State Department awards $2.5M for staffing support, raising questions on competition and value

Contract Overview

Contract Amount: $2,492,165 ($2.5M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of State

Start Date: 2021-07-11

End Date: 2026-08-10

Contract Duration: 1,856 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFFING SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $2.5 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: STAFFING SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over 5 years suggests a long-term need for these services. 3. Performance is tied to facilities support services, indicating a critical operational role. 4. The time and materials pricing structure can lead to cost overruns if not closely managed. 5. Lack of competition raises concerns about whether the government is achieving optimal value. 6. The contractor, Cherokee Nation System Solutions LLC, has a track record with federal agencies.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award and lack of detailed performance metrics. The time and materials (T&M) pricing model, while flexible, can be prone to cost escalation without stringent oversight. Comparing this to similar staffing support contracts is difficult without knowing the specific skill sets and deliverables. However, the extended duration and sole-source nature suggest a potential for higher-than-market costs if not managed proactively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services due to unique capabilities, urgent needs, or specific circumstances. The absence of multiple bidders means there was no competitive pressure to drive down prices or encourage innovative solutions, potentially leading to less favorable terms for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competition, potentially resulting in higher costs for taxpayers. It also bypasses opportunities to discover new vendors or foster broader market engagement.

Public Impact

Federal employees within the Department of State benefit from the continuity of essential staffing support services. The services provided ensure the smooth operation of facilities managed by the Department of State. The contract's impact is primarily concentrated in Washington D.C., where the Department of State is headquartered. The contract supports a workforce engaged in administrative and facilities management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value discovery.
Time and materials contract type poses a risk of cost overruns without strict oversight.
Long contract duration (over 5 years) increases exposure to potential inefficiencies or price creep.
Limited public information on specific performance metrics and deliverables makes value assessment difficult.

Positive Signals

Contractor, Cherokee Nation System Solutions LLC, is an established entity with federal contracting experience.
Staffing support services are crucial for the operational continuity of the Department of State.
The contract is awarded to a company with ties to a Native American tribe, potentially aligning with socio-economic goals.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on facilities support and staffing. The market for such services is competitive, with numerous firms offering a range of capabilities. However, the sole-source nature of this award bypasses typical market dynamics. Comparable spending benchmarks for facilities support and staffing services vary widely based on scope, location, and required expertise, but the $2.5 million award over five years suggests a significant, ongoing need.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The primary contractor, Cherokee Nation System Solutions LLC, is a large business. This means the contract does not directly contribute to the government's small business contracting goals and may limit opportunities for smaller firms to participate in this specific service area.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Management Services
Administrative Support Contracts
Professional and Technical Services
Department of State Operations

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.5 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. STAFFING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SYSTEM SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2021-07-11. End: 2026-08-10.

What specific staffing support services are being provided under this contract?

The contract identifies the service as 'STAFFING SUPPORT SERVICES' and categorizes it under 'Facilities Support Services' (NAICS code 561210). While the specific details of the staffing are not elaborated in the provided data, it implies the provision of personnel to support the operational and administrative functions related to the Department of State's facilities. This could range from administrative assistants and facility managers to specialized support staff required for the upkeep and functioning of government buildings and infrastructure. The exact nature of the roles and responsibilities would be detailed in the contract's statement of work, which is not publicly available in this dataset.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data states the contract type is 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source award. Common justifications for sole-source procurements include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is impractical, or when the contract is a follow-on to a previous sole-source award where the original justification still holds. Without further documentation from the Department of State, the precise reason for this sole-source determination remains unknown. This lack of competition limits the government's ability to leverage market forces for better pricing and service innovation.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for labor hours and material costs. For staffing support and facilities services, fixed-price or cost-plus-fixed-fee contracts are often preferred when requirements are well-defined, as they provide greater cost certainty. The T&M structure here, combined with a sole-source award and a long duration, necessitates robust oversight from the Department of State to manage costs effectively and ensure value for taxpayer money.

What is the track record of Cherokee Nation System Solutions LLC in providing similar services to the federal government?

Cherokee Nation System Solutions LLC (CNSS) is a significant federal contractor, often performing IT, engineering, and professional services for various government agencies. While specific details on their past performance for 'staffing support services' related to facilities management are not in this dataset, CNSS has a history of managing large, complex contracts. Their experience suggests they possess the organizational capacity and expertise to handle such requirements. However, the effectiveness and value delivered on this specific contract would depend on the execution and oversight applied by the Department of State, rather than solely on the contractor's general track record.

What are the potential risks associated with the 5-year duration of this contract?

A contract duration of over five years (1856 days) for staffing support services, especially under a Time and Materials (T&M) pricing model and a sole-source award, presents several risks. Firstly, it locks the government into a single provider for an extended period, potentially missing out on better solutions or pricing that could emerge in the market. Secondly, T&M contracts are inherently susceptible to scope creep and cost escalation over time if not meticulously monitored. Thirdly, long-term reliance on a single vendor can sometimes lead to complacency or reduced urgency in performance. Finally, the government's needs or the operational environment might change significantly over five years, making the original contract less relevant or efficient without costly modifications.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation

Address: 10838 E MARSHALL ST STE 200-A17, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $2,518,415

Exercised Options: $2,518,415

Current Obligation: $2,492,165

Actual Outlays: $715,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM20D0126

IDV Type: IDC

Timeline