HHS awards $23.5M for vaccine tracking O&M to Creative IT Solutions, a sole-source contract

Contract Overview

Contract Amount: $23,482,252 ($23.5M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-22

End Date: 2025-02-28

Contract Duration: 1,043 days

Daily Burn Rate: $22.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VACCINE TRACKING OPERATIONS AND MAINTENANCE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.5 million to CREATIVE IT SOLUTIONS, LLC for work described as: VACCINE TRACKING OPERATIONS AND MAINTENANCE Key points: 1. Contract value appears reasonable given the scope of IT operations and maintenance for a critical public health system. 2. Sole-source award limits competitive pressure, potentially impacting price efficiency. 3. Performance period extends over two years, indicating a need for sustained support. 4. The contract supports essential vaccine tracking infrastructure, crucial for public health. 5. This award falls within the broader IT services sector for government operations.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more detailed scope information. However, the $23.5 million over approximately 34 months (April 2022 to Feb 2025) suggests a significant investment in maintaining critical IT infrastructure. Given the sole-source nature, a direct comparison to competitively bid contracts is not feasible. The pricing structure (Firm Fixed Price) provides cost certainty but relies heavily on the initial negotiation's fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor possesses the necessary qualifications, proprietary technology, or when urgency dictates. The lack of competition means potential savings from a bidding process were not realized, and the government relied on negotiation to secure a fair price.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not benefit from multiple offers driving down costs.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from sustained IT support for its vaccine tracking systems. Essential services include operations and maintenance, ensuring the reliability and functionality of critical public health data systems. The geographic impact is national, as the vaccine tracking system supports nationwide public health initiatives. Workforce implications are primarily within the IT support and maintenance sector, potentially involving specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about potential lack of competition and its impact on cost-effectiveness.
Limited transparency into the justification for sole-source procurement could obscure potential alternatives.
The contract's duration requires ongoing monitoring to ensure continued value and performance.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
The contract supports a critical public health function, aligning with agency mission.
The awardee, Creative IT Solutions, LLC, is tasked with maintaining essential IT infrastructure.

Sector Analysis

The IT services sector for government operations is vast, encompassing a wide range of support, development, and maintenance activities. This contract falls under telecommunications resellers and IT support services, a segment crucial for maintaining the digital infrastructure of federal agencies. Comparable spending benchmarks for IT operations and maintenance can vary widely based on system complexity and scale, but significant investments are common for critical national systems like public health data management.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The focus is on a large-scale IT operations and maintenance requirement, which may not lend itself to typical small business subcontracting opportunities unless specifically structured.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Firm Fixed Price structure provides some cost control. Further oversight would involve performance reviews and potentially audits by HHS's Office of Inspector General if concerns arise.

Related Government Programs

CDC Vaccine Tracking Systems
Public Health IT Infrastructure
Federal IT Operations and Maintenance Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on contractor's past performance.
Potential for cost inefficiencies due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.5 million to CREATIVE IT SOLUTIONS, LLC. VACCINE TRACKING OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CREATIVE IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2022-04-22. End: 2025-02-28.

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. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when a unique capability, proprietary technology, or urgent need exists that only one vendor can fulfill. Without further documentation from the agency (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reasons remain unclear. This lack of transparency can be a point of concern for ensuring fair and efficient use of taxpayer funds, as it bypasses the competitive process that usually drives down costs and encourages innovation.

How does the contract value of $23.5 million compare to similar IT operations and maintenance contracts for public health systems?

Directly comparing the $23.5 million value is difficult without knowing the precise scope, scale, and complexity of the 'Vaccine Tracking Operations and Maintenance' services provided by Creative IT Solutions, LLC. However, for large-scale IT operations and maintenance supporting critical national infrastructure, this figure is within a plausible range. Federal IT contracts can range from tens of millions to billions of dollars. Given that this contract supports the Centers for Disease Control and Prevention (CDC) and likely involves maintaining sensitive public health data systems, a substantial investment is expected. The firm fixed-price nature suggests a defined scope, but the actual value derived depends on the efficiency and effectiveness of the services delivered over the contract's duration.

What are the potential risks associated with a sole-source IT contract of this magnitude?

The primary risk associated with a sole-source IT contract of this magnitude is the potential for reduced cost-effectiveness due to the absence of competition. Without competing bids, there is less pressure on the contractor to offer the lowest possible price. This can lead to inflated costs for taxpayers. Additionally, sole-source awards can limit the government's access to innovative solutions or alternative technologies that might be offered by other vendors. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions more difficult and costly. Effective negotiation and robust oversight are crucial to mitigate these risks.

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

The provided data identifies Creative IT Solutions, LLC as the contractor but does not offer details on their specific track record or past performance on similar federal IT contracts. To assess their reliability and capability for 'Vaccine Tracking Operations and Maintenance,' further research into their contract history, past performance evaluations (if publicly available), and any reported issues or successes would be necessary. Federal agencies typically maintain performance records for contractors, and these are often reviewed during the procurement process. Without this information, it's difficult to definitively gauge their suitability beyond the agency's initial determination for this sole-source award.

How does this contract align with the CDC's overall IT spending and strategic goals?

This contract for vaccine tracking operations and maintenance directly aligns with the Centers for Disease Control and Prevention's (CDC) core mission of protecting public health. Maintaining robust and reliable systems for tracking vaccines is crucial for disease surveillance, outbreak response, and ensuring the efficacy of immunization programs. While the specific dollar amount ($23.5 million) needs to be viewed within the context of the CDC's total IT budget, it represents a significant investment in essential operational infrastructure. Strategic goals related to data integrity, system uptime, and cybersecurity for public health information are directly supported by this contract. The long-term performance of this contract will be a key indicator of its contribution to these strategic objectives.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-21-Q-74204

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1625, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, 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: $24,726,893

Exercised Options: $24,174,968

Current Obligation: $23,482,252

Actual Outlays: $23,482,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline