DoD's $7.8M Server Support Contract with Creative Enterprise Solutions Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $7,819,733 ($7.8M)

Contractor: Creative Enterprise Solutions, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2021-01-04

End Date: 2026-07-03

Contract Duration: 2,006 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SIMULATIONS/SERVER SUPPORT

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to CREATIVE ENTERPRISE SOLUTIONS, L.L.C. for work described as: SIMULATIONS/SERVER SUPPORT Key points: 1. The contract awarded to Creative Enterprise Solutions, L.L.C. for server support totals $7.8 million. 2. Competition was full and open after exclusion of sources, suggesting a potentially competitive bidding process. 3. The contract type is Firm Fixed Price, which typically offers cost certainty. 4. The sector appears to be IT services, specifically Computer Facilities Management. 5. The duration of the contract is substantial, spanning from 2021 to 2026.

Value Assessment

Rating: fair

The contract's value of $7.8 million for server support over approximately 5 years needs comparison with similar government and commercial contracts. Without specific service level agreements or detailed scope, assessing value is difficult. The benchmark of $3,898 per year per user seems low, but its applicability depends on the services provided.

Cost Per Unit: $3,898

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was intended to be broad, specific sources may have been excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the exclusion of sources warrants further investigation to ensure maximum competition and cost-effectiveness.

Public Impact

Taxpayers may be impacted by the $7.8 million allocated for server support services. The duration of the contract (over 5 years) means sustained financial commitment. The specific nature of 'server support' could range from basic maintenance to complex system management, affecting the perceived value. The exclusion of sources in the competition process raises questions about potential missed savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition
Long contract duration
Lack of detailed scope of work for value assessment

Positive Signals

Firm Fixed Price contract type
Full and Open Competition (even with exclusions)
IT services sector is critical for operations

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Facilities Management Services. Spending in this area is crucial for government operations, but benchmarks vary widely based on the complexity and scale of the IT infrastructure supported.

Small Business Impact

The data indicates that the awardee is Creative Enterprise Solutions, L.L.C. It is unclear from the provided information whether this company qualifies as a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract's long duration and the 'exclusion of sources' clause warrant careful oversight to ensure continued fair pricing and adherence to the contract's terms. Regular performance reviews and audits would be essential for accountability.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for reduced competition due to source exclusion
Long contract duration may not reflect evolving technology needs
Lack of detailed scope hinders value assessment
Unclear if awardee is a small business

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to CREATIVE ENTERPRISE SOLUTIONS, L.L.C.. SIMULATIONS/SERVER SUPPORT

Who is the contractor on this award?

The obligated recipient is CREATIVE ENTERPRISE SOLUTIONS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2021-01-04. End: 2026-07-03.

What specific services are included under 'SIMULATIONS/SERVER SUPPORT' and how do they align with the $3,898 per-user cost benchmark?

The provided data lacks a detailed scope of work for 'SIMULATIONS/SERVER SUPPORT.' The per-unit cost of $3,898 is likely an average and its validity hinges on the specific services rendered. Without knowing if this includes hardware, software, maintenance, specialized simulation support, or basic IT upkeep, it's impossible to definitively assess its reasonableness. Further clarification on the service components is necessary for a proper value analysis.

What was the justification for excluding specific sources during the 'Full and Open Competition' process, and did this exclusion limit potential cost savings?

The justification for excluding sources in a 'Full and Open Competition After Exclusion of Sources' scenario typically involves factors like specific technical requirements, past performance, or unique capabilities. However, such exclusions inherently limit the bidder pool, potentially reducing competitive pressure and leading to higher prices than if all qualified sources were allowed to compete. Understanding the rationale behind the exclusions is crucial to determine if taxpayer value was maximized.

How does the Department of the Army ensure effective performance and accountability for server support services over this 5-year contract duration?

Effective performance and accountability for long-term IT contracts are typically managed through robust contract oversight mechanisms. This includes establishing clear performance metrics and Service Level Agreements (SLAs), conducting regular performance reviews, potentially utilizing independent government cost-estimate reviews, and implementing strong contract administration. For this specific contract, the Department of the Army should be actively monitoring the vendor's adherence to the PWS and addressing any performance deficiencies promptly to ensure value and mission effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911S720R0017

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 60 E RIO SALADO PARKWAY, SUITE 900, TEMPE, AZ, 85281

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,819,733

Exercised Options: $7,819,733

Current Obligation: $7,819,733

Actual Outlays: $61,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline