DoD's $13.7M Contract with Creative IT Solutions for Computer Services Raises Questions on Competition and Value
Contract Overview
Contract Amount: $13,745,518 ($13.7M)
Contractor: Creative IT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2019-11-25
End Date: 2025-01-10
Contract Duration: 1,873 days
Daily Burn Rate: $7.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SOCRATES
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.7 million to CREATIVE IT SOLUTIONS, LLC for work described as: SOCRATES Key points: 1. The contract value of $13.7 million is significant for 'Other Computer Related Services'. 2. Lack of competition is a major concern, potentially leading to inflated prices. 3. The Cost Plus Fixed Fee structure requires careful oversight to ensure efficiency. 4. The sector is IT services, a common area for government spending.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP', indicating a limited competition approach. This method often results in less price discovery and potentially higher costs for the government compared to full and open competition.
Taxpayer Impact: The lack of robust competition may result in taxpayers paying more than necessary for these IT services.
Public Impact
Taxpayers may be overpaying due to limited competition. The effectiveness of IT services provided under this contract is not publicly verifiable. Oversight is crucial to ensure the $13.7M is spent efficiently and effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-reimbursable contract type
- Lack of clear performance metrics
Positive Signals
- Contract supports U.S. Special Operations Command
- Long-term contract duration
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Government spending in this area is substantial, and competitive procurement is key to achieving value for money.
Small Business Impact
The contract was awarded to CREATIVE IT SOLUTIONS, LLC, a single entity. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation suggests a need for strong internal oversight to justify the limited competition and ensure the contract's necessity and fair pricing. The CPFF structure necessitates diligent monitoring of costs and performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF
- Limited transparency on specific services
- No clear indication of small business utilization
Tags
other-computer-related-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to CREATIVE IT SOLUTIONS, LLC. SOCRATES
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 (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $13.7 million.
What is the period of performance?
Start: 2019-11-25. End: 2025-01-10.
What specific IT services are being provided under this contract, and how do they align with the mission needs of U.S. Special Operations Command?
The contract is categorized under NAICS code 541519, 'Other Computer Related Services.' While the specific services are not detailed, they likely encompass a range of IT support, maintenance, or development crucial for the operational requirements of U.S. Special Operations Command. Further details would be needed to assess the direct alignment with mission objectives.
Given the limited competition, what measures are in place to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs for taxpayers?
The Department of Defense must implement rigorous oversight mechanisms, including detailed cost audits and performance reviews, to manage the CPFF contract effectively. Clear milestones, deliverables, and justification for all incurred costs are essential to prevent cost overruns and ensure the contractor is incentivized to control expenses.
How is the effectiveness and value of the 'Other Computer Related Services' being measured and validated throughout the contract's duration?
Effectiveness is typically measured through performance metrics and key performance indicators (KPIs) outlined in the contract. Regular performance reviews and acceptance of deliverables by the government contracting officer are crucial. Value is assessed by comparing the outcomes and costs against the intended benefits and potential alternative solutions, though this is challenging without competitive benchmarks.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2000 N CLASSEN BLVD STE 1700, OKLAHOMA CITY, OK, 73106
Business Categories: 8(a) Program Participant, Category Business, Government, HUBZone Firm, Native American Tribal Government, 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: $15,217,814
Exercised Options: $15,217,814
Current Obligation: $13,745,518
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-11-25
Current End Date: 2025-01-10
Potential End Date: 2025-01-10 00:00:00
Last Modified: 2025-12-11
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