Commerce awards $20.7M IT contract to Halvik, LLC for biosequence data exchange and global access

Contract Overview

Contract Amount: $20,665,737 ($20.7M)

Contractor: Halvik, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-04-01

End Date: 2026-12-14

Contract Duration: 987 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SERVICES SUPPORTING THE DEVELOPMENT, MODERNIZATION, ENHANCEMENT, AND OPERATIONS OF THE INTERNATIONAL DATA EXCHANGE BIOSEQUENCE TRILATERAL DOCUMENT ACCESS AND GLOBAL.

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: IT SERVICES SUPPORTING THE DEVELOPMENT, MODERNIZATION, ENHANCEMENT, AND OPERATIONS OF THE INTERNATIONAL DATA EXCHANGE BIOSEQUENCE TRILATERAL DOCUMENT ACCESS AND GLOBAL. Key points: 1. Contract value appears reasonable given the scope of IT services for data exchange and access. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of nearly three years indicates a significant, ongoing need for these services. 4. The specific IT services required are complex, involving development, modernization, enhancement, and operations. 5. This contract supports critical functions for the U.S. Patent and Trademark Office's data management. 6. The use of labor hours pricing can introduce cost variability if not managed closely.

Value Assessment

Rating: good

The contract value of $20.7 million over approximately 2.75 years for IT services is within a reasonable range for complex system development and operational support. Benchmarking against similar large-scale IT modernization and data management contracts within federal agencies suggests this pricing is competitive. The use of labor hours, while common, necessitates diligent oversight to ensure efficient resource utilization and prevent cost overruns. The awarded amount reflects a significant investment in maintaining and enhancing critical data infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is beneficial for price discovery and ensuring the government receives the best value. The exclusion of sources clause might suggest specific technical requirements or prior performance considerations that narrowed the field slightly, but the core intent was broad competition.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through competitive pressure and increasing the likelihood of selecting a contractor that offers the best combination of technical capability and cost-effectiveness.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced IT infrastructure for managing critical biosequence data. Services delivered include development, modernization, enhancement, and operations of data exchange and access systems. The geographic impact is national, supporting USPTO operations which are vital for intellectual property protection. Workforce implications include potential for specialized IT roles within Halvik, LLC and indirectly supporting USPTO's mission-critical functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing model can lead to cost escalation if not tightly managed and monitored for efficiency.
The complexity of the IT systems requires specialized expertise, and contractor performance must be consistently high.
Dependence on a single contractor for critical IT infrastructure operations poses a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable pricing.
The contract duration indicates a stable, long-term need, allowing for focused development and operational improvements.
The scope of services covers the full lifecycle of IT support, from development to ongoing operations.

Sector Analysis

This contract falls within the IT Services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in modernizing legacy systems, enhancing cybersecurity, and improving data management capabilities. This contract aligns with the government's broader push towards digital transformation and efficient data utilization. Comparable spending benchmarks for large-scale IT system development and operational support contracts within agencies like Commerce often range in the tens to hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, Halvik, LLC may engage small businesses as subcontractors to fulfill specific requirements, contributing to the broader small business ecosystem. The absence of a small business set-aside suggests the requirement was deemed to necessitate capabilities best met by larger, established firms or that the competition was structured for maximum overall competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Performance will be monitored against contract deliverables and service level agreements. Transparency is facilitated through contract databases like FPDS. Accountability measures are typically embedded in the contract terms, including performance metrics and potential remedies for non-performance. Inspector General jurisdiction may apply depending on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

IT Modernization Initiatives
Data Management Systems
Cloud Computing Services
Software Development Services
Information Technology Professional Services

Risk Flags

Potential for cost overruns due to labor hours pricing.
Dependency on contractor performance for critical IT systems.
Cybersecurity risks associated with sensitive data.
Complexity of integrating and modernizing existing systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.7 million to HALVIK, LLC. IT SERVICES SUPPORTING THE DEVELOPMENT, MODERNIZATION, ENHANCEMENT, AND OPERATIONS OF THE INTERNATIONAL DATA EXCHANGE BIOSEQUENCE TRILATERAL DOCUMENT ACCESS AND GLOBAL.

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: 2024-04-01. End: 2026-12-14.

What is Halvik, LLC's track record with federal IT contracts, particularly those involving complex data systems?

Halvik, LLC has a history of performing IT services for the federal government. While specific details on past performance for biosequence data exchange systems are not provided in this data snippet, their award by the Department of Commerce for such a critical function suggests they possess the necessary technical capabilities and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous IT projects, would provide a more comprehensive understanding of their reliability and expertise in handling complex, mission-critical IT operations. Reviewing their performance on similar-sized or scope contracts would be prudent.

How does the $20.7 million contract value compare to similar IT modernization and data management contracts within the federal government?

The $20.7 million contract value over approximately 2.75 years for comprehensive IT services (development, modernization, enhancement, operations) for critical data systems is within the typical range for federal IT procurements of this nature. Large-scale IT projects supporting core agency functions often span multiple years and involve significant investment. For context, other federal agencies frequently award contracts in the tens of millions for similar services, such as enterprise resource planning (ERP) system implementations, cybersecurity enhancements, or large database management solutions. The value appears commensurate with the described scope and duration, assuming efficient execution and management.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential cost overruns due to the labor hours pricing model, contractor performance issues impacting critical data systems, and cybersecurity vulnerabilities. Mitigation strategies likely involve robust contract oversight by the USPTO, including detailed performance monitoring, regular progress reviews, and strict adherence to service level agreements. Cybersecurity risk is managed through adherence to federal security standards (e.g., NIST), regular audits, and incident response planning. Contractor performance issues would be addressed through contractual remedies, including potential penalties or termination for default if performance does not meet requirements.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers in this specific IT contract?

This competition method aims to maximize value by allowing all responsible sources to compete, driving down prices through market forces. The 'after exclusion of sources' aspect suggests that while broad competition was sought, certain specific requirements or prior relationships might have led to a slightly narrowed initial pool. However, if the exclusion was justified and the remaining pool was still competitive, it should still yield good value. Taxpayers benefit from the competitive pressure that encourages efficiency and innovation from bidders. The ultimate value realization depends on the rigor of the evaluation process and the contractor's subsequent performance.

What is the historical spending trend for similar IT services at the U.S. Patent and Trademark Office or the Department of Commerce?

Historical spending data for similar IT services at the USPTO and the broader Department of Commerce would provide valuable context. Agencies consistently allocate significant portions of their budgets to IT modernization, system operations, and data management. Trends often show increasing investment in these areas due to evolving technological landscapes and the growing importance of data-driven decision-making. Analyzing past contracts for IT support, system development, and data infrastructure at the USPTO would reveal patterns in spending levels, contract types, and key service providers, helping to benchmark the current $20.7 million award against historical norms and identify any significant deviations.

What are the potential implications of the 'Delivery Order' (aw) contract type on project flexibility and cost control?

A 'Delivery Order' (aw) typically refers to a task order issued against a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar base contract. In this context, it signifies that this $20.7 million award is likely a specific order under a broader contract vehicle. This structure allows for flexibility in acquiring services as needed over the contract period. For cost control, each delivery order would ideally have its own defined scope, cost, and schedule. However, the overall management of multiple delivery orders under a base contract requires careful oversight to ensure alignment with strategic goals and prevent scope creep or uncontrolled spending across the entire contract vehicle.

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: 1333BJ24Q00280047

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: $22,165,737

Exercised Options: $20,665,737

Current Obligation: $20,665,737

Actual Outlays: $-16,500

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $8,839,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ21D00280002

IDV Type: IDC

Timeline