State Department awards $2M+ for research analysts, raising questions on competition and value

Contract Overview

Contract Amount: $2,018,889 ($2.0M)

Contractor: Creative IT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2022-09-30

End Date: 2026-06-29

Contract Duration: 1,368 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CREATIVE IT SOLUTIONS, LLC PROFESSIONAL SUPPORT SERVICES - FOUR (4) RESEARCH ANALYST AND TWO (2) SENIOR RESEARCH ANALYST DRL/MLGA

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 $2.0 million to CREATIVE IT SOLUTIONS, LLC for work described as: CREATIVE IT SOLUTIONS, LLC PROFESSIONAL SUPPORT SERVICES - FOUR (4) RESEARCH ANALYST AND TWO (2) SENIOR RESEARCH ANALYST DRL/MLGA Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing. 2. Significant portion of contract value allocated to senior analyst roles. 3. Duration of contract extends over multiple fiscal years. 4. Focus on administrative management and general management consulting services. 5. Geographic concentration in Washington D.C. area. 6. Potential for cost overruns given lack of competitive benchmarking.

Value Assessment

Rating: fair

The contract's value of over $2 million for research analyst support appears high without a competitive bidding process to establish fair market value. Benchmarking against similar contracts for research analysts with comparable experience levels and skill sets would be necessary to definitively assess value for money. The absence of competition makes it difficult to ascertain if the pricing reflects optimal efficiency or if there is room for cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. This typically occurs when a specific contractor is deemed uniquely qualified or when circumstances prevent a competitive solicitation. The lack of multiple bidders means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium as the government does not benefit from the cost-saving pressures inherent in a competitive bidding environment.

Public Impact

The Department of State benefits from specialized research and analytical support. Services delivered include research, analysis, and administrative management. Geographic impact is concentrated in Washington D.C. Workforce implications include the employment of research analysts and senior research analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency in contractor selection process.
Potential for inflated labor rates without competitive pressure.

Positive Signals

Contract provides essential research and analytical support to the State Department.
Experienced analysts are likely to bring valuable expertise.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of service providers, from large corporations to specialized small businesses. The market size for such services is substantial, driven by government and private sector needs for expertise in analysis, strategy, and operational efficiency. Comparable spending benchmarks would typically involve analyzing rates for similar research and analyst roles across various government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' and 'sb' fields being false. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary contractor, CREATIVE IT SOLUTIONS, LLC, is not a small business, and opportunities for small business participation through subcontracting are not guaranteed or mandated by this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. Accountability measures would be tied to the delivery of services as outlined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award, making it harder for the public to scrutinize the selection and pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Professional Support Services
Federal Research and Analysis Contracts
Management and Consulting Services Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.0 million to CREATIVE IT SOLUTIONS, LLC. CREATIVE IT SOLUTIONS, LLC PROFESSIONAL SUPPORT SERVICES - FOUR (4) RESEARCH ANALYST AND TWO (2) SENIOR RESEARCH ANALYST DRL/MLGA

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 $2.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-06-29.

What is the track record of CREATIVE IT SOLUTIONS, LLC with the Department of State or other federal agencies?

Information regarding the specific track record of CREATIVE IT SOLUTIONS, LLC with the Department of State or other federal agencies is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes. Without this data, it is difficult to gauge the contractor's reliability, quality of service, and adherence to contractual obligations in previous engagements. Further investigation into federal procurement databases and past performance databases would be necessary to establish a detailed understanding of their performance history.

How does the estimated value of this contract compare to similar contracts for research analysts?

The provided data does not include benchmarks for similar contracts, making a direct comparison of the estimated value difficult. The contract's value of over $2 million for research analyst and senior research analyst support over its duration needs to be assessed against market rates for comparable positions. Factors such as the required experience levels, specific skill sets (e.g., data analysis, policy research, subject matter expertise), and the labor hour pricing model would influence the overall cost. A thorough value assessment would involve benchmarking against government-wide contract vehicles or publicly available salary data for similar roles in the Washington D.C. area.

What are the specific risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to optimize efficiency or innovate. Taxpayers may end up paying more than necessary for the services. Additionally, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially limiting opportunities for other qualified vendors. There's also a risk that the government may not be getting the best possible solution or value if alternatives were not explored through competition.

What is the expected effectiveness of the research analyst services provided under this contract?

The effectiveness of the research analyst services will depend on the specific tasks outlined in the contract's statement of work and the qualifications of the personnel assigned. The contract aims to provide support for research and analysis, which are critical functions for the Department of State's operations. Success will be measured by the quality, timeliness, and relevance of the research and analytical products delivered. Without detailed performance metrics and ongoing evaluation, it is challenging to predict the exact level of effectiveness. However, the contract's duration suggests an expectation of sustained support and impact.

What are the historical spending patterns for similar research analyst support at the Department of State?

Historical spending patterns for similar research analyst support at the Department of State are not detailed in the provided data. To understand these patterns, one would need to analyze past contracts for research and analytical services, noting the number of awards, their values, durations, and whether they were competitively or sole-source. Examining trends in spending on consulting and professional services within the agency could reveal whether this contract represents an increase, decrease, or stable level of investment in such support. Such analysis would provide context for the current contract's scale and necessity.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. However, the specific justification for this determination is not included. Typically, sole-source awards require a documented justification, such as the existence of only one responsible source, urgent and compelling needs that preclude competition, or specific statutory authority. Without this justification, it is impossible to assess the validity of the sole-source determination and whether it was appropriate under federal procurement regulations.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

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: $3,067,094

Exercised Options: $3,067,094

Current Obligation: $2,018,889

Actual Outlays: $381,289

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0050

IDV Type: IDC

Timeline