State Department IT Support Contract Awarded to Creative Information Technology, Inc. for Over $60 Million

Contract Overview

Contract Amount: $60,963,452 ($61.0M)

Contractor: Creative Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2008-05-06

End Date: 2014-09-30

Contract Duration: 2,338 days

Daily Burn Rate: $26.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

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 $61.0 million to CREATIVE INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Contract value of over $60 million indicates a significant investment in IT support. 2. The competitive nature of the award suggests potential for favorable pricing. 3. A long performance period of over 6 years warrants scrutiny of ongoing value. 4. The contract's focus on IT support services places it within a critical sector for government operations. 5. The specific NAICS code (541519) points to a broad range of computer-related services. 6. The award was a delivery order under a larger contract vehicle, implying a structured procurement process.

Value Assessment

Rating: fair

The total award amount of over $60 million for IT support services over a period of approximately six years suggests a substantial investment. Benchmarking this against similar IT support contracts within the federal government is challenging without more specific service details. However, the contract was competitively awarded, which typically leads to better pricing than sole-source contracts. The per-unit cost is not readily available, making a direct value-for-money assessment difficult without further analysis of labor hours and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it was competed suggests a healthy level of market engagement for these IT support services. The presence of two bidders, as indicated by the 'no' field, is a moderate level of competition. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and selection.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging vendors to offer competitive rates to secure the business.

Public Impact

Federal employees within the Department of State benefit from reliable IT support, ensuring operational continuity. The contract delivers essential IT support services, likely encompassing help desk, network maintenance, and system administration. The primary geographic impact is within the District of Columbia, where the Department of State is headquartered. The contract supports IT professionals, potentially creating or sustaining jobs in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 6 years) could lead to cost inefficiencies if not actively managed and re-evaluated.
Lack of specific performance metrics makes it difficult to assess the true effectiveness and value delivered.
The broad NAICS code might obscure the specific nature of services, potentially leading to scope creep or misaligned expectations.

Positive Signals

The contract was awarded through a full and open competition, indicating a robust selection process.
The award to Creative Information Technology, Inc. suggests they met the technical and cost requirements of the Department of State.
The contract's focus on IT support is crucial for the operational efficiency of a major federal agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically IT support services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of State's overall IT spending, contributing to the broader landscape of government IT procurement. Comparable spending benchmarks would depend on the specific services rendered, but IT support is a recurring and significant expenditure across federal agencies.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Creative Information Technology, Inc. chose to engage small businesses. Without explicit subcontracting plans or data, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of State. Accountability measures are usually embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
Government IT Support Contracts
Department of State IT Spending
IT Services for Federal Agencies

Risk Flags

Long contract duration may lead to cost inefficiencies.
Lack of specific performance metrics hinders value assessment.
Broad service category could mask scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $61.0 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 $61.0 million.

What is the period of performance?

Start: 2008-05-06. End: 2014-09-30.

What was the specific nature of the IT support services provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services,' which is a broad category. While the award title indicates 'IT SUPPORT SERVICES,' the specific deliverables could range widely. This might include help desk support, network administration, system maintenance, cybersecurity support, software installation and troubleshooting, and hardware management. Without access to the detailed statement of work (SOW) or task orders issued against this contract, the precise scope of services remains generalized. Understanding the specific services is crucial for a thorough value assessment and comparison to other contracts.

How does the awarded price compare to market rates for similar IT support services?

Directly comparing the total award amount of over $60 million to market rates is difficult without knowing the exact services, labor categories, hours, and duration. However, the contract was competitively awarded, suggesting that the pricing was deemed reasonable by the Department of State relative to the bids received. To benchmark effectively, one would need to analyze the labor rates for specific IT roles (e.g., network administrator, help desk technician) against industry surveys and other federal contract awards for similar skill sets and geographic locations. The fact that it was a delivery order under a larger vehicle might also imply pre-negotiated rates that are generally competitive.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. Typically, IT support contracts include metrics such as response times for help desk tickets, system uptime percentages, resolution rates, and user satisfaction scores. The effectiveness and value of the contract are heavily dependent on these performance standards. The absence of this information in the summary data makes it challenging to objectively assess the contractor's performance and the overall success of the IT support provided.

What is the track record of Creative Information Technology, Inc. with federal IT support contracts?

Creative Information Technology, Inc. has a history of performing federal contracts, including IT support services. The award of this significant contract by the Department of State suggests they have a demonstrated capability to meet the agency's requirements. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contracts they have held, and any past issues or commendations. Their ability to win competitive bids indicates a level of trust and perceived competence by federal agencies.

How has the Department of State's spending on IT support services evolved over time, and where does this contract fit?

The Department of State, like other large federal agencies, relies heavily on IT infrastructure and support. Spending on IT services is generally consistent, driven by the need to maintain aging systems, implement new technologies, and ensure cybersecurity. This specific contract, awarded in 2008 and ending in 2014, represents a significant portion of their IT support expenditure during that period. Analyzing historical spending patterns would reveal trends in IT outsourcing, technology adoption, and the overall budget allocated to IT support functions within the Department.

What are the potential risks associated with a long-term IT support contract like this?

Long-term IT support contracts carry several potential risks. These include technological obsolescence, where the contracted services or technologies become outdated before the contract ends. There's also the risk of vendor lock-in, making it difficult and costly to switch providers. Cost escalation can occur if contract terms are not tightly managed or if scope creep is not controlled. Furthermore, a prolonged relationship might lead to complacency on the part of the vendor or the agency, potentially impacting service quality or innovation. Regular performance reviews and contract modifications are essential to mitigate these risks.

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: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12709 GREENBRIAR ROAD, POTOMAC, MD, 20854

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: $63,807,670

Exercised Options: $63,807,670

Current Obligation: $60,963,452

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD07D0090

IDV Type: IDC

Timeline