DOT's $16.2M contract for custom programming services awarded to Creative Information Technology, Inc. over 7 years

Contract Overview

Contract Amount: $16,227,139 ($16.2M)

Contractor: Creative Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2004-04-15

End Date: 2011-04-05

Contract Duration: 2,546 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: OFFICE OF SAFETY WEB AND DATABASE MANAGEMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $16.2 million to CREATIVE INFORMATION TECHNOLOGY, INC. for work described as: OFFICE OF SAFETY WEB AND DATABASE MANAGEMENT Key points: 1. The contract's value of $16.2 million over its 7-year duration suggests a significant investment in IT services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The 'Custom Computer Programming Services' NAICS code indicates a focus on specialized software development. 4. The contract's duration of over 7 years points to a long-term need for these IT services. 5. The Cost Plus Award Fee (CPAF) contract type suggests performance incentives were tied to contractor achievement. 6. The contract was awarded by the Federal Railroad Administration, indicating a specific need within transportation safety and operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered. However, a $16.2 million award over seven years averages to approximately $2.3 million per year, which is a moderate annual spend for custom IT development. The Cost Plus Award Fee structure implies that the final cost could vary based on performance, making a direct price comparison difficult. Without data on comparable contracts for similar custom programming services within the Federal Railroad Administration or the broader Department of Transportation, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition is not explicitly stated in terms of the number of bidders, but the designation implies a market that was accessible to a wide range of potential contractors. This approach is generally expected to foster price discovery and potentially lead to more competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider pool of bidders, which can drive down costs and improve the quality of services received through competitive pressure.

Public Impact

The Federal Railroad Administration benefits from specialized custom computer programming services to support its safety and database management operations. The contract likely supports the development and maintenance of critical IT systems essential for railroad safety oversight and data analysis. The geographic impact is primarily within the operational scope of the Federal Railroad Administration, potentially supporting national railroad safety initiatives. The contract supports IT professionals and developers, contributing to the skilled workforce within the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure can lead to cost overruns if not carefully managed and monitored, as contractor incentives are tied to performance rather than fixed cost savings.
The long duration of the contract (over 7 years) may present risks related to technological obsolescence or changing requirements that were not fully anticipated at the outset.
Without specific details on the performance metrics and award fee criteria, it's difficult to assess if the 'award fee' component truly drove exceptional value or simply compensated for standard performance.

Positive Signals

The use of 'full and open competition' suggests a deliberate effort to ensure a competitive environment, potentially leading to better pricing and service quality.
The contract's focus on 'Custom Computer Programming Services' indicates a tailored solution designed to meet specific needs of the Office of Safety Web and Database Management.
The award to a single contractor over a long period can foster expertise and a deep understanding of the agency's unique requirements, leading to more efficient service delivery.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls within the broader category of professional, scientific, and technical services. Federal spending on IT services is consistently high, driven by the need for modernization, cybersecurity, and specialized software development across various agencies. Comparable spending benchmarks would typically involve analyzing IT development contracts within the transportation sector or for similar database management and safety oversight functions.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without explicit set-aside goals or subcontracting requirements, the direct impact on small businesses is not evident from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Railroad Administration's contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that award fees are justified by demonstrable performance against established criteria. Transparency regarding the specific performance metrics and awarded fees would be key to assessing accountability. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Federal IT Modernization Programs
Department of Transportation IT Infrastructure
Railroad Safety and Information Systems
Custom Software Development Contracts
Cost Plus Award Fee Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
CPAF structure requires diligent oversight to ensure value for money.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.2 million to CREATIVE INFORMATION TECHNOLOGY, INC.. OFFICE OF SAFETY WEB AND DATABASE MANAGEMENT

Who is the contractor on this award?

The obligated recipient is CREATIVE INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Railroad Administration).

What is the total obligated amount?

The obligated amount is $16.2 million.

What is the period of performance?

Start: 2004-04-15. End: 2011-04-05.

What specific custom computer programming services were delivered under this contract?

The contract, awarded to Creative Information Technology, Inc. by the Federal Railroad Administration (FRA) under the Department of Transportation, focused on 'Custom Computer Programming Services' (NAICS 541511). While the specific deliverables are not detailed in the provided data, this classification typically encompasses the design, development, modification, and testing of software and systems tailored to the unique requirements of the contracting agency. For the Office of Safety Web and Database Management, these services likely involved creating or enhancing databases, developing web-based applications for safety reporting or data analysis, integrating disparate IT systems, and providing ongoing maintenance and support for specialized software solutions critical to railroad safety oversight.

How does the $16.2 million contract value compare to similar IT services contracts within the Department of Transportation?

The $16.2 million contract value, spread over approximately 7 years (April 2004 - April 2011), represents an average annual spend of roughly $2.3 million. This figure is moderate for custom IT development within a large federal agency like the Department of Transportation (DOT). DOT manages a vast array of IT systems, from air traffic control to highway infrastructure management, often involving complex software development. While specific comparisons require access to a broader contract database, this annual average is within the expected range for specialized programming services supporting a specific office's mission, such as safety web and database management. Larger, agency-wide IT modernization efforts or enterprise resource planning systems would typically command significantly higher annual expenditures.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this nature?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract, like the one awarded to Creative Information Technology, Inc., revolve around cost control and performance definition. In a CPAF structure, the contractor is reimbursed for allowable costs plus a fee that is composed of a base amount and an award amount. The award amount is contingent upon meeting or exceeding specific performance objectives. The risk for the government lies in ensuring that the performance objectives are clearly defined, measurable, and directly tied to mission success. Without stringent oversight and well-articulated criteria, there's a risk that the 'award fee' could be paid for performance that is merely adequate rather than exceptional, potentially leading to higher overall costs than a fixed-price contract. Additionally, the complexity of tracking costs and performance can increase administrative burden.

What was the historical spending pattern for custom computer programming services by the Federal Railroad Administration prior to this contract?

The provided data does not include historical spending patterns for the Federal Railroad Administration (FRA) or for custom computer programming services prior to this specific contract (awarded April 2004). To assess historical spending, one would need to analyze previous contract awards for similar services (NAICS 541511) issued by the FRA or related DOT agencies. This analysis would involve examining contract databases to identify the number, value, duration, and types of contracts awarded over preceding years. Understanding past spending trends would help contextualize the $16.2 million value of this contract, indicating whether it represented an increase, decrease, or consistent level of investment in custom IT development for the FRA's safety and database management functions.

How does the contractor, Creative Information Technology, Inc., perform on other federal contracts?

The provided data focuses solely on this specific $16.2 million contract awarded to Creative Information Technology, Inc. (CITI) by the Federal Railroad Administration. It does not offer insights into CITI's performance on other federal contracts. A comprehensive assessment of the contractor's track record would require accessing broader contract performance databases (such as the Federal Procurement Data System - Next Generation or CPARS - Contractor Performance Assessment Reporting System) to review past performance evaluations, identify other agencies CITI has served, and analyze the types and values of contracts they have held. Without this additional information, it is impossible to evaluate CITI's general performance or reliability across the federal contracting landscape based solely on this single award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DTFR53-03-R-00003

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,405,555

Exercised Options: $17,405,555

Current Obligation: $16,227,139

Timeline