State Dept. Awards $3M for Staff Augmentation to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $3,016,746 ($3.0M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-07-16

End Date: 2026-07-15

Contract Duration: 1,460 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STAFF AUGMENTATION SUPPORT SERVICES FOR R/PPR.

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 $3.0 million to CREATIVE IT SOLUTIONS, LLC for work described as: STAFF AUGMENTATION SUPPORT SERVICES FOR R/PPR. Key points: 1. Contract awarded to Creative IT Solutions, LLC for $3,016,745.91. 2. Services are for staff augmentation support. 3. The contract is for the Department of State. 4. The North American Industry Classification System (NAICS) code is 541611. 5. The contract duration is 1460 days.

Value Assessment

Rating: questionable

The contract's value is $3,016,745.91. Without specific performance metrics or benchmarks for similar staff augmentation services, it is difficult to definitively assess its value. The pricing is based on labor hours, which can lead to cost overruns if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, as indicated by 'NOT AVAILABLE FOR COMPETITION'. This suggests that only a select number of vendors were considered, potentially limiting price discovery and competitive pressure.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these services. Further justification for the limited competition is needed to ensure taxpayer funds were used efficiently.

Public Impact

Taxpayers may not be getting the best value due to limited competition. The Department of State relies on external support for administrative management and general management consulting. The contract spans over four years, indicating a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of clear value assessment
Potential for cost overruns with labor hour pricing

Positive Signals

Specific vendor identified
Clear service description

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Benchmarking spending in this sector is challenging without more specific details on the type of augmentation and the skill sets required. However, significant spending on staff augmentation can indicate internal capacity issues or a reliance on external expertise.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if there were opportunities for subcontracting.

Oversight & Accountability

Oversight of this contract will be crucial, especially given the limited competition and labor-hour pricing. The Department of State should ensure robust performance monitoring and cost controls are in place to manage taxpayer funds effectively.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of State Contracting
Department of State Programs

Risk Flags

Limited competition raises concerns about value for money.
Labor-hour pricing can lead to cost overruns if not managed strictly.
Lack of detailed service description makes performance assessment difficult.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.0 million to CREATIVE IT SOLUTIONS, LLC. STAFF AUGMENTATION SUPPORT SERVICES FOR R/PPR.

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 $3.0 million.

What is the period of performance?

Start: 2022-07-16. End: 2026-07-15.

What specific administrative management and general management consulting services are being provided under this staff augmentation contract, and how do they align with the Department of State's core

The provided data indicates the contract is for 'STAFF AUGMENTATION SUPPORT SERVICES'. While the NAICS code 541611 covers 'Administrative Management and General Management Consulting Services,' the specific tasks are not detailed. Understanding the precise nature of the augmentation is key to assessing its alignment with the Department of State's strategic objectives and ensuring it directly supports their mission rather than being a general operational expense.

What justification was provided for limiting the competition for this $3 million contract, and what steps were taken to ensure fair pricing despite the limited vendor pool?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source award. Without further documentation, it's unclear what specific circumstances necessitated this approach. Typically, justifications include urgency, unique capabilities, or existing infrastructure compatibility. Robust price analysis, including comparison to market rates and historical data, should have been conducted to mitigate the risks associated with reduced competition and ensure a fair price for taxpayers.

How will the Department of State measure the effectiveness and value of the staff augmentation services provided by Creative IT Solutions, LLC, particularly given the labor-hour pricing model?

Measuring effectiveness with a labor-hour model requires diligent oversight. The Department of State should establish clear performance metrics, key performance indicators (KPIs), and regular progress reviews. This includes tracking deliverables, adherence to timelines, quality of work, and overall impact on departmental efficiency. Without such measures, the $3 million expenditure's true value and effectiveness remain difficult to ascertain, potentially leading to inefficient use of funds.

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: $4,571,825

Exercised Options: $4,294,564

Current Obligation: $3,016,746

Actual Outlays: $902,901

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