DoD awards $92.7M IT O&M contract to Creative IT Solutions, LLC for 5 years

Contract Overview

Contract Amount: $92,671,056 ($92.7M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $50.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DCAA IT O&M SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $92.7 million to CREATIVE IT SOLUTIONS, LLC for work described as: DCAA IT O&M SUPPORT SERVICES Key points: 1. Contract value of $92.7M over 5 years suggests a significant investment in IT operations and maintenance. 2. The contract is a definitive contract with a firm-fixed-price type, indicating clear cost expectations. 3. Awarded to a single vendor, Creative IT Solutions, LLC, raising questions about competition and potential price efficiencies. 4. The NAICS code 541519 (Other Computer Related Services) covers a broad range of IT support. 5. The contract duration of 1825 days (5 years) allows for long-term planning and potential for sustained service delivery. 6. The contract is not set aside for small businesses, suggesting it may be beyond the scope or capability of smaller firms.

Value Assessment

Rating: fair

The contract value of $92.7 million over five years for IT O&M services is substantial. Benchmarking this against similar large-scale IT support contracts within the Department of Defense is crucial for assessing value. Without specific details on the scope of services and deliverables, it's difficult to definitively assess if the pricing is competitive or if it represents good value for money. The firm-fixed-price structure provides cost certainty but may limit flexibility if requirements change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one vendor, Creative IT Solutions, LLC, was solicited and awarded the contract. The lack of competition means that the Defense Logistics Agency did not explore other potential vendors or receive multiple bids, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these IT O&M services due to the absence of a competitive bidding process. This sole-source award bypasses the opportunity for multiple vendors to offer competitive pricing, potentially resulting in a higher overall expenditure.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on stable and functional IT systems. The contract ensures the continued operation and maintenance of critical IT infrastructure, supporting military readiness and administrative functions. Services delivered likely encompass a wide range of IT support, including system maintenance, troubleshooting, and potentially upgrades. The geographic impact is primarily within the Department of Defense's operational areas, likely supporting bases and facilities where Creative IT Solutions, LLC personnel are deployed. Workforce implications include the employment of IT professionals by Creative IT Solutions, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive benchmarking.
Dependence on a single contractor for critical IT O&M services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Long-term contract (5 years) allows for stable service delivery and planning.
Award to a single, presumably qualified, vendor for specialized IT support.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from basic infrastructure maintenance to advanced cybersecurity. This contract falls under 'Other Computer Related Services,' a broad category that can include IT support, system integration, and consulting. The federal government is a major consumer of IT services, with spending often concentrated in areas like defense, intelligence, and civilian agency operations. Benchmarking this $92.7 million contract requires comparison with other large-scale IT O&M contracts awarded by agencies like the DoD, which frequently procure such services to maintain complex technological systems.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The nature and scale of the IT O&M services likely require a contractor with significant resources and established capabilities, which may explain why it was not directed towards small businesses. The absence of small business participation could mean missed opportunities for smaller firms to contribute to critical IT support functions within the DoD.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within agreed-upon costs. Transparency regarding the sole-source justification and performance metrics would be subject to Freedom of Information Act requests and internal DLA reporting requirements. The Inspector General for the Department of Defense may also have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) contracts
IT Operations and Maintenance Services
Cloud Computing Services Contracts
Cybersecurity Support Services

Risk Flags

Sole-source award without clear justification.
Potential lack of competitive pricing.
Limited transparency on contractor's past performance for similar contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.7 million to CREATIVE IT SOLUTIONS, LLC. DCAA IT O&M 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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $92.7 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What specific IT O&M services are included under this contract, and how do they align with the agency's strategic IT goals?

The contract, identified by NAICS code 541519 (Other Computer Related Services), likely encompasses a broad spectrum of IT Operations and Maintenance (O&M) activities. This could include system administration, network management, hardware and software maintenance, help desk support, cybersecurity monitoring, and potentially IT infrastructure upgrades. To align with strategic IT goals, these services would need to support the Defense Logistics Agency's (DLA) mission-critical functions, ensuring the reliability, security, and efficiency of its IT systems. Specific alignment would depend on DLA's current IT modernization efforts, cybersecurity posture requirements, and the need for seamless integration of various IT components to support logistics and supply chain operations. Without the detailed Performance Work Statement (PWS), the precise scope and strategic alignment remain inferred.

How does the $92.7 million contract value compare to similar IT O&M contracts awarded by the DoD or other federal agencies?

The $92.7 million contract value for five years of IT O&M services is substantial but falls within the typical range for large-scale federal IT support contracts, particularly within the Department of Defense. For context, major IT service contracts for agencies like the Department of the Air Force or Navy can easily reach hundreds of millions or even billions of dollars over similar or longer periods. The Defense Logistics Agency itself manages numerous IT contracts. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541512, 541513, 541519) and contract types (e.g., FFP, T&M) awarded by the DoD or other large agencies over the past few years. Factors like the specific services, security requirements, and geographic scope heavily influence pricing, making direct comparisons challenging without detailed data.

What is the justification for awarding this contract as sole-source, and what are the potential risks associated with this approach?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source procurement. The specific justification for this sole-source award is not provided in the summary data. Common justifications include unique capabilities of the contractor, urgent and compelling needs where only one source can reasonably fulfill the requirement, or follow-on work where only the original contractor can provide the necessary services due to proprietary technology or integration. The primary risks associated with sole-source awards include a lack of competitive pricing, potentially leading to higher costs for taxpayers; reduced incentive for the contractor to innovate or improve service quality; and a potential over-reliance on a single vendor, creating a vulnerability if the contractor fails to perform or experiences financial instability.

What is the track record of Creative IT Solutions, LLC in performing similar federal IT O&M contracts?

Information regarding the specific track record of Creative IT Solutions, LLC in performing similar federal IT O&M contracts is not detailed in the provided data. To assess their track record, one would need to examine their past performance on federal contracts, including contract history, past performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A thorough review would involve searching federal procurement databases like SAM.gov and FPDS-NG for previous awards and performance data. Without this information, it's difficult to ascertain their experience level, reliability, and success in delivering comparable IT services to government agencies.

How does the firm-fixed-price (FFP) contract type impact the management of risks and costs for this IT O&M service?

A Firm-Fixed-Price (FFP) contract type, as indicated for this $92.7 million award, places the primary risk of cost overruns on the contractor, Creative IT Solutions, LLC. This means the contractor is obligated to perform the specified IT O&M services for the agreed-upon price, regardless of their actual costs. This structure provides significant cost certainty for the Department of Defense and the Defense Logistics Agency, as the total expenditure is known upfront. It incentivizes the contractor to manage their resources efficiently and control costs to maximize profit. However, it can also lead to potential issues if the scope of work is not clearly defined, as the contractor may be less inclined to perform work outside the strict definition of the SOW, or conversely, if unforeseen complexities arise, the contractor might seek change orders, potentially increasing costs. Effective oversight is still crucial to ensure the contractor meets performance standards within the fixed price.

What are the potential implications of this contract on the broader IT services market, particularly concerning competition?

The sole-source nature of this $92.7 million IT O&M contract has significant implications for market competition. By awarding the contract to a single vendor without competition, the Department of Defense bypasses the opportunity for other qualified IT service providers to bid on and potentially win this work. This can stifle competition in the long run, as established vendors may become entrenched, making it harder for new or smaller companies to enter the market for large federal contracts. While it ensures continuity of service with a chosen provider, it limits price discovery and potentially innovation that could arise from a competitive environment. The market segment for large-scale, comprehensive IT O&M services within the DoD may see reduced dynamism due to such sole-source awards.

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 › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $96,878,404

Exercised Options: $92,671,056

Current Obligation: $92,671,056

Actual Outlays: $36,562,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline