DoD's $17.25M contract for computer services awarded to HALVIK, LLC, with incremental funding of $27K

Contract Overview

Contract Amount: $17,250,310 ($17.3M)

Contractor: Halvik, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2026-11-12

Contract Duration: 806 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INCREMENTAL FUNDING ON CLIN 0001AA IN THE AMOUNT OF $27,000.00

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to HALVIK, LLC for work described as: INCREMENTAL FUNDING ON CLIN 0001AA IN THE AMOUNT OF $27,000.00 Key points: 1. Value for money appears fair given the firm-fixed-price structure, though detailed cost breakdowns are not provided. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and potential for scope creep. 4. Performance context is within IT services, a common area for federal procurement. 5. Sector positioning is within defense IT services, a significant area of federal spending.

Value Assessment

Rating: fair

The contract's total value is $17.25 million. Without specific deliverables or a detailed cost breakdown, a precise value-for-money assessment is challenging. The firm-fixed-price structure generally favors the government by capping costs. However, benchmarking against similar 'Other Computer Related Services' contracts would be necessary for a more robust comparison of pricing and value.

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 4 bidders suggests a reasonably competitive environment, which typically helps in achieving better pricing and service terms for the government.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs and encouraging innovation among contractors.

Public Impact

The Department of Defense is the primary beneficiary, receiving computer-related services. Services delivered are expected to support various defense operations and IT infrastructure. The geographic impact is likely concentrated around the contractor's operational base and the DoD facilities they support, primarily in Virginia. Workforce implications include employment opportunities for IT professionals within HALVIK, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (806 days) could lead to potential cost overruns if not managed effectively.
Scope creep is a risk in IT service contracts, potentially increasing the final cost beyond initial estimates.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
Award to HALVIK, LLC, a known entity in government contracting, may indicate a level of established performance.

Sector Analysis

This contract falls within the broader IT services sector, which is a substantial component of federal spending. The North American Industry Classification System (NAICS) code 541519 ('Other Computer Related Services') covers a wide range of IT support and consulting. Federal spending in this area is consistently high, driven by the need for modernizing IT infrastructure and supporting complex operations across agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary focus is on larger contract vehicles, and the impact on the small business ecosystem would be indirect, related to overall market competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services Contracts
Defense IT Modernization Programs
Computer Systems Design Services
Information Technology Professional Services

Risk Flags

Long contract duration
Potential for scope creep
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to HALVIK, LLC. INCREMENTAL FUNDING ON CLIN 0001AA IN THE AMOUNT OF $27,000.00

Who is the contractor on this award?

The obligated recipient is HALVIK, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2024-08-28. End: 2026-11-12.

What is HALVIK, LLC's track record with the Department of Defense and similar IT service contracts?

HALVIK, LLC has a history of contracting with the Department of Defense. While specific details on past performance for this exact type of service require deeper investigation into contract databases and performance reports, their continued awards suggest a satisfactory performance history. Benchmarking their past performance on similar firm-fixed-price IT service contracts, particularly those exceeding $10 million, would provide a clearer picture of their reliability and ability to deliver within budget and schedule. Analyzing past award trends and any reported issues or commendations would offer further insight into their contractor capabilities.

How does the $17.25 million contract value compare to similar 'Other Computer Related Services' contracts awarded by the DoD?

The $17.25 million contract value for 'Other Computer Related Services' is a significant but not uncommon figure for IT support contracts within the Department of Defense. To benchmark effectively, one would compare this value against other firm-fixed-price contracts awarded under NAICS code 541519 by the DoD or other federal agencies over the past 2-3 years. Factors such as contract duration, specific services rendered (e.g., cybersecurity, network management, software development), and the number of bidders would be crucial for a meaningful comparison. Contracts of this magnitude often support large-scale IT operations or modernization efforts.

What are the primary risks associated with this firm-fixed-price contract for IT services?

The primary risks for a firm-fixed-price IT services contract of this size include potential scope creep, where the requirements may expand beyond the initial agreement, leading to change orders and increased costs if not managed strictly. Contractor underestimation of effort or unforeseen technical challenges could also strain resources. For the government, the risk lies in potentially paying a premium if the contractor's initial bid was overly conservative due to the competitive environment or if the fixed price doesn't accurately reflect the evolving technological landscape. Ensuring clear performance metrics and robust oversight is key to mitigating these risks.

How effective are firm-fixed-price contracts in ensuring value for money for IT services like these?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring value for money for IT services when requirements are well-defined and stable. They shift the risk of cost overruns to the contractor, incentivizing efficiency and cost control. However, for complex or rapidly evolving IT services, FFP can sometimes lead to contractors cutting corners on quality or innovation to maintain profitability, or conversely, bidding high to cover potential risks. The effectiveness hinges on the clarity of the SOW, the contractor's ability to accurately estimate costs, and the government's oversight to ensure performance standards are met without compromising quality.

What is the historical spending trend for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense?

Historical spending on 'Other Computer Related Services' (NAICS 541519) by the Department of Defense has generally shown an upward trend over the past decade, reflecting the increasing reliance on advanced IT solutions for defense operations, intelligence gathering, and administrative functions. This category encompasses a broad range of services, from IT consulting and system integration to network support and cybersecurity. Federal budget allocations for IT modernization and digital transformation initiatives within the DoD consistently drive significant investment in this sector. Analyzing specific annual spending figures would reveal the scale and growth trajectory of this market segment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD, SUITE 240, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $78,165,384

Exercised Options: $29,465,281

Current Obligation: $17,250,310

Actual Outlays: $2,466,323

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,013,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA078

IDV Type: IDC

Timeline