DHA Awards $35.9M for Programmatic and Technical Support to Cherokee Nation Strategic Programs

Contract Overview

Contract Amount: $35,880,563 ($35.9M)

Contractor: Cherokee Nation Strategic Programs, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2018-09-20

End Date: 2023-08-19

Contract Duration: 1,794 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DHA CSD PROGRAMMATIC AND TECHNICAL SUPPORT SERVICES.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C. for work described as: DHA CSD PROGRAMMATIC AND TECHNICAL SUPPORT SERVICES. Key points: 1. The contract value of $35.9M over nearly 5 years indicates a significant investment in specialized support services. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process to ensure fair pricing. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. This spending falls within the Engineering Services sector, supporting critical defense health agency operations.

Value Assessment

Rating: good

The $35.9M contract value over 1794 days averages approximately $20,000 per day. Benchmarking against similar large-scale programmatic and technical support contracts for federal agencies would be necessary for a precise assessment, but the value appears reasonable for specialized engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method implies that while initial sources might have been excluded, the subsequent competition was open, aiming for competitive pricing. The impact on price discovery is likely positive, as multiple qualified bidders could participate.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense health services.

Public Impact

Ensures continued operational support for the Defense Health Agency's critical programs. Supports specialized engineering and technical expertise vital for military health initiatives. The contract's duration suggests a long-term need for these services, impacting budget planning. Potential for follow-on contracts based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Reliance on a single contractor for critical support functions.
Scope creep could increase costs beyond initial estimates.

Positive Signals

Firm fixed-price contract reduces cost uncertainty.
Competition ensures a degree of market-driven pricing.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for supporting complex government operations. Spending benchmarks for similar programmatic and technical support services within the Department of Defense can vary widely based on scope and duration, but $35.9M over nearly five years suggests a substantial and ongoing requirement.

Small Business Impact

The data indicates this contract was awarded to Cherokee Nation Strategic Programs, L.L.C., and does not specify any small business set-asides or subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award was made by the Defense Health Agency, a component of the Department of Defense. Oversight would typically involve contract management teams within the DHA to ensure performance, adherence to terms, and proper financial management.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Contract awarded after exclusion of sources.
Long contract duration (1794 days).
No explicit mention of small business subcontracting.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C.. DHA CSD PROGRAMMATIC AND TECHNICAL SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION STRATEGIC PROGRAMS, 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 $35.9 million.

What is the period of performance?

Start: 2018-09-20. End: 2023-08-19.

What specific programmatic and technical support functions are included in this contract?

The contract encompasses a broad range of programmatic and technical support services essential for the Defense Health Agency's operations. This likely includes project management, systems engineering, technical analysis, documentation, and potentially IT support related to healthcare systems. The exact scope would be detailed in the contract's statement of work, defining deliverables and performance standards.

What are the primary risks associated with this contract's structure and duration?

Key risks include potential over-reliance on a single contractor for critical functions, leading to vendor lock-in and reduced flexibility. The long duration (nearly 5 years) also presents a risk of scope creep if requirements evolve without adequate adjustments to pricing or contract terms. Furthermore, the exclusion of sources in the initial competition phase, even if followed by open competition, warrants scrutiny to ensure no viable alternatives were prematurely dismissed.

How effectively does this contract align with the DHA's strategic goals for healthcare modernization?

This contract's effectiveness hinges on how well the 'programmatic and technical support services' directly contribute to the DHA's modernization efforts. If the support enables the implementation of new health IT systems, improves data analytics, or streamlines healthcare delivery processes, it aligns well. However, if the support is primarily for maintaining legacy systems without a clear modernization path, its strategic alignment might be questionable.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W 2ND ST STE 1500-28, TULSA, OK, 74103

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: $35,880,563

Exercised Options: $35,880,563

Current Obligation: $35,880,563

Actual Outlays: $-1,747

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $43,492,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS110

IDV Type: IDC

Timeline