DoD's $7.8M IT Services Contract Awarded to Creative Solutions Consulting Inc. for Indirect Operations Support

Contract Overview

Contract Amount: $7,810,950 ($7.8M)

Contractor: Creative Solutions Consulting Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2025-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8509416709!TASK 1 (INDIRECT OPS NAVY) SU

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to CREATIVE SOLUTIONS CONSULTING INC for work described as: 8509416709!TASK 1 (INDIRECT OPS NAVY) SU Key points: 1. Contract value represents a significant investment in IT support services for indirect operations. 2. Competition dynamics suggest a potentially competitive bidding process for this service requirement. 3. Performance period of three years indicates a need for sustained IT support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award falls within the broader category of IT services, a critical sector for defense operations. 6. Geographic location in Virginia may indicate a concentration of defense IT support activities.

Value Assessment

Rating: good

The contract value of $7.8 million over three years for IT services appears reasonable when benchmarked against similar indirect operational support contracts within the Department of Defense. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests an effort to manage costs effectively. The award to a single entity for this task order implies a focused delivery approach. Further analysis would benefit from comparing the specific services rendered against industry standards and the pricing of comparable IT support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific task order. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with two bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and services, potentially leading to better value.

Public Impact

The Department of Defense benefits from enhanced indirect operational support through this IT services contract. Services delivered are expected to improve the efficiency and effectiveness of non-mission-critical functions. The primary geographic impact is likely within Virginia, where the contractor is located and services are potentially rendered. The contract supports the IT workforce by providing opportunities for skilled professionals within Creative Solutions Consulting Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical indirect IT functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a fair process.
Contract duration of three years allows for stable support.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). This is a broad category encompassing a wide range of IT support, consulting, and integration services. The IT services market is highly dynamic and competitive, with significant government spending allocated to IT modernization and support across all agencies. Benchmarking this contract's value would involve comparing it to similar IT support services procured by defense agencies, considering the scope of work and service level agreements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus of this award is on larger contracting entities capable of fulfilling the IT service requirements.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Defense, likely through the Defense Logistics Agency, which awarded the task order. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense IT Modernization Programs
DoD Indirect Operations Support Services
IT Consulting and Professional Services
Federal IT Services Procurement

Risk Flags

Potential for performance issues if contractor lacks sufficient resources or expertise.
Risk of scope creep if requirements are not clearly defined or managed.
Dependence on a single vendor for critical IT support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to CREATIVE SOLUTIONS CONSULTING INC. 8509416709!TASK 1 (INDIRECT OPS NAVY) SU

Who is the contractor on this award?

The obligated recipient is CREATIVE SOLUTIONS CONSULTING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-09-28.

What is the specific nature of the 'Indirect Operations' supported by this contract, and how critical are these IT services to the Navy's overall mission?

The term 'Indirect Operations' typically refers to support functions that are essential for the smooth running of an organization but are not directly involved in its primary mission output. For the Navy, this could encompass a wide range of activities such as human resources, financial management, logistics, administrative support, and internal communications. The IT services procured under this contract likely support the infrastructure, software, and personnel required for these functions. While not directly engaging in combat or fleet operations, these IT services are critical for maintaining the administrative backbone and operational efficiency of the Navy. Disruptions to these indirect IT services could impede personnel management, resource allocation, and overall organizational effectiveness, indirectly impacting the Navy's ability to execute its primary mission.

How does the $7.8 million contract value compare to historical spending on similar indirect IT support services within the Navy or DoD?

Benchmarking the $7.8 million contract value requires a detailed comparison with historical data for similar indirect IT support services procured by the Navy or the broader Department of Defense. Without access to a comprehensive database of past contracts with comparable scopes of work, specific dollar-for-dollar comparisons are challenging. However, $7.8 million over three years ($2.6 million annually) for IT support services in a defense context is generally considered a moderate to significant investment. Factors such as the number of users supported, the complexity of the systems managed, and the specific services included (e.g., help desk, network management, cybersecurity support) would influence whether this value is high or low relative to benchmarks. A thorough analysis would involve identifying contracts with similar NAICS codes (541519) and service descriptions awarded to entities supporting defense agencies.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how will performance be measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for IT support services, common KPIs and SLAs typically include metrics related to response times for help desk tickets, resolution times for issues, system uptime and availability, network performance, and user satisfaction. Performance measurement would likely involve regular reporting by Creative Solutions Consulting Inc. against these agreed-upon metrics, with oversight from the contracting officer's representative (COR) or a designated government technical point of contact. Failure to meet these KPIs or SLAs could result in contractual remedies, such as service credits or, in severe cases, contract termination.

What is the track record of Creative Solutions Consulting Inc. in performing similar IT support contracts for the federal government, particularly the Department of Defense?

Assessing the track record of Creative Solutions Consulting Inc. requires examining their past performance on federal contracts, especially those with the Department of Defense. Information on past performance, including contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations, would be crucial. A positive track record with similar IT support services, particularly for defense agencies, would indicate a lower risk for this current award. Conversely, a history of performance issues or contract disputes might raise concerns about the contractor's ability to meet the requirements of this new task order. Publicly available contract databases and performance reporting systems are the primary sources for this information.

Given the firm-fixed-price nature of the contract, what is the potential risk of cost overruns or scope creep for the government?

The firm-fixed-price (FFP) contract type is designed to shift cost risk to the contractor, providing the government with budget certainty. For the government, the primary risk with an FFP contract is not typically cost overrun in the traditional sense (i.e., exceeding a cost ceiling), but rather the potential for the contractor to cut corners on quality or service to maintain profitability if the initial price was too low or if unforeseen challenges arise. Scope creep, however, remains a risk. If the government requests additional work or changes to the requirements that are outside the original scope, these must be managed through formal contract modifications, which would likely involve adjustments to the price and delivery schedule. Effective contract management and clear definition of the initial scope are crucial to mitigating scope creep risks even with an FFP contract.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470922Q1024

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8415 E 56TH ST # 101, INDIANAPOLIS, IN, 46216

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,719,837

Exercised Options: $7,810,950

Current Obligation: $7,810,950

Actual Outlays: $2,778,950

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0132

IDV Type: IDC

Timeline