Air Force awards $16.8M for IT integration and digital excellence support to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $16,861,964 ($16.9M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-24

End Date: 2026-05-31

Contract Duration: 1,468 days

Daily Burn Rate: $11.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORT FOR AIR FORCE RESEARCH LABORATORIES (AFRL) INTEGRATION AND DIGITAL EXCELLENCE (SAIDE) AFRL/RX

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to CREATIVE IT SOLUTIONS, LLC for work described as: SUPPORT FOR AIR FORCE RESEARCH LABORATORIES (AFRL) INTEGRATION AND DIGITAL EXCELLENCE (SAIDE) AFRL/RX Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Firm fixed-price contract type suggests predictable costs for the government. 3. Contract duration of nearly four years indicates a long-term need for these services. 4. The award is for support to the Air Force Research Laboratories (AFRL), a key R&D entity. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services. 6. The contract is not set aside for small businesses, potentially impacting small business participation. 7. The contractor, Creative IT Solutions, LLC, is based in Ohio.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The firm fixed-price structure provides cost certainty, but the lack of competition raises questions about whether the government secured the best possible price. Further analysis would require comparing the specific services rendered against industry standards and the pricing of similar support contracts within the Department of Defense.

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 can provide the required services, often due to specialized expertise, proprietary technology, or urgent needs. The lack of competition means there were no other bidders to drive down prices through a competitive bidding process, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may not benefit from the cost efficiencies that typically arise from a competitive bidding process. The absence of multiple offers means the government could not leverage market forces to secure the most advantageous pricing.

Public Impact

The primary beneficiary is the Air Force Research Laboratories (AFRL), which will receive essential support for its integration and digital excellence initiatives. Services delivered will likely enhance the operational efficiency and technological capabilities of AFRL. The geographic impact is centered in Ohio, where the contractor is located and likely where services will be performed. Workforce implications may include the employment of IT professionals and support staff by Creative IT Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Broad NAICS code may indicate a wide scope of services, making performance monitoring crucial.
Lack of small business set-aside could limit opportunities for smaller, specialized firms.

Positive Signals

Firm fixed-price contract provides cost predictability for the Air Force.
Long contract duration suggests a stable, ongoing need for critical support services.
Support for AFRL is vital for advancing Air Force research and development capabilities.

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically focusing on computer-related services. The market for IT support and integration services for government agencies is substantial, with significant spending allocated to R&D and operational support. Comparable spending benchmarks would involve analyzing other contracts for similar IT support services awarded to research laboratories or defense agencies, considering factors like contract duration, scope of work, and pricing structures.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in this contract are limited to potential subcontracting roles that may or may not be actively pursued by the prime contractor. The absence of a set-aside could mean that larger businesses are better positioned to compete for or be awarded such contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, specifically within the Air Force Research Laboratories. Accountability measures would be tied to the performance metrics outlined in the contract's statement of work and the firm fixed-price terms. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratories (AFRL) Support Contracts
Department of Defense IT Services
Digital Transformation Initiatives
Research and Development Support Services

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to CREATIVE IT SOLUTIONS, LLC. SUPPORT FOR AIR FORCE RESEARCH LABORATORIES (AFRL) INTEGRATION AND DIGITAL EXCELLENCE (SAIDE) AFRL/RX

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 $16.9 million.

What is the period of performance?

Start: 2022-05-24. End: 2026-05-31.

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

Assessing the track record of Creative IT Solutions, LLC requires a deeper dive into their past performance on federal contracts. While the provided data indicates this is a sole-source award, it does not offer insights into their history. A review of contract databases like SAM.gov or FPDS would be necessary to identify previous awards, contract types, agencies served, and performance ratings. Understanding their experience with Air Force or similar R&D support contracts, particularly those involving IT integration and digital excellence, would provide crucial context for evaluating their capability to successfully execute this current award. Without this historical performance data, it is difficult to gauge their reliability and past success in meeting government requirements.

How does the pricing of this contract compare to similar IT support services within the Department of Defense?

Directly comparing the pricing of this $16.8 million contract is difficult without detailed service breakdowns and access to comparable contract data. However, the sole-source nature of this award raises a flag regarding potential price competitiveness. Typically, sole-source contracts may not achieve the same level of cost efficiency as those awarded through full and open competition, where multiple bidders vie for the contract. To benchmark effectively, one would need to identify other Department of Defense contracts for similar IT integration and digital excellence support services, ideally with similar durations and scopes of work, and analyze their total contract values and per-unit costs. This comparative analysis would help determine if the pricing for Creative IT Solutions, LLC is reasonable within the broader defense IT services market.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the exact methodology for measuring performance under this contract. However, for a contract supporting 'Integration and Digital Excellence' for the Air Force Research Laboratories (AFRL), KPIs would likely focus on areas such as system integration success rates, achievement of digital transformation milestones, system uptime and reliability, user satisfaction, and timely delivery of support services. Performance measurement would typically involve regular reporting by the contractor, government acceptance of deliverables, and potentially periodic performance reviews conducted by the contracting officer's representative (COR). The firm fixed-price nature suggests that meeting defined performance standards is critical for the contractor to receive full payment.

What is the potential risk associated with a sole-source award for critical IT support?

The primary risk associated with a sole-source award for critical IT support is the lack of competitive pressure, which can lead to suboptimal pricing and potentially reduced innovation. Without competing offers, the government may overpay for the services, and the contractor may have less incentive to proactively seek cost efficiencies or introduce cutting-edge solutions. Furthermore, reliance on a single vendor can create dependency and increase vulnerability if the contractor experiences financial difficulties, operational issues, or decides to discontinue services. Mitigating these risks often involves robust contract management, clear performance expectations, and potentially exploring competitive options for future contract renewals or expansions.

How does this contract align with the Air Force's broader digital transformation goals?

This contract directly aligns with the Air Force's broader digital transformation goals by providing essential support for 'Integration and Digital Excellence' within the Air Force Research Laboratories (AFRL). AFRL plays a crucial role in developing and advancing technologies for the Air Force, and enhancing its digital capabilities and integration is fundamental to modernizing military operations, improving data management, and accelerating innovation. Support for these initiatives enables AFRL to leverage digital tools and processes more effectively, fostering a more agile and technologically superior research and development environment, which is a key component of the Air Force's overall modernization strategy.

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: $27,149,850

Exercised Options: $18,756,771

Current Obligation: $16,861,964

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