State Department awards $3.26M contract for professional staffing, raising questions about competition and value

Contract Overview

Contract Amount: $3,259,467 ($3.3M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-09-20

End Date: 2026-09-19

Contract Duration: 1,460 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROFESSIONAL STAFFING FOR OBO

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $3.3 million to CREATIVE IT SOLUTIONS, LLC for work described as: PROFESSIONAL STAFFING FOR OBO Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Pricing appears to be based on labor hours, requiring careful monitoring for efficiency. 3. The contract duration of nearly four years suggests a need for sustained support. 4. The specific services are administrative management and general management consulting. 5. The award was made to Creative IT Solutions, LLC. 6. The contract falls under the Professional Staffing for OBO category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed pricing information or comparable sole-source awards. The $3.26 million total value over approximately four years suggests an average annual spend of around $815,000. Without knowing the specific roles, skill levels, and hours billed, it's difficult to assess if this represents a competitive price. The 'labor hours' pricing model necessitates close oversight to ensure efficient use of resources and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the government's ability to solicit bids from multiple vendors, which typically drives down prices and encourages innovation. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate and that no other vendors could meet the requirement.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competitive bidding are forgone.

Public Impact

The Department of State benefits from professional staffing services to support its operations. Services include administrative management and general management consulting. The contract is managed by the State Department's Office of the Director of Management Policy. The contract is expected to support ongoing administrative functions within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Labor hour pricing requires diligent oversight to control costs.
Sole-source awards can reduce transparency and accountability.

Positive Signals

Contract awarded to a known entity, potentially indicating a stable working relationship.
The contract duration suggests a recognized need for ongoing services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of services supporting government operations. The market for such services is competitive, but sole-source awards bypass this competition. Comparable spending in this category can vary widely based on the specific services and duration.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. Further review would be needed to determine if Creative IT Solutions, LLC is a small business itself or if there are any subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State contracting officers and program managers. The contract's performance will be monitored through regular reporting and reviews. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Professional and Management Support Services
Management and Consulting Services
Administrative Support Services

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Labor hour pricing requires robust oversight to ensure value for money.
Lack of detailed performance metrics in summary data hinders full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.3 million to CREATIVE IT SOLUTIONS, LLC. PROFESSIONAL STAFFING FOR OBO

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 $3.3 million.

What is the period of performance?

Start: 2022-09-20. End: 2026-09-19.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not included in the data. Typically, sole-source awards are justified when only one vendor possesses the unique capabilities, specialized knowledge, or proprietary technology required to meet the government's needs, or in cases of urgent and compelling circumstances. Without the official justification document, it is impossible to verify the appropriateness of bypassing the competitive bidding process for this $3.26 million contract.

How does the pricing structure (labor hours) compare to industry benchmarks for similar consulting services?

The contract is priced based on 'LABOR HOURS.' This pricing model is common in consulting services, but its value is highly dependent on the specific roles, skill levels, and the number of hours billed. Without detailed breakdowns of the labor categories (e.g., senior consultant, junior analyst), their respective hourly rates, and the estimated total hours, a direct comparison to industry benchmarks is difficult. To assess value, one would need to compare the proposed hourly rates against market data for similar expertise and experience levels within the Washington D.C. metropolitan area, where the Department of State is located, and scrutinize the projected hours for reasonableness.

What is the track record of Creative IT Solutions, LLC with federal contracts, particularly with the Department of State?

The provided data identifies Creative IT Solutions, LLC as the contractor. To assess their track record, a review of their past performance on federal contracts, especially those with the Department of State, would be necessary. This would involve examining contract histories for on-time delivery, quality of work, adherence to budget, and any past performance issues or disputes. Information on previous awards, contract values, and client agencies would provide insight into their experience and reliability in fulfilling similar requirements.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The data provided does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. For a contract focused on 'PROFESSIONAL STAFFING FOR OBO' and 'Administrative Management and General Management Consulting Services,' typical deliverables might include regular status reports, strategic recommendations, process improvement plans, and the successful integration of staff into the Office of the Director of Management Policy. Effective oversight would require clearly defined KPIs to measure the contractor's performance and ensure the achievement of program objectives.

What is the historical spending pattern for professional staffing and management consulting services at the Department of State?

The provided data focuses solely on this specific contract award. To understand historical spending patterns for professional staffing and management consulting at the Department of State, one would need to analyze broader federal procurement databases (like USASpending.gov) for similar contracts awarded over previous fiscal years. This analysis would reveal trends in spending, common contractors, average contract values, and the typical mix of competitive versus sole-source awards within these service categories, providing context for the current $3.26 million award.

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: $3,660,027

Exercised Options: $3,660,027

Current Obligation: $3,259,467

Actual Outlays: $69,944

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