State Department awards $2.8M IT services contract to Harmonia Holdings Group, LLC

Contract Overview

Contract Amount: $2,821,790 ($2.8M)

Contractor: Harmonia Holdings Group, LLC

Awarding Agency: Department of State

Start Date: 2025-04-01

End Date: 2027-03-28

Contract Duration: 726 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HARMONIA CALL ORDER #3

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $2.8 million to HARMONIA HOLDINGS GROUP, LLC for work described as: HARMONIA CALL ORDER #3 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed under simplified acquisition procedures, suggesting potential for higher costs. 3. Duration of 726 days (approximately 2 years) provides a stable period for service delivery. 4. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 5. The award is a BPA Call, indicating it's part of a larger pre-competed agreement. 6. The contractor, Harmonia Holdings Group, LLC, is based in Virginia.

Value Assessment

Rating: fair

The contract's value of approximately $2.8 million over two years for IT services is moderate. Without specific performance metrics or comparison to similar task orders under the same BPA, a precise value-for-money assessment is difficult. The firm-fixed-price structure helps control costs, but the lack of competition raises concerns about whether the government secured the best possible pricing. Benchmarking against other IT service contracts of similar scope and duration would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a BPA Call, which implies that the underlying Blanket Purchase Agreement (BPA) was likely competed. However, the specific task order itself was not competed under simplified acquisition procedures, suggesting it might have been awarded to a specific vendor already on the BPA without further competition for this particular call. The number of bidders for this specific call is not provided, but the 'NOT COMPETED UNDER SAP' designation indicates limited competition at the task order level.

Taxpayer Impact: Limited competition at the task order level can potentially lead to higher prices for taxpayers compared to a fully competed scenario, as it reduces the pressure on vendors to offer their most competitive rates.

Public Impact

The Department of State benefits from the provision of 'Other Computer Related Services'. This contract supports the operational needs of the State Department, likely involving IT infrastructure or support. The services are delivered to the Department of State, primarily impacting federal employees and potentially diplomatic operations. The contract is firm-fixed-price, providing cost certainty for the agency. The contractor is based in Virginia, potentially creating local or regional economic impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the competition for this particular task order raises concerns about potential overpayment.
The broad NAICS code could encompass a wide range of services, making it difficult to assess if the most specialized and cost-effective vendor was selected.
Without performance metrics, it's challenging to gauge the effectiveness and efficiency of the services provided.

Positive Signals

The firm-fixed-price contract type offers cost predictability for the government.
The award is a BPA Call, suggesting the underlying agreement was subject to some level of competition.
The contract duration of over two years provides stability for service delivery.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide array of specialized services from software development to network management. Contracts like this, falling under NAICS code 541519 ('Other Computer Related Services'), are common across federal agencies. The total federal spending on IT services is in the hundreds of billions annually. This contract represents a small portion of that overall spending, likely supporting specific operational requirements within the Department of State. Benchmarking would involve comparing this contract's pricing and scope to similar IT support services procured by other agencies or within the State Department itself.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, Harmonia Holdings Group, LLC, is not identified as a small business in the provided data. Analysis of potential subcontracting opportunities would require further investigation into the contractor's practices and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a firm-fixed-price contract, the focus of oversight would be on ensuring the delivery of contracted services meets the specified requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's execution or award.

Related Government Programs

Department of State IT Modernization Efforts
General Services Administration (GSA) Schedules
IT Services and Support Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Limited Competition at Task Order Level
Potential for Undefined Scope Creep (mitigated by FFP)
Reliance on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.8 million to HARMONIA HOLDINGS GROUP, LLC. HARMONIA CALL ORDER #3

Who is the contractor on this award?

The obligated recipient is HARMONIA HOLDINGS GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-28.

What is the track record of Harmonia Holdings Group, LLC with federal contracts, particularly with the Department of State?

Harmonia Holdings Group, LLC has a history of federal contracting. While the provided data indicates this specific award is a BPA Call valued at approximately $2.8 million, a comprehensive review of their past performance would involve examining their contract history across various agencies, including the Department of State. This would include looking at the types of services they have provided, contract values, performance ratings, and any past issues or disputes. Understanding their prior success rates and client satisfaction is crucial for assessing their reliability and capability in fulfilling the current contract requirements. Without access to a detailed contract database or performance reports, a definitive assessment of their track record is limited to the information available for this specific award.

How does the pricing of this contract compare to similar IT services contracts awarded by the Department of State or other federal agencies?

A direct pricing comparison is challenging without detailed line-item costs and specific service descriptions. However, the contract is firm-fixed-price, which generally aims for cost certainty. The fact that it was 'NOT COMPETED UNDER SAP' suggests it might not have undergone the most rigorous price competition typically seen in fully competed solicitations. To benchmark effectively, one would need to identify comparable contracts for 'Other Computer Related Services' (NAICS 541519) with similar durations and scopes awarded by the Department of State or other agencies. Factors like the contractor's overhead, labor rates, and profit margins would influence the overall price. A thorough analysis would involve comparing the estimated cost per labor hour or per deliverable against market rates and historical data for similar services.

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

Key risks include potential for cost overruns if the scope is not well-defined (though mitigated by FFP), vendor performance issues (mitigated by oversight and potential for contract termination), and lack of competitive pricing due to limited competition at the task order level. Mitigation strategies would involve robust contract management by the Department of State, clear performance metrics, regular progress reviews, and potentially leveraging the underlying BPA's competitive structure for future task orders. The firm-fixed-price nature inherently shifts some cost risk to the contractor. Ensuring clear deliverables and acceptance criteria is paramount.

How effective is the current IT service delivery likely to be, given the contract details?

The effectiveness of the IT service delivery hinges on several factors not fully detailed in the award data. The firm-fixed-price structure incentivizes the contractor to deliver services efficiently within the agreed budget. The contract duration of over two years suggests a need for ongoing, stable support. However, without specific performance work statements (PWS), key performance indicators (KPIs), or past performance data for Harmonia Holdings Group, LLC on similar tasks, it's difficult to predict effectiveness. The Department of State's contract management and oversight will be critical in ensuring the services meet their operational requirements and quality standards.

What are the historical spending patterns for 'Other Computer Related Services' at the Department of State, and how does this award fit in?

Historical spending patterns for 'Other Computer Related Services' (NAICS 541519) at the Department of State would reveal the agency's reliance on external vendors for various IT support functions. This $2.8 million award represents a specific instance of such spending. Analyzing past expenditures would show trends in contract values, types of services procured, and the primary contractors utilized. This particular award, being a BPA Call, suggests it aligns with a pre-established framework for procuring these services, potentially indicating a strategic approach to managing IT support needs. Understanding these patterns helps contextualize the current award within the agency's broader IT procurement strategy and budget allocation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM23Q0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small 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

Financial Breakdown

Contract Ceiling: $13,674,519

Exercised Options: $10,857,846

Current Obligation: $2,821,790

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $435,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM23A0178

IDV Type: BPA

Timeline