State Department's $16.7M Staff Support Services Contract Awarded to Creative IT Solutions, LLC

Contract Overview

Contract Amount: $16,678,783 ($16.7M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STAFF SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $16.7 million to CREATIVE IT SOLUTIONS, LLC for work described as: STAFF SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Significant duration of 5 years suggests a long-term need for these services. 3. Time and Materials pricing structure can pose budget uncertainty if not closely managed. 4. The contract's value is substantial, indicating a critical role in supporting State Department operations. 5. Administrative Management and General Management Consulting Services are essential for efficient government functioning. 6. The award to a single vendor warrants scrutiny regarding the justification for non-competitive procurement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously monitored. The contract's duration of five years suggests a significant investment, and its value should be assessed against the actual outcomes and efficiencies gained. Without competitive bidding, it's difficult to definitively state if the pricing represents optimal value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the available data. Sole-source awards can sometimes be necessary for specialized services or urgent needs, but they typically result in less price discovery and potentially higher costs compared to full and open competition. The absence of multiple bidders means the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution, as the benefits of competitive pricing are forgone.

Public Impact

The primary beneficiaries are the Department of State, which receives essential administrative and management support. Services delivered likely include a range of staff augmentation, consulting, and operational support functions. The geographic impact is concentrated in Washington D.C., where the Department of State is headquartered. Workforce implications include the potential for contractor personnel to supplement or support government staff in various administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The Time and Materials contract type can lead to cost escalation if not managed rigorously.
The long contract duration (5 years) necessitates ongoing performance monitoring to ensure continued relevance and effectiveness.
Absence of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The sole-source nature requires a strong justification to ensure it was truly the only viable option.

Positive Signals

The contract addresses a clear need for staff support services within a critical government agency.
Creative IT Solutions, LLC is the awarded contractor, implying they met the agency's requirements.
The contract duration suggests a stable, long-term relationship aimed at consistent support.
The award is for administrative and management consulting, areas vital for operational efficiency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of support functions crucial for government operations. The market for these services is highly competitive, with numerous firms offering expertise. However, specific niche requirements or agency relationships can sometimes lead to sole-source awards. Benchmarking spending in this area is difficult without more specific service details, but government reliance on such support services is substantial across all agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags) is not a feature of this specific contract award. There is no indication of a small business set-aside or subcontracting requirements. This suggests that the primary contractor, Creative IT Solutions, LLC, is either not a small business or that the contract's nature did not lend itself to small business involvement. Consequently, the direct impact on the small business ecosystem from this particular award appears minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is limited by the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) Schedules
Professional Services Schedule (PSS)
Management and Consulting Services Contracts
Staff Augmentation Contracts
Department of State Administrative Support

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials pricing poses budget risk.
Long contract duration requires sustained oversight.
Limited public data on specific services and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $16.7 million to CREATIVE IT SOLUTIONS, LLC. STAFF 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 State (Department of State).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the specific justification for awarding this contract on a sole-source basis to Creative IT Solutions, LLC?

The provided data indicates the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, often due to unique capabilities, urgent needs, or specific circumstances where full and open competition is not feasible or not in the government's best interest. Without further documentation from the Department of State, the precise rationale remains unknown. This lack of competition means taxpayers may not have benefited from the cost efficiencies that competitive bidding can provide.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services, and what are the associated risks?

Time and Materials (T&M) contracts are used when the government cannot accurately estimate the extent of effort or cost involved. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. Compared to fixed-price contracts, T&M offers flexibility but carries higher risk for the government regarding cost control. The primary risk is that costs can escalate significantly if the contractor's labor hours or material costs are higher than anticipated or if the scope of work expands without adequate oversight. For services like staff support, where the exact duration and effort might be variable, T&M can be appropriate, but it necessitates stringent oversight, detailed record-keeping, and clear definition of labor categories and rates to mitigate cost overruns and ensure fair pricing.

What is the typical performance period and value for similar staff support services contracts at the Department of State or other federal agencies?

The typical performance period for staff support services contracts can vary widely, but a five-year duration, as seen in this $16.7 million contract, is not uncommon for significant support needs. Contract values are highly dependent on the scope of services, number of personnel required, and the specific agency's budget. While $16.7 million over five years (averaging $3.34 million annually) is a substantial amount, it is within the range for large-scale administrative and management support contracts within major federal agencies. Comparable contracts might range from a few million to tens of millions of dollars annually, depending on the complexity and criticality of the support required. The sole-source nature here, however, makes direct value comparison to competitively awarded contracts less straightforward.

What are the potential implications of a sole-source award on contractor performance and accountability?

Sole-source awards can have mixed implications for contractor performance and accountability. On one hand, a contractor awarded a sole-source contract may feel less pressure to continuously innovate or optimize performance, as the competitive threat is removed. This can sometimes lead to complacency. On the other hand, the agency still holds the contractor accountable through contract terms, performance standards, and payment schedules. The absence of competition means the agency must rely heavily on its own oversight mechanisms to ensure the contractor meets expectations. If performance is unsatisfactory, the agency's recourse might be limited to contract termination or dispute resolution, which can be disruptive, rather than simply moving to a more capable competitor in a future procurement.

How does the NationalНаименование Service Code (NAICS) 541611 (Administrative Management and General Management Consulting Services) typically factor into federal spending patterns?

NAICS code 541611 represents a significant category of federal spending, reflecting the government's reliance on external expertise for managing its complex operations. Agencies frequently procure services under this code for strategic planning, organizational efficiency improvements, process re-engineering, and general administrative support. Federal spending in this area is substantial and widespread across numerous departments and agencies. Contracts can range from small, specialized consulting engagements to large, long-term support services like the one awarded to Creative IT Solutions. The demand for these services is driven by the need for specialized knowledge, temporary surge capacity, or objective analysis that may not be available internally.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

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: $27,098,645

Exercised Options: $23,735,957

Current Obligation: $16,678,783

Actual Outlays: $4,279,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM21D0001

IDV Type: IDC

Timeline