State Department's $2.8M professional staffing contract awarded to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $2,809,869 ($2.8M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-09-26

End Date: 2026-09-25

Contract Duration: 1,460 days

Daily Burn Rate: $1.9K/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 $2.8 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. The contract duration is 1460 days, spanning from late 2022 to late 2026. 3. This is a delivery order under a larger contract vehicle. 4. The contract type is labor hours, indicating payment based on time spent by personnel. 5. The awarded amount is approximately $2.8 million. 6. The contractor, Creative IT Solutions, LLC, is responsible for providing professional staffing. 7. The primary agency is the Department of State. 8. The contract falls under NAICS code 541611 for administrative management consulting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar professional staffing contracts. The labor hours contract type can sometimes lead to cost overruns if not managed tightly. However, the total value of $2.8 million over four years suggests a moderate level of investment for professional staffing services. Further analysis would require understanding the specific roles and expertise provided by Creative IT Solutions, LLC.

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 among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is a compelling reason to award to a particular entity. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The justification for a sole-source award needs to be robust to ensure funds are used efficiently.

Public Impact

The Department of State benefits from professional staffing to support its administrative and management functions. Services delivered include general management consulting and administrative support. The geographic impact is likely concentrated within the Department of State's operational areas. Workforce implications involve the integration of external professional staff into the department's existing structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Labor hours contract type requires diligent oversight to manage costs effectively.
Lack of detailed performance metrics makes assessing value for money difficult.

Positive Signals

Contract awarded to a specific vendor, potentially indicating specialized expertise.
Delivery order structure allows for flexibility in tasking and resource allocation.
Contract duration provides stability for staffing needs over a defined period.

Sector Analysis

The professional staffing and administrative management consulting sector is a significant part of the federal contracting landscape. Agencies frequently rely on external expertise to supplement internal capabilities, particularly in specialized areas. The NAICS code 541611 represents a broad category of services. Benchmarking this contract's value against similar sole-source awards for professional staffing within the Department of State or other agencies would provide further context on its pricing and scope.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Creative IT Solutions, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be tied to the delivery order requirements and performance standards outlined in the contract. Transparency is limited due to the sole-source nature and the absence of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Professional Services Schedule (PSS)
Management and Consulting Services
Administrative Support Contracts
Department of State Contracts

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Labor hours contract type requires diligent oversight to prevent cost overruns.
Lack of detailed performance metrics makes value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.8 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 $2.8 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-09-25.

What is the specific justification for the sole-source award 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. The specific justification for this sole-source designation is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or when there is a compelling urgency, a national emergency, or when it is in the best interest of the government. Without further documentation from the Department of State, the precise rationale remains unknown. This lack of transparency can raise concerns about whether the government obtained the best value.

How does the $2.8 million contract value compare to similar professional staffing contracts at the Department of State?

Direct comparison of the $2.8 million contract value is difficult without more specific data on the scope of services and the types of professional staffing provided. However, for a four-year period (approximately $700,000 per year), this represents a moderate investment for specialized administrative and management consulting services. The Department of State, like many large federal agencies, utilizes numerous contracts for professional staffing, ranging from small, project-specific engagements to large, multi-year support vehicles. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes (541611) and contract types (labor hours) awarded by the Department of State or other agencies of comparable size and mission.

What are the potential risks associated with a labor hours contract type for professional staffing?

Labor hours contracts, while offering flexibility, carry inherent risks, primarily related to cost control. The government pays for the time spent by contractor personnel rather than for a fixed deliverable. This means that if the contractor's efficiency is low, or if the scope of work expands without proper adjustments, costs can escalate beyond initial projections. Effective risk mitigation requires robust oversight, clear task orders, detailed tracking of hours worked, and regular performance reviews to ensure that the labor provided is necessary, efficient, and aligned with project objectives. Without stringent management, labor hours contracts can become more expensive than fixed-price alternatives.

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

The provided data does not include specific details about the track record of Creative IT Solutions, LLC. To assess their performance history, one would need to consult federal procurement databases such as SAM.gov (System for Award Management) for past performance information, contract awards, and any reported issues or accolades. A thorough review would involve examining past contracts, their values, the agencies served, and any available past performance evaluations. Without this information, it is difficult to ascertain the contractor's reliability and capability in delivering services effectively.

How does the 'Administrative Management and General Management Consulting Services' category (NAICS 541611) typically function within federal agencies?

Federal agencies utilize services under NAICS code 541611 for a wide range of needs, including organizational analysis, process improvement, strategic planning, human capital management, and general administrative support. These services are crucial for enhancing operational efficiency, implementing policy changes, and managing complex projects. Contractors in this space often provide expert advice and hands-on support to help agencies achieve their missions more effectively. The Department of State, for instance, might use such services to streamline bureaucratic processes, improve inter-agency communication, or develop new management frameworks.

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: $4,835,769

Exercised Options: $4,835,769

Current Obligation: $2,809,869

Actual Outlays: $169,021

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