State Dept. awards $6.9M contract for professional staffing to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $6,957,951 ($7.0M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-09-16

End Date: 2026-09-15

Contract Duration: 1,460 days

Daily Burn Rate: $4.8K/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 $7.0 million to CREATIVE IT SOLUTIONS, LLC for work described as: PROFESSIONAL STAFFING FOR OBO Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant value of $6.9M over a 4-year period. 3. Sole-source award raises questions about competition and potential cost savings. 4. IT consulting services fall within a broad and often competitive sector.

Value Assessment

Rating: questionable

The contract's value of $6.9M for professional staffing over four years appears high without a competitive benchmark. The lack of available pricing data makes it difficult to assess if this is a fair market price compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of State is receiving professional staffing services essential for its operations. The contract duration of four years provides stability for service delivery. Small business participation is not indicated, potentially missing opportunities for smaller firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No pricing data available
No small business participation indicated

Positive Signals

Essential service for agency operations
Long-term contract provides stability

Sector Analysis

This contract falls under administrative management and general management consulting services, a broad category within the professional services sector. Spending in this area can vary widely depending on agency needs and the complexity of the services required.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss=false, sb=false). This suggests that opportunities for small businesses were not actively pursued in this procurement, potentially limiting their access to federal contracts.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is reasonable and that competition is considered for future requirements. Accountability for the justification of the sole-source award is crucial.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
No pricing data available
No small business participation
High contract value over four years

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.0 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 $7.0 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-09-15.

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

The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government requirements that cannot be met by multiple vendors. Without further documentation, the specific reason remains unclear, but it is a critical factor in assessing the contract's value and fairness.

What are the potential risks associated with a sole-source contract for professional staffing?

The primary risks of a sole-source contract include a lack of competitive pricing, potentially leading to overpayment by taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional value, as competition is absent. Furthermore, it limits the government's ability to explore alternative solutions or leverage the broader market's expertise, potentially impacting the quality or efficiency of the services received.

How does the absence of small business participation impact the overall effectiveness of this contract?

The absence of small business participation means the Department of State may be missing out on the agility, innovation, and specialized expertise that small businesses often bring. It also represents a missed opportunity to support economic growth and diversity within the federal contracting landscape. While larger firms can provide extensive resources, failing to engage small businesses can limit the range of solutions considered and potentially increase costs.

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: $10,299,114

Exercised Options: $7,212,709

Current Obligation: $6,957,951

Actual Outlays: $533,042

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