VA awards $37.3M for program management support, with 5 bidders competing

Contract Overview

Contract Amount: $37,282,950 ($37.3M)

Contractor: Creative Business Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-26

End Date: 2025-05-25

Contract Duration: 2,068 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37.3 million to CREATIVE BUSINESS SOLUTIONS, INC. for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value of $37.3M over approximately 6.8 years suggests a moderate annual spend. 2. Competition was robust with 5 bidders, indicating potential for competitive pricing. 3. The contract is a delivery order under a larger contract, suggesting it's part of an existing framework. 4. Fixed-price contract type generally shifts risk to the contractor. 5. The contract is for administrative management and general management consulting services. 6. The contract's duration and value place it within a typical range for program management support.

Value Assessment

Rating: good

The contract's total value of $37.3M over nearly 7 years averages to approximately $5.5M annually. This is a moderate spend for program management support services. Benchmarking against similar contracts would require more detailed service descriptions and performance metrics. However, the presence of 5 bidders suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 5 distinct bidders participating. This level of competition is generally positive, as it allows for a wider pool of potential contractors to submit proposals and encourages competitive pricing. The agency received multiple offers, indicating that the requirements were well-defined and accessible to the market.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Veterans Affairs benefits from enhanced program management capabilities. Services delivered include administrative and general management consulting, crucial for program execution. The contract's impact is primarily within the District of Columbia, where the services are likely performed. The contract supports the VA's mission to serve veterans by ensuring efficient program operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly given the long duration.
Reliance on a single delivery order under a larger contract could indicate dependency on a pre-existing framework that may have its own risks.

Positive Signals

Full and open competition suggests a healthy market and potential for good value.
Firm fixed-price contract type aligns incentives for cost control.
The contract is for essential program management support, indicating a clear need.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a broad category supporting various government functions. The market for such services is large and competitive, with many firms capable of providing program management support. The VA's spending in this area is consistent with its need to manage complex programs effectively.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The presence of 5 bidders suggests that both large and small businesses likely had the opportunity to compete, but without specific set-aside provisions, the direct impact on the small business ecosystem is not detailed here.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability is established through the firm fixed-price contract terms and performance requirements. Transparency is facilitated by the contract award notice, though detailed performance reports are not publicly available.

Related Government Programs

VA Program Management Support
Management and Consulting Services
Federal IT Program Support
Government Administrative Services

Risk Flags

Contract duration exceeds typical project cycles.
Delivery order under a larger contract requires review of parent contract terms.
Performance metrics not detailed in award notice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37.3 million to CREATIVE BUSINESS SOLUTIONS, INC.. PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CREATIVE BUSINESS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2019-09-26. End: 2025-05-25.

What is the track record of Creative Business Solutions, Inc. with the Department of Veterans Affairs?

A comprehensive review of Creative Business Solutions, Inc.'s track record with the Department of Veterans Affairs would require access to historical contract data, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or awards. Based solely on this award, the VA has engaged the company for program management support services valued at $37.3M. Further analysis would involve examining the company's past performance on similar VA contracts, its ability to meet deadlines and quality standards, and its overall responsiveness to VA needs. Without this additional data, it's difficult to provide a detailed assessment of their track record beyond this single contract award.

How does the $37.3M contract value compare to typical VA spending on program management support?

The $37.3M contract value, spread over approximately 6.8 years (from September 26, 2019, to May 25, 2025), represents an average annual spend of roughly $5.5M. This figure is moderate for program management support services within a large agency like the Department of Veterans Affairs. The VA manages numerous complex programs requiring extensive support. Annual spending on such services can range from hundreds of thousands to tens of millions of dollars depending on the scope, duration, and criticality of the programs supported. This contract appears to be a significant but not exceptionally large award within the VA's overall portfolio for this service category.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by the firm fixed-price structure), contractor performance issues leading to delays or subpar service delivery, and the risk of vendor lock-in if the contractor becomes indispensable to program operations. Given it's a delivery order under a larger contract, there's also a risk associated with the underlying contract's terms and conditions. Ensuring clear performance metrics, regular oversight, and maintaining open communication channels are crucial to mitigating these risks.

How effective is 'full and open competition' in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for services like program management support where requirements can be clearly defined. By allowing all responsible sources to compete, the government broadens the pool of potential providers, fostering a competitive environment that typically drives down prices and encourages innovation. The fact that 5 bidders participated in this award suggests that the competition was robust, increasing the likelihood that the VA secured services at a competitive market rate. However, effective value is also dependent on the clarity of the SOW and the evaluation criteria used.

What is the historical spending trend for administrative management and general management consulting services at the VA?

Analyzing historical spending trends for administrative management and general management consulting services at the VA would require a deep dive into federal procurement databases over several fiscal years. Generally, large federal agencies like the VA consistently spend significant amounts on these services to support their vast operations and complex programs. Spending can fluctuate based on agency priorities, budget allocations, and the initiation or completion of major projects. Without specific historical data for NAICS code 541611 at the VA, it's presumed that spending in this category remains substantial and relatively stable, reflecting the ongoing need for expert management support.

What is the significance of the contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' signifies that it was issued under a pre-existing, larger contract vehicle, often a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This approach allows agencies to streamline procurement for recurring needs. For the VA, it means they likely leveraged an established contract with pre-negotiated terms and conditions, potentially speeding up the acquisition process. The significance lies in the fact that the competition and oversight might be tied to the parent contract, and the specific terms of this delivery order are tailored to the immediate requirement for program management support.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13003 WINDING CREEK RD, BOWIE, MD, 20721

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,725,771

Exercised Options: $37,282,950

Current Obligation: $37,282,950

Actual Outlays: $19,613,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA17D0005

IDV Type: FSS

Timeline