DoD's $8.77M IT Support Contract Awarded to Creative IT Solutions, LLC Amidst Limited Competition

Contract Overview

Contract Amount: $8,774,839 ($8.8M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-01

End Date: 2026-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PKA- HEBBE-WALKER-INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to CREATIVE IT SOLUTIONS, LLC for work described as: PKA- HEBBE-WALKER-INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Value for money assessed through comparison with similar IT support contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the lack of open competition and reliance on a single vendor. 4. Performance context is a firm-fixed-price contract for IT support services. 5. Sector positioning within IT services, specifically computer-related services. 6. Contract duration of 1460 days suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract's value of $8.77 million over approximately four years for IT support services requires careful benchmarking. Without more granular data on the specific services provided and the labor mix, a precise value-for-money assessment is challenging. However, compared to similar IT support contracts for federal agencies, the average annual cost appears within a reasonable range, though the lack of competitive bidding limits the ability to confirm optimal pricing. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The limited competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. The absence of multiple bidders restricts the government's ability to explore alternative solutions or negotiate more favorable terms.

Taxpayer Impact: The lack of open competition means taxpayers may not have received the best possible price for these IT support services. Without a competitive process, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The Department of the Air Force benefits from continuous IT support services. Essential IT infrastructure and user support are maintained, ensuring operational readiness. The services likely impact personnel within the Department of Defense, enabling their daily functions. Workforce implications are indirect, as the contract supports the IT environment for government employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to long-term contract and specialized services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable and ongoing need for IT support.
Award to Creative IT Solutions, LLC, a known entity in IT services.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically under computer-related services. The federal IT services market is substantial, with agencies consistently seeking support for their complex digital infrastructures. This contract for IT support services is a common requirement across many government departments, ensuring the smooth operation of critical systems. Benchmarking this contract's value against similar IT support procurements by defense agencies would provide further context on its cost-effectiveness.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The award to Creative IT Solutions, LLC, without specific small business provisions, means that opportunities for small businesses to participate in this specific contract are limited unless they are partners or subcontractors to the prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract details are generally available through federal procurement databases.

Related Government Programs

IT Professional Services
Information Technology Support
Computer Systems Design Services
Defense Information Technology Services

Risk Flags

Sole-source award may indicate limited market options or a lack of competitive justification.
Contract duration of nearly four years warrants scrutiny for potential long-term cost implications.
Lack of specific service details makes value-for-money assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to CREATIVE IT SOLUTIONS, LLC. PKA- HEBBE-WALKER-INFORMATION TECHNOLOGY SUPPORT 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 $8.8 million.

What is the period of performance?

Start: 2022-03-01. End: 2026-02-28.

What specific IT support services are included under this contract?

The provided data indicates the contract is for 'Other Computer Related Services' (NAICS code 541519). While the specific services are not detailed, this category typically encompasses a wide range of IT support functions. These can include IT help desk support, network administration, system maintenance, software installation and troubleshooting, hardware support, and potentially cybersecurity services. The firm-fixed-price nature suggests a defined scope of work for which the contractor is responsible for delivering the agreed-upon IT support functions to the Department of the Air Force.

How does the $8.77 million contract value compare to similar IT support contracts within the Department of Defense?

Benchmarking the $8.77 million contract value requires comparing it to similar IT support services procured by the Department of Defense (DoD) over a comparable period (approximately four years). Without specific details on the scope of services, labor categories, and geographic locations, a precise comparison is difficult. However, federal IT support contracts can range significantly in cost based on complexity and scale. A contract of this magnitude for a single awardee suggests a substantial scope of support, potentially covering a significant user base or critical infrastructure. Further analysis would involve examining contracts with similar NAICS codes and contract types within the DoD to determine if this award represents a competitive or premium price point.

What are the primary risks associated with a sole-source award for IT support services?

The primary risks associated with a sole-source award for IT support services include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There's also a risk of reduced innovation, as the contractor may have less incentive to offer new or improved solutions. Vendor lock-in is another significant risk; the government becomes dependent on a single provider, making it difficult and costly to switch vendors in the future, especially if the contractor's systems and processes become deeply integrated. Furthermore, the absence of a competitive process can sometimes mask inefficiencies or a lack of robust performance if not adequately overseen.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract type is 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common justifications include that only one responsible source can satisfy the agency's needs, or that the agency is seeking to procure a brand-name item for which only one manufacturer exists. Without the specific justification document, the exact reason for this sole-source award remains unknown, but it implies a determination by the Department of the Air Force that competitive procedures were not feasible or appropriate for this requirement.

What is the historical spending pattern for IT support services by the Department of the Air Force?

Historical spending patterns for IT support services by the Department of the Air Force (DAF) are generally substantial, reflecting the critical role of IT in modern military operations. The DAF, like other branches of the DoD, relies heavily on external contractors for a wide array of IT services, including network management, cybersecurity, software development, and end-user support. Annual spending on IT services by the DAF can run into billions of dollars, distributed across numerous contracts of varying sizes and scopes. This specific $8.77 million contract represents a portion of that overall IT expenditure, likely addressing a specific need or program within the Air Force.

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 - END USER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA701422R0008

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: $11,654,409

Exercised Options: $8,890,618

Current Obligation: $8,774,839

Actual Outlays: $2,225,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline