DOT awards $2.9M IT support BPA call for parking systems to Halvik, LLC

Contract Overview

Contract Amount: $2,898,265 ($2.9M)

Contractor: Halvik, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-11-01

End Date: 2026-04-30

Contract Duration: 911 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS BPA CALL ORDER IS FOR THE IT SUPPORT SERVICES FOR TRANSERVE'S PARKING AND MANAGEMENT SYSTEMS (PTBS) UNDER THE FEDERAL HIGHWAY ADMINISTRATIONS, SOFTWARE ENGINEERING SERVICES (SWES) BLANKET PURCHASE AGREEMENT WITH HALVIK CORP.

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 $2.9 million to HALVIK, LLC for work described as: THE PURPOSE OF THIS BPA CALL ORDER IS FOR THE IT SUPPORT SERVICES FOR TRANSERVE'S PARKING AND MANAGEMENT SYSTEMS (PTBS) UNDER THE FEDERAL HIGHWAY ADMINISTRATIONS, SOFTWARE ENGINEERING SERVICES (SWES) BLANKET PURCHASE AGREEMENT WITH HALVIK CORP. Key points: 1. Contract focuses on IT support for parking and management systems, indicating a need for specialized software maintenance and development. 2. The award was made under a Blanket Purchase Agreement (BPA) for Software Engineering Services, suggesting a pre-vetted vendor pool. 3. Competition was full and open, which typically drives better pricing and value for the government. 4. The contract duration of approximately 2.5 years allows for sustained support but requires monitoring for potential cost overruns. 5. The primary service code (541511) points to custom computer programming, aligning with IT support needs. 6. The contract is not set aside for small businesses, meaning larger firms likely participated in the competition.

Value Assessment

Rating: good

The contract value of $2.9 million over roughly 2.5 years for IT support services appears reasonable, especially given the full and open competition. Benchmarking against similar custom computer programming services (NAICS 541511) suggests that this pricing is within expected ranges for specialized IT support. The BPA structure likely contributes to efficient pricing by pre-negotiating terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, full and open competition generally fosters a competitive environment, leading to better price discovery and potentially more innovative solutions. This approach maximizes the government's ability to secure the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring that federal funds are used efficiently.

Public Impact

Federal Highway Administration (FHWA) personnel will benefit from reliable IT support for their parking and management systems. The services delivered will ensure the continued operation and maintenance of critical transportation management software. The primary geographic impact is within the District of Columbia, where the Department of Transportation is headquartered. The contract supports IT professionals and potentially software developers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'IT support' is not strictly managed.
Dependence on a single contractor for critical system support could pose a risk if performance falters.
The duration of the contract may not align with rapid technological advancements in IT support.

Positive Signals

Awarded under a BPA for Software Engineering Services, indicating pre-qualification and potentially streamlined processes.
Full and open competition suggests a robust market response and competitive pricing.
The contract is for essential IT support, ensuring operational continuity for key systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for IT support and software engineering services is vast and highly competitive, with numerous firms offering specialized solutions. The Department of Transportation's reliance on such services for its operational systems is common across federal agencies, reflecting the increasing digitization of government functions. Comparable spending benchmarks for IT support contracts of this nature can vary widely based on complexity, duration, and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the competition was likely dominated by larger, established IT service providers. While this may lead to efficient service delivery, it also means fewer direct opportunities for small businesses to participate in this specific contract's execution, though they may be involved in the broader IT ecosystem supporting the government.

Oversight & Accountability

Oversight for this BPA call order will likely be managed by the contracting officer's representative (COR) within the Department of Transportation's Immediate Office of the Secretary of Transportation. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Highway Administration IT Services
Department of Transportation Software Engineering Services BPA
Custom Computer Programming Services Contracts
IT Support for Transportation Management Systems

Risk Flags

Potential for vendor lock-in if not managed proactively.
Risk of underestimation of support needs leading to contract modifications.
Dependence on specific personnel expertise within Halvik, LLC.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.9 million to HALVIK, LLC. THE PURPOSE OF THIS BPA CALL ORDER IS FOR THE IT SUPPORT SERVICES FOR TRANSERVE'S PARKING AND MANAGEMENT SYSTEMS (PTBS) UNDER THE FEDERAL HIGHWAY ADMINISTRATIONS, SOFTWARE ENGINEERING SERVICES (SWES) BLANKET PURCHASE AGREEMENT WITH HALVIK CORP.

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-04-30.

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

Halvik, LLC has a history of performing IT and professional services for various federal agencies, including the Department of Transportation. Their contract portfolio often includes software development, IT support, and program management. Analyzing their past performance on similar contracts, particularly those involving custom computer programming and IT support for operational systems, is crucial. A review of their award history and past performance evaluations (if publicly available) would indicate their reliability, quality of service, and ability to meet deadlines and budget constraints. Consistent positive performance across multiple contracts suggests a lower risk for this BPA call order.

How does the $2.9 million contract value compare to similar IT support contracts for transportation management systems?

The $2.9 million contract value for approximately 2.5 years of IT support for parking and management systems appears to be within a reasonable range, especially considering it was awarded under full and open competition. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) within the federal government, particularly those supporting operational systems like transportation management, is essential. Factors such as the complexity of the systems, the required skill sets, and the service level agreements will influence the cost. Given the duration and the nature of IT support, this value suggests a moderate level of investment for maintaining critical infrastructure.

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

Key risks include potential vendor performance issues, scope creep, and technological obsolescence. Vendor performance risk is mitigated by the initial vetting process under the BPA and the requirement for Halvik, LLC to meet defined service level agreements. Scope creep can be managed through clear contract definitions and diligent oversight by the Contracting Officer's Representative (COR). Technological obsolescence is a risk inherent in IT contracts; mitigation involves ensuring the contract allows for adaptation to new technologies or periodic reviews of system requirements. The full and open competition also helps mitigate risks by ensuring a competitive market can provide alternatives if performance issues arise.

How effective is the Software Engineering Services (SWES) BPA in ensuring value for money for IT support services?

The Software Engineering Services (SWES) BPA is designed to streamline the procurement of IT support and software engineering services by pre-vetting vendors and establishing general terms and conditions. This can lead to faster award times and potentially better pricing due to pre-negotiated rates or a competitive environment among BPA holders. For this specific BPA call order, the full and open competition among BPA holders further enhances value for money by ensuring competitive proposals are submitted for the specific task. The effectiveness is ultimately measured by the quality of services delivered, adherence to schedule, and cost control throughout the contract's life.

What is the historical spending pattern for IT support services within the Department of Transportation's Immediate Office of the Secretary of Transportation?

Analyzing historical spending patterns for IT support services within the Immediate Office of the Secretary of Transportation provides context for this $2.9 million award. This involves examining previous contract awards for similar services, including custom computer programming and IT support, over the past several fiscal years. Understanding the typical contract values, durations, and the number of vendors engaged can reveal trends in IT investment and procurement strategies. Significant deviations from historical patterns might warrant further investigation into the specific needs driving this contract or potential changes in the agency's IT support approach.

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: 3

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: $3,501,847

Exercised Options: $3,501,847

Current Obligation: $2,898,265

Actual Outlays: $2,371,517

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $2,462,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000013

IDV Type: BPA

Timeline