Department of State IT Support Services contract awarded to Creative Information Technology, Inc. for over $14.3 million

Contract Overview

Contract Amount: $14,356,839 ($14.4M)

Contractor: Creative Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2007-09-25

End Date: 2012-03-27

Contract Duration: 1,645 days

Daily Burn Rate: $8.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $14.4 million to CREATIVE INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT SERVICES Key points: 1. The contract value of $14.3 million over approximately 5.5 years suggests a moderate annual spend for IT support. 2. The contract was awarded via a competitive delivery order, indicating some level of market vetting. 3. The duration of the contract (1645 days) is substantial, requiring careful performance monitoring. 4. The NAICS code 541519 covers a broad range of computer-related services, making direct benchmarking challenging without further detail. 5. The contract was not set aside for small businesses, suggesting it was competed on a broader scale. 6. The primary place of performance is Washington D.C., indicating a focus on federal IT infrastructure in the capital.

Value Assessment

Rating: fair

The total award of $14.3 million over nearly five years averages to approximately $2.6 million annually. Without specific details on the services provided or the labor mix, it's difficult to definitively benchmark this against similar contracts. However, for comprehensive IT support services, this annual figure appears within a reasonable range for a federal agency of the Department of State's size. Further analysis would require comparing the specific deliverables and labor rates to industry standards and other government IT support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle that was competed. The presence of 4 bids indicates a degree of competition, which is generally positive for price discovery. However, the specific competition level within the IDIQ vehicle itself is not detailed here. A competitive delivery order implies that multiple offerors had the opportunity to bid on this specific task order.

Taxpayer Impact: A competitive award process, even at the delivery order level, generally leads to better pricing for taxpayers compared to sole-source procurements. The fact that four companies bid suggests that the government received multiple proposals, allowing for a comparison of technical approaches and pricing.

Public Impact

The Department of State benefits from continuous IT support services, crucial for its global operations and data management. The contract ensures the availability of essential IT infrastructure and technical assistance for agency personnel. The primary geographic impact is within Washington D.C., where the Department of State's headquarters are located. The contract supports IT professionals and technicians, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service descriptions makes it hard to assess if the full scope of IT needs is being met efficiently.
The contract's duration could lead to vendor lock-in if not managed proactively with performance reviews.
Potential for cost overruns if labor hours are not closely monitored and justified.

Positive Signals

Awarded through a competitive process, suggesting potential for value and fair pricing.
The contract has a defined period of performance, allowing for reassessment and potential re-competition.
The existence of multiple bids indicates market interest and potential for future competition.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT support services. The market for IT support services to federal agencies is substantial, with numerous companies offering a wide range of capabilities. Federal spending in this area is consistently high, driven by the need to maintain and upgrade complex IT systems across all government departments. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded by agencies of similar size and mission.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. This suggests the primary competition was likely open to all responsible sources, including large businesses. The absence of explicit small business provisions means that the direct impact on the small business IT ecosystem for this specific contract may be limited, unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Performance reviews, regular reporting requirements, and adherence to service level agreements (SLAs) would be key accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

IT Professional Services
IT Managed Services
Computer Systems Design Services
Federal IT Procurement
Department of State IT Modernization

Risk Flags

Broad NAICS code limits specificity for benchmarking.
Contract duration may outpace technological advancements.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.4 million to CREATIVE INFORMATION TECHNOLOGY, INC.. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CREATIVE INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2007-09-25. End: 2012-03-27.

What specific IT support services were included under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT support functions, including network administration, help desk support, system maintenance, hardware and software troubleshooting, and potentially IT consulting. However, without the specific statement of work (SOW) or task order details, the precise services rendered remain unspecified. This lack of detail makes it challenging to assess the contract's effectiveness or compare its value accurately against other IT support contracts that might have more narrowly defined scopes of work.

How does the $14.3 million award compare to typical IT support spending for a federal agency like the Department of State?

The total award of $14.3 million over approximately 5.5 years (1645 days) translates to an average annual spend of roughly $2.6 million. For a large federal agency such as the Department of State, which operates globally and manages vast amounts of sensitive data, this annual figure for IT support services appears moderate. Many federal agencies of comparable size and complexity often spend significantly more on IT infrastructure, cybersecurity, and support. However, 'typical' spending can vary widely based on the scope of services, the agency's specific IT modernization efforts, and the extent of outsourcing versus in-house capabilities. A more precise comparison would require benchmarking against agencies with similar missions and IT footprints.

What are the potential risks associated with a contract of this duration (over 4.5 years)?

Contracts with a duration exceeding 4.5 years, like this one (1645 days), carry several potential risks. Firstly, there's the risk of technological obsolescence; IT needs and solutions evolve rapidly, and a long-term contract might not adapt quickly enough to new technologies or changing security requirements. Secondly, vendor lock-in is a concern, where the agency becomes overly reliant on the incumbent contractor, potentially diminishing leverage in future negotiations or re-competes. Thirdly, performance degradation can occur over time if oversight is not rigorous; the contractor might become complacent. Finally, market prices for IT services can fluctuate, and a long-term contract might not capture the most cost-effective rates available in the market at later stages.

What does the 'competitive delivery order' award type imply about the procurement process?

A 'competitive delivery order' signifies that this specific task order was competed among multiple bidders, likely under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. The IDIQ itself would have undergone a full and open competition. This award type is generally positive as it implies that the government solicited proposals for this particular requirement and received multiple offers (in this case, 4). This competitive process allows for the evaluation of different technical approaches and pricing, theoretically leading to a better value outcome for the government compared to a sole-source award. It suggests that the Department of State leveraged an existing framework to procure these IT support services in a manner that allowed for market-based pricing.

How might the NAICS code 541519 ('Other Computer Related Services') impact the analysis of this contract?

The NAICS code 541519 is very broad, encompassing a wide range of IT services beyond traditional software development or hardware maintenance. This includes services like IT consulting, data processing, computer facilities management, and disaster recovery services. The breadth of this code means that 'IT Support Services' could mean many different things. For analytical purposes, this generality makes it difficult to perform precise benchmarking against similar contracts without knowing the specific services rendered. It also implies that the competition likely attracted a diverse set of IT service providers, potentially including firms specializing in niche areas within computer-related services.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12709 GREENBRIAR ROAD, POTOMAC, MD, 08

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $15,927,815

Exercised Options: $15,927,815

Current Obligation: $14,356,839

Parent Contract

Parent Award PIID: SAQMPD07D0090

IDV Type: IDC

Timeline