Department of State awards $770K contract for professional staffing to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $770,048 ($770.0K)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2024-04-29

End Date: 2027-04-28

Contract Duration: 1,094 days

Daily Burn Rate: $704/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 $770,048 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 approximately three years, ending in April 2027. 3. This is a delivery order under an existing contract. 4. The contract type is labor hours, indicating payment based on staff time. 5. The contractor, Creative IT Solutions, LLC, is based in Virginia. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $770,004.80 for a three-year period for professional staffing services appears to be within a reasonable range for specialized administrative and management consulting. However, without specific details on the scope of work and the seniority of the staff provided, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for management consulting services at the Department of State or other federal agencies would provide a clearer picture of whether the pricing is competitive.

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 justification for not seeking broader competition. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not achieve the most favorable pricing achievable through open competition.

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 primarily within the Department of State's operations, likely in Virginia where the contractor is located. Workforce implications include the provision of specialized personnel to augment the agency's existing staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Scope of work and specific deliverables are not detailed, making performance assessment difficult.
Reliance on a sole-source award limits opportunities for new or emerging contractors.

Positive Signals

Contract awarded to a known entity, potentially ensuring continuity of services.
Delivery order structure suggests it's part of a larger, established framework.
Contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under Administrative Management and General Management Consulting Services. This is a broad category encompassing a wide range of advisory and support services to government agencies. The market for these services is competitive, but specific niche expertise or existing relationships can lead to sole-source awards. Federal spending in this category is substantial, supporting various agency functions from strategic planning to operational efficiency.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award does not directly contribute to the government's small business contracting goals. The lack of a small business set-aside means that opportunities for small businesses to compete for or participate in this specific contract were not prioritized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. As a delivery order under an existing contract, the initial award and oversight mechanisms were likely established during the parent contract's procurement. Transparency regarding the specific justification for the sole-source award and the detailed scope of work would enhance accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional and Management Support Services
Consulting Services
Administrative Support Contracts
Department of State Operations Support

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific scope of work.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $770,048 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 $770,048.

What is the period of performance?

Start: 2024-04-29. End: 2027-04-28.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) 6.302 outlines circumstances under which a contract may be awarded without full and open competition. Common justifications include the unique capability or specialized knowledge of a particular contractor, urgent and compelling needs, or when only one source is reasonably available. Without further documentation from the Department of State, the precise reason for this sole-source designation remains unspecified. This lack of transparency makes it difficult to assess if competition was genuinely impossible or if it was simply deemed less efficient than a sole-source award.

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

The contract is awarded on a 'LABOR HOURS' (LH) basis, meaning the government pays for the actual time spent by contractor personnel. This pricing model is common for services where the scope of work can be variable or difficult to define precisely upfront, such as consulting or staff augmentation. To benchmark the value, one would need to compare the hourly rates for different labor categories (e.g., senior consultant, junior analyst) against prevailing market rates for similar skill sets and experience levels within the Washington D.C. metropolitan area or the federal consulting market. Without the specific hourly rates for the labor categories utilized under this contract, a direct comparison is not possible. However, the Department of State typically aims to negotiate rates that are fair and reasonable based on market research and historical data.

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. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and value of previous federal awards, and any history of contract modifications or disputes. Given this is a delivery order, it suggests Creative IT Solutions, LLC may hold a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle under which this order was placed. Understanding their performance on prior engagements would provide insight into their reliability, quality of service, and ability to meet government requirements.

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

The primary risk associated with a sole-source award for professional staffing is the potential for inflated costs due to the absence of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Another risk is a potential decrease in service quality or innovation, as the contractor may face less incentive to excel compared to a competitive environment. Furthermore, sole-source awards can limit opportunities for other capable businesses, including small businesses, to enter the market or expand their federal footprint. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making future transitions more complex and potentially costly.

How does this contract align with the Department of State's overall spending on administrative and management consulting services?

The provided data offers a specific contract value ($770,004.80) but does not provide context on the Department of State's total annual or historical spending on administrative and management consulting services. To understand alignment, one would need to compare this contract's value against the agency's overall budget allocation for such services. If the Department of State spends billions annually on consulting, this $770K contract represents a relatively small portion. Conversely, if their spending in this category is more modest, this contract could be a significant award. Analyzing trends in their consulting spend over time would reveal whether reliance on such services is increasing or decreasing.

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: $1,022,163

Exercised Options: $813,261

Current Obligation: $770,048

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