State Department awards $4.9M IT support contract to Harmonia Holdings Group, LLC

Contract Overview

Contract Amount: $4,921,250 ($4.9M)

Contractor: Harmonia Holdings Group, LLC

Awarding Agency: Department of State

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $13.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SERVICE DESK, OPERATIONS, AND PLATFORM ENGINEERING SUPPORT (SDOP)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20010

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $4.9 million to HARMONIA HOLDINGS GROUP, LLC for work described as: SERVICE DESK, OPERATIONS, AND PLATFORM ENGINEERING SUPPORT (SDOP) Key points: 1. Contract focuses on IT service desk, operations, and platform engineering. 2. Harmonia Holdings Group, LLC is the sole awardee. 3. The contract duration is one year, with a total value of approximately $4.9 million. 4. This award falls under the 'Other Computer Related Services' category. 5. The contract was competed under Simplified Acquisition Procedures (SAP). 6. The contract is a BPA Call award, indicating it's a call-off from a pre-existing agreement. 7. The primary place of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of $4.9 million for a one-year IT support services contract appears within a reasonable range for federal IT services. However, without specific details on the scope of services, number of users supported, or the complexity of the platform engineering required, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for service desk and operations support would provide a clearer picture of whether the pricing is competitive. The contract's structure as a BPA Call suggests potential for pre-negotiated rates, which could offer some cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source but may not reach the full and open competition level. The data indicates it was a 'COMPETED UNDER SAP' award, suggesting that multiple offers may have been solicited and evaluated, but the specific number of bidders is not provided. This level of competition is generally sufficient for smaller dollar value procurements but might not always yield the most aggressive pricing compared to full and open competition.

Taxpayer Impact: For taxpayers, competition under SAP aims to balance efficiency with cost-effectiveness. While not as robust as full and open competition, it is intended to prevent waste by ensuring some level of market vetting for contracts of this size.

Public Impact

The Department of State benefits from continued IT service desk, operations, and platform engineering support. This contract ensures the smooth functioning of IT infrastructure critical for diplomatic and operational activities. The services delivered are essential for maintaining secure and efficient communication channels for the agency. The primary geographic impact is within the District of Columbia, where the place of performance is located. The contract supports the agency's mission by providing necessary technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have secured the absolute best pricing for taxpayers.
Lack of detailed scope of work makes it difficult to benchmark value-for-money effectively.
The contract is a BPA Call, which requires understanding the underlying BPA's terms and competition.

Positive Signals

Awarded under a competed process, indicating some level of market engagement.
Contract duration of one year allows for flexibility and reassessment of needs.
Focus on essential IT support services ensures operational continuity for the agency.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to areas like service desk operations, system maintenance, and platform engineering. This contract falls within the broader IT services sector, specifically focusing on IT support and operational functions. The value of $4.9 million for a one-year contract is moderate within the context of federal IT spending, which can range from millions to billions for larger, more complex projects. Comparable contracts often involve managed services, help desk support, and cloud platform management.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if there are specific subcontracting requirements for small businesses. As the contract was competed under SAP, it's possible that small businesses were among the bidders or could be subcontractors. However, without explicit information, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if subcontracting opportunities were mandated or if small businesses participated in the primary competition.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As it is an IT services contract, there may be internal IT governance structures and performance metrics in place to ensure accountability. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Service Desk Support
IT Operations and Maintenance
Platform Engineering Services
Department of State IT Contracts
Simplified Acquisition Procedures (SAP) Awards
Blanket Purchase Agreement (BPA) Calls

Risk Flags

Potential for limited competition impacting price discovery.
Dependence on a single contractor for critical IT functions.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.9 million to HARMONIA HOLDINGS GROUP, LLC. SERVICE DESK, OPERATIONS, AND PLATFORM ENGINEERING SUPPORT (SDOP)

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 $4.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of Harmonia Holdings Group, LLC with the Department of State and other federal agencies?

Harmonia Holdings Group, LLC has a history of receiving federal contracts, including with the Department of State. Analyzing their past performance on similar IT support and services contracts is crucial. This includes examining contract values, durations, any reported performance issues or awards, and their overall experience in delivering services like service desk operations and platform engineering. A review of their contract history across various agencies can reveal patterns in their service delivery, client satisfaction, and ability to meet federal requirements. For instance, prior contracts with the State Department for comparable services would be particularly relevant for assessing their suitability for this specific award.

How does the $4.9 million contract value compare to similar IT support contracts awarded by the Department of State or other agencies?

Benchmarking the $4.9 million contract value against similar IT support contracts is essential for assessing value for money. This comparison should consider contracts for service desk operations, platform engineering, and general IT support services awarded by the Department of State and other agencies of comparable size and mission. Factors such as the number of end-users supported, the complexity of the IT environment, and the specific services included (e.g., 24/7 support, advanced platform management) must be taken into account. If similar contracts with comparable scopes of work were awarded at significantly lower price points, it could indicate that this contract may be priced above market rates. Conversely, if the scope is more extensive or complex, the price might be justified.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are critical for measuring the performance of Harmonia Holdings Group, LLC. These metrics typically include response times for service desk tickets, resolution rates, system uptime percentages, and user satisfaction scores. The contract documents should detail these KPIs and SLAs, along with the methodology for tracking and reporting on them. The Department of State's contracting officer and program managers will be responsible for monitoring these metrics to ensure that Harmonia Holdings Group, LLC is meeting its contractual obligations. Consistent failure to meet established SLAs could trigger contractual remedies or impact future contract awards.

What is the historical spending pattern for IT service desk, operations, and platform engineering support at the Department of State?

Examining the historical spending patterns for IT service desk, operations, and platform engineering support at the Department of State provides context for the current $4.9 million award. This involves looking at previous contract awards for similar services, their values, durations, and the contractors involved over the past several fiscal years. Understanding this trend can reveal whether spending in this area is increasing, decreasing, or remaining stable. It also helps identify if there's a reliance on specific contractors or contract vehicles. Significant year-over-year increases or decreases in spending could warrant further investigation into the underlying reasons, such as changes in agency requirements, technology adoption, or procurement strategies.

What are the potential risks associated with relying on a single awardee for critical IT support services?

Relying on a single awardee, even if competed under SAP, carries inherent risks. One primary risk is the potential for reduced competition and price leverage in future procurements if the incumbent contractor becomes entrenched. There's also a risk of service disruption if the contractor faces financial difficulties, staffing issues, or decides not to bid on future extensions or replacements. Furthermore, a lack of alternative providers can limit the agency's ability to adopt new technologies or innovative solutions that a different vendor might offer. While this contract is for one year, the agency should be mindful of fostering a competitive environment for subsequent contract actions to mitigate these risks.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM23Q0009

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $16,355,608

Exercised Options: $16,355,608

Current Obligation: $4,921,250

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $414,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM23A0178

IDV Type: BPA

Timeline