State Department awards $3.5M contract for professional staffing, raising questions about competition and value

Contract Overview

Contract Amount: $3,503,449 ($3.5M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2024-03-01

End Date: 2029-02-28

Contract Duration: 1,825 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 $3.5 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 and value for money require further scrutiny due to the lack of competitive bidding. 3. Performance risk appears moderate given the contract type and duration. 4. This contract supports administrative management and general management consulting services. 5. The contract is positioned within the professional services sector for the Department of State. 6. Small business participation is not explicitly detailed in the provided data.

Value Assessment

Rating: fair

The contract's value is difficult to assess without competitive benchmarks. The total award amount of $3.5 million over five years suggests an average annual value of $700,000. Without knowing the specific services rendered and the labor hours involved, it's challenging to compare this to similar contracts. The 'NOT AVAILABLE FOR COMPETITION' status indicates a potential lack of price discovery, which could impact overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, CREATIVE IT SOLUTIONS, LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity to compare different pricing structures or service offerings, potentially leading to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these professional staffing services due to the absence of a competitive bidding process. This can result in funds being spent less efficiently than if multiple vendors had vied for the contract.

Public Impact

The Department of State benefits from professional staffing services to support its administrative and management functions. Services delivered include general management consulting and administrative support. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the provision of specialized skills to the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Lack of detailed performance metrics makes value assessment difficult.
Contract duration of five years may lock in potentially suboptimal pricing.
Limited transparency on specific services and deliverables.

Positive Signals

Contract awarded to a known entity (CREATIVE IT SOLUTIONS, LLC).
Contract duration provides stability for service delivery.
Services align with stated agency needs for administrative support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of specialized services provided to government agencies. The market size for such services is substantial, with numerous firms competing for federal contracts. This particular award represents a portion of the Department of State's broader spending on consulting and administrative support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to CREATIVE IT SOLUTIONS, LLC, does not appear to be driven by a strategy to boost small business participation through this specific contract vehicle.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed performance metrics hinders value-for-money assessment.
Contract duration may limit flexibility and optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.5 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 $3.5 million.

What is the period of performance?

Start: 2024-03-01. End: 2029-02-28.

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

Information regarding the specific track record of CREATIVE IT SOLUTIONS, LLC with federal contracts, especially with the Department of State, is not detailed in the provided data snippet. A comprehensive analysis would require accessing contract databases like FPDS-NG to review past performance, contract values, types of services rendered, and any reported issues or successes. Understanding their history with similar sole-source awards or competitive bids would provide crucial context for assessing their reliability and the justification for this current sole-source award.

How does the estimated annual cost of $700,000 compare to similar professional staffing contracts at the Department of State?

Benchmarking the estimated annual cost of $700,000 requires comparing it against similar contracts for professional staffing and administrative management services within the Department of State or other federal agencies. Without specific details on the scope of work, required skill sets, and labor hours, a direct comparison is challenging. However, if this contract involves high-level consulting or specialized administrative roles, the cost might be within a reasonable range. Conversely, if it covers more routine administrative tasks, it could be considered high. A thorough analysis would involve examining the contract's Statement of Work (SOW) and comparing its labor categories and rates to publicly available contract data for comparable services.

What are the specific risks associated with a sole-source award for professional staffing services?

The primary risk associated with a sole-source award is the lack of price competition, which can lead to inflated costs for the government. Without multiple bids, there's less incentive for the contractor to offer the most competitive pricing. Another risk is the potential for reduced innovation, as there's no competitive pressure to develop more efficient or effective service delivery methods. Furthermore, a sole-source award might indicate a lack of available qualified vendors or a poorly planned procurement strategy, potentially impacting the agency's ability to secure the best value. There's also a risk that the chosen vendor may not be the most capable, as their qualifications haven't been vetted against other potential providers.

What specific administrative management and general management consulting services are being procured under this contract?

The provided data indicates the contract is for 'PROFESSIONAL STAFFING FOR OBO' and falls under the North American Industry Classification System (NAICS) code 541611, which covers 'Administrative Management and General Management Consulting Services.' However, the specific services are not detailed. This could encompass a wide range of activities, such as strategic planning, organizational analysis, process improvement, human capital management, or general administrative support. A detailed Statement of Work (SOW) within the contract documents would outline the precise deliverables, tasks, and expertise required from CREATIVE IT SOLUTIONS, LLC.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data explicitly states 'NOT AVAILABLE FOR COMPETITION' and 'CT: NOT AVAILABLE FOR COMPETITION,' which is a strong indicator of a sole-source justification. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs (e.g., unique capabilities, urgent requirements, or specific follow-on work). The Department of State would have had to document a formal justification, often referred to as a Justification and Approval (J&A), outlining why full and open competition was not feasible or not in the government's best interest for this particular requirement. Without access to this J&A, the specific rationale remains unknown.

How does the contract duration of 1825 days (5 years) impact the overall cost and flexibility for the Department of State?

A five-year contract duration (1825 days) provides the Department of State with service continuity and allows the contractor, CREATIVE IT SOLUTIONS, LLC, to plan and resource effectively. From a cost perspective, longer-term contracts can sometimes secure lower unit prices due to economies of scale or commitment. However, it also locks the government into a specific vendor and pricing structure for an extended period. This reduces flexibility to adapt to changing needs or to capitalize on potentially better pricing or capabilities that might emerge from competitors in the market during the contract term. It also means that if the initial pricing was not optimal due to the sole-source nature, the government is committed to that potentially higher cost for the full duration.

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: $6,075,110

Exercised Options: $4,824,465

Current Obligation: $3,503,449

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