Agriculture awards $10.8M for PHIS OPTIMIZATION II to Harmonia Holdings Group, LLC

Contract Overview

Contract Amount: $10,802,432 ($10.8M)

Contractor: Harmonia Holdings Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-11-16

End Date: 2025-12-17

Contract Duration: 1,857 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PHIS OPTIMIZATION II

Place of Performance

Location: BLACKSBURG, MONTGOMERY County, VIRGINIA, 24060

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.8 million to HARMONIA HOLDINGS GROUP, LLC for work described as: PHIS OPTIMIZATION II Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 1857 days provides long-term service delivery. 4. Services fall under Custom Computer Programming, a key IT sector. 5. Virginia is the place of performance, potentially impacting local economy. 6. No small business set-aside, suggesting larger prime contractor focus.

Value Assessment

Rating: good

The contract value of $10.8M over approximately five years for custom computer programming services appears reasonable. Benchmarking against similar IT services contracts within the federal government, particularly for system optimization and custom development, suggests this falls within a typical spending range. The firm fixed price structure helps manage cost certainty. Further analysis would require detailed scope of work comparison and specific performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through a Blanket Purchase Agreement (BPA) Call. This indicates that multiple vendors had the opportunity to bid on the task order. The use of a BPA generally implies that a broader competition occurred at the BPA level, with subsequent calls being more streamlined. The number of bidders for this specific call is not provided, but the full and open nature suggests a competitive process.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competitions. It ensures that the government receives offers from a wide range of qualified vendors.

Public Impact

Benefits the Department of Agriculture's Food Safety and Inspection Service (FSIS) by optimizing their systems. Delivers custom computer programming services to enhance operational efficiency. Services are performed in Virginia, potentially creating or sustaining local IT jobs. Aims to improve the technological infrastructure supporting food safety initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the optimized system is highly proprietary.
Dependence on a single contractor for critical system maintenance and upgrades.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded through a competitive BPA Call, suggesting prior vetting and competition.
Long contract duration allows for sustained development and support.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically custom computer programming services. This is a significant area of federal spending as agencies continually seek to modernize and optimize their digital infrastructure. The market for such services is competitive, with numerous firms offering specialized development and integration capabilities. Comparable spending benchmarks for custom software development within federal agencies often range from hundreds of thousands to millions of dollars, depending on the complexity and duration of the project.

Small Business Impact

The contract was not awarded as a small business set-aside, and the prime contractor, Harmonia Holdings Group, LLC, is not explicitly identified as a small business in the provided data. This suggests the primary focus was on obtaining the best value from the broader market. There is no information provided regarding subcontracting plans or goals, which could impact the participation of small businesses in fulfilling the contract requirements.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a BPA Call, it likely falls under the oversight framework established for the parent BPA. The firm fixed price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply to ensure compliance and prevent fraud, waste, and abuse.

Related Government Programs

Food Safety and Inspection Service IT Modernization Efforts
Department of Agriculture Custom Software Development
Federal IT Services Procurement
BPA Call Contracts

Risk Flags

Long contract duration increases risk of technological obsolescence.
Firm Fixed Price for custom development can be risky if scope is not well-defined.
Potential for vendor lock-in with specialized system optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.8 million to HARMONIA HOLDINGS GROUP, LLC. PHIS OPTIMIZATION II

Who is the contractor on this award?

The obligated recipient is HARMONIA HOLDINGS GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2020-11-16. End: 2025-12-17.

What is the specific nature of the 'PHIS OPTIMIZATION II' project and its objectives?

PHIS OPTIMIZATION II likely refers to the second phase or iteration of a project aimed at improving the Performance and Health Information System (PHIS) or a similar critical system within the Department of Agriculture, specifically the Food Safety and Inspection Service (FSIS). The primary objectives would typically involve enhancing the system's functionality, performance, reliability, and user experience. This could include streamlining data processing, improving reporting capabilities, integrating new features, or updating the underlying technology stack to meet evolving operational needs and regulatory requirements. The 'optimization' aspect suggests a focus on making the system more efficient and effective in supporting FSIS's mission of ensuring food safety.

How does the awarded amount of $10.8M compare to historical spending on similar optimization projects within FSIS or USDA?

Without specific historical data on 'PHIS OPTIMIZATION I' or comparable projects within FSIS/USDA, a direct comparison is challenging. However, $10.8M over approximately five years (1857 days) averages to roughly $2.16M per year. This figure is within the expected range for significant IT system development and optimization contracts in large federal agencies. Many federal IT modernization efforts involve multi-million dollar investments over several years. To provide a more precise benchmark, one would need to analyze the scope, complexity, and duration of past FSIS/USDA IT projects and compare them to the current contract's deliverables and market rates for custom programming services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the PHIS OPTIMIZATION II contract. However, for a custom computer programming services contract focused on system optimization, typical KPIs might include system uptime percentages, response times for critical functions, data processing throughput, reduction in error rates, successful deployment of new features within agreed timelines, and user satisfaction scores. SLAs would define the acceptable performance thresholds for these KPIs and potential remedies or penalties if they are not met. These details are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is the track record of Harmonia Holdings Group, LLC in delivering similar IT optimization services to the federal government?

Assessing Harmonia Holdings Group, LLC's track record requires examining their past federal contract performance, particularly in custom computer programming and system optimization. Publicly available data, such as contract databases (e.g., FPDS), performance evaluation reports (e.g., CPARS), and the company's own portfolio, would be necessary. Key aspects to review include their history with similar agencies (like USDA), the size and complexity of previous projects, client feedback on performance, adherence to schedule and budget, and any instances of contract disputes or challenges. A positive track record in delivering complex IT solutions would increase confidence in their ability to successfully execute the PHIS OPTIMIZATION II contract.

What are the potential risks associated with a five-year firm fixed-price contract for custom software development?

A significant risk with a long-term, firm fixed-price (FFP) contract for custom software development is scope creep and the contractor's potential to underbid or overestimate the effort required. If the project requirements evolve significantly beyond the initial scope, the contractor may incur substantial losses, potentially leading to quality compromises or a desire to renegotiate. Conversely, if the contractor significantly underestimated the effort, they might cut corners. Another risk is technological obsolescence; over a five-year period, the technology landscape can change, potentially making the developed solution outdated or requiring costly modifications. Ensuring a robust change management process and clear initial requirements definition is crucial to mitigate these risks.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 KRAFT DR STE 2400, BLACKSBURG, VA, 24060

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,802,432

Exercised Options: $10,802,432

Current Obligation: $10,802,432

Actual Outlays: $10,802,432

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $199,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 123A9420A0002

IDV Type: BPA

Timeline