DoD awards $36.6M for Air Support Squadron IT services to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $36,626,718 ($36.6M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-25

End Date: 2026-01-31

Contract Duration: 1,102 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 700 AIR SUPPORT SQUADRON (ASUS) AIR OPERATION CENTER (AOC) SUPPORT AND SUSTAINMENT SERVICES

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to CREATIVE IT SOLUTIONS, LLC for work described as: 700 AIR SUPPORT SQUADRON (ASUS) AIR OPERATION CENTER (AOC) SUPPORT AND SUSTAINMENT SERVICES Key points: 1. Contract focuses on essential IT support and sustainment for Air Operation Centers. 2. Competition was full and open after exclusion of sources, indicating a broad search. 3. The contract duration of 1102 days suggests a need for long-term, stable support. 4. Firm Fixed Price contract type aims to control costs and provide predictable spending. 5. The awardee, Creative IT Solutions, LLC, is a relatively small business in this context. 6. This contract falls under Computer Systems Design Services, a critical IT sector.

Value Assessment

Rating: good

The contract value of $36.6M over approximately three years represents a significant investment in IT infrastructure for a specialized Air Force unit. Benchmarking this against similar IT support contracts for military operations centers is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (7) indicates a reasonable level of interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were initially excluded before the final award. Seven bids were received, suggesting a healthy level of interest from the market. This level of competition generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer funds are likely being used efficiently, as multiple vendors vied for the contract, driving down potential costs.

Public Impact

The primary beneficiaries are the 700 Air Support Squadron (ASUS) personnel who rely on robust IT systems for their operations. Services delivered include crucial support and sustainment for Air Operation Center (AOC) IT infrastructure. The geographic impact is likely concentrated around the AOC locations where these services are deployed. Workforce implications include the potential for IT professionals employed by Creative IT Solutions, LLC to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed by the contractor.
Reliance on a single contractor for critical IT sustainment could pose risks if performance falters.
The 'exclusion of sources' clause warrants further investigation into the rationale behind initial exclusions.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition, even with exclusions, suggests an effort to maximize market participation.
The contract duration indicates a stable, long-term relationship which can foster efficiency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related support. The market for defense IT support is substantial, driven by the need for advanced technological capabilities in military operations. Comparable spending benchmarks would typically involve other contracts for IT sustainment and operational support for command and control systems within the Department of Defense.

Small Business Impact

While the contract was awarded to Creative IT Solutions, LLC, which may be considered a small business, the contract itself was not specifically set aside for small businesses. The implications for the broader small business ecosystem are minimal unless Creative IT Solutions, LLC plans to subcontract a significant portion of the work to other small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and potentially the Department of Defense's Inspector General. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may not be.

Related Government Programs

Air Operation Center (AOC) Modernization Programs
Defense Information Systems Agency (DISA) IT Support Contracts
Air Force Command and Control Systems Sustainment
DoD Enterprise IT Services

Risk Flags

Potential for performance issues impacting critical operations.
Risk of cost escalation if scope is not tightly managed.
Dependency on a single contractor for essential IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to CREATIVE IT SOLUTIONS, LLC. 700 AIR SUPPORT SQUADRON (ASUS) AIR OPERATION CENTER (AOC) SUPPORT AND SUSTAINMENT SERVICES

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 $36.6 million.

What is the period of performance?

Start: 2023-01-25. End: 2026-01-31.

What is the track record of Creative IT Solutions, LLC in performing similar large-scale IT support and sustainment contracts for the Department of Defense?

Assessing the track record of Creative IT Solutions, LLC requires a deeper dive into their past performance on government contracts. While they secured this $36.6M award, information on their prior experience with complex IT support and sustainment for Air Operation Centers is crucial. Publicly available data may indicate previous contract values, agencies served, and performance ratings. A review of contract databases and performance assessment reports (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, technical capabilities, and ability to meet demanding service level agreements. Without this specific historical data, it's difficult to fully gauge their suitability for this critical role beyond the competitive bid itself.

How does the per-unit cost or cost-per-service compare to similar IT support contracts for military command and control systems?

Directly comparing the per-unit cost or cost-per-service for this $36.6M contract is challenging without detailed breakdowns of the services provided and their associated pricing structures. The contract is for 'Computer Systems Design Services' and 'Support and Sustainment,' which can encompass a wide range of activities from hardware maintenance to software development and network management. To benchmark effectively, one would need to identify comparable contracts for similar Air Operation Center IT infrastructure, analyze their scope of work, contract types (e.g., FFP, T&M), and total values over similar durations. Factors like geographic location, specific technologies supported, and security requirements also influence pricing. A comprehensive analysis would involve comparing metrics like cost per system supported, cost per user, or cost per hour of support, adjusted for these variables.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential performance shortfalls by the contractor, leading to disruptions in critical Air Operation Center IT functions. There's also a risk of cost overruns if the firm fixed-price structure doesn't adequately account for unforeseen technical challenges or scope creep, though FFP aims to mitigate this. Vendor lock-in, where the contractor develops unique expertise making it difficult to switch providers, is another concern. Mitigation strategies likely include robust contract oversight by the Air Force, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The contract's duration also implies a need for strong relationship management to ensure ongoing alignment and address issues proactively. The 'exclusion of sources' aspect might also represent a risk if it inadvertently limited the pool of highly qualified bidders.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for these IT support services?

The Firm Fixed Price (FFP) contract type is generally considered effective in ensuring value for money for IT support services when the scope of work is well-defined and stable. It shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and deliver services within the agreed budget. For routine sustainment and support tasks, FFP provides cost certainty for the government. However, if the IT environment is highly dynamic or requires significant innovation and adaptation, FFP might discourage the contractor from proposing cost-saving efficiencies or incorporating new technologies if they fall outside the defined scope. In such cases, other contract types might offer better value. For this specific contract, the focus on 'support and sustainment' suggests FFP is likely appropriate for achieving predictable spending.

What is the historical spending pattern for IT support and sustainment services for the 700 Air Support Squadron (ASUS) or similar units?

Analyzing historical spending patterns for IT support and sustainment for the 700 Air Support Squadron (ASUS) or comparable units is essential for context. This involves examining past contract awards for similar services, including their values, durations, and the contractors involved. Understanding trends in spending—whether it's increasing, decreasing, or remaining stable—can indicate changes in operational needs, technological advancements, or efficiency gains. Comparing current spending ($36.6M over ~3 years) against previous periods or similar units helps determine if this award represents a significant shift or aligns with established budgetary norms. This historical perspective is crucial for assessing the reasonableness of the current investment and identifying potential areas for cost optimization in the future.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA489022R0047

Offers Received: 7

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: $69,368,229

Exercised Options: $36,718,977

Current Obligation: $36,626,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0268

IDV Type: GWAC

Timeline