Commerce awards $20.7M IT security contract to HALVIK, LLC for 3-year USPTO support

Contract Overview

Contract Amount: $20,656,413 ($20.7M)

Contractor: Halvik, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-02-15

End Date: 2027-02-14

Contract Duration: 1,095 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $20.7 million to HALVIK, LLC for work described as: INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS SUPPORT SERVICES Key points: 1. Contract focuses on critical IT developmental security operations, safeguarding sensitive patent and trademark data. 2. Competition was full and open after exclusion of sources, suggesting a robust bidding process. 3. The contract duration of 1095 days (3 years) provides a stable period for service delivery. 4. HALVIK, LLC, the selected contractor, will provide essential computer systems design services. 5. This award represents a significant investment in the security infrastructure of the U.S. Patent and Trademark Office. 6. The contract type is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The total award amount of $20.7 million over three years for IT security operations support appears reasonable when benchmarked against similar government contracts for specialized cybersecurity services. While specific per-unit cost data is not provided, the overall value suggests a competitive pricing structure given the scope and duration. The contract's focus on developmental security operations indicates a need for skilled personnel and advanced technical capabilities, which typically command a certain market rate. Further analysis would require comparing specific labor categories and service levels to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The number of bidders is not explicitly stated, but the designation suggests that multiple qualified vendors had the opportunity to submit proposals. This approach aims to balance broad market reach with specific requirements that might necessitate excluding certain types of vendors.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government receives the best value by considering a wide range of potential solutions.

Public Impact

The U.S. Patent and Trademark Office (USPTO) will benefit from enhanced cybersecurity and operational stability. Services delivered include critical IT developmental security operations, crucial for protecting intellectual property. The geographic impact is primarily within the USPTO's operational centers, likely impacting federal employees and contractors in those locations. Workforce implications include the potential for skilled IT security professionals to be engaged through HALVIK, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to understand the rationale and potential impact on market access.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance objectively.
The specific nature of 'developmental security operations' could imply evolving requirements and potential for scope creep if not managed carefully.

Positive Signals

The contract is awarded through a full and open competition, indicating a structured and potentially competitive bidding process.
The three-year duration provides stability for the USPTO's IT security operations.
The focus on security operations addresses a critical need for protecting sensitive government data and intellectual property.

Sector Analysis

The IT services sector, particularly cybersecurity, is a rapidly growing and critical area for government operations. This contract falls within the 'Computer Systems Design Services' category, which encompasses a wide range of IT support, including security. The market for these services is highly competitive, with numerous firms offering specialized expertise. Government spending in this area has consistently increased as agencies prioritize digital security and modernization. This award to HALVIK, LLC aligns with the broader trend of federal agencies investing in robust IT infrastructure and cybersecurity measures to protect national interests and data.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing the most capable vendor through a full and open competition. There is no explicit mention of subcontracting requirements for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem for this particular contract appears limited, though it doesn't preclude small businesses from participating in the broader IDIQ vehicle from which this delivery order was issued.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through public contract databases where award details are published. The Inspector General for the Department of Commerce may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse concerning this contract.

Related Government Programs

IT Security Services
Computer Systems Design Services
Cybersecurity Support
Federal IT Modernization
Intellectual Property Protection Services

Risk Flags

Competition Method Nuance
Contractor Performance Visibility
Evolving Security Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.7 million to HALVIK, LLC. INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS SUPPORT SERVICES

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 $20.7 million.

What is the period of performance?

Start: 2024-02-15. End: 2027-02-14.

What is the track record of HALVIK, LLC in performing similar IT security operations support services for federal agencies?

Assessing HALVIK, LLC's track record requires a deeper dive into their contract history beyond this single award. While this $20.7 million contract for USPTO IT security operations is significant, it's crucial to examine past performance on similar contracts, including their size, duration, and complexity. Key indicators would include client satisfaction ratings, any past performance issues or disputes, and their demonstrated ability to meet security requirements and deadlines. Without access to detailed past performance evaluations or a broader portfolio of their work in developmental security operations, it is difficult to definitively assess their suitability and reliability for this critical role. Further research into federal procurement databases and agency performance reviews would be necessary.

How does the awarded amount of $20.7 million compare to similar IT security support contracts awarded by the federal government?

The $20.7 million award for three years of IT developmental security operations support to the USPTO is within a reasonable range for specialized federal IT contracts. Benchmarking requires comparing it against contracts with similar scopes, such as cybersecurity operations, system design, and security integration services, awarded to companies of comparable size and capability. For instance, contracts for similar services at agencies like the Department of Defense or other large civilian agencies can range from several million to tens of millions of dollars annually, depending on the complexity and scale. Given the critical nature of protecting patent and trademark data, this investment appears aligned with market rates for high-level security expertise. However, a precise comparison would necessitate analyzing specific labor rates, service level agreements, and the overall scope of work against other recent federal awards in the IT security domain.

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

Primary risks associated with this contract include potential cybersecurity threats, contractor performance issues, and the evolving nature of security operations. Given the sensitive data handled by the USPTO, a breach could have significant consequences. Contractor performance risks involve HALVIK, LLC failing to meet service level agreements, deliver required security updates, or maintain adequate staffing levels. The 'developmental' aspect of the security operations implies a need for adaptability to new threats and technologies, posing a risk if the contractor cannot keep pace. Mitigation strategies likely include robust contract oversight by the USPTO, clearly defined performance metrics and penalties, regular security audits, and potentially requiring specific certifications or security clearances for personnel. The 'full and open competition after exclusion of sources' might also be a mitigation factor if it ensured selection of a highly qualified vendor.

What is the historical spending pattern for IT security operations support at the U.S. Patent and Trademark Office?

Analyzing historical spending patterns for IT security operations support at the USPTO is crucial for understanding the context of this $20.7 million award. Without specific historical data, we can infer that spending in this area has likely increased over time, mirroring the broader federal trend towards enhanced cybersecurity. Agencies typically allocate significant budgets to protect intellectual property and sensitive data. Previous contracts for similar services, whether through direct awards, task orders under IDIQs, or different service categories, would provide a baseline. Understanding if this award represents an increase, decrease, or stable level of investment compared to prior years would offer insight into the USPTO's strategic priorities and budget allocation for IT security. A review of USPTO's budget justifications and prior contract awards would be necessary for a definitive analysis.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method aims to balance broad competition with specific needs, potentially impacting taxpayer value in nuanced ways. Ideally, 'full and open' competition drives down costs through market forces. However, the 'exclusion of sources' indicates that certain potential bidders were deemed ineligible before the solicitation. If these exclusions were justified by specific technical requirements or security needs that only a subset of vendors could meet, then the competition, though narrowed, might still yield the best value by ensuring the selected contractor possesses the necessary specialized capabilities. If the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices or less innovative solutions, thus diminishing taxpayer value. The key is whether the exclusions were necessary and well-documented.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ24Q00280041

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD, SUITE 240, 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, 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: $23,656,413

Exercised Options: $20,656,413

Current Obligation: $20,656,413

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $10,094,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ21D00280002

IDV Type: IDC

Timeline