State Department awards $10.6M for refugee processing tech and operations, with a 491-day duration

Contract Overview

Contract Amount: $10,681,528 ($10.7M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of State

Start Date: 2025-05-27

End Date: 2026-09-30

Contract Duration: 491 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: REFUGEE PROCESSING CENTER - TECHNOLOGY, BUSINESS, AND OPERATIONS SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $10.7 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: REFUGEE PROCESSING CENTER - TECHNOLOGY, BUSINESS, AND OPERATIONS SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 5. The contract duration is 491 days, spanning from May 2025 to September 2026. 6. The contractor, Credence Management Solutions LLC, is a relatively new entity in federal contracting. 7. The contract value is approximately $10.6 million.

Value Assessment

Rating: fair

The contract value of $10.6 million for a period of 491 days appears to be within a reasonable range for technology and operations support services. However, without specific details on the scope of work and the labor categories involved, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure necessitates close monitoring to ensure costs do not escalate beyond initial projections. Benchmarking against similar T&M contracts for IT and operational support would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: The full and open competition is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

This contract directly supports the Department of State's mission to process refugees, impacting individuals seeking asylum and resettlement. The services provided will likely involve technology infrastructure, software support, and operational assistance for refugee processing centers. The geographic impact is primarily within the District of Columbia, where the contract is registered, but the services may extend to operational sites globally. The contract could have implications for the workforce involved in refugee processing, potentially creating or sustaining jobs in IT and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
The contractor, Credence Management Solutions LLC, may have limited historical performance data in federal contracting, posing a potential risk.
The specific scope of 'Other Computer Related Services' is broad and requires detailed understanding to ensure effective service delivery and cost control.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
The Department of State is the awarding agency, suggesting a critical national security or foreign policy function.
The contract has a defined period of performance, allowing for periodic re-evaluation of needs and contractor performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT support, consulting, and integration services. The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. This contract appears to be a component of the Department of State's efforts to manage and operate critical systems related to its foreign policy and humanitarian objectives, such as refugee processing.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award was made under full and open competition. 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 the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs will be crucial. Transparency will depend on the agency's reporting practices and the contractor's adherence to contractual obligations. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Refugee Assistance Programs
Department of State IT Modernization Efforts
Global Operations Support Services
Immigration and Border Security Technology

Risk Flags

Time and Materials contract type
Contractor's potentially limited performance history
Broad scope of 'Other Computer Related Services'

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.7 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. REFUGEE PROCESSING CENTER - TECHNOLOGY, BUSINESS, AND OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2025-05-27. End: 2026-09-30.

What is the specific scope of 'Other Computer Related Services' required under this contract, and how does it align with the Department of State's refugee processing mission?

The 'Other Computer Related Services' (NAICS 541519) category is broad and can include a variety of IT support functions. For the Department of State's refugee processing mission, this likely entails services such as IT system maintenance, network support, help desk operations, data management, cybersecurity support, and potentially the development or integration of specialized software used in tracking and managing refugee cases. The alignment with the mission would involve ensuring these IT services directly contribute to the efficiency, security, and accuracy of the refugee processing workflow, from initial application intake to final resettlement or integration support. Detailed statements of work within the contract would further define these specific services and their objectives.

How does the Time and Materials (T&M) pricing structure for this $10.6 million contract compare to industry benchmarks for similar IT and operations support services?

Time and Materials (T&M) contracts are inherently flexible but carry a higher risk of cost escalation compared to fixed-price contracts. Benchmarking T&M rates requires detailed information on the labor categories (e.g., senior engineer, help desk technician, project manager), their associated hourly rates, and any material costs. Generally, T&M contracts are used when the scope of work is not clearly defined or is expected to change. For IT and operations support, average blended hourly rates can range significantly, from $75-$100 for entry-level support to $200-$300+ for highly specialized technical roles. Without the specific labor mix and rates for this $10.6 million contract, a precise benchmark is difficult. However, the Department of State would have evaluated these rates against government-wide contract vehicles (like GSA schedules) or prior contract awards to ensure they were fair and reasonable at the time of award.

What is Credence Management Solutions LLC's track record with the Department of State and other federal agencies, particularly on contracts of similar size and scope?

Information on Credence Management Solutions LLC's specific track record with the Department of State or other federal agencies is limited in publicly available databases for contracts of this magnitude. As a Limited Liability Company (LLC), its operational history and contract performance data may be less extensive or less publicly documented compared to larger, more established federal contractors. When evaluating a contractor with a potentially shorter or less visible track record, agencies typically conduct thorough due diligence, including reviewing past performance questionnaires, references, and financial stability. The award of a $10.6 million contract suggests that the Department of State found Credence Management Solutions LLC to be a capable and responsible source, likely based on available performance data, technical qualifications, and competitive pricing, even if that data is not widely disseminated.

What are the potential risks associated with the 491-day duration of this contract and the Time and Materials (T&M) pricing model?

The 491-day duration (approximately 16 months) for this contract, combined with a Time and Materials (T&M) pricing model, presents several potential risks. Firstly, T&M contracts can lead to cost overruns if the effort required exceeds initial estimates or if labor hours are not meticulously tracked and justified. Scope creep, where the project expands beyond its original definition without corresponding adjustments to fixed price, is a significant concern. Secondly, the extended duration means that the agency is committed to these rates and services for a considerable period. If market rates for similar services decrease, or if the technology landscape shifts rapidly, the agency might be locked into a less advantageous pricing structure or outdated service offerings. Effective contract management, including regular performance reviews, detailed cost tracking, and clear communication channels, is essential to mitigate these risks.

How does this $10.6 million award compare to historical federal spending on refugee processing technology and operations support services?

Comparing this $10.6 million award to historical federal spending requires analyzing broader categories of IT and operational support for refugee and humanitarian assistance programs across various agencies, not just the Department of State. Federal spending in these areas can fluctuate significantly based on geopolitical events, global crises, and policy changes. While specific historical data for 'refugee processing technology and operations services' is not readily available in a consolidated format, the Department of State, along with agencies like HHS (Office of Refugee Resettlement) and DHS (USCIS, CBP), collectively spend billions annually on IT infrastructure, software development, and operational support services. This $10.6 million contract represents a specific, targeted investment for a defined period. To assess its historical context, one would need to examine trends in IT spending for similar mission-critical, often sensitive, government operations over the past decade.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM24Q0080

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CENTER DR STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,039,716

Exercised Options: $19,913,017

Current Obligation: $10,681,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00AX

IDV Type: FSS

Timeline