DoD's $25M R&D Contract for Health Surveillance Awarded to Cherokee Nation Technology Solutions
Contract Overview
Contract Amount: $24,886,531 ($24.9M)
Contractor: Cherokee Nation Technology Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-15
End Date: 2018-03-14
Contract Duration: 545 days
Daily Burn Rate: $45.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::OT::IGF DEFENSE HEALTH AGENCY HEALTHCARE OPERATIONS DIRECTORATE PUBLIC HEALTH DIVISION ARMED FORCES HEALTH SURVEILLANCE BRANCH COMPREHENSIVE HEALTH SURVEILLANCE
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20904
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to CHEROKEE NATION TECHNOLOGY SOLUTIONS LLC for work described as: IGF::OT::IGF DEFENSE HEALTH AGENCY HEALTHCARE OPERATIONS DIRECTORATE PUBLIC HEALTH DIVISION ARMED FORCES HEALTH SURVEILLANCE BRANCH COMPREHENSIVE HEALTH SURVEILLANCE Key points: 1. Contract awarded for comprehensive health surveillance, indicating a focus on data collection and analysis for armed forces health. 2. The contract's duration of 545 days suggests a project with defined milestones and deliverables. 3. Awarded as a firm-fixed-price contract, implying predictable costs for the government. 4. The R&D nature of the contract points to innovation and development in physical, engineering, and life sciences. 5. The specific NAICS code (541712) highlights the specialized research and development focus. 6. The contract was not competitively procured, raising questions about potential value and cost efficiency.
Value Assessment
Rating: questionable
Benchmarking the value of this $24.9 million contract is challenging without comparable sole-source R&D contracts in health surveillance. The firm-fixed-price structure provides cost certainty, but the lack of competition means there was no market pressure to ensure the lowest possible price. Further analysis would require understanding the specific deliverables and the uniqueness of the services provided by Cherokee Nation Technology Solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition limits the government's ability to explore alternative solutions or negotiate based on multiple bids, potentially impacting price discovery.
Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no competitive pressure to drive down costs. This necessitates a strong justification for the sole-source award to ensure public funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, through improved health surveillance and understanding of health trends. The contract supports the Armed Forces Health Surveillance Branch in its mission to provide comprehensive health data. The services delivered are expected to enhance the understanding and management of health risks within the military population. The geographic impact is primarily within the defense health system, potentially affecting military installations globally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and limited innovation.
- Sole-source awards require robust justification to ensure taxpayer value.
- Performance metrics and oversight are critical for sole-source contracts to ensure delivery and quality.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Specialized R&D in health surveillance addresses critical defense needs.
- Award to Cherokee Nation Technology Solutions may support a specific socio-economic objective if applicable.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on health surveillance. This is a critical area for defense, requiring specialized expertise. Comparable spending in this niche R&D area can vary widely based on the specific technological advancements or data analysis capabilities required.
Small Business Impact
Information regarding small business set-asides or subcontracting plans was not provided. As this was a sole-source award, the typical mechanisms for engaging small businesses through competitive bidding or specific set-asides may not have been applicable.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Health Agency and the Department of Defense's internal audit and contracting oversight mechanisms. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is enhanced through contract award databases, but the sole-source nature limits public insight into the negotiation process.
Related Government Programs
- DoD Health Surveillance Programs
- Military Health Research and Development
- Public Health Data Analytics
- Armed Forces Health Surveillance
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for uncompetitive pricing due to lack of competition.
- Need for strong performance oversight on sole-source R&D.
Tags
defense, department-of-defense, defense-health-agency, healthcare, research-and-development, sole-source, firm-fixed-price, definitive-contract, maryland, cherokee-nation-technology-solutions, health-surveillance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to CHEROKEE NATION TECHNOLOGY SOLUTIONS LLC. IGF::OT::IGF DEFENSE HEALTH AGENCY HEALTHCARE OPERATIONS DIRECTORATE PUBLIC HEALTH DIVISION ARMED FORCES HEALTH SURVEILLANCE BRANCH COMPREHENSIVE HEALTH SURVEILLANCE
Who is the contractor on this award?
The obligated recipient is CHEROKEE NATION TECHNOLOGY SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $24.9 million.
What is the period of performance?
Start: 2016-09-15. End: 2018-03-14.
What specific health surveillance capabilities does this contract aim to develop or enhance?
This contract, awarded to Cherokee Nation Technology Solutions, focuses on comprehensive health surveillance for the Armed Forces Health Surveillance Branch. The specific capabilities likely involve the development, enhancement, or maintenance of systems and processes for collecting, analyzing, and reporting health data related to military personnel. This could include epidemiological studies, disease trend monitoring, and the identification of health risks associated with military service. The R&D nature suggests a focus on innovative approaches to data integration, predictive modeling, or advanced analytical techniques to improve the understanding and management of health issues within the armed forces.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from situations where only one responsible source can provide the required supplies or services. For R&D contracts, this might occur if the contractor possesses unique intellectual property, specialized expertise, or has already developed critical foundational technology that makes them the only viable option for continuing or advancing the work. Without specific documentation from the agency, the precise reason for Cherokee Nation Technology Solutions being the sole source remains unconfirmed, but it implies a unique capability or necessity recognized by the Department of Defense.
How does the firm-fixed-price (FFP) contract type benefit the government in this R&D context?
A firm-fixed-price contract is generally advantageous for the government as it establishes a ceiling on the total cost, shifting most of the cost risk to the contractor. In an R&D context, while R&D inherently involves uncertainty, an FFP award provides budget predictability. This means the government knows the maximum amount it will pay, regardless of the contractor's actual costs. This is particularly beneficial for managing budgets and avoiding cost overruns, although it requires careful scope definition to ensure the contractor is adequately incentivized to perform efficiently.
What are the potential risks associated with a sole-source R&D contract of this magnitude?
The primary risk with a sole-source R&D contract is the potential lack of competitive pressure, which could lead to inflated pricing and reduced innovation. Without competing bids, the government may not be assured of obtaining the best value or the most advanced solution available. There's also a risk that the contractor may have less incentive to control costs or expedite development if they are the only option. Robust oversight and clearly defined performance metrics are crucial to mitigate these risks and ensure the government receives the intended value.
Can the performance of Cherokee Nation Technology Solutions on previous contracts be assessed to gauge reliability?
Assessing the performance of Cherokee Nation Technology Solutions on previous contracts would require access to contractor performance evaluation reports (e.g., CPARS) and historical contract data. While this specific contract award notice does not provide such details, a thorough due diligence process would typically involve reviewing past performance, including on-time delivery, quality of work, and adherence to budget. For sole-source awards, a strong track record of successful performance on similar projects is even more critical to justify the lack of competition and ensure mission success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001116R0031
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cherokee Nation (UEI: 077345494)
Address: 777 W CHEROKEE ST, CATOOSA, OK, 74015
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: $24,886,531
Exercised Options: $24,886,531
Current Obligation: $24,886,531
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-15
Current End Date: 2018-03-14
Potential End Date: 2018-03-14 00:00:00
Last Modified: 2019-09-13
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