DOT Awards $17.2M for Software Engineering Support to Halvik, LLC

Contract Overview

Contract Amount: $17,214,557 ($17.2M)

Contractor: Halvik, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-04-09

End Date: 2026-04-30

Contract Duration: 1,847 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SOFTWARE ENGINEERING SUPPORT FOR POLICY APPLICATIONS INCLUDING TMAS, FUELS AND FASH, PIDP-ER AND HPMS

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $17.2 million to HALVIK, LLC for work described as: SOFTWARE ENGINEERING SUPPORT FOR POLICY APPLICATIONS INCLUDING TMAS, FUELS AND FASH, PIDP-ER AND HPMS Key points: 1. Contract awarded for critical policy application software engineering. 2. Halvik, LLC, a single entity, holds the contract. 3. The contract spans nearly 5 years, indicating long-term support needs. 4. Spending is within the custom computer programming services sector.

Value Assessment

Rating: fair

The contract value of $17.2M over 1847 days suggests a daily rate of approximately $9,300. This rate needs to be benchmarked against similar labor hour contracts for custom computer programming services to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a BPA Call, which implies a pre-competed agreement. However, the specific competition for this call is not detailed, making it difficult to assess price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are being used for essential software development and maintenance for transportation policy applications.

Public Impact

Ensures continued operation and development of key transportation policy tools. Supports the Federal Highway Administration's mission through technological solutions. Potential for innovation and efficiency gains in policy application development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition specifics for the BPA Call.
Potential for cost overruns if labor rates are not competitive.

Positive Signals

Supports critical government functions.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The average contract value for this NAICS code can vary significantly based on scope and duration, but $17.2M over nearly 5 years is a substantial award.

Small Business Impact

The contract was not awarded to a small business, indicating that larger, established firms are likely providing these specialized services.

Oversight & Accountability

The Federal Highway Administration is responsible for overseeing this contract. Standard oversight mechanisms for labor hour contracts should be in place to monitor performance and costs.

Related Government Programs

Custom Computer Programming Services
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Labor hour contract type.
BPA Call award mechanism.
No small business participation.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.2 million to HALVIK, LLC. SOFTWARE ENGINEERING SUPPORT FOR POLICY APPLICATIONS INCLUDING TMAS, FUELS AND FASH, PIDP-ER AND HPMS

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2021-04-09. End: 2026-04-30.

What is the benchmark hourly rate for custom computer programming services under similar government contracts?

Benchmarking the hourly rate is crucial for assessing value. Without specific data on comparable contracts (e.g., same agency, similar scope, labor categories), it's difficult to definitively state the benchmark. However, rates for senior software engineers in the DC metro area can range from $150-$300+ per hour, depending on experience and specific skills required for policy applications.

What are the specific risks associated with a long-term labor hour contract for software development?

Long-term labor hour contracts carry risks such as potential scope creep, difficulty in accurately forecasting future needs, and the possibility of paying inflated rates if not closely monitored. There's also a risk that the technology or requirements may evolve, making the initial scope outdated, leading to inefficiencies or rework.

How effectively does this contract support the Federal Highway Administration's mission objectives?

This contract directly supports the FHWA's mission by providing essential software engineering for policy applications like TMAS, FUELS, FASH, PIDP-ER, and HPMS. These tools are vital for data analysis, policy development, and program management within the agency, contributing to informed decision-making and efficient operations.

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: 693JJ321Q00012

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: $18,499,671

Exercised Options: $17,214,557

Current Obligation: $17,214,557

Actual Outlays: $15,737,001

Subaward Activity

Number of Subawards: 109

Total Subaward Amount: $8,816,334

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000013

IDV Type: BPA

Timeline