State Department awards $464M contract for professional staffing services to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $464,047 ($464.0K)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2024-06-21

End Date: 2029-06-20

Contract Duration: 1,825 days

Daily Burn Rate: $254/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROFESSIONAL STAFFING SERVICES FOR OBO

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $464,046.57 to CREATIVE IT SOLUTIONS, LLC for work described as: PROFESSIONAL STAFFING SERVICES FOR OBO Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Significant duration of 5 years suggests a long-term need for these services. 3. The contract's value is substantial, indicating a critical role for staffing support. 4. Focus on administrative management and general management consulting services. 5. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. No small business set-aside, raising questions about opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $464 million over five years for professional staffing services appears substantial. Benchmarking this against similar contracts for administrative and management consulting is challenging without more specific details on the scope of services and labor categories. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential for higher costs than if it were competitively bid. Without a clear per-unit cost comparison or market rate analysis, assessing the true value for money is difficult, but the sole-source nature warrants scrutiny.

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. This typically occurs when a specific contractor is uniquely qualified or when circumstances prevent full and open competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, which can limit the government's ability to secure the lowest possible price.

Taxpayer Impact: For taxpayers, a sole-source award means the government may not have achieved the best possible price due to the absence of competitive pressure. This could result in a higher overall expenditure for the services rendered.

Public Impact

The Department of State benefits from consistent access to professional staffing for administrative and management functions. Services delivered likely support the operational efficiency and effectiveness of State Department programs. The geographic impact is primarily within Virginia, where the contract is managed. Workforce implications include the provision of specialized skills to support government operations, potentially augmenting federal staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration (5 years) may lock in pricing without opportunities for re-evaluation.
Lack of small business set-aside may limit opportunities for smaller, specialized firms.
Absence of specific performance metrics or deliverables makes assessing effectiveness challenging.

Positive Signals

Award to Creative IT Solutions, LLC suggests a recognized capability in providing these services.
Delivery order structure implies it fits within an existing, potentially pre-vetted, IDIQ framework.
The contract's substantial value indicates a significant and ongoing need for these specialized services.

Sector Analysis

The professional staffing and management consulting sector is a significant part of the federal services market. Agencies rely on these services for specialized expertise, project management, and administrative support that may not be available internally. The total federal spending on management and professional services is in the tens of billions annually, with consulting services representing a large portion. This contract fits within the broader category of professional services supporting government operations.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Creative IT Solutions, LLC, is not explicitly identified as a small business in the provided data. This means there were no specific provisions to ensure a portion of the work went to small businesses. Consequently, there are limited implications for subcontracting opportunities for small businesses unless Creative IT Solutions voluntarily includes them in their subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a delivery order under an IDIQ, the underlying IDIQ contract likely has its own oversight mechanisms. Transparency is moderate, as contract awards are generally public, but the specifics of performance and spending may be less visible. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Sole-source award may indicate limited market research or contractor dependency.
Lack of competition raises concerns about price reasonableness.
Long contract duration could lead to vendor lock-in.
No small business set-aside limits opportunities for smaller enterprises.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $464,046.57 to CREATIVE IT SOLUTIONS, LLC. PROFESSIONAL STAFFING SERVICES 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 $464,046.57.

What is the period of performance?

Start: 2024-06-21. End: 2029-06-20.

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

Information on Creative IT Solutions, LLC's specific track record with the federal government, especially the Department of State, is not detailed in the provided data. However, being awarded a significant sole-source contract suggests they have prior experience or a demonstrated capability that the agency deemed essential. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the full extent of their past performance, including previous contract values, agencies served, and performance ratings. Understanding their history could provide insights into their reliability and expertise in delivering professional staffing and management consulting services.

How does the $464 million value compare to typical spending on similar professional staffing services by the Department of State?

The $464 million value over five years for professional staffing services is a substantial figure. To benchmark this, one would need to analyze historical spending patterns of the Department of State on similar services, specifically those categorized under administrative management and general management consulting (NAICS code 541611). Comparing this award to the average value and duration of previous sole-source or competitively bid contracts for similar scope would be informative. Without access to detailed historical data on the Department's spending in this category, it's difficult to definitively state if this contract is higher or lower than average, but its scale suggests a critical and ongoing need for these services.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be securing the most cost-effective solution. Another risk is the potential for reduced innovation or service quality, as the contractor may face less incentive to improve offerings compared to a competitive environment. Furthermore, it raises questions about whether full and open competition was truly not feasible, potentially indicating a lack of market research or an over-reliance on a single vendor. This can also limit opportunities for emerging or specialized small businesses to enter the federal market.

What specific types of professional staffing services are included under this contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This implies that the professional staffing services procured are likely focused on providing expertise in areas such as organizational planning, business process improvement, strategic planning, executive-level advisory services, and general management support. The services could include consultants, analysts, project managers, and other skilled professionals who assist the Department of State in optimizing its operations, managing complex projects, and implementing strategic initiatives. The exact breakdown of services would be detailed in the contract's statement of work.

What are the implications of this contract being awarded as a delivery order?

Being awarded as a delivery order indicates that this contract is likely a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQs allow agencies to purchase supplies or services from a specific contractor or group of contractors over a set period. A delivery order specifies the exact quantity, price, and delivery date for a particular requirement. This structure provides flexibility for the agency to order services as needed, but it also means the terms and conditions, including pricing, were likely established when the parent IDIQ contract was awarded, potentially limiting further negotiation for this specific order.

Are there any specific performance metrics or deliverables outlined for this contract?

The provided data does not specify the performance metrics or deliverables for this contract. Typically, such details are elaborated in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a contract of this nature and value, it is expected that the Department of State would have established clear performance standards, key performance indicators (KPIs), and reporting requirements to ensure the effectiveness and quality of the services provided by Creative IT Solutions, LLC. The absence of this information in the summary data makes it difficult to assess accountability and measure the success of the contract.

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: $1,556,829

Exercised Options: $1,090,552

Current Obligation: $464,047

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