DoD Awards $76M Engineering Services Contract to HALVIK, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $76,157,956 ($76.2M)

Contractor: Halvik, LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-25

End Date: 2026-02-25

Contract Duration: 1,857 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENTERPRISE SERVICES FOR G-4.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $76.2 million to HALVIK, LLC for work described as: ENTERPRISE SERVICES FOR G-4. Key points: 1. Contract awarded for Enterprise Services for G-4. 2. HALVIK, LLC is the contractor. 3. The contract is for Engineering Services (NAICS 541330). 4. Awarded by the Department of the Army, part of DoD. 5. Contract duration is 1857 days.

Value Assessment

Rating: good

The contract value of $76.16 million over approximately 5 years appears reasonable for enterprise engineering services. Benchmarking against similar large-scale engineering support contracts within the DoD would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was used, but specific sources were initially excluded. This method aims for competitive pricing while potentially narrowing the field.

Taxpayer Impact: The competitive award process is designed to secure fair market value, ultimately benefiting taxpayers by avoiding inflated costs associated with non-competitive contracts.

Public Impact

Ensures continued engineering support for critical Department of the Army operations. Supports national defense objectives through specialized technical services. Provides economic activity through contract spending and potential subcontracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion criteria.
Long contract duration may lead to scope creep or evolving needs.
Firm Fixed Price contract can shift risk to contractor but may inflate initial bids.

Positive Signals

Awarded through a full and open competition process.
Contract supports essential defense infrastructure.
Clear contract end date provides planning certainty.

Sector Analysis

Engineering services are crucial for defense infrastructure maintenance and development. The $76 million contract value falls within a typical range for large-scale, multi-year engineering support contracts awarded by federal agencies, particularly the Department of Defense.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The award was made by the Department of the Army, a component of the DoD, which has established oversight mechanisms for contract execution and financial management. The 'Delivery Order' nature suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition due to source exclusion.
Long-term contract (approx. 5 years) may not adapt to rapidly changing needs.
Firm Fixed Price could lead to higher initial bid prices.
Lack of detail on 'G-4' makes assessing specific value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.2 million to HALVIK, LLC. ENTERPRISE SERVICES FOR G-4.

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 $76.2 million.

What is the period of performance?

Start: 2021-01-25. End: 2026-02-25.

What specific enterprise services are being procured under this contract, and how do they align with current DoD strategic priorities?

The contract specifies 'ENTERPRISE SERVICES FOR G-4,' which likely refers to a specific program or operational area within the Department of the Army. Without further details on 'G-4,' it's difficult to ascertain the exact services. However, enterprise services generally encompass IT, logistics, administrative, or specialized technical support crucial for large organizations. Alignment with DoD priorities would depend on the nature of G-4's mission, potentially relating to readiness, modernization, or operational efficiency.

What were the specific criteria for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion potentially limit competitive pricing?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that only a subset of potential offerors possess. While this can streamline the evaluation process, it inherently limits the pool of competitors. The impact on pricing depends on how many qualified sources remained; if only a few, prices might be higher than in a truly unrestricted competition. A review of the solicitation's justification for exclusion is necessary.

How does the firm-fixed-price (FFP) contract type impact the government's risk exposure and the contractor's incentive for cost control over the 1857-day period?

A Firm Fixed Price (FFP) contract places the primary risk of cost overruns on the contractor. This incentivizes HALVIK, LLC to manage costs efficiently to maintain profitability. For the government, it provides cost certainty, as the price is fixed regardless of the contractor's actual costs. However, contractors may build in higher contingency amounts into FFP bids to account for potential risks, which could lead to a higher initial price compared to cost-reimbursement contracts.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD, SUITE 240, 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: $76,157,956

Exercised Options: $76,157,956

Current Obligation: $76,157,956

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $45,752,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1046

IDV Type: IDC

Timeline