DoD's $21.8M IT Support Contract with Creative IT Solutions Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $21,859,774 ($21.9M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-08

End Date: 2026-02-28

Contract Duration: 1,818 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NSWCDD-DNA CORPORATE INFORMATION TECHNOLOGY SUPPORT

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23461

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to CREATIVE IT SOLUTIONS, LLC for work described as: NSWCDD-DNA CORPORATE INFORMATION TECHNOLOGY SUPPORT Key points: 1. Contract awarded to Creative IT Solutions, LLC for $21.8M. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with sole-source or limited competition awards. 4. IT sector spending often involves complex service contracts. 5. Engineering Services NAICS code 541330 is broad.

Value Assessment

Rating: questionable

The contract's total value is $21.8M. Without available pricing details or benchmarks for similar IT support contracts, it's difficult to assess if this price is competitive. The lack of transparency in pricing hinders a thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under limited competition, with the specific reason for this limitation not detailed. This approach may restrict price discovery and potentially lead to higher costs for taxpayers compared to a fully open competition.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers if effective price negotiation and market competition are not achieved.

Public Impact

Taxpayers may be overpaying due to limited competition. Lack of transparency in contract award process. Potential for reduced innovation from a single provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of pricing transparency
No small business participation noted

Positive Signals

Definitive contract award
Long-term engagement (1818 days)

Sector Analysis

This contract falls within the IT services sector, specifically engineering services. IT support contracts can vary widely in price depending on scope and duration. Benchmarks for similar services are crucial for assessing value.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis is needed to understand if opportunities for small businesses were overlooked or if the contract scope inherently excluded them.

Oversight & Accountability

The limited competition aspect warrants further oversight to ensure the government received fair pricing and that the justification for limited competition was sound. Accountability for the procurement process is essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition raises value concerns.
Lack of transparency in pricing.
No small business participation.
Potential for vendor lock-in.
Justification for limited competition requires review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to CREATIVE IT SOLUTIONS, LLC. NSWCDD-DNA CORPORATE INFORMATION TECHNOLOGY 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2021-03-08. End: 2026-02-28.

What was the specific justification for limiting competition on this $21.8M IT support contract?

The provided data states the contract was awarded under 'NOT AVAILABLE FOR COMPETITION', implying a sole-source or limited justification. A detailed review of the contract file and acquisition planning documents would be necessary to ascertain the precise reasons, such as unique capabilities of the vendor, urgent need, or specific government requirements that only Creative IT Solutions, LLC could meet.

How does the $21.8M contract value compare to industry benchmarks for similar IT support services over an 1818-day period?

Without specific details on the scope of IT support services provided, direct comparison to industry benchmarks is challenging. However, for a nearly 5-year contract of this magnitude, it is crucial to benchmark against similar government or commercial contracts for IT engineering and support services. A thorough analysis would involve examining contract databases and industry reports to identify comparable pricing structures and identify potential cost savings.

What is the potential impact on service quality and innovation when IT support is procured through limited competition?

Limited competition can sometimes lead to a reduction in service quality and innovation if the incumbent provider faces less pressure to improve or adapt. While a sole-source provider might develop deep expertise, the absence of competitive bidding can stifle new approaches and potentially lead to complacency. The government should actively manage the contract to ensure performance standards are met and encourage innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0017821R2500

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $26,981,133

Exercised Options: $21,859,774

Current Obligation: $21,859,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline