Commerce awards $8.2M for software packaging, with USPTO seeking custom programming services

Contract Overview

Contract Amount: $8,242,574 ($8.2M)

Contractor: Halvik, LLC

Awarding Agency: Department of Commerce

Start Date: 2022-02-02

End Date: 2027-02-16

Contract Duration: 1,840 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SOFTWARE PACKAGING SUPPORT (SPS) CONTRACT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $8.2 million to HALVIK, LLC for work described as: SOFTWARE PACKAGING SUPPORT (SPS) CONTRACT Key points: 1. Value for money appears fair given the 5-year duration and specialized nature of the services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance context to be monitored over the contract's life. 4. Sector positioning places this within IT services, specifically custom computer programming. 5. The contract is a delivery order under a larger IDIQ, allowing for task-specific execution.

Value Assessment

Rating: fair

The contract value of $8.24 million over approximately five years averages to about $1.65 million annually. Benchmarking this against similar custom computer programming services requires detailed analysis of specific task orders and labor categories. However, the pricing structure, noted as 'LABOR HOURS', suggests that costs will be directly tied to the effort expended, which can be efficient if managed well. Without specific task order details or comparable contract data, a precise value-for-money assessment is challenging, but the duration and scope suggest a reasonable investment for specialized IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 8 bidders (no) suggests a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and pricing to win the award.

Taxpayer Impact: A full and open competition benefits taxpayers by ensuring that the government explores a wide range of potential solutions and pricing, likely resulting in a more cost-effective outcome compared to less competitive procurement methods.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from specialized software packaging support. Services delivered include custom computer programming, essential for maintaining and enhancing USPTO's IT infrastructure. The geographic impact is primarily within the USPTO's operational centers, likely supporting federal employees and operations. Workforce implications may involve specialized IT professionals contributing to the USPTO's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not clearly defined.
Reliance on specific vendor expertise could pose a risk if knowledge transfer is inadequate.
Performance monitoring is crucial to ensure deliverables meet USPTO's evolving needs.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long-term contract duration allows for sustained support and potential for relationship building.
The contract is a delivery order, suggesting flexibility in addressing specific USPTO needs as they arise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically the custom computer programming services sub-sector. This market is characterized by a high demand for specialized skills in software development, integration, and maintenance. The U.S. Patent and Trademark Office, as a large federal agency, represents a significant client for IT services. Comparable spending benchmarks would involve analyzing other federal contracts for similar custom programming support, which can vary widely based on complexity, duration, and specific technologies involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary focus of competition was likely on larger, more established IT service providers capable of meeting the specialized requirements of the USPTO. This means small businesses may not directly benefit from this particular contract unless they are partners or subcontractors to the prime awardee, HALVIK, LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. While no specific Inspector General jurisdiction is mentioned, the Department of Commerce's Office of Inspector General would likely have oversight authority over significant contracts within the agency.

Related Government Programs

Custom Computer Programming Services
Software Development and Integration
IT Support Services
Federal IT Modernization Programs
USPTO IT Infrastructure Support

Risk Flags

Performance Risk
Scope Creep Potential
Vendor Lock-in
Knowledge Transfer Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $8.2 million to HALVIK, LLC. SOFTWARE PACKAGING SUPPORT (SPS) CONTRACT

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2022-02-02. End: 2027-02-16.

What is the track record of HALVIK, LLC in delivering similar software packaging and custom programming services to federal agencies?

Assessing HALVIK, LLC's track record requires a review of their past performance on federal contracts, particularly those involving custom computer programming and software packaging. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS) would be crucial. Key indicators to examine include successful completion of similar projects, client satisfaction ratings, adherence to schedules and budgets, and any history of contract disputes or performance issues. Without specific CPARS data or a detailed project history for HALVIK, LLC related to this specific service area, it is difficult to definitively assess their capability and reliability for this $8.2 million USPTO contract.

How does the awarded price compare to market rates for similar custom computer programming services?

A precise comparison of the awarded price to market rates for custom computer programming services is challenging without detailed knowledge of the specific labor categories, skill levels, and hours required under this contract. The contract is structured on a 'LABOR HOURS' basis, meaning the total cost is dependent on the actual effort expended. To benchmark effectively, one would need to analyze the average hourly rates for comparable IT professionals in the Washington D.C. metropolitan area (where USPTO is located) and compare them against the rates billed by HALVIK, LLC. Factors such as the complexity of the software, the urgency of the need, and the specific technologies involved also influence market rates. Given the full and open competition, it is presumed the rates are competitive, but a detailed analysis of the task orders would be necessary for a definitive comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the potential for vendor lock-in or over-reliance on HALVIK, LLC's specific expertise, which could hinder knowledge transfer to USPTO staff. Performance risk, ensuring the delivered software packaging solutions meet the evolving needs of the USPTO, is also present. Mitigation strategies likely involve robust contract management by USPTO officials, clear definition and monitoring of task orders, regular performance reviews, and potentially incorporating knowledge transfer clauses into the contract. The use of a delivery order structure under an IDIQ also allows for more granular oversight of individual task orders.

How effective is the current IT infrastructure at USPTO in supporting the need for this software packaging support?

The effectiveness of USPTO's current IT infrastructure in supporting the need for this software packaging support is not directly detailed in the provided data. However, the agency's decision to award an $8.2 million contract for these services suggests a significant and ongoing requirement. This implies that either the existing infrastructure requires specialized support for packaging and deployment of software, or that new software initiatives necessitate this type of expertise. The contract's duration of nearly five years indicates a strategic, long-term need rather than a short-term fix. Further analysis would require understanding USPTO's IT modernization goals, their current software development lifecycle, and the specific challenges they face in packaging and deploying applications across their environment.

What has been the historical spending pattern for software packaging and custom programming services at the U.S. Patent and Trademark Office?

Historical spending patterns for software packaging and custom programming services at the U.S. Patent and Trademark Office (USPTO) are not provided in the current data. To understand this, one would need to query federal procurement databases (like FPDS) for past contracts awarded by USPTO for similar services (NAICS code 541511 and related codes). Analyzing this historical data would reveal the volume of spending, the types of contracts awarded (e.g., IDIQ, fixed-price, labor hour), the primary contractors, and the average contract values over time. This context is crucial for understanding if the current $8.2 million award represents an increase, decrease, or continuation of previous spending levels for these critical IT services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ22Q00282002

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $8,242,574

Exercised Options: $8,242,574

Current Obligation: $8,242,574

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,966,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F328BA

IDV Type: FSS

Timeline