HHS awards $16.8M contract for essential FDA support services to Chickasaw Business Solutions, LLC

Contract Overview

Contract Amount: $16,824,472 ($16.8M)

Contractor: Chickasaw Business Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-07

End Date: 2026-09-29

Contract Duration: 1,483 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS CONTRACT IS TO OBTAIN THE SERVICES OF A CONTRACTOR TO FURNISH THE NECESSARY MATERIALS, SERVICES, FACILITIES, AND OTHERWISE DO ALL THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF WORK NEEDED FOR THE FOOD AND DRUG ADMINISTRAT

Place of Performance

Location: NORMAN, CLEVELAND County, OKLAHOMA, 73071

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.8 million to CHICKASAW BUSINESS SOLUTIONS, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO OBTAIN THE SERVICES OF A CONTRACTOR TO FURNISH THE NECESSARY MATERIALS, SERVICES, FACILITIES, AND OTHERWISE DO ALL THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF WORK NEEDED FOR THE FOOD AND DRUG ADMINISTRAT Key points: 1. Contract provides critical materials and services for the Food and Drug Administration's operational needs. 2. The award to Chickasaw Business Solutions, LLC, indicates a focus on specific contractor capabilities. 3. Performance period extends over three years, suggesting a need for sustained support. 4. The contract type is Firm Fixed Price, which aims to control costs for the government. 5. The specific nature of 'All Other Professional, Scientific, and Technical Services' requires detailed understanding of FDA's unique requirements. 6. The absence of readily available competition data warrants further investigation into the procurement process.

Value Assessment

Rating: fair

The contract value of $16.8 million for a period of approximately 1483 days (roughly 4 years) appears to be within a reasonable range for comprehensive professional, scientific, and technical services supporting a major agency like the FDA. Benchmarking against similar contracts for broad support services would be necessary for a definitive value assessment. However, without more specific details on the deliverables, a precise per-unit cost comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, which suggests that the procurement was not openly competed. This could be due to a variety of reasons, such as the unique capabilities of the contractor, urgent needs, or specific government requirements that only one vendor could meet. The lack of open competition means that the government may not have benefited from the full spectrum of potential pricing and innovation that a competitive bidding process could offer.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced opportunity to ensure the lowest possible price through competitive bidding. While the government may have justified this approach, it limits the potential for cost savings that could otherwise be realized.

Public Impact

The primary beneficiary is the Food and Drug Administration (FDA), which will receive essential materials and services to support its mission. Services delivered are broadly defined as professional, scientific, and technical support, crucial for the FDA's regulatory and operational functions. The geographic impact is likely national, given the FDA's role in overseeing products and services across the United States. Workforce implications may include the direct employment by Chickasaw Business Solutions, LLC, and potential indirect impacts on FDA staff who will collaborate with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition raises concerns about potential overpayment or suboptimal service delivery compared to a competitive environment.
The broad categorization of services ('All Other Professional, Scientific, and Technical Services') makes it difficult to assess the specific value and efficiency of the work performed without further detail.
The contract duration of nearly four years necessitates ongoing monitoring to ensure continued alignment with FDA needs and performance standards.

Positive Signals

The award to Chickasaw Business Solutions, LLC, suggests the contractor possesses specific qualifications or capabilities deemed essential by the FDA.
A Firm Fixed Price contract structure provides cost certainty for the government, mitigating the risk of cost overruns.
The sustained nature of the contract (nearly four years) indicates a recognized and ongoing need for the services provided.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services, a significant sector within federal procurement. This sector encompasses a wide range of activities, from research and development to specialized consulting and administrative support. The Food and Drug Administration, as a key agency within the Department of Health and Human Services, relies heavily on such services to fulfill its complex regulatory and public health mandates. Comparable spending in this sector often involves large, multi-year contracts supporting agency operations, research initiatives, and program management.

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 small business set-aside. The primary contractor, Chickasaw Business Solutions, LLC, is identified, and its size status relative to small business definitions would determine its own classification. However, the absence of a set-aside means opportunities for small businesses would likely arise only if the prime contractor chooses to subcontract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Food and Drug Administration (FDA) and the Department of Health and Human Services (HHS). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific services rendered and performance metrics would be crucial for accountability. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS Agency Support Contracts
FDA Operational Support
Professional and Technical Services Procurement
Sole-Source Contract Awards
Firm Fixed Price Contracts

Risk Flags

Sole-source award may limit price competition.
Broad service category lacks specificity for detailed value assessment.
Contract duration requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.8 million to CHICKASAW BUSINESS SOLUTIONS, LLC. THE PURPOSE OF THIS CONTRACT IS TO OBTAIN THE SERVICES OF A CONTRACTOR TO FURNISH THE NECESSARY MATERIALS, SERVICES, FACILITIES, AND OTHERWISE DO ALL THINGS NECESSARY FOR OR INCIDENT TO THE PERFORMANCE OF WORK NEEDED FOR THE FOOD AND DRUG ADMINISTRAT

Who is the contractor on this award?

The obligated recipient is CHICKASAW BUSINESS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2022-09-07. End: 2026-09-29.

What specific services are encompassed by 'All Other Professional, Scientific, and Technical Services' for the FDA under this contract?

The designation 'All Other Professional, Scientific, and Technical Services' (NAICS code 541990) is a broad category that can include a wide array of specialized support. For the FDA, this could range from laboratory analysis and scientific consulting to data management, regulatory affairs support, program evaluation, and administrative services that require specialized expertise. Without a more detailed statement of work, it is difficult to pinpoint the exact nature of the services. However, given the FDA's mission, these services are likely critical to its ability to research, regulate, and ensure the safety and efficacy of food, drugs, and medical devices. The $16.8 million value suggests a substantial scope of work over the contract's duration.

What is the justification for awarding this contract on a sole-source basis to Chickasaw Business Solutions, LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent requirements where competition is not feasible, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. A thorough review of the contract file and associated justifications would be necessary to understand the precise rationale behind this procurement approach.

How does the $16.8 million contract value compare to historical spending on similar FDA support services?

Comparing the $16.8 million contract value requires context regarding the specific services provided and the duration of the contract (approximately 4 years). The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is very broad. To make a meaningful comparison, one would need to identify similar contracts for comparable services within the FDA or other health-related agencies. Historical spending data from sources like USASpending.gov or agency-specific reports would be analyzed for contracts with similar scopes and durations. Without this granular comparison, it's challenging to definitively state whether $16.8 million represents high, low, or average spending for the type of support rendered.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts, especially those of significant value like $16.8 million, carry inherent risks. The primary risk is the potential lack of price competition, which could lead to the government paying more than it would in a competitive environment. There's also a risk that the government might not be exposed to the most innovative solutions or the best value if alternative vendors are not considered. Furthermore, reliance on a single source can create dependency and reduce flexibility if the contractor's performance falters or if the agency's needs evolve significantly. Robust oversight and performance management are critical to mitigate these risks.

What is the track record of Chickasaw Business Solutions, LLC in performing federal contracts, particularly for the FDA or similar agencies?

Information regarding the specific track record of Chickasaw Business Solutions, LLC in performing federal contracts, especially for the FDA or similar agencies, is not provided in the data. To assess their performance history, one would typically look at past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive track record with relevant agencies and similar service types would increase confidence in their ability to successfully execute this $16.8 million contract. Conversely, a history of poor performance or unresolved issues would raise significant concerns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT 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: 2600 JOHN SAXON BLVD STE 2223, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, 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: $21,664,051

Exercised Options: $16,824,472

Current Obligation: $16,824,472

Actual Outlays: $10,422,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline