IRS awards $2.49M DIRA follow-on support contract to HALVIK, LLC for Computer Systems Design Services

Contract Overview

Contract Amount: $2,489,247 ($2.5M)

Contractor: Halvik, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-09-13

End Date: 2025-03-14

Contract Duration: 913 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIRA FOLLOW ON SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.5 million to HALVIK, LLC for work described as: DIRA FOLLOW ON SUPPORT Key points: 1. Contract value of $2.49M for Computer Systems Design Services. 2. Awarded to HALVIK, LLC by the Department of the Treasury (IRS). 3. Utilizes Full and Open Competition after Exclusion of Sources. 4. Contract duration is 913 days, ending March 14, 2025.

Value Assessment

Rating: fair

The contract value of $2.49M for 913 days of support appears reasonable for specialized computer systems design services. Benchmarking against similar contracts for IRS IT support would provide a clearer picture of value.

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 a competitive process was intended. This method aims to ensure fair pricing and access to a broad range of qualified vendors.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing potential overspending.

Public Impact

Ensures continued IT support for the Internal Revenue Service. Supports critical functions of tax administration. Provides employment opportunities within the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if follow-on work is not competitively re-bid.
  • Reliance on a single vendor for critical IT support.

Positive Signals

  • Competitive award process ensures market-driven pricing.
  • Clear contract duration and defined scope of work.

Sector Analysis

This contract falls under Computer Systems Design Services (NAICS 541512), a significant segment of the IT sector. Spending in this area is crucial for government agencies to maintain and modernize their technological infrastructure.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is managed by the Department of the Treasury's Internal Revenue Service. Standard oversight procedures for federal contracts should apply, including performance monitoring and compliance checks.

Related Government Programs

  • Computer Systems Design Services
  • Department of the Treasury Contracting
  • Internal Revenue Service Programs

Risk Flags

  • Follow-on support contract.
  • Potential for vendor lock-in.
  • Reliance on a single vendor for critical IT functions.
  • Contract duration extends into future fiscal years.

Tags

computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.5 million to HALVIK, LLC. DIRA FOLLOW ON SUPPORT

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2022-09-13. End: 2025-03-14.

What specific computer systems design services are being provided under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). This typically includes designing and developing integrated computer systems, including software and hardware integration. Specific deliverables and tasks would be detailed in the contract's statement of work, but generally encompass system architecture, software development, hardware configuration, and testing to meet IRS operational requirements.

What are the primary risks associated with this follow-on support contract?

Key risks include potential over-reliance on HALVIK, LLC, leading to reduced leverage in future negotiations. There's also a risk of scope creep if the requirements are not tightly managed. Furthermore, if the vendor faces financial instability or key personnel depart, it could disrupt critical IRS IT operations, impacting service delivery.

How does this contract contribute to the IRS's overall mission effectiveness?

This contract is vital for maintaining and potentially enhancing the IRS's IT infrastructure, which underpins all its operations, including tax processing, taxpayer services, and enforcement. Reliable computer systems design and support ensure the agency can operate efficiently, securely, and adapt to evolving technological needs and legislative changes.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $2,687,860

Exercised Options: $2,529,879

Current Obligation: $2,489,247

Actual Outlays: $2,489,247

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $794,841

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0111

IDV Type: GWAC

Timeline

Start Date: 2022-09-13

Current End Date: 2025-03-14

Potential End Date: 2025-03-14 11:08:01

Last Modified: 2026-01-05

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