DoD Awards $23.4M Sole Source Bridge Contract to Cherokee Insights for CUAS Support
Contract Overview
Contract Amount: $23,394,530 ($23.4M)
Contractor: Cherokee Insights LLC
Awarding Agency: Department of Defense
Start Date: 2025-03-26
End Date: 2026-03-25
Contract Duration: 364 days
Daily Burn Rate: $64.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SOLE SOURCE BRIDGE - CUAS
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33601
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to CHEROKEE INSIGHTS LLC for work described as: SOLE SOURCE BRIDGE - CUAS Key points: 1. Significant contract value for specialized CUAS support. 2. Sole source award raises questions about competition and potential cost savings. 3. Risk of limited market research and potential overpayment due to lack of competition. 4. Consulting services sector, often subject to high markups.
Value Assessment
Rating: questionable
The contract value of $23.4M for a 1-year bridge contract is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar management consulting services for specialized defense needs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This method limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: The lack of competition for a $23.4M contract means taxpayers may not be receiving the best possible value, as competitive pressures that drive down costs were absent.
Public Impact
Taxpayers may be overpaying for specialized consulting services due to the sole-source award. Lack of transparency in the procurement process could lead to public scrutiny. Potential for reduced innovation if only one vendor is engaged for critical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award
- Lack of competition
- High contract value for bridge contract
Positive Signals
- Contract supports critical CUAS capabilities
- Firm fixed price contract type
Sector Analysis
This contract falls within the administrative management and general management consulting services sector. Spending in this area can vary widely, but large sole-source awards warrant scrutiny to ensure fair pricing and effective service delivery.
Small Business Impact
The awardee, Cherokee Insights LLC, is not identified as a small business in the provided data. This sole-source award does not appear to include provisions for small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering necessary services at a reasonable cost, despite the absence of competitive pressure.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in procurement.
- No identified small business participation.
- Bridge contract may indicate planning gaps.
Tags
administrative-management-and-general-ma, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to CHEROKEE INSIGHTS LLC. SOLE SOURCE BRIDGE - CUAS
Who is the contractor on this award?
The obligated recipient is CHEROKEE INSIGHTS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2025-03-26. End: 2026-03-25.
What specific justification was provided for the sole-source award, and why was competition deemed impractical or impossible?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific program requirements. Without the detailed justification, it's impossible to fully assess the validity of bypassing competition and its impact on value for money.
What is the benchmark pricing for similar CUAS consulting services, and how does this contract's value compare?
Benchmarking pricing for specialized consulting services like CUAS support is challenging without access to detailed cost breakdowns and market data. However, a $23.4M award for a one-year bridge contract suggests a high per-unit cost or significant scope. Further analysis would be needed to compare this against industry standards and other government contracts for similar services.
What measures are in place to ensure effective service delivery and accountability given the sole-source nature of this contract?
With a sole-source award, oversight is critical. The Department of Defense and U.S. Special Operations Command should have stringent performance monitoring, regular progress reviews, and clear deliverables outlined in the contract. Accountability mechanisms should ensure that the contractor meets all requirements and that the services provided are essential and cost-effective, despite the lack of competitive pressure.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9240025RCUAS
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2 W. 2ND ST, TULSA, OK, 74103
Business Categories: 8(a) Program Participant, 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: $38,227,727
Exercised Options: $25,535,151
Current Obligation: $23,394,530
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-26
Current End Date: 2026-03-25
Potential End Date: 2026-09-25 00:00:00
Last Modified: 2025-12-16
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