DOT awards $4.9M for QA test support, with HALVIK, LLC securing the contract

Contract Overview

Contract Amount: $4,934,680 ($4.9M)

Contractor: Halvik, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-11-21

End Date: 2026-11-20

Contract Duration: 1,095 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: QUALITY ASSURANCE (QA) TEST SUPPORT SERVICES

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 $4.9 million to HALVIK, LLC for work described as: QUALITY ASSURANCE (QA) TEST SUPPORT SERVICES Key points: 1. Contract value appears reasonable for the scope of QA test support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include contractor performance and adherence to delivery schedules. 4. This contract supports the Federal Motor Carrier Safety Administration's mission. 5. The IT services sector is characterized by rapid technological advancements and evolving needs.

Value Assessment

Rating: good

The contract value of approximately $4.9 million over three years for Quality Assurance (QA) Test Support Services appears to be within a reasonable range for specialized IT support. Benchmarking against similar contracts for QA services, especially those involving custom programming and testing, would provide a more precise value-for-money assessment. However, given the duration and the nature of the services, the allocated funds seem appropriate for ensuring the quality of IT systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving the best value. This approach typically fosters price discovery and encourages competitive pricing among potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider selection of qualified vendors, potentially reducing overall costs.

Public Impact

The Federal Motor Carrier Safety Administration (FMCSA) is the primary beneficiary, receiving essential QA test support. Services delivered include quality assurance and testing for IT systems, crucial for maintaining operational integrity. The geographic impact is centered in the District of Columbia, where the agency is located. This contract supports IT professionals and testers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if testing requirements are not clearly defined.
Dependence on contractor expertise for critical QA functions.
Ensuring timely delivery of test results to meet project deadlines.

Positive Signals

Contractor HALVIK, LLC has experience in IT services.
Full and open competition suggests a focus on best value.
The contract duration allows for sustained support and relationship building.

Sector Analysis

The Information Technology (IT) services sector is a vast and dynamic market. This contract falls under custom computer programming services (NAICS 541511), a segment focused on designing, developing, and testing software and IT systems. The federal government is a significant consumer of these services, with spending often driven by the need to modernize legacy systems, develop new applications, and ensure the security and reliability of its IT infrastructure. Comparable spending benchmarks for QA testing services vary widely based on complexity, duration, and specific skill sets required.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this particular award is likely minimal. However, larger prime contractors often engage small businesses for specialized services, which could indirectly benefit them if HALVIK, LLC utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Motor Carrier Safety Administration's contracting officers and program managers. Accountability measures would include performance metrics outlined in the contract, regular progress reports, and adherence to service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Services
Quality Assurance
Software Testing
Custom Computer Programming
Federal IT Modernization

Risk Flags

Contractor Performance Risk
Schedule Adherence Risk
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.9 million to HALVIK, LLC. QUALITY ASSURANCE (QA) TEST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2023-11-21. End: 2026-11-20.

What is HALVIK, LLC's track record with federal IT service contracts, particularly in QA and testing?

Information regarding HALVIK, LLC's specific track record in federal IT service contracts, especially in Quality Assurance (QA) and testing, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government projects. Federal procurement databases often contain past performance information that can shed light on a contractor's reliability, technical capabilities, and ability to meet contractual obligations. Without this specific data, it's difficult to definitively assess their experience in this niche.

How does the $4.9 million contract value compare to similar QA test support services procured by the federal government?

The $4.9 million contract value for QA test support services over three years (approximately $1.63 million per year) needs to be benchmarked against comparable federal procurements. Factors influencing cost include the complexity of the systems being tested, the required skill sets (e.g., specialized testing tools, cybersecurity expertise), the number of personnel, and the duration of the contract. For standard IT testing services, this amount could be considered moderate. However, if the contract involves highly specialized testing for critical infrastructure or complex software, it might represent a competitive price. A detailed comparison would involve analyzing contract data for similar services, agencies, and contract types to establish a robust benchmark.

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

Primary risks associated with this contract include potential contractor underperformance, delays in testing cycles impacting project timelines, and the possibility of scope creep if requirements are not clearly defined and managed. Mitigation strategies typically involve robust contract oversight, clearly defined performance metrics and deliverables, regular progress reviews, and strong communication channels between the government and the contractor. The contract's structure, including defined periods of performance and potential for contract modifications, also plays a role in managing risks. The use of full and open competition aims to select a contractor with a proven ability to manage these risks effectively.

How effective is the Federal Motor Carrier Safety Administration (FMCSA) likely to be in managing this QA test support contract?

The effectiveness of the FMCSA in managing this QA test support contract will depend on several factors, including the expertise of its contracting officers and program managers, the clarity of the contract's statement of work, and the established oversight mechanisms. Agencies with experienced personnel and well-defined processes for monitoring contractor performance, managing changes, and ensuring compliance are generally more effective. The fact that the contract is for 'Custom Computer Programming Services' suggests a need for technically proficient government oversight. The agency's commitment to active management and clear communication will be crucial for ensuring the contractor delivers high-quality testing services.

What are the historical spending patterns for QA test support services within the Department of Transportation?

Historical spending patterns for QA test support services within the Department of Transportation (DOT) are not detailed in the provided data. To analyze this, one would need to examine historical contract awards for similar services across various DOT agencies over several fiscal years. This analysis would reveal trends in contract values, types of services procured, dominant contractors, and the overall investment in QA and testing. Understanding these patterns can help in assessing whether the current $4.9 million award is consistent with past spending, represents an increase or decrease, and aligns with the agency's strategic priorities for IT quality assurance.

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

Offers Received: 1

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, 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: $11,532,221

Exercised Options: $4,934,680

Current Obligation: $4,934,680

Actual Outlays: $3,126,397

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,144,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000013

IDV Type: BPA

Timeline