisfactory service delivery.

Sector Analysis

The federal consulting services market, particularly within logistics and process improvement, is substantial. This contract falls under the professional, scientific, and technical services sector. While specific benchmarks for sole-source logistics consulting are difficult to isolate, the overall federal spending on management and consulting services runs into billions annually. This contract represents a focused investment in optimizing critical supply chain and operational processes for a major defense agency.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Cherokee Nation Management & Consulting, L.L.C., is a large business. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, this award does not directly contribute to the small business contracting goals or foster subcontracting opportunities within the small business ecosystem.

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 firm-fixed-price contract structure, which obligates the contractor to deliver specific services for an agreed-upon price. Transparency is limited due to the sole-source nature of the award, with justifications for such awards usually being publicly available but not detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Logistics Modernization Programs
Navy Supply Chain Management Contracts
Federal Management and Consulting Services
Process Improvement Consulting Contracts

Risk Flags

Sole-source award lacks competitive transparency.
Potential for suboptimal pricing due to lack of competition.
Performance rating of 'OK' indicates satisfactory but not exceptional service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to CHEROKEE NATION MANAGEMENT & CONSULTING, L.L.C... CENTRAL ISSUE FACILITY SUPPORT SERVICES

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 $16.7 million.

What is the period of performance?

Start: 2021-03-10. End: 2026-03-25.

What specific logistics challenges or requirements led to the sole-source justification for this contract?

The provided data does not detail the specific logistics challenges or requirements that justified the sole-source award to Cherokee Nation Management & Consulting, L.L.C. Typically, sole-source justifications are based on factors such as unique capabilities, urgent and compelling needs, or the unavailability of other sources. Without access to the Justification and Approval (J&A) document, it is impossible to ascertain the precise rationale. However, given the nature of logistics consulting, it could involve highly specialized knowledge of DoD systems, proprietary processes, or a critical, time-sensitive need that only this contractor could address immediately.

How does the $16.7 million contract value compare to similar logistics consulting contracts awarded by the Department of the Navy or other federal agencies?

Direct comparison of the $16.7 million value is difficult without knowing the precise scope and duration of services. However, large-scale logistics consulting engagements for federal agencies can range from a few million to tens of millions of dollars over several years. Contracts for comprehensive supply chain optimization, strategic planning, or the implementation of new logistics technologies often fall within this financial bracket. The firm-fixed-price nature and the 5-year duration suggest a substantial, long-term engagement, making the $16.7 million figure plausible for a significant undertaking, though its competitiveness is unknown due to the sole-source award.

What are the key performance indicators (KPIs) used to assess the contractor's 'OK' performance rating?

The provided data only states the overall performance rating as 'OK' and does not specify the Key Performance Indicators (KPIs) used by the Department of the Navy to arrive at this assessment. Agencies typically establish a set of measurable metrics tied to contract objectives. For logistics consulting, these KPIs might include improvements in delivery times, reduction in inventory costs, enhanced process efficiency (e.g., reduced cycle times), successful implementation of recommendations, accuracy of analysis, and client satisfaction. The 'OK' rating suggests the contractor is meeting baseline expectations across these or similar metrics.

What is the historical spending pattern for logistics consulting services by the Department of the Navy, and how does this contract fit within that pattern?

Historical spending data for the Department of the Navy's logistics consulting services is not provided in the current dataset. However, the Navy, as a major component of the DoD, consistently invests in optimizing its complex global supply chains and operational logistics. Spending in this area can fluctuate based on strategic priorities, modernization efforts, and specific operational needs. This $16.7 million contract, awarded over approximately five years, represents a significant, albeit potentially singular, investment in specialized consulting. Without historical context, it's hard to determine if this is a typical expenditure or an outlier, but it underscores the ongoing importance of logistics expertise.

Are there any identified risks associated with Cherokee Nation Management & Consulting, L.L.C.'s track record or performance on similar contracts?

The provided data indicates a performance rating of 'OK' for this specific contract, suggesting no major issues have been formally reported. However, a comprehensive risk assessment would require reviewing the contractor's broader performance history across all federal contracts, including past performance evaluations, any past disputes, or contract terminations. The 'OK' rating is a baseline; it doesn't preclude potential risks related to execution, adaptability to changing requirements, or the long-term strategic alignment of their consulting services. Further due diligence would involve examining CPARS (Contractor Performance Assessment Reporting System) reports and other available performance data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018921R0022

Offers Received: 1

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: $18,353,799

Exercised Options: $16,694,108

Current Obligation: $16,694,099

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $14,873,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline