DoD awards $33.6M IT contract to Cherokee Nation Operational Solutions for computer facilities management

Contract Overview

Contract Amount: $33,564,238 ($33.6M)

Contractor: Cherokee Nation Operational Solutions, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2020-12-04

End Date: 2026-04-03

Contract Duration: 1,946 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FCDS STANDALONE FFP CONTRACT AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C. for work described as: FCDS STANDALONE FFP CONTRACT AWARD Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of nearly 2,000 days suggests a long-term need for these services. 3. Awarded to a single entity, raising questions about competitive pressure on pricing. 4. The specific NAICS code (541513) points to a focus on computer facilities management. 5. Geographic location of performance is Alabama. 6. This award represents a significant investment in maintaining critical IT infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $33.6 million contract is challenging without more specific service details or comparable contract data. However, the firm-fixed-price structure suggests the government has defined the scope and expects predictable costs. The duration of the contract (over 5 years) implies a substantial, ongoing need for these computer facilities management services. Without data on the number of bids or the pricing of alternatives, it's difficult to definitively assess if this represents excellent value, but the fixed price offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, or when circumstances necessitate a direct award. The lack of competition means that pricing was not subjected to market forces that typically drive down costs through bidding. This raises questions about whether the government secured the most cost-effective solution available.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity for competitive bidding to potentially lower the overall cost of the services. This could result in a higher price than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiary is the Department of the Army, which will receive essential computer facilities management services. This contract supports the operational readiness and efficiency of military IT infrastructure. Services are expected to be performed in Alabama, potentially impacting the local workforce and economy. The contract ensures the continued functioning of critical computing environments necessary for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can limit opportunities for other capable businesses to secure government contracts.
Dependence on a single contractor for critical IT services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long contract duration indicates a stable, ongoing need and potentially a reliable service provider.
Award to Cherokee Nation Operational Solutions, an entity with potential ties to tribal economic development initiatives.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. This is a critical area for any organization, especially the Department of Defense, as it ensures the reliable operation of essential computing infrastructure. The market for IT services is highly competitive, but specific niches like facilities management can sometimes see specialized providers. The value of this contract, at $33.6 million, is substantial and reflects the complexity and importance of maintaining these systems.

Small Business Impact

Information regarding small business set-aside or subcontracting plans was not explicitly provided in the data. As this was a sole-source award, it is less likely to have been specifically set aside for small businesses. Further investigation would be needed to determine if Cherokee Nation Operational Solutions has any subcontracting requirements that would benefit small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is generally maintained through contract award databases and reporting requirements. Specific accountability measures would be detailed within the contract's terms and conditions, including performance standards and remedies for non-compliance. The Inspector General's office may also have jurisdiction for audits and investigations if performance or financial concerns arise.

Related Government Programs

IT Infrastructure Management
Computer Systems Administration
Data Center Operations
Information Technology Services
Defense IT Support

Risk Flags

Sole-source award limits competitive pricing.
Potential for vendor lock-in due to single-contractor reliance.
Lack of detailed performance metrics in public data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to CHEROKEE NATION OPERATIONAL SOLUTIONS, L.L.C.. FCDS STANDALONE FFP CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION OPERATIONAL SOLUTIONS, 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 $33.6 million.

What is the period of performance?

Start: 2020-12-04. End: 2026-04-03.

What is the specific scope of 'Computer Facilities Management Services' covered under this contract?

The provided data indicates the NAICS code 541513 for Computer Facilities Management Services. This typically encompasses a range of activities related to the operation, maintenance, and management of computer hardware, software, and related infrastructure. Services can include system administration, network monitoring, hardware maintenance, data center operations, disaster recovery planning, and ensuring the overall availability and performance of IT facilities. The exact deliverables and service level agreements would be detailed in the contract's statement of work, which is not publicly available in this data snippet. Understanding the precise scope is crucial for evaluating the contract's value and performance.

How does the $33.6 million contract value compare to similar IT facilities management contracts awarded by the DoD?

Direct comparison of the $33.6 million contract value to similar IT facilities management contracts is challenging without access to a comprehensive database of comparable awards, including their scope, duration, and specific services. However, for a contract spanning nearly five years (December 2020 to April 2026), this value suggests a significant level of service provision. Larger, more complex IT infrastructure management contracts within the DoD can range from tens to hundreds of millions of dollars. The firm-fixed-price nature indicates a defined scope, and the value should be assessed against the criticality and scale of the facilities managed. Without more granular data on comparable contracts, it's difficult to definitively benchmark this award as high or low.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected performance standards and metrics for the contractor. Typically, for computer facilities management, KPIs might include system uptime percentages, response times for issue resolution, security compliance rates, and successful completion of maintenance tasks. SLAs would outline the specific targets for these KPIs and potential penalties or incentives tied to performance. Without these details, a thorough assessment of the contractor's performance and the overall value derived from the contract is limited.

What is the track record of Cherokee Nation Operational Solutions in delivering IT facilities management services to the federal government?

Cherokee Nation Operational Solutions, L.L.C. has a history of performing government contracts. While specific details on their track record for IT facilities management are not provided in this data, their ability to secure this $33.6 million sole-source award suggests they possess capabilities deemed necessary by the Department of the Army. Federal procurement databases often contain past performance information, which would be crucial for a comprehensive assessment. This includes details on previous contract performance, client satisfaction, and any history of disputes or contract terminations. A deeper dive into their contract history would reveal their experience and reliability in this specific service area.

Are there any known risks associated with relying on a single contractor for these critical IT services?

Yes, relying on a single contractor for critical IT services, as is the case with this sole-source award, presents several risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary systems or processes, making it difficult and costly to switch providers. Secondly, the lack of competition can reduce the incentive for the contractor to innovate or maintain competitive pricing over the contract's life. Thirdly, if the contractor experiences financial difficulties, operational issues, or a decline in performance, the government has limited immediate alternatives, potentially disrupting essential IT services. Robust contract management, clear performance expectations, and contingency planning are vital to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DY20R0039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 220-A, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, 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: $36,084,509

Exercised Options: $35,768,188

Current Obligation: $33,564,238

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $52,327,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline