Department of Energy Awards $2.6M Contract for Honoraria and Travel Services to Chickasaw Business Solutions
Contract Overview
Contract Amount: $2,642,413 ($2.6M)
Contractor: Chickasaw Business Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2024-11-01
End Date: 2026-10-31
Contract Duration: 729 days
Daily Burn Rate: $3.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT FOR THE ISSUANCE OF HONORARIA PAYMENTS AND RELATED TRAVEL.
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $2.6 million to CHICKASAW BUSINESS SOLUTIONS, LLC for work described as: CONTRACT FOR THE ISSUANCE OF HONORARIA PAYMENTS AND RELATED TRAVEL. Key points: 1. The contract, valued at $2.64 million, is for honoraria payments and related travel. 2. Competition was not available for this contract, raising potential concerns about price discovery. 3. The contract duration is 729 days, ending October 31, 2026. 4. The sector is primarily administrative and support services, specifically payroll. 5. Small business participation is not indicated as a factor in this award.
Value Assessment
Rating: questionable
Pricing is based on a firm fixed price, but without competitive bidding, it's difficult to assess if this represents excellent value. Benchmarking against similar payroll and administrative service contracts would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, which limits the opportunity for price discovery and potentially leads to higher costs for taxpayers. The rationale for this limitation is not provided.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. The contract supports administrative functions within the Department of Energy. The duration of the contract suggests a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment without competitive benchmarking
- No indication of small business participation
Positive Signals
- Clear contract scope (honoraria and travel)
- Defined contract period
- Firm fixed price structure
Sector Analysis
This contract falls within the administrative and support services sector, specifically related to payroll and employee-related expenses. Spending benchmarks for similar services can vary widely based on agency size and specific needs.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities for small business subcontracting were considered or missed.
Oversight & Accountability
Oversight will be crucial to ensure that honoraria payments and travel expenses are justified and within reasonable limits, especially given the non-competitive nature of the award.
Related Government Programs
- Payroll Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Absence of small business consideration
- Limited transparency on justification for sole-source/limited competition
Tags
payroll-services, department-of-energy, tn, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.6 million to CHICKASAW BUSINESS SOLUTIONS, LLC. CONTRACT FOR THE ISSUANCE OF HONORARIA PAYMENTS AND RELATED TRAVEL.
Who is the contractor on this award?
The obligated recipient is CHICKASAW BUSINESS SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2024-11-01. End: 2026-10-31.
What is the justification for awarding this contract on a limited/non-competitive basis?
The justification for awarding this contract on a limited or non-competitive basis is not provided in the data. Typically, such justifications are required by federal procurement regulations and might include factors like unique capabilities of the contractor, urgent needs, or the unavailability of other sources. Without this information, it's impossible to fully assess the necessity of this procurement method.
How does the firm fixed price compare to market rates for similar services?
The firm fixed price of $2.64 million for honoraria and travel services cannot be definitively assessed against market rates without further information. Benchmarking against similar contracts awarded competitively by other agencies or within the Department of Energy for comparable services would be necessary. The lack of competition makes direct price comparison challenging.
What is the potential impact on taxpayer funds due to the lack of competition?
The primary impact on taxpayer funds due to the lack of competition is the potential for inflated costs. Without competitive bids, the contractor may not have the same incentive to offer the lowest possible price. This could lead to a higher overall expenditure than if the contract had been subject to a competitive bidding process, potentially costing taxpayers more than necessary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Payroll Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89243124RSC000124
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2600 JOHN SAXON BLVD, NORMAN, OK, 73071
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, 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: $14,210,782
Exercised Options: $5,596,540
Current Obligation: $2,642,413
Actual Outlays: $1,322,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Timeline
Start Date: 2024-11-01
Current End Date: 2026-10-31
Potential End Date: 2029-10-31 00:00:00
Last Modified: 2026-03-17
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