Creative IT Solutions awarded $27.8M for AFRL integration and digital excellence support

Contract Overview

Contract Amount: $27,777,179 ($27.8M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-28

End Date: 2026-03-31

Contract Duration: 1,464 days

Daily Burn Rate: $19.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORT FOR AFRL INTEGRATION AND DIGITAL EXCELLENCE (SAIDE)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to CREATIVE IT SOLUTIONS, LLC for work described as: SUPPORT FOR AFRL INTEGRATION AND DIGITAL EXCELLENCE (SAIDE) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type provides cost certainty for the government. 3. Performance period extends over four years, indicating a long-term need. 4. The contract is for IT services, a critical area for modern defense operations. 5. No small business set-aside was applied to this procurement. 6. The contract value is significant, suggesting a substantial scope of work.

Value Assessment

Rating: fair

This contract's value of $27.8 million over four years for IT support appears substantial. Without comparable sole-source contracts for similar integration and digital excellence services, a precise value-for-money assessment is challenging. The firm fixed-price structure offers predictability, but the lack of competition may have led to a higher price than a competed contract. Benchmarking against industry standards for IT integration services in the defense sector would be necessary for a more definitive value assessment.

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 solicited. This approach bypasses the competitive bidding process typically used to ensure fair pricing and identify the best value. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required unique capabilities, they generally result in less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding process. This could represent a less efficient use of public funds.

Public Impact

The primary beneficiary is the Air Force Research Laboratory (AFRL), which will receive enhanced integration and digital excellence support. Services delivered will likely focus on improving IT infrastructure, data management, and digital capabilities within AFRL. The geographic impact is centered in Ohio, where Creative IT Solutions is located and likely where the services will be performed or managed. Workforce implications may include the need for specialized IT personnel to fulfill the contract requirements, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to limited competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long-term contract duration suggests a stable, ongoing need.
Focus on critical IT and digital transformation areas.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on integration and digital excellence for a government research laboratory. The IT services market, particularly within defense, is characterized by high demand for specialized skills in areas like cloud computing, cybersecurity, data analytics, and digital transformation. Government spending in this area is substantial, driven by the need to modernize legacy systems and enhance operational efficiency. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded to research and development entities within the Department of Defense.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this significant IT support contract are likely limited unless they are direct subcontractors to Creative IT Solutions, LLC. The absence of set-aside provisions may reduce the direct flow of federal dollars into the small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Air Force Research Laboratory. As a sole-source award, scrutiny may be higher to ensure the justification for not competing is sound and that the contractor delivers as per the firm fixed-price agreement. Transparency regarding the specific deliverables and performance metrics would be key for effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Research Laboratory (AFRL) IT Support
Department of Defense Digital Transformation Initiatives
Federal IT Services Contracts
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competitive pricing.
Potential for reduced vendor innovation due to lack of competition.
Need for robust government oversight to ensure value and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to CREATIVE IT SOLUTIONS, LLC. SUPPORT FOR AFRL INTEGRATION AND DIGITAL EXCELLENCE (SAIDE)

Who is the contractor on this award?

The obligated recipient is CREATIVE IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2022-03-28. End: 2026-03-31.

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

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. However, the specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards require a formal justification and approval (J&A) process, which must demonstrate that only one responsible source can provide the required supplies or services. Reasons can include unique capabilities, urgent needs where competition is not feasible, or specific research and development requirements. Without the J&A document, it's impossible to ascertain the precise rationale behind bypassing the competitive bidding process for the SAIDE contract.

How does the firm fixed-price (FFP) contract type mitigate risks for the government in this sole-source scenario?

The Firm Fixed Price (FFP) contract type is beneficial for the government, especially in a sole-source situation, as it establishes a ceiling on the total cost the contractor can incur. This shifts the risk of cost overruns from the government to the contractor. Creative IT Solutions, LLC is obligated to complete the work within the agreed-upon price, regardless of their actual costs. This provides budget certainty for the Air Force Research Laboratory. While it doesn't address the potential for an inflated initial price due to lack of competition, it does ensure that the government's financial exposure is capped, preventing unexpected increases in the contract's total value.

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

Sole-source contracts, particularly for significant IT services, carry inherent performance risks. Without competitive pressure, the contractor may have less incentive to innovate, maintain high service levels, or proactively address potential issues. There's also a risk that the contractor may not possess all the necessary expertise or resources, or that their proposed solution is not the most optimal available. Furthermore, the government's leverage in negotiating changes or addressing performance deficiencies can be diminished compared to a competitive scenario. Robust performance monitoring, clear deliverables, and strong contract management by the Air Force are crucial to mitigate these risks.

Can we benchmark the value of this contract against similar IT integration services for other federal research laboratories?

Benchmarking this $27.8 million, four-year contract for 'SUPPORT FOR AFRL INTEGRATION AND DIGITAL EXCELLENCE (SAIDE)' against similar federal IT services contracts requires access to detailed data on comparable procurements. Key comparison points would include the scope of work (e.g., specific integration types, digital tools supported), the agency or laboratory type (e.g., other DoD labs, NASA centers), the contract duration, and importantly, the competition level. Since this contract was sole-source, direct comparisons to competitively awarded contracts may not be entirely equitable. A thorough benchmark would involve analyzing contracts with similar North American Industry Classification System (NAICS) codes (like 541519) awarded over the past few years, adjusting for inflation and scope differences.

What is the historical spending pattern for IT services at the Air Force Research Laboratory (AFRL)?

To determine historical spending patterns for IT services at the Air Force Research Laboratory (AFRL), one would need to analyze past contract awards made by AFRL over several fiscal years. This analysis should focus on contracts categorized under relevant NAICS codes, such as 'Other Computer Related Services' (541519) or 'Computer Systems Design and Related Services' (541512). Examining the total dollar value of IT contracts awarded, the number of contracts, the types of services procured (e.g., integration, maintenance, development), and the primary awardees would reveal trends. Understanding these patterns can help contextualize the $27.8 million SAIDE contract, indicating whether it represents a typical investment level or a significant deviation for AFRL's IT needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $44,486,302

Exercised Options: $28,506,774

Current Obligation: $27,777,179

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA239622D0001

IDV Type: IDC

Timeline