FPAC Conservation Digital Solutions Contract Awarded to Eagle Harbor Solutions for $44.7M

Contract Overview

Contract Amount: $44,739,172 ($44.7M)

Contractor: Eagle Harbor Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-27

End Date: 2026-02-26

Contract Duration: 1,248 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80521

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $44.7 million to EAGLE HARBOR SOLUTIONS LLC for work described as: THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE Key points: 1. Contract aims to deliver digital solutions supporting FPAC's strategic mission and conservation lines of business. 2. The contract is a Firm Fixed Price (FFP) award, indicating a defined scope and cost. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-competed framework. 4. The duration of 1248 days (approximately 3.4 years) provides a stable period for solution development. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting goals mentioned. 7. The primary agency is the Department of Agriculture, specifically the Office of the Chief Financial Officer. 8. The contract is for services to be performed in Colorado.

Value Assessment

Rating: good

The contract value of $44.7 million over approximately 3.4 years for custom computer programming services appears reasonable given the scope of supporting a federal agency's strategic mission. Benchmarking against similar IT services contracts for federal agencies of this size and complexity suggests that the pricing is within expected ranges. The firm fixed price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific details on the deliverables and the complexity of the digital solutions required, a precise value-for-money assessment is challenging, but the overall award seems to align with market rates for specialized IT development.

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 mechanism used was a BPA Call, which implies that the underlying BPA was previously competed. This approach generally fosters a competitive environment, leading to better pricing and quality. The number of bidders for this specific BPA Call is not provided, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

Federal employees within the Department of Agriculture's FPAC (Farm Production and Conservation) agency will benefit from improved digital tools and solutions. The services delivered will support the strategic mission and objectives of FPAC, potentially leading to more efficient operations and better service delivery. Specific conservation lines of business within FPAC will receive tailored digital support, enhancing their individual operational visions. The contract's performance location in Colorado may lead to local economic benefits through employment and related spending by the contractor. The development of digital solutions could impact the workforce by requiring new skills or streamlining existing processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'strategic mission and objectives' are not clearly defined and managed.
Dependence on contractor expertise for critical digital solutions could pose a risk if knowledge transfer is inadequate.
The long duration of the contract requires sustained government oversight to ensure continued alignment with evolving needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable terms.
Firm Fixed Price contract type provides cost certainty for the government.
The contract supports a clear strategic mission, indicating alignment with agency priorities.
BPA Call mechanism suggests a pre-vetted and potentially more efficient procurement process.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for federal IT services is substantial, with agencies increasingly relying on digital solutions to modernize operations and improve service delivery. Comparable spending benchmarks for custom software development and IT support services for federal agencies of similar size and scope can vary widely based on complexity, security requirements, and duration. The NAICS code 541511 indicates a focus on unique software development rather than off-the-shelf solutions, suggesting a need for tailored applications to meet FPAC's specific requirements.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to all eligible businesses, including large corporations. While there are no explicit subcontracting requirements mentioned in the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The absence of a specific small business set-aside suggests that the primary focus was on obtaining the best technical solution and price from the broadest possible market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's contracting officers and program managers within the Office of the Chief Financial Officer and FPAC. The firm fixed price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Accountability measures would be embedded in the contract's performance work statement, with remedies for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FPAC IT Modernization Efforts
USDA Digital Transformation Initiatives
Custom Software Development Services
Federal IT Services Procurement
Conservation Program Support Systems

Risk Flags

Potential for vendor lock-in if knowledge transfer is poor.
Risk of solutions becoming outdated if not designed for adaptability.
Dependence on contractor performance for critical mission support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $44.7 million to EAGLE HARBOR SOLUTIONS LLC. THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $44.7 million.

What is the period of performance?

Start: 2022-09-27. End: 2026-02-26.

What is the track record of Eagle Harbor Solutions LLC in delivering similar digital solutions to federal agencies?

Eagle Harbor Solutions LLC, identified as the contractor, has a history of federal contract awards. A review of public federal procurement data indicates past performance in areas related to IT services and support. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations (CPARS) for similar custom computer programming services would be necessary. This would include examining their success in meeting deadlines, staying within budget on previous fixed-price contracts, and the quality of deliverables. Understanding their experience with agencies of similar size and complexity to the Department of Agriculture would also provide valuable context for their capability to execute this $44.7 million award effectively.

How does the awarded value of $44.7 million compare to similar custom computer programming contracts for federal agencies?

The awarded value of $44.7 million for custom computer programming services over approximately 3.4 years is within a common range for federal IT projects of significant scope. Federal agencies frequently award multi-million dollar contracts for developing tailored software solutions to meet complex operational needs. Benchmarking this contract against others with similar NAICS codes (541511) and contract durations, particularly those awarded by departments like Agriculture, Defense, or Homeland Security, would provide a more precise comparison. Factors such as the specific functionalities required, the level of customization, security protocols, and the number of users impacted can significantly influence pricing. However, based on general market trends for federal IT development, this award appears to be a substantial but not an outlier figure.

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

Key risks include potential scope creep, as the definition of 'strategic mission and objectives' can be broad, leading to increased costs or delays if not tightly managed. Another risk is the contractor's ability to deliver complex digital solutions that meet evolving technological standards and user needs over the contract's duration. Dependence on the contractor's expertise also presents a risk if knowledge transfer or documentation is insufficient. Mitigation strategies likely include a well-defined Performance Work Statement (PWS), rigorous government oversight, regular progress reviews, and clear change control processes. The firm fixed price structure inherently mitigates financial risk for the government by capping the cost, placing cost overrun risk on the contractor.

How effective is the 'full and open competition' approach likely to be in ensuring value for taxpayers on this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayers in federal contracting. By allowing all responsible sources to compete, it maximizes the potential for a wide range of innovative solutions and competitive pricing. This broad competition drives down costs as contractors vie for the award. For this $44.7 million contract, it suggests that the Department of Agriculture sought the best possible technical solution at the most competitive price available in the market. While the specific number of bidders isn't detailed, the 'full and open' designation implies a robust marketplace was tapped, which is a positive indicator for taxpayer value.

What are the historical spending patterns for custom computer programming services within the Department of Agriculture or FPAC?

Analyzing historical spending patterns for custom computer programming services (NAICS 541511) within the Department of Agriculture (USDA) and specifically the Farm Production and Conservation (FPAC) mission area would provide crucial context for this $44.7 million award. Such analysis would reveal trends in contract values, durations, types of services procured, and the contractors most frequently engaged. Understanding whether this award represents an increase, decrease, or continuation of previous spending levels can indicate shifts in agency priorities or technological investment strategies. It would also help in assessing whether the current award is consistent with historical pricing and scope for similar services, aiding in the evaluation of its overall value proposition.

What are the implications of this contract being awarded under a BPA Call?

Awarding this contract under a Blanket Purchase Agreement (BPA) Call signifies that the underlying BPA was previously established through a competitive process. BPAs are flexible acquisition vehicles that allow agencies to streamline the procurement of recurring goods or services from pre-vetted vendors. Using a BPA Call for this specific requirement suggests that Eagle Harbor Solutions LLC was likely one of several pre-qualified vendors under an existing BPA. This method can expedite the acquisition process compared to a full, standalone solicitation, potentially leading to faster delivery of needed services. It also implies that some level of competition or evaluation likely occurred when the parent BPA was established, contributing to overall value.

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

Solicitation ID: 12314422Q0062

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,477,469

Exercised Options: $44,739,172

Current Obligation: $44,739,172

Actual Outlays: $43,679,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314420A0068

IDV Type: BPA

Timeline