DHS awards $5.3M contract for executive support services to Cherokee Federal Solutions, with limited competition

Contract Overview

Contract Amount: $5,335,914 ($5.3M)

Contractor: Cherokee Federal Solutions, L.L.C.

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-25

End Date: 2026-03-31

Contract Duration: 1,952 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFAM EXECUTIVE SUPPORT SERVICES

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74116

State: Oklahoma Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.3 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C. for work described as: OFAM EXECUTIVE SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. Contract duration of 1952 days (over 5 years) provides long-term stability for the contractor. 4. Services fall under Administrative Management and General Management Consulting, a common support function. 5. The contract's value is relatively small in the context of overall DHS spending. 6. Performance is rated 'OK' by the agency, suggesting satisfactory but not exceptional delivery.

Value Assessment

Rating: fair

The contract value of $5.3 million over approximately five years averages around $1 million annually. Benchmarking this against similar executive support contracts is challenging without more specific service details. However, given the limited competition and the nature of administrative support, the pricing appears within a reasonable range, though not necessarily the most cost-effective possible. The 'OK' performance rating suggests the value delivered is meeting expectations but not exceeding them significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating that the agency did not conduct a full and open competition. This could be due to various reasons, such as a specific requirement that only one vendor could meet, or a previous relationship that led to a sole-source justification. The limited competition means there were likely few, if any, other bidders considered, which can reduce price pressure and potentially lead to less favorable terms for the government compared to a competitive process.

Taxpayer Impact: Limited competition can result in taxpayers paying more than they might if multiple vendors were vying for the contract. It reduces the government's ability to leverage market forces to secure the best possible price.

Public Impact

Benefits Department of Homeland Security (DHS) by providing essential administrative and management consulting services. Supports the U.S. Customs and Border Protection (CBP) in its operational and administrative functions. Ensures continuity of executive support operations within the agency. Likely impacts a small team of consultants working directly with DHS leadership. Geographic impact is primarily within the agency's administrative offices, likely in Washington D.C. metro area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
The 'OK' performance rating suggests room for improvement in service delivery.
Lack of detailed service description makes it difficult to assess true value for money.
Contract duration without clear performance milestones could reduce incentive for exceptional service.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Long contract duration offers stability and reduces administrative burden of frequent re-competition.
Contractor is a known entity, potentially reducing onboarding time and risks.
Services provided are essential for smooth agency operations.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category encompassing a wide range of advisory and assistance services. The federal government is a significant consumer of these services, utilizing them for strategic planning, organizational improvement, and operational efficiency. The market includes numerous large and small businesses. This contract represents a small portion of the overall federal spending in this sector, focusing on specific executive support needs within DHS.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary contractor, Cherokee Federal Solutions, L.L.C., is likely performing the work. There is no explicit information regarding subcontracting plans for small businesses within this data. This means the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection (CBP) contracting officer and program managers within DHS. The firm-fixed-price nature of the contract provides some cost control. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' award status. While the contract itself is a public record, the detailed justifications for limited competition are often not fully disclosed. Inspector General oversight would apply if any performance or financial irregularities were suspected.

Related Government Programs

DHS Administrative Support Contracts
CBP Management Consulting Services
Federal Executive Support Services
General Management Consulting Services

Risk Flags

Limited competition may result in higher costs.
Performance rating is only 'OK', indicating potential for improvement.
Lack of detailed service scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.3 million to CHEROKEE FEDERAL SOLUTIONS, L.L.C.. OFAM EXECUTIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHEROKEE FEDERAL SOLUTIONS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2020-11-25. End: 2026-03-31.

What specific executive support functions are being provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' However, it does not detail the specific functions. Typically, such contracts involve providing advice and assistance on matters of management and operation, including strategic planning, organizational policy, and administrative procedures. For this contract, it likely entails supporting high-level executives within DHS and CBP with tasks such as scheduling, communication management, policy analysis, research, and project coordination. Without more granular information, the exact nature of the 'executive support' remains generalized.

How does the $5.3 million contract value compare to similar executive support contracts within DHS or CBP?

Direct comparison of the $5.3 million value is difficult without knowing the precise scope and duration of services for other contracts. However, this contract spans nearly five years (1952 days), averaging approximately $1.08 million per year. This annual figure is moderate for executive support services within a large agency like DHS. Larger, more complex contracts for strategic consulting or enterprise-wide management support could easily exceed this amount annually. Conversely, smaller, task-order-based contracts for specific administrative assistance might be less. The value appears reasonable for ongoing, dedicated executive support, especially considering the limited competition.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for these services?

The primary risk associated with a 'NOT AVAILABLE FOR COMPETITION' award is the potential for reduced value for money. Without a competitive bidding process, the government may not achieve the lowest possible price or the most innovative solutions. There's also a risk of vendor lock-in if the justification for limited competition is weak or if the services are highly specialized. Furthermore, it can create a perception of unfairness or lack of transparency, potentially impacting future procurement processes. For taxpayers, the risk is paying a premium due to the absence of market-driven price discovery.

What does the 'OK' performance rating signify for the effectiveness of this contract?

An 'OK' performance rating signifies that the contractor, Cherokee Federal Solutions, L.L.C., is meeting the minimum requirements and expectations outlined in the contract. It indicates satisfactory performance but does not suggest exceptional service delivery or exceeding expectations. For the agency, this means the essential executive support functions are being carried out adequately. However, it also implies there may be opportunities for improvement in efficiency, responsiveness, or the quality of advice provided. It suggests the contract is functioning as intended but is not necessarily a model of outstanding program effectiveness.

What is the historical spending pattern for executive support services at DHS/CBP, and how does this contract fit?

The provided data does not include historical spending patterns for executive support services at DHS or CBP. To assess this, one would need access to historical contract databases (e.g., FPDS). Generally, large federal agencies like DHS and CBP consistently require administrative and management support services to facilitate executive functions. Spending in this area can fluctuate based on agency priorities, budget allocations, and specific initiatives. This $5.3 million contract, awarded in late 2020 for services extending to early 2026, represents a significant, long-term commitment for executive support within CBP, suggesting a sustained need for these services rather than a short-term or ad-hoc requirement.

What are the implications of the contract being a 'DEFINITIVE CONTRACT' with a long duration?

A 'DEFINITIVE CONTRACT' is a contract that contains all the terms and clauses that will govern the parties throughout the contract period. In this case, it's a long-duration contract (1952 days, over 5 years) with a firm-fixed-price (FFP) structure. The implications are several: 1) Cost certainty for the government, as the price is fixed regardless of the contractor's actual costs. 2) Stability and predictability for the contractor, allowing for resource planning and investment. 3) Reduced administrative burden for the agency, as it avoids frequent re-competition. However, the long duration combined with FFP means that if market rates or service needs change significantly, the government might be locked into a price that becomes less favorable over time. The 'OK' performance rating also means the agency is committed to this contractor for an extended period despite not receiving top-tier performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST N STE 220C, TULSA, OK, 74116

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: $8,851,370

Exercised Options: $5,335,914

Current Obligation: $5,335,914

Actual Outlays: $2,583,891

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,344,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline