DoD's $31M IMAC Support Contract with Creative IT Solutions Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $31,081,162 ($31.1M)
Contractor: Creative IT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-23
End Date: 2024-09-22
Contract Duration: 1,460 days
Daily Burn Rate: $21.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IMAC SUPPORT
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $31.1 million to CREATIVE IT SOLUTIONS, LLC for work described as: IMAC SUPPORT Key points: 1. Significant contract value of $31.1 million awarded. 2. Sole-source award raises concerns about competitive pricing. 3. Potential for higher costs due to limited competition. 4. IT services sector, specifically computer facilities management.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar IMAC support contracts is challenging without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not have fully explored market options, potentially impacting price discovery and value for taxpayers.
Taxpayer Impact: The lack of robust competition could lead to higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be overpaying for IMAC support services due to limited competition. The Department of Defense relies on this contract for critical IT infrastructure management. Lack of transparency in the procurement process could erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of transparency in award
Positive Signals
- Contract supports critical DoD operations
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT services sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government, with competition often driving innovation and cost savings.
Small Business Impact
The contract was not awarded to a small business, as indicated by the 'sb' field being false. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The award process, particularly the limited competition aspect, warrants further oversight to ensure fair pricing and effective use of taxpayer funds. Accountability for the procurement decision is crucial.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of full and open competition
- Potential for cost overruns due to CPFF structure
- Limited transparency in procurement justification
- No small business set-aside or indication of subcontracting
Tags
computer-facilities-management-services, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to CREATIVE IT SOLUTIONS, LLC. IMAC SUPPORT
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 $31.1 million.
What is the period of performance?
Start: 2020-09-23. End: 2024-09-22.
What was the justification for not competing this contract more broadly, given its significant value?
The justification for limited competition is not explicitly provided in the data. Typically, such decisions are based on factors like urgent need, unique capabilities, or specific government requirements that only one vendor can meet. However, without further documentation, it's difficult to ascertain the precise rationale and whether it fully aligns with maximizing value for the government.
How does the Cost Plus Fixed Fee structure impact the risk profile of this contract?
A Cost Plus Fixed Fee (CPFF) contract shifts some financial risk to the government. While the contractor's profit is fixed, the government bears the risk of cost overruns. This structure can incentivize contractors to incur costs, especially when competition is limited, potentially leading to higher overall expenditures than a fixed-price contract.
What are the potential long-term implications of awarding significant IT contracts with limited competition?
Awarding significant IT contracts with limited competition can stifle innovation and lead to sustained higher costs for the government. It may also create vendor lock-in and reduce the incentive for contractors to improve efficiency or offer competitive pricing in the future. This practice can also disadvantage smaller, innovative companies unable to break into established relationships.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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, 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: $36,784,000
Exercised Options: $32,986,794
Current Obligation: $31,081,162
Actual Outlays: $-250,932
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-23
Current End Date: 2024-09-22
Potential End Date: 2024-09-22 00:00:00
Last Modified: 2023-08-28
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