State Department's $26.3M IT support contract awarded to Creative Information Technology, Inc. shows mixed value indicators

Contract Overview

Contract Amount: $26,277,834 ($26.3M)

Contractor: Creative Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2009-06-01

End Date: 2012-09-29

Contract Duration: 1,216 days

Daily Burn Rate: $21.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TECHNICAL SUPPORT FOR THE APPLICATIONS INTEGRATION DIVISION AND ENTERPRISE DATA WAREHOUSE

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 $26.3 million to CREATIVE INFORMATION TECHNOLOGY, INC. for work described as: TECHNICAL SUPPORT FOR THE APPLICATIONS INTEGRATION DIVISION AND ENTERPRISE DATA WAREHOUSE Key points: 1. The contract's value proposition appears fair, with a significant portion allocated to labor hours, suggesting a focus on personnel-intensive services. 2. Competition dynamics were favorable, with the contract being competitively awarded, indicating potential for price discovery and cost efficiency. 3. Risk indicators are moderate, with a contract duration of over three years, necessitating ongoing performance monitoring. 4. Performance context is tied to critical IT infrastructure, including applications integration and data warehousing, essential for agency operations. 5. Sector positioning places this contract within the broader IT services market, specifically focusing on computer-related services for a major federal agency.

Value Assessment

Rating: fair

The contract's total value of approximately $26.3 million over its period of performance suggests a substantial investment in IT support. Benchmarking against similar contracts for enterprise data warehousing and applications integration is challenging without more granular data on specific services rendered. However, the award being competitive is a positive sign for value. The pricing structure, primarily based on labor hours, means that the ultimate cost is tied to the efficiency and rates of the personnel provided by Creative Information Technology, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order, indicating that it was part of a broader procurement vehicle that allowed for full and open competition. The presence of multiple bidders, as suggested by the competitive award type, generally leads to better price discovery and can drive down costs for the government. The specific number of bidders for this particular delivery order is not detailed, but the competitive nature implies that the agency sought multiple proposals.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price. It reduces the risk of overpayment and encourages contractors to offer their best value propositions.

Public Impact

The primary beneficiaries are the Department of State's internal IT divisions, ensuring the smooth operation of critical applications and data management systems. Services delivered include technical support for applications integration and the enterprise data warehouse, crucial for data analysis and operational efficiency. The geographic impact is centered in Washington D.C., where the Department of State's primary operations are located. Workforce implications include the employment of IT professionals by Creative Information Technology, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Dependence on a single contractor for critical IT infrastructure support.
Scope creep could increase costs beyond the initial award value if not carefully managed.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Focus on essential IT services for a major federal agency.
Contract duration provides stability for critical support functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and support. The market for such services is vast and highly competitive, with numerous companies offering expertise in applications integration and data warehousing. The Department of State, like many large federal agencies, relies heavily on external IT support to maintain and upgrade its complex systems. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded to similar-sized agencies or for similar types of services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans with small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Creative Information Technology, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting reports would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State IT Modernization Efforts
Federal Enterprise Data Warehouse Contracts
Applications Integration Support Services
IT Services for Civilian Agencies

Risk Flags

Contract duration exceeds three years, requiring sustained oversight.
Reliance on labor hours can introduce cost variability if not managed strictly.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.3 million to CREATIVE INFORMATION TECHNOLOGY, INC.. TECHNICAL SUPPORT FOR THE APPLICATIONS INTEGRATION DIVISION AND ENTERPRISE DATA WAREHOUSE

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 $26.3 million.

What is the period of performance?

Start: 2009-06-01. End: 2012-09-29.

What was the specific scope of work for Creative Information Technology, Inc. under this contract?

The contract data indicates that the scope of work involved 'TECHNICAL SUPPORT FOR THE APPLICATIONS INTEGRATION DIVISION AND ENTERPRISE DATA WAREHOUSE' for the Department of State. This suggests a broad range of IT support activities, likely encompassing system maintenance, troubleshooting, user support, software updates, and potentially development or enhancement of the applications and data warehouse infrastructure. The specific tasks would be detailed in the contract's Statement of Work (SOW), which is not provided in the summary data. This support is critical for ensuring the operational continuity and effectiveness of the Department's data management and application systems.

How does the total contract value of $26.3 million compare to similar IT support contracts for federal agencies of the Department of State's size?

A total contract value of $26.3 million over approximately three years for IT support is within a common range for large federal agencies. However, a precise comparison requires detailed analysis of contracts with similar scopes (applications integration, data warehousing) and durations, awarded to agencies of comparable size and complexity. Factors such as the specific technologies supported, the number of users, and the criticality of the systems influence contract values. Without access to a comprehensive database of comparable contracts with detailed service breakdowns, it's difficult to definitively state whether this represents high, low, or average spending. The competitive nature of the award, however, suggests the government sought to achieve a reasonable price.

What are the key performance indicators (KPIs) used to assess the performance of Creative Information Technology, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to assess Creative Information Technology, Inc.'s performance. Typically, for IT support contracts involving applications integration and data warehousing, KPIs might include metrics such as system uptime, response times for issue resolution, user satisfaction ratings, successful completion of maintenance tasks, and adherence to security protocols. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring that the contractor meets the requirements outlined in the Statement of Work (SOW). Performance evaluations would inform future contract decisions and potential award modifications.

What is the historical spending pattern for IT support services at the Department of State, and how does this contract fit within that pattern?

The provided data focuses on a single contract award from 2009-2012. To understand historical spending patterns, one would need to analyze the Department of State's IT procurement data over a longer period, looking at multiple contracts for similar services. This contract, valued at approximately $26.3 million, represents a significant investment in IT infrastructure support. Its place within the broader pattern depends on the total IT budget and spending on support services in previous and subsequent years. Analyzing trends in spending on applications integration and data warehousing specifically would reveal whether this contract was part of an increasing, decreasing, or stable investment in these areas.

Were there any significant challenges or issues reported regarding the performance or management of this contract during its period of performance?

The summary data provided does not contain information on specific challenges or issues encountered during the performance of this contract. Such details would typically be found in contract performance reports, agency audit findings, or Inspector General reports, none of which are included here. Without access to these internal or oversight documents, it is impossible to determine if there were any significant performance problems, disputes, or management challenges related to Creative Information Technology, Inc.'s work on this contract.

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: 3

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: $29,189,001

Exercised Options: $29,178,302

Current Obligation: $26,277,834

Parent Contract

Parent Award PIID: SAQMPD07D0090

IDV Type: IDC

Timeline