Commerce Awards $94.4M for Computer Systems Design Services to Harmonia Holdings Group, LLC

Contract Overview

Contract Amount: $94,369,046 ($94.4M)

Contractor: Harmonia Holdings Group, LLC

Awarding Agency: Department of Commerce

Start Date: 2018-08-24

End Date: 2023-07-31

Contract Duration: 1,802 days

Daily Burn Rate: $52.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DITD AWARD

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $94.4 million to HARMONIA HOLDINGS GROUP, LLC for work described as: DITD AWARD Key points: 1. The award totals $94.4 million over its duration. 2. Harmonia Holdings Group, LLC is the sole awardee. 3. The contract was competed under SAP (Simplified Acquisition Procedures). 4. The sector is Information Technology (IT) services. 5. The contract type is Time and Materials.

Value Assessment

Rating: fair

The contract is a Time and Materials (T&M) award, which can lead to higher costs if not managed closely. Benchmarking T&M contracts is challenging due to variable labor rates and scope creep potential. The awarded amount of $94.4M over 5 years suggests a significant but not exceptionally high annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating it was likely a limited competition. While SAP aims for efficiency, it may not always achieve the best price discovery compared to full and open competition. The specific details of the SAP competition are not provided.

Taxpayer Impact: The use of SAP and T&M pricing may result in higher taxpayer costs if not rigorously managed for scope and labor rates.

Public Impact

Supports critical U.S. Census Bureau operations through IT services. Ensures continuity of essential government IT infrastructure. Potential for cost overruns due to Time and Materials contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and agency needs. The $94.4M award over five years represents a moderate annual spend for specialized IT support.

Small Business Impact

The data indicates the awardee is not a small business (sb: false). Therefore, this specific award does not appear to directly benefit small businesses through subcontracting opportunities, unless Harmonia Holdings Group, LLC has its own small business subcontracting plan not detailed here.

Oversight & Accountability

Oversight would focus on the U.S. Census Bureau's management of the Time and Materials contract to prevent cost overruns and ensure adherence to the Statement of Work. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-commerce, md, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $94.4 million to HARMONIA HOLDINGS GROUP, LLC. DITD AWARD

Who is the contractor on this award?

The obligated recipient is HARMONIA HOLDINGS GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $94.4 million.

What is the period of performance?

Start: 2018-08-24. End: 2023-07-31.

What specific computer systems design services are being provided under this contract, and how do they align with the Census Bureau's mission objectives?

The contract is for 'Computer Systems Design Services' (NAICS 541512). These services likely encompass the design, development, integration, and maintenance of complex IT systems supporting the U.S. Census Bureau's data collection, processing, and dissemination activities. This directly aligns with the agency's core mission of conducting censuses and providing statistical data to the nation.

What measures are in place to mitigate the risks associated with a Time and Materials contract, particularly regarding potential cost overruns and scope creep?

Effective oversight of T&M contracts requires robust task order management, clear definition of deliverables, and continuous monitoring of labor hours and rates. The Census Bureau should implement strict approval processes for all work performed, conduct regular performance reviews with Harmonia Holdings Group, LLC, and establish clear ceilings or CLINs (Contract Line Item Numbers) to control spending and prevent unauthorized scope expansion.

How does the pricing of this contract compare to similar IT services contracts awarded by other federal agencies, considering the limited competition?

Benchmarking this T&M contract's pricing is difficult without detailed labor rates and specific service descriptions. However, the limited competition under SAP suggests that the price discovery might not be as robust as in full and open competitions. A comparative analysis would require access to detailed pricing data from similar contracts, factoring in variations in service complexity, geographic location, and vendor experience.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2020 KRAFT DR STE 1000, BLACKSBURG, VA, 24060

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

Financial Breakdown

Contract Ceiling: $97,740,055

Exercised Options: $94,369,046

Current Obligation: $94,369,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCYA132315BU0037

IDV Type: BPA

Timeline

Start Date: 2018-08-24

Current End Date: 2023-07-31

Potential End Date: 2024-07-31 00:00:00

Last Modified: 2025-01-31

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