Usda Awards $14.7M for Phis Support Services V to Harmonia Holdings Group, LLC

Contract Overview

Contract Amount: $14,693,337 ($14.7M)

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: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PHIS SUPPORT SERVICES V

Place of Performance

Location: BLACKSBURG, MONTGOMERY County, VIRGINIA, 24060

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.7 million to HARMONIA HOLDINGS GROUP, LLC for work described as: PHIS SUPPORT SERVICES V Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract is for custom computer programming services, a common IT support function. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Contract duration of over 4 years provides stability for service delivery. 5. The award is not set aside for small businesses, suggesting a focus on larger prime contractors. 6. Virginia is the primary state for performance, potentially indicating a concentration of federal IT work in the region.

Value Assessment

Rating: fair

The contract value of $14.7 million over approximately 4 years for IT support services appears within a reasonable range for custom computer programming. Benchmarking against similar contracts for IT support within the Department of Agriculture or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the specific pricing details and profit margins are not publicly available for detailed analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the best value. The use of a BPA Call implies that the underlying BPA itself was likely competed, further supporting a competitive process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of federal dollars spent.

Public Impact

The Food Safety and Inspection Service (FSIS) within the Department of Agriculture is the primary beneficiary, receiving IT support services. These services likely contribute to the operational efficiency and technological infrastructure supporting FSIS's mission. The geographic impact is concentrated in Virginia, where the contractor will perform the work. The contract supports jobs within the IT services sector, specifically in custom computer programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome-based measures makes it difficult to assess the true effectiveness and value delivered.
Limited transparency on the specific tasks and deliverables under this BPA Call could obscure potential inefficiencies.
The reliance on a single BPA Call for a significant duration might limit opportunities for reassessment or adoption of newer technologies if not managed proactively.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
Awarding through a BPA Call suggests a streamlined procurement process based on pre-vetted capabilities.
The contract duration of over four years allows for continuity of essential IT support services.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls under the broader category of IT support services, which are essential for government operations. Comparable spending benchmarks for custom computer programming services can vary widely based on complexity, duration, and specific skill sets required. Federal agencies consistently procure these services to maintain and upgrade their technological infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific small business subcontracting requirements mentioned in the provided data. This suggests that the prime contractor, Harmonia Holdings Group, LLC, is likely a larger entity capable of fulfilling the contract requirements independently or through its own established supply chain. The absence of set-aside provisions means that opportunities for small businesses to directly participate as prime contractors on this specific award were limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's contracting officers and the Food Safety and Inspection Service's program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency regarding specific performance metrics and deliverables would enhance accountability, but this information is not detailed in the provided data. The contract's duration and value may also be subject to internal agency reviews and potentially oversight from the Government Accountability Office (GAO) if disputes arise.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
IT Support Services
Blanket Purchase Agreements (BPAs)
Federal IT Contracts

Risk Flags

Potential for technological obsolescence due to long contract duration.
Lack of specific performance metrics hinders objective evaluation.
Limited transparency on detailed service deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.7 million to HARMONIA HOLDINGS GROUP, LLC. PHIS SUPPORT SERVICES V

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 $14.7 million.

What is the period of performance?

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

What specific custom computer programming services are being provided under this contract?

The provided data indicates the contract is for 'Custom Computer Programming Services' (NAICS 541511) under the 'PHIS SUPPORT SERVICES V' effort. However, the specific nature of these services is not detailed. Typically, custom computer programming involves designing, developing, and implementing software solutions tailored to an organization's unique needs. This could range from developing new applications, modifying existing software, integrating different systems, database development, or providing specialized programming expertise for the Food Safety and Inspection Service's (FSIS) internal systems and public-facing platforms. Without further documentation, the exact scope remains general.

How does the contract value of $14.7 million compare to similar IT support contracts within the USDA?

Comparing the $14.7 million contract value for PHIS SUPPORT SERVICES V requires access to a broader dataset of USDA IT contracts. However, for a contract spanning over four years (November 2020 to December 2025), this value averages approximately $3.675 million per year. This figure is not exceptionally high or low for federal IT support services, which can range significantly based on complexity and scope. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes (like 541511) and service types awarded by the USDA or its agencies during a comparable timeframe, considering factors like contract duration, number of bidders, and specific deliverables.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Harmonia Holdings Group, LLC's performance under this contract. For IT support services, common KPIs might include system uptime, response times for issue resolution, successful software deployment rates, adherence to project timelines, and user satisfaction. The effectiveness of oversight and accountability relies heavily on clearly defined and measurable performance standards, which are not detailed here. The firm fixed-price nature implies deliverables must be met, but the specific quality and efficiency benchmarks are crucial for a full assessment.

What is the track record of Harmonia Holdings Group, LLC with federal IT contracts?

Harmonia Holdings Group, LLC has a history of receiving federal contracts, including this $14.7 million award from the Department of Agriculture. While the provided data doesn't detail their entire contract history, their ability to win a 'full and open competition' award suggests they possess the necessary qualifications and experience. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts, and their performance history with other federal agencies to gauge their reliability and expertise in delivering IT services.

What is the potential risk associated with the long duration (over 4 years) of this contract?

The primary risk associated with a long contract duration, such as the 4+ years for PHIS SUPPORT SERVICES V, is the potential for technological obsolescence and evolving requirements. Over an extended period, the IT landscape can change rapidly, and the initially procured services or technologies might become outdated or less efficient. Additionally, long-term contracts can sometimes reduce flexibility for the agency to adapt to new needs or explore alternative solutions if the initial scope doesn't perfectly align with future demands. Effective contract management, including regular reviews and potential modifications, is crucial to mitigate these risks.

How does the BPA Call mechanism impact the overall cost and efficiency compared to a standard contract?

A Blanket Purchase Agreement (BPA) Call is a mechanism used to streamline the ordering process for supplies or services that are already available under an existing contract (the parent BPA). The parent BPA is typically established after a competitive process. Using a BPA Call for this contract suggests that the foundational terms, conditions, and pricing were likely negotiated and competed beforehand. This can lead to cost savings through volume purchasing and reduced administrative effort for each individual order (call). It also allows for faster procurement compared to initiating a new, full solicitation process for each requirement, enhancing efficiency for the agency.

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: $14,693,337

Exercised Options: $14,693,337

Current Obligation: $14,693,337

Actual Outlays: $14,693,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 123A9420A0002

IDV Type: BPA

Timeline