DoD's $5.7M IT Service Support Contract Awarded to H2K Solutions Inc. for Engineering Services

Contract Overview

Contract Amount: $5,689,049 ($5.7M)

Contractor: H2K Solutions Incorporated

Awarding Agency: Department of Defense

Start Date: 2022-05-20

End Date: 2026-05-14

Contract Duration: 1,455 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICE SUPPORT

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to H2K SOLUTIONS INCORPORATED for work described as: INFORMATION TECHNOLOGY SERVICE SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Information Technology Service Support, a critical function for the Department of the Navy. 3. Fixed-price contract type aims to control costs and provide predictability. 4. The duration of the contract extends over several years, indicating a long-term need. 5. The award value is substantial, requiring careful monitoring of performance and value. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, which may encompass IT infrastructure and support.

Value Assessment

Rating: good

The contract value of approximately $5.7 million over its period of performance appears reasonable for IT service support and engineering services. Benchmarking against similar contracts for IT support within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of excellent value is difficult.

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 bids. The presence of 10 bids suggests a healthy level of competition for this requirement. A competitive environment generally leads to better pricing and service offerings as contractors vie for the award. The number of bidders provides a good indication that the government received a range of proposals to consider.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value, potentially driving down costs and improving service quality.

Public Impact

The Department of the Navy benefits from enhanced IT service support and engineering capabilities. Military operations and administrative functions relying on IT infrastructure will experience improved stability and performance. Personnel within the Navy will have access to more reliable IT systems and technical assistance. The contract supports the technological infrastructure necessary for national defense readiness. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially including bases in Georgia where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
Ensuring continued alignment with evolving technological advancements throughout the contract duration.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm fixed-price contract type helps manage cost certainty.
Long contract duration suggests a stable, ongoing need for these services.
Contractor H2K Solutions Inc. has secured this award, implying they met the government's requirements.

Sector Analysis

The Information Technology (IT) services sector is a significant area of federal spending, encompassing a wide range of support, development, and maintenance activities. Federal agencies rely heavily on IT for mission-critical operations, cybersecurity, and data management. This contract for IT service support and engineering services fits within the broader IT services market, which is characterized by rapid technological change and a constant demand for skilled professionals. Comparable spending benchmarks for IT support contracts within the Department of Defense often run into millions of dollars annually, reflecting the scale of these requirements.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'sb': false field. Therefore, the primary contractor, H2K Solutions Inc., is likely not a small business for the purpose of this award. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is unclear, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers responsible for IT services. Performance will be monitored against the terms and conditions of the firm fixed-price contract, including delivery schedules and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Enterprise IT Services
Information Technology Professional Services
Engineering Services Contracts
Federal IT Support Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues impacting critical IT systems.
Need for ongoing monitoring to ensure alignment with technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to H2K SOLUTIONS INCORPORATED. INFORMATION TECHNOLOGY SERVICE SUPPORT

Who is the contractor on this award?

The obligated recipient is H2K SOLUTIONS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2022-05-20. End: 2026-05-14.

What is the track record of H2K Solutions Inc. in performing similar IT service support contracts for the federal government?

Assessing the track record of H2K Solutions Inc. requires a review of their past performance on federal contracts, particularly those involving IT service support and engineering services. Databases like the Federal Procurement Data System (FPDS) and the Contractor Performance Assessment Reporting System (CPARS) would provide insights into their past performance ratings, any contract awards or terminations, and the types of services they have delivered. A history of successful contract completions, positive performance reviews, and adherence to delivery schedules would indicate a lower risk. Conversely, a pattern of performance issues, disputes, or contract modifications could signal potential risks for this current award. Without direct access to these detailed performance records, it is difficult to definitively assess their historical reliability for this specific contract.

How does the awarded value of $5.7 million compare to similar IT service support contracts within the Department of the Navy?

To benchmark the $5.7 million award value, one would compare it against similar Information Technology Service Support and Engineering Services contracts awarded by the Department of the Navy or other Department of Defense branches over the past few years. Key comparison points include contract duration, scope of services, number of bidders, and contract type (e.g., firm fixed-price). For instance, if similar contracts for comparable IT support services over a 3-4 year period typically range from $3 million to $7 million, then this $5.7 million award appears to be within a reasonable market range. However, if comparable contracts are significantly lower, it might warrant further investigation into the specific services included or the market conditions at the time of award. The presence of 10 bids suggests a competitive market, which generally helps in achieving fair pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this IT service support contract include potential performance deficiencies by the contractor, leading to disruptions in critical Navy IT systems. Another risk is the possibility of cost overruns if the firm fixed-price contract does not adequately account for unforeseen technical challenges or scope creep. Technological obsolescence is also a concern, as IT needs evolve rapidly. Mitigation strategies typically involve robust contract oversight by the Navy, including regular performance reviews, clear definition and management of contract scope, and adherence to change control processes. The firm fixed-price nature itself acts as a cost mitigation tool. For technological obsolescence, contract clauses may allow for adjustments or require the contractor to propose upgrades.

How effective is the firm fixed-price contract type in ensuring value for money for this IT service support requirement?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for IT service support when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the risk for cost overruns, incentivizing them to manage their resources efficiently and control costs. This provides budget certainty for the government. For IT services, where requirements can sometimes be fluid, the effectiveness of FFP depends heavily on the clarity of the statement of work and the government's ability to manage scope. If the scope is well-defined and stable, FFP can lead to competitive pricing and predictable costs, thus maximizing value. If the scope is expected to change frequently, other contract types might be more appropriate to avoid costly change orders.

What is the historical spending trend for IT service support and engineering services within the Department of the Navy?

Historical spending trends for IT service support and engineering services within the Department of the Navy typically show a consistent and significant investment. Agencies like the Navy rely heavily on external contractors to maintain, upgrade, and support their complex IT infrastructures and to provide specialized engineering expertise. Spending in this category often fluctuates based on major modernization initiatives, cybersecurity upgrades, and operational tempo. Over the past decade, federal IT spending, including within the DoD, has generally increased, driven by the need to modernize legacy systems, enhance cybersecurity, and adopt new technologies like cloud computing and artificial intelligence. Specific figures would require detailed analysis of historical federal procurement data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700422R3004

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13010 HATTONTOWN SQ, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,858,361

Exercised Options: $5,750,731

Current Obligation: $5,689,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7748

IDV Type: IDC

Timeline