State Department's $3.5M OEM Technical Support Contract Awarded to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $3,504,612 ($3.5M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-08-01

End Date: 2026-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OFFICE OF EMERGENCY MANAGEMENT (OEM) TECHNICAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $3.5 million to CREATIVE IT SOLUTIONS, LLC for work described as: OFFICE OF EMERGENCY MANAGEMENT (OEM) TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 1460 days suggests a long-term need for these services. 3. Focus on administrative management and general management consulting services. 4. No small business set-aside or subcontracting noted, potentially impacting small business participation. 5. Awarded as a delivery order, indicating it's part of a larger contracting vehicle. 6. High potential for cost overruns due to lack of competition and fixed pricing. 7. Geographic focus on Washington D.C. metro area.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar technical support services. The lack of competition raises concerns about whether the government secured the best possible price. Without a competitive bidding process, it's difficult to assess if the pricing is aligned with market rates for administrative and management consulting. The fixed price nature of the award, if applicable, could lead to cost inefficiencies if the scope of work expands or if the initial estimates were not thoroughly vetted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means that multiple bidders were not considered, which can limit the government's ability to negotiate the most favorable terms and pricing. This raises questions about the justification for not pursuing a competitive procurement.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to leverage market forces for cost savings.

Public Impact

The Office of Emergency Management (OEM) is the primary beneficiary, receiving essential technical support. Services delivered likely include consulting on administrative processes and general management strategies. The contract has a geographic impact primarily within the District of Columbia. Workforce implications are tied to the contractor's personnel providing these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the justification for sole-source award.
Potential for cost creep without competitive oversight.
No indication of small business participation or subcontracting goals.
Long contract duration without clear performance metrics is a risk.

Positive Signals

Award to a specific contractor suggests a perceived capability to meet OEM's needs.
Delivery order structure implies it's part of a pre-vetted framework.
Clear start and end dates provide a defined period for service delivery.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing advisory services for organizations. The market for these services is competitive, with many firms offering expertise. However, this specific award bypasses that competition. Comparable spending benchmarks are difficult to establish for sole-source awards, but the overall federal spending on management consulting is substantial, highlighting the importance of competitive procurement to ensure value.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and there is no explicit mention of subcontracting requirements. This suggests that small businesses may not directly benefit from this particular award, nor are they mandated to participate through subcontracting. This could represent a missed opportunity to engage the small business ecosystem and foster economic growth within that sector.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and program managers within the Department of State's Office of Emergency Management. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the procurement process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Management and Consulting Services
Office of Emergency Management (OEM) Operations
Department of State Administrative Support Contracts

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Lack of small business participation noted.
Long contract duration without clear performance benchmarks could indicate risk.
Potential for vendor lock-in due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.5 million to CREATIVE IT SOLUTIONS, LLC. OFFICE OF EMERGENCY MANAGEMENT (OEM) TECHNICAL SUPPORT SERVICES

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 $3.5 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-07-31.

What is the specific justification provided by the Department of State for awarding this contract on a sole-source basis to Creative IT Solutions, LLC?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. Typically, agencies must justify sole-source awards by demonstrating that only one responsible source can provide the required supplies or services. This justification often involves factors like unique capabilities, urgent needs, or specific technical requirements that cannot be met by other vendors. Without the agency's formal justification document, the precise reasons remain undisclosed in the provided data. However, the nature of 'Administrative Management and General Management Consulting Services' could imply specialized expertise or a pre-existing relationship that the agency deemed essential for the Office of Emergency Management's technical support needs.

How does the $3.5 million contract value compare to typical spending on similar technical support services for emergency management offices within federal agencies?

Comparing this $3.5 million contract value to typical spending on similar technical support services for emergency management offices is challenging without more specific data points. Federal spending on emergency management can vary significantly based on agency size, scope of responsibilities, and the specific nature of technical support required. Contracts for technical support can range from IT infrastructure management to specialized consulting on disaster preparedness and response systems. Given that this is a sole-source award for administrative and management consulting, it might represent a significant investment if the scope is broad or highly specialized. However, without benchmarks for sole-source awards or detailed scope of work, a direct comparison to 'typical' spending is speculative. It is crucial to analyze the deliverables and the contractor's proposed rates against industry standards for similar consulting services.

What are the potential risks associated with awarding a four-year contract for technical support on a sole-source basis?

Awarding a four-year contract on a sole-source basis presents several potential risks. Firstly, the lack of competition means the government may not be receiving the most cost-effective solution, potentially leading to higher prices than if the contract were competed. Secondly, without competitive pressure, there's a reduced incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements. Thirdly, the long duration, coupled with a sole-source award, can create vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if market conditions change. Finally, the justification for the sole-source award itself could be scrutinized, raising concerns about procurement integrity and potential waste if a competitive process was feasible.

What performance metrics or oversight mechanisms are likely in place to ensure Creative IT Solutions, LLC delivers effective technical support under this contract?

While the provided data does not detail specific performance metrics or oversight mechanisms, standard federal contracting practices would necessitate their inclusion. For a contract of this nature and duration, performance would likely be monitored through regular progress reports, key performance indicators (KPIs) related to service delivery, and potentially site visits or reviews by the contracting officer's representative (COR). Oversight would involve ensuring adherence to the contract's scope of work, delivery schedules, and any specified quality standards. The Department of State's Office of Emergency Management would be responsible for actively managing the contract, evaluating performance, and addressing any deficiencies. The effectiveness of these mechanisms hinges on the clarity of the contract's requirements and the diligence of the government's oversight team.

How does this contract align with the Department of State's broader IT or administrative support strategies, particularly concerning emergency management preparedness?

This contract for technical support services for the Office of Emergency Management (OEM) likely aligns with the Department of State's broader strategies by ensuring the operational readiness and efficiency of its emergency response capabilities. Effective technical support is crucial for maintaining communication systems, data management, and administrative processes that are vital during crises. While the specific alignment isn't detailed, such contracts typically aim to bolster the agency's ability to anticipate, respond to, and recover from emergencies. The focus on administrative and management consulting suggests a role in optimizing OEM's internal operations, planning, and resource allocation, which are foundational elements of preparedness and effective crisis management.

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

Solicitation ID: 19AQMM20R0160

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: $3,510,095

Exercised Options: $3,510,095

Current Obligation: $3,504,612

Actual Outlays: $579,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM21D0001

IDV Type: IDC

Timeline