DoD's $14.17M contract for Polar Programs Operations & Sustainment Support awarded to Chickasaw Alliance Group, LLC

Contract Overview

Contract Amount: $14,172,826 ($14.2M)

Contractor: Chickasaw Alliance Group, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: POLAR PROGRAMS OPERATIONS & SUSTAINMENT SUPPORT REQUIREMENT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to CHICKASAW ALLIANCE GROUP, LLC for work described as: POLAR PROGRAMS OPERATIONS & SUSTAINMENT SUPPORT REQUIREMENT Key points: 1. The contract value of $14.17M for a 2-year period suggests a significant investment in polar operations. 2. The award to Chickasaw Alliance Group, LLC, a single entity, raises questions about the extent of competition. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of potential services. 4. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not carefully managed. 5. The duration of 729 days (approximately 2 years) is standard for sustainment contracts. 6. The absence of specific performance metrics in the provided data makes it difficult to assess value for money. 7. The contract is not set aside for small businesses, indicating a focus on larger, established firms.

Value Assessment

Rating: fair

Benchmarking the value of this $14.17M contract is challenging without specific service details or comparable contracts. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex or uncertain scope work, carries inherent risks of cost escalation. Without detailed performance data or a clear understanding of the services rendered, it's difficult to definitively assess value for money. The fixed fee component provides some cost certainty for the contractor's profit, but the overall cost to the government is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that the Department of the Navy identified a specific contractor, Chickasaw Alliance Group, LLC, as the only viable source for these services. The reasons for this sole-source determination are not provided, but it typically stems from unique capabilities, proprietary technology, or urgent requirements where only one contractor can meet the need. The lack of competition means that pricing and service terms were negotiated directly with the selected vendor.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive market forces to secure the best possible pricing and terms for taxpayers. This can potentially lead to higher costs compared to a fully competed contract.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel operating in polar regions, receiving essential operational and sustainment support. Services delivered are expected to encompass a wide range of professional, scientific, and technical support critical for polar operations. The geographic impact is focused on polar regions, which are strategically important and environmentally sensitive areas. Workforce implications may include the deployment of specialized personnel with expertise in polar environments and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces risk of cost overruns if not managed diligently.
Sole-source award limits competitive pressure, potentially impacting price and innovation.
Broad NAICS code (541990) lacks specificity, making it harder to define and measure performance outcomes.
Limited public information on contractor's specific experience in polar operations sustainment.

Positive Signals

Contract awarded to a single entity suggests specialized capabilities or a pre-existing relationship deemed necessary.
Definitive contract award indicates a commitment to a specific period of service.
The contract duration of approximately two years allows for sustained support in critical polar operations.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). This broad category encompasses a wide array of services not elsewhere classified. Spending in this sector is substantial across the federal government, supporting diverse mission requirements. Federal spending on polar operations and sustainment is a niche but critical area, often involving specialized logistics, environmental monitoring, and operational support in extreme conditions. Benchmarking is difficult due to the specialized nature and limited public data on comparable polar sustainment contracts.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was either fulfilled by a large business or that the specific nature of the services or the contractor's qualifications did not align with small business set-aside criteria. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award, though the prime contractor may engage small businesses as part of their overall supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. Specific oversight mechanisms would likely include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is dependent on the level of detail made public regarding performance and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Polar Operations
Arctic and Antarctic Support Services
Naval Operations and Sustainment
Professional and Technical Services Contracts
Cost-Plus Contracts

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of specific performance metrics hinders value assessment.
Limited public information on contractor's polar operations experience.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to CHICKASAW ALLIANCE GROUP, LLC. POLAR PROGRAMS OPERATIONS & SUSTAINMENT SUPPORT REQUIREMENT

Who is the contractor on this award?

The obligated recipient is CHICKASAW ALLIANCE GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What specific services are included under 'Polar Programs Operations & Sustainment Support' for Chickasaw Alliance Group, LLC?

The provided data does not detail the specific services encompassed by 'POLAR PROGRAMS OPERATIONS & SUSTAINMENT SUPPORT REQUIREMENT'. However, given the NAICS code 541990 (All Other Professional, Scientific, and Technical Services) and the context of polar operations, these services could range widely. They might include logistical support, environmental monitoring, scientific research assistance, facility maintenance in extreme conditions, operational planning, communication systems support, and personnel support for personnel stationed in polar regions. The Cost Plus Fixed Fee structure suggests that the scope may have some inherent uncertainties or require flexibility to adapt to evolving operational needs in these challenging environments.

What is the track record of Chickasaw Alliance Group, LLC in supporting federal polar operations?

Information regarding Chickasaw Alliance Group, LLC's specific track record in supporting federal polar operations is not detailed in the provided data. As the contract was awarded on a sole-source basis, it implies that the Department of the Navy identified this contractor as possessing unique or essential capabilities for this requirement. Further investigation into the contractor's past performance, other federal contracts, and specialized expertise would be necessary to fully assess their experience and suitability for polar sustainment support. The sole-source justification typically includes a rationale for why this specific contractor was chosen.

How does the $14.17M contract value compare to similar federal spending on polar operations sustainment?

Directly comparing the $14.17M contract value to similar federal spending on polar operations sustainment is difficult without access to a broader dataset of comparable contracts. Polar operations are highly specialized and geographically limited, meaning the market for such services is smaller and less transparent than for more common federal procurements. The value of this contract, spread over approximately two years, suggests a significant but potentially niche requirement. Benchmarking would require identifying other contracts with similar scopes, durations, and operational environments, which are not readily available in the provided summary data.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for polar operations?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for polar operations revolve around cost control and contractor efficiency. For the government, the main risk is that the actual costs incurred by the contractor could be higher than anticipated, even though the contractor's fee is fixed. This is particularly relevant in challenging environments like polar regions, where unforeseen logistical hurdles, extreme weather, or equipment failures can significantly drive up operational costs. The contractor has less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. Effective government oversight is crucial to monitor expenditures and ensure that costs are reasonable and allocable to the contract.

What does the sole-source award imply about the criticality or uniqueness of the services required for polar programs?

A sole-source award, as indicated by 'NOT AVAILABLE FOR COMPETITION', strongly implies that the services required for these polar programs are considered either highly critical, unique, or that only one contractor possesses the necessary specialized capabilities, security clearances, or proprietary knowledge. In the context of polar operations, this could relate to specific environmental expertise, access to unique infrastructure, advanced technological capabilities tailored for extreme conditions, or urgent operational needs where engaging in a full competitive process would be impractical or detrimental to national security. The government agency must justify why competition is not feasible, suggesting a high degree of specificity and necessity for the chosen contractor.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. While the contract is for 'Operations & Sustainment Support', the absence of defined KPIs makes it challenging to objectively measure the contractor's performance and the overall effectiveness of the services delivered. In a CPFF contract, performance is typically monitored through regular reporting, site visits, and reviews of deliverables. However, without publicly stated KPIs, assessing whether the government is receiving optimal value and achieving desired outcomes is difficult. These metrics are usually detailed within the contract's Statement of Work (SOW).

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6523624R0039

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, 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: $62,018,364

Exercised Options: $20,768,993

Current Obligation: $14,172,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline