DoD's $4.8M contract for Emergency Control Center operations awarded to Cherokee Nation Strategic Programs

Contract Overview

Contract Amount: $4,838,633 ($4.8M)

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

Awarding Agency: Department of Defense

Start Date: 2023-05-07

End Date: 2027-01-06

Contract Duration: 1,340 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY CONTROL CENTER (ECC) OPERATION

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C. for work described as: EMERGENCY CONTROL CENTER (ECC) OPERATION Key points: 1. The contract value of $4.8M over approximately 3.7 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract is for engineering services, a critical support function for military operations. 5. The geographic location in Kentucky may indicate a specific regional operational need. 6. The contractor, Cherokee Nation Strategic Programs, L.L.C., is a significant entity in federal contracting.

Value Assessment

Rating: good

The contract value of $4.8M for engineering services over 1340 days (approx. 3.7 years) translates to an average annual value of roughly $1.3M. Benchmarking this against similar contracts for emergency control center operations or engineering support within the Department of Defense is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the government has a clear understanding of the scope and cost, which can be a positive indicator of value if the contractor delivers as expected. The relatively modest total value for a multi-year government contract also suggests it is not an exceptionally high-cost endeavor.

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 indicates that while the competition was intended to be broad, there might have been specific reasons for excluding certain sources initially, which were then overcome to allow for full and open competition. The fact that it was ultimately competed broadly suggests that multiple capable vendors were likely considered, which is generally positive for price discovery and achieving a competitive market rate. The number of bidders is not specified, but the designation implies a robust competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings. It ensures that the government is not unduly limiting its options and is leveraging the broadest possible market to meet its needs.

Public Impact

This contract directly supports the Department of the Army's operational readiness by ensuring the functioning of emergency control centers. Personnel in Kentucky will benefit from the services provided, potentially including enhanced safety and response capabilities. The contract's focus on engineering services implies a need for specialized technical expertise to maintain critical infrastructure. The successful execution of this contract contributes to the overall mission effectiveness of the military installation it serves.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness beyond meeting basic contractual requirements.
The 'after exclusion of sources' clause, though resolved to full and open, warrants a review of the initial exclusion rationale to ensure no undue limitations occurred.
The fixed-price contract type, while shifting risk, could lead to scope creep issues if not managed meticulously.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The fixed-price contract type aligns incentives for the contractor to manage costs efficiently.
The contractor, Cherokee Nation Strategic Programs, L.L.C., has experience in government contracting, potentially indicating a lower execution risk.
The contract duration of over three years provides stability for both the government and the contractor.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a substantial part of the federal contracting landscape, particularly for defense and infrastructure projects. The market for engineering services supporting government operations is competitive, with numerous firms capable of providing specialized technical support. The Department of Defense is a major consumer of these services, often requiring expertise in areas such as facility management, system integration, and operational support for critical infrastructure like emergency control centers. Spending benchmarks for similar contracts vary widely based on scope, duration, and specific technical requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from a set-aside. The prime contractor, Cherokee Nation Strategic Programs, L.L.C., is likely a large business, and their subcontracting plans, if any, would need to be reviewed to understand potential opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting and technical points of contact. The fixed-price nature of the contract means oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance period.

Related Government Programs

Department of Defense Engineering Services Contracts
Emergency Management Support Contracts
Army Operations and Maintenance Contracts
Federal IT and Infrastructure Support Services

Risk Flags

Potential for scope creep in fixed-price contracts if requirements are not tightly managed.
Reliance on contractor performance for critical emergency response infrastructure.
Initial exclusion of sources warrants review to ensure full market access was ultimately achieved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to CHEROKEE NATION STRATEGIC PROGRAMS, L.L.C.. EMERGENCY CONTROL CENTER (ECC) OPERATION

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2023-05-07. End: 2027-01-06.

What is the track record of Cherokee Nation Strategic Programs, L.L.C. with the Department of Defense, particularly in engineering services?

Cherokee Nation Strategic Programs, L.L.C. (CNSP) has a significant history of contracting with the Department of Defense (DoD) and other federal agencies. They specialize in a range of services including logistics, IT, base operations support, and engineering. Their past performance with the DoD often involves providing operational support, facility maintenance, and technical services. Reviewing CNSP's contract history within FPDS or SAM.gov would reveal specific contract values, agencies served, and performance ratings on similar projects. This particular contract for ECC operations aligns with their stated capabilities in providing critical support services to military installations, suggesting a potentially good fit based on their established expertise and prior government work.

How does the $4.8M contract value compare to other federal contracts for Emergency Control Center (ECC) operations or similar engineering support services?

The $4.8M total contract value over approximately 3.7 years, averaging around $1.3M annually, positions this contract as moderate in size within the federal engineering services market. Larger, more complex ECC operations or facility-wide engineering support contracts for major military bases can easily reach tens or hundreds of millions of dollars. Conversely, smaller, more specialized engineering task orders might be in the hundreds of thousands. This contract's value suggests a focused scope, likely supporting a specific facility or a defined set of critical systems within an ECC. Without more granular details on the specific services and systems covered, direct comparison is difficult, but it appears to be a standard-sized award for its apparent scope.

What are the primary risks associated with this fixed-price contract for engineering services, and how are they mitigated?

The primary risk with a fixed-price contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to financial distress, reduced quality, or contractor default. For engineering services, risks include unforeseen technical challenges, scope creep if requirements are not clearly defined, and potential delays impacting operational readiness. Mitigation strategies employed by the government include rigorous initial scope definition, clear performance standards, milestone-based payments tied to deliverables, and robust contract administration. The government also relies on the contractor's own risk management processes and their incentive to maintain a positive performance record for future contracts. The 'after exclusion of sources' clause, though resolved, might indicate initial complexities that required careful management.

What is the expected impact of this contract on the operational effectiveness of the specific military installation or unit it serves?

This contract is expected to significantly enhance the operational effectiveness of the military installation by ensuring the continuous and reliable functioning of its Emergency Control Center (ECC). ECCs are critical hubs for coordinating responses to emergencies, managing security, and facilitating communication during crises. By outsourcing the operation and maintenance of these centers to a specialized contractor like Cherokee Nation Strategic Programs, the military can ensure access to expert personnel and technical support, thereby reducing the burden on organic military personnel. This allows the installation to maintain a higher state of readiness and a more robust response capability, directly contributing to mission accomplishment and the safety of personnel and assets.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation affect the perceived value and competition level?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced procurement process. Initially, certain sources may have been excluded, possibly due to specific requirements, pre-qualification criteria, or perceived limitations of certain vendors. However, the process evolved to allow for full and open competition, meaning all responsible sources were ultimately permitted to submit offers. This typically indicates that the initial exclusions were either resolved or deemed unnecessary, and the agency sought the broadest possible competition. This approach generally benefits taxpayers by maximizing the pool of potential bidders, fostering greater price competition, and ensuring the government selects the best value offer. It implies a thorough evaluation process that balanced specific needs with market access.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9124823R0002

Offers Received: 1

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, 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: $8,519,771

Exercised Options: $6,591,825

Current Obligation: $4,838,633

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,534,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8141

IDV Type: IDC

Timeline