State Department awards $3.96M for administrative management consulting, with limited competition

Contract Overview

Contract Amount: $2,949,479 ($2.9M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STAFFING SERVICES FOR R/PPR IN THE AMOUNT OF $3,962,419.20.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20547

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $2.9 million to CREATIVE IT SOLUTIONS, LLC for work described as: STAFFING SERVICES FOR R/PPR IN THE AMOUNT OF $3,962,419.20. Key points: 1. Contract awarded to Creative IT Solutions, LLC for administrative management and general management consulting services. 2. The contract duration is 5 years, ending September 29, 2026. 3. The contract was not competed, raising questions about potential price discovery. 4. The North American Industry Classification System (NAICS) code is 541611, indicating management consulting services. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The base contract value is approximately $2.95M, with the total award reaching $3.96M. 7. The contract is for labor hours, indicating a time-and-materials or labor-hour pricing structure.

Value Assessment

Rating: fair

Benchmarking the value for this contract is challenging without more information on the specific services provided and comparable contracts. The award amount of $3.96M over five years suggests an average annual value of approximately $792,000. Given the nature of administrative and management consulting, pricing can vary significantly based on expertise and scope. Without details on the specific deliverables and the contractor's proposed rates, a definitive value-for-money assessment is difficult. However, the lack of competition may have limited opportunities for more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source or limited-source award. The specific justification for this procurement approach is not provided in the data. Sole-source awards can sometimes be necessary for specialized services or when only one vendor can meet the requirement. However, they typically result in less competitive pricing and may not represent the best value for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that can arise from a competitive bidding process. This could lead to higher overall spending for the services rendered.

Public Impact

The Department of State benefits from administrative and management consulting services to support its operations. The services delivered are expected to enhance the efficiency and effectiveness of the department's management functions. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. The contract supports the workforce by engaging a private sector contractor for specialized consulting tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for reduced innovation due to absence of multiple vendor proposals.

Positive Signals

Contract awarded to a specific LLC, potentially indicating specialized expertise.
Long-term contract (5 years) suggests a need for sustained support.
Awarded by the Department of State, a key federal agency.

Sector Analysis

Administrative management and general management consulting services represent a significant segment of the professional services market. This contract falls within the broader professional services sector, which includes a wide range of advisory and support functions for government agencies. The market for such services is competitive, but specific niches can be dominated by specialized firms. The Department of State's spending on consulting services is part of its overall operational budget, aimed at improving efficiency and effectiveness in its diplomatic and administrative functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The primary contractor, Creative IT Solutions, LLC, may itself be a small business, but this information is not provided. The absence of small business considerations in this award means potential opportunities for small firms to participate in this specific contract are limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Professional Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of detailed service description hinders value assessment.
No small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.9 million to CREATIVE IT SOLUTIONS, LLC. STAFFING SERVICES FOR R/PPR IN THE AMOUNT OF $3,962,419.20.

Who is the contractor on this award?

The obligated recipient is CREATIVE IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What specific administrative and management consulting services are being provided under this contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. However, the specific tasks, deliverables, and scope of work are not detailed. These services could encompass a wide range of activities, such as organizational analysis, process improvement, strategic planning support, human capital management consulting, or operational efficiency assessments. Without further documentation, the precise nature of the consulting engagement remains unspecified. The Department of State likely requires these services to support its complex administrative functions, potentially in areas related to policy implementation, program management, or internal operations.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. However, the specific justification for this contract is not provided in the given data. Agencies are required to document and justify sole-source procurements. Without this documentation, it is impossible to assess whether the sole-source award was appropriate and in the best interest of the government and taxpayers.

How does the contract's pricing compare to market rates for similar consulting services?

Directly comparing the pricing of this contract to market rates is difficult without knowing the specific services rendered and the labor categories involved. The total award of $3.96M over five years averages to approximately $792,000 annually. This figure encompasses all direct labor, indirect costs, and profit. To benchmark effectively, one would need access to the contractor's proposed rates, the specific skill sets required, and data from similar contracts awarded by other agencies or even within the Department of State for comparable services. Given the sole-source nature, there's a risk that the pricing may not have been optimized through competitive pressure.

What is the track record of Creative IT Solutions, LLC in performing government contracts?

Information regarding the track record of Creative IT Solutions, LLC in performing government contracts is not provided in the data snippet. To assess their past performance, one would typically look at contract award history, past performance evaluations (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review would involve searching federal procurement databases and performance assessment systems. Without this information, it's challenging to gauge the contractor's reliability and capability in delivering services effectively.

What is the historical spending pattern for administrative management consulting services at the Department of State?

The provided data only pertains to a single contract award and does not offer insights into the Department of State's historical spending patterns for administrative management consulting services. To analyze historical spending, one would need access to broader contract data over multiple fiscal years, identifying all contracts awarded under NAICS code 541611 or similar codes, and tracking the total expenditure. This would reveal trends in spending, identify key contractors, and potentially highlight periods of increased or decreased reliance on external consulting.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1700, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, 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: $4,060,172

Exercised Options: $4,060,172

Current Obligation: $2,949,479

Actual Outlays: $1,386,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0050

IDV Type: IDC

Timeline