DOT awards $7.3M task order for OST application support to HALVIK, LLC under existing BPA

Contract Overview

Contract Amount: $7,320,313 ($7.3M)

Contractor: Halvik, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-09-28

End Date: 2026-06-12

Contract Duration: 1,353 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO ISSUE A NEW TASK ORDER UNDER THE SWES BPA FOR OST APPLICATION SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $7.3 million to HALVIK, LLC for work described as: TO ISSUE A NEW TASK ORDER UNDER THE SWES BPA FOR OST APPLICATION SUPPORT. Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a full and open process for the underlying BPA. 3. Risk indicators include contract duration and reliance on a single vendor for specific support. 4. Performance context is application support for the Office of the Secretary of Transportation. 5. Sector positioning is within IT services, specifically custom computer programming.

Value Assessment

Rating: good

The task order value of $7.3 million over approximately 3 years appears reasonable for custom computer programming services. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is within expected ranges, especially considering the specialized nature of application support. The firm-fixed-price structure provides cost certainty for the government. However, a more granular comparison of specific labor categories and rates would offer deeper insights into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under the Software and Systems Engineering Services (SWES) Blanket Purchase Agreement (BPA), which was awarded through full and open competition. While the specific number of bidders for the original BPA is not detailed here, the 'full and open' designation implies a broad solicitation process. This approach generally fosters competitive pricing and allows a wide range of qualified vendors to participate, leading to better price discovery for the government.

Taxpayer Impact: A full and open competition for the BPA ensures that taxpayers benefit from a competitive marketplace, driving down costs and encouraging innovation among potential awardees.

Public Impact

The Office of the Secretary of Transportation (OST) benefits from continued application support. Services include custom computer programming and support for critical transportation applications. Geographic impact is primarily within the District of Columbia, where DOT headquarters is located. Workforce implications involve IT professionals providing specialized software development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not re-competed effectively.
Reliance on a single vendor for critical application support could pose continuity risks.
Scope creep could increase costs if not managed tightly within the task order.

Positive Signals

Task order issued under an existing, competitively awarded BPA.
Firm-fixed-price contract provides cost predictability.
Clear statement of work for application support is expected.

Sector Analysis

The IT services sector, particularly custom computer programming (NAICS 541511), is a significant area of federal spending. Agencies rely heavily on these services for developing, maintaining, and modernizing their software applications. Spending in this category often reflects the complexity and criticality of the systems being supported. Comparable contracts typically involve significant investment in specialized technical expertise and project management.

Small Business Impact

The provided data indicates that neither the BPA nor this specific task order involved small business set-asides (ss=false, sb=false). This suggests that the competition was geared towards larger, established IT service providers. While this task order does not directly benefit small businesses through set-asides, the prime contractor, HALVIK, LLC, may engage small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order would fall under the Department of Transportation's contracting and program management offices. The Federal Highway Administration (FHWA) is the specific agency, and their internal controls and contract administration processes are key. Transparency is facilitated by contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Regular performance reviews and milestone tracking are standard accountability measures.

Related Government Programs

SWES BPA
OST Application Modernization Efforts
Federal IT Services Contracts
Custom Software Development Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical support
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.3 million to HALVIK, LLC. TO ISSUE A NEW TASK ORDER UNDER THE SWES BPA FOR OST APPLICATION SUPPORT.

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 $7.3 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-06-12.

What is HALVIK, LLC's track record with the Department of Transportation and similar federal agencies?

HALVIK, LLC has a history of performing IT services for federal agencies. Reviewing their contract history with the Department of Transportation (DOT) and other departments would reveal their performance on similar task orders and BPAs. Key metrics to examine include past performance evaluations, any reported contract disputes or terminations, and the types of services previously rendered. A strong track record with comparable agencies suggests a lower risk profile for this task order. Data from contract databases can provide insights into their award history, total contract values, and the agencies they have served, offering a basis for assessing their reliability and capability in delivering IT support services.

How does the $7.3 million value compare to similar IT application support contracts within the federal government?

The $7.3 million value for approximately three years of application support is within a common range for federal IT services. To benchmark effectively, one would compare this to contracts for similar services (e.g., custom programming, application maintenance, IT support) awarded by agencies of comparable size and complexity, such as other DOT operating administrations or departments like Commerce or Energy. Factors influencing cost include the number of applications supported, the criticality of those applications, the required skill sets (e.g., specific programming languages, database expertise), and the service level agreements (SLAs). A detailed analysis would involve comparing labor rates, overheads, and profit margins if such data were available, or looking at total contract values for similar scope and duration.

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

Primary risks include potential vendor lock-in, performance issues leading to service disruptions, and cost overruns due to scope creep. Vendor lock-in is a risk inherent in long-term IT support contracts; mitigation involves ensuring the underlying BPA was competitively sourced and planning for future re-competition. Performance risks are managed through the firm-fixed-price structure, defined SLAs, and regular performance monitoring by the contracting officer's representative (COR). Scope creep is mitigated by a clearly defined statement of work (SOW) and a robust change management process. The government's ability to exercise contract options or transition to another vendor at the end of the period also serves as a control.

How effective is the 'full and open competition' approach for the underlying BPA in ensuring competitive pricing for this task order?

The 'full and open competition' approach for the Software and Systems Engineering Services (SWES) BPA is generally effective in promoting competitive pricing. This method allows a wide range of qualified vendors to bid on the BPA, creating a more robust marketplace. When task orders are issued under such a BPA, the initial competition has already established a baseline of competitive rates. However, the effectiveness for a specific task order also depends on whether multiple vendors under the BPA are capable and interested in fulfilling that particular requirement. If only one or a few vendors can meet the specific technical needs of the task order, the competitive pressure might be less intense than in a standalone, full-and-open competition for the task order itself.

What is the historical spending trend for OST application support services at the Department of Transportation?

Analyzing historical spending trends for OST application support services requires examining contract data over several fiscal years. This would involve querying databases like FPDS for contracts awarded to support OST applications, looking at both BPA calls and standalone contracts. Trends might indicate increasing or decreasing reliance on external support, shifts in technology focus (e.g., cloud migration, legacy system maintenance), and changes in average contract values or durations. Understanding these patterns helps contextualize the current $7.3 million task order, assessing whether it represents a typical investment, an increase, or a decrease in spending for these 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: 693JJ322Q000044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $8,794,495

Exercised Options: $7,966,307

Current Obligation: $7,320,313

Actual Outlays: $6,251,722

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $2,216,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000013

IDV Type: BPA

Timeline