DoD's $27.3M IT Services Contract with Creative IT Solutions Raises Questions on Value and Competition

Contract Overview

Contract Amount: $27,328,094 ($27.3M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2019-11-01

End Date: 2022-07-11

Contract Duration: 983 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFRASTRUCTURE, AUTOMATION, AND APPLICATION SUPPORT SERVICES

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43215

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to CREATIVE IT SOLUTIONS, LLC for work described as: INFRASTRUCTURE, AUTOMATION, AND APPLICATION SUPPORT SERVICES Key points: 1. The contract awarded to Creative IT Solutions for $27.3M focuses on infrastructure, automation, and application support. 2. Awarded under full and open competition, the contract's effectiveness and value require further scrutiny given the duration and fixed-price nature. 3. Potential risks include cost overruns if scope expands beyond initial estimates and the impact of a sole-source award on future competition. 4. The IT services sector is highly competitive, suggesting opportunities for better pricing and innovation may have been missed.

Value Assessment

Rating: questionable

The contract's firm fixed price structure for a nearly three-year period at $27.3M warrants a closer look. Benchmarking against similar custom computer programming services contracts is crucial to determine if the pricing reflects fair market value and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of bids received are needed to fully assess the competitive landscape and its impact on the final price.

Taxpayer Impact: The $27.3M expenditure represents taxpayer funds. Ensuring this contract delivered optimal value and avoided unnecessary costs is paramount to responsible fiscal management.

Public Impact

Taxpayers funded a significant IT services contract for the Department of Defense. The contract supported critical infrastructure, automation, and application services. The duration of the contract (983 days) suggests a substantial, ongoing need for these services. The award was made to a single vendor, Creative IT Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Potential for scope creep in fixed-price contracts.
Limited transparency on competitive bidding outcomes.

Positive Signals

Awarded under full and open competition.
Contract supports critical defense IT functions.
Firm fixed-price structure can provide cost certainty if well-defined.

Sector Analysis

This contract falls within the custom computer programming services sector, a critical area for government IT modernization. Spending benchmarks in this sector vary widely based on complexity and duration, but $27.3M over nearly three years suggests a significant investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed to engage small businesses in this procurement.

Oversight & Accountability

Oversight of this contract would involve monitoring performance against deliverables, managing any change orders, and ensuring adherence to the firm fixed-price terms. Accountability rests with the Defense Information Systems Agency to ensure effective service delivery and responsible use of funds.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Contract duration is lengthy (983 days).
Potential for scope creep in fixed-price contracts.
Lack of detail on the number of bids received.
No indication of small business participation.
Need for benchmarking against similar contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to CREATIVE IT SOLUTIONS, LLC. INFRASTRUCTURE, AUTOMATION, AND APPLICATION 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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2019-11-01. End: 2022-07-11.

What specific IT services were delivered under this contract, and how did they align with the Department of Defense's strategic objectives?

The contract covered 'INFRASTRUCTURE, AUTOMATION, AND APPLICATION SUPPORT SERVICES.' While crucial for IT operations, the precise alignment with strategic objectives requires examining the Statement of Work (SOW) and any subsequent modifications. Understanding the specific applications and infrastructure supported would clarify their contribution to broader defense goals and justify the $27.3M investment.

Given the firm fixed-price structure, what mechanisms were in place to manage scope creep and ensure cost-effectiveness throughout the contract's nearly three-year duration?

Firm fixed-price contracts aim to provide cost certainty, but they are susceptible to scope creep if not managed rigorously. Effective oversight would involve detailed tracking of deliverables, strict change control processes, and regular performance reviews by the Defense Information Systems Agency. Without this, the initial price could escalate indirectly through change orders or reduced quality, impacting overall value.

How many bids were received during the full and open competition, and what was the basis for selecting Creative IT Solutions, LLC as the awardee?

While the contract states 'full and open competition,' the number of bids received is a critical indicator of its competitiveness. Knowing this number and the evaluation criteria used to select Creative IT Solutions, LLC would reveal if the government secured the best possible value. A low number of bids might suggest market limitations or issues with the solicitation process itself.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $27,328,094

Exercised Options: $27,328,094

Current Obligation: $27,328,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0445T

IDV Type: FSS

Timeline