Harmonia Holdings Group awarded $29.3M for custom computer programming, with a 5-year duration

Contract Overview

Contract Amount: $29,276,499 ($29.3M)

Contractor: Harmonia Holdings Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2014-08-13

End Date: 2019-02-14

Contract Duration: 1,646 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64141

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.3 million to HARMONIA HOLDINGS GROUP, LLC for work described as: IGF::OT::IGF Key points: 1. Contract value of $29.3M over 5 years suggests a moderate annual spend. 2. The contract was competed fully and openly, indicating a competitive bidding process. 3. Fixed-price contract type generally transfers risk to the contractor. 4. The NAICS code 541511 points to a focus on software development and IT services. 5. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contract's duration of 1646 days (approx. 5 years) is typical for IT service contracts of this scale.

Value Assessment

Rating: good

The contract value of $29.3M over approximately 5 years averages to about $5.86M annually. Without specific benchmarks for custom computer programming services within the USDA's Farm Service Agency, it's difficult to definitively assess value for money. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Further analysis would require comparing this to similar contracts for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a robust competitive process. While the specific number of bidders is not provided, this designation suggests that multiple qualified vendors had the opportunity to submit proposals. A full and open competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A fully competed contract is generally beneficial for taxpayers as it is expected to yield competitive pricing and a wider range of innovative solutions.

Public Impact

The Farm Service Agency (FSA) is the primary beneficiary, likely receiving custom software solutions to support its agricultural programs. Services delivered include custom computer programming, which could encompass software development, system integration, and IT support. The geographic impact is likely focused on the operations of the Farm Service Agency, potentially nationwide depending on the software's application. Workforce implications may include the need for skilled IT professionals within the contractor's organization and potentially within the agency for oversight and utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to assess the true effectiveness of the delivered services.
The 'EXCLUSION OF SOURCES' clause, while part of a full and open competition, warrants understanding the specific reasons for exclusion to ensure fairness.
Reliance on a single delivery order under a potential IDIQ could concentrate risk if the IDIQ itself has limitations or if this is the primary vehicle for such services.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive market was accessed.
The firm fixed-price contract type aligns incentives and transfers cost risk to the contractor.
The duration of the contract suggests a long-term need for these services, implying a strategic investment by the agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous firms offering specialized development capabilities. The government is a significant consumer of IT services, with spending often concentrated in areas like software development, cloud computing, and cybersecurity. Benchmarking this contract's value would require comparing it to similar custom development projects within federal agencies or the broader IT services market.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions (ss=false, sb=false). This suggests the contract was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without further information on subcontracting plans, it's difficult to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Farm Service Agency. As a federal contract, it is subject to oversight by the agency's Inspector General, who can conduct audits and investigations into performance and financial management. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific performance reviews and quality assurance processes would be internal to the agency.

Related Government Programs

Custom Software Development Services
IT Professional Services
Federal IT Contracts
Department of Agriculture IT Spending
Farm Service Agency IT Modernization

Risk Flags

Potential for scope creep in custom development
Clarity of requirements and statement of work
Effectiveness of government oversight and quality assurance
Justification for any 'exclusion of sources' in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.3 million to HARMONIA HOLDINGS GROUP, LLC. IGF::OT::IGF

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 (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2014-08-13. End: 2019-02-14.

What specific custom computer programming services were delivered under this contract?

The contract, identified by NAICS code 541511, specifies 'Custom Computer Programming Services.' While the exact deliverables are not detailed in the provided data, this typically encompasses a range of activities such as designing, developing, and implementing new software applications, modifying existing software, integrating different software systems, and providing related technical support. Given the awarding agency is the Farm Service Agency (FSA), the services likely supported specific agricultural programs, data management, or operational systems critical to the FSA's mission. Examples could include developing or enhancing systems for crop insurance, loan processing, conservation programs, or farm data analysis. The firm fixed-price nature suggests a defined scope of work was agreed upon at the outset.

How does the $29.3M contract value compare to similar IT services contracts within the USDA or other federal agencies?

Comparing the $29.3M contract value requires context regarding the scope, duration, and complexity of the services. For custom computer programming, this value over a 5-year period (approximately $5.86M annually) is moderate. Larger federal IT contracts can range from tens of millions to billions of dollars. Within the USDA, IT spending varies significantly by agency and program needs. To provide a precise comparison, one would need to benchmark against contracts for similar custom software development with comparable agencies (e.g., other departments with large data processing or program management needs) and similar contract types (firm fixed-price). Without access to a detailed database of comparable contract values and specific service descriptions, a definitive benchmark is challenging. However, the value suggests a significant but not exceptionally large-scale IT service engagement.

What are the primary risks associated with this firm fixed-price contract for custom programming?

The primary risk with a firm fixed-price (FFP) contract for custom programming lies in the potential for scope creep and the contractor's ability to accurately estimate costs and timelines. If the requirements are not clearly defined upfront or if they evolve significantly during development, the contractor may incur costs exceeding the fixed price, potentially leading to disputes or a reduction in quality to maintain profitability. Conversely, the government risks paying a premium if the contractor's initial cost estimates were overly conservative. For custom programming, the inherent complexity and potential for unforeseen technical challenges mean that scope definition and change management are critical. Effective government oversight and a well-defined statement of work are essential to mitigate these risks.

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

Harmonia Holdings Group, LLC has a history of performing federal IT contracts. Publicly available data indicates they have been awarded numerous contracts across various federal agencies, including the Department of Defense, Department of Homeland Security, and other civilian agencies. Their contract portfolio often includes services related to IT modernization, software development, cybersecurity, and data analytics. While this specific contract with the USDA Farm Service Agency is for custom programming, their broader experience suggests familiarity with federal procurement processes and IT service delivery. A deeper dive into their past performance ratings, any past performance issues, and the types of projects they have successfully completed would provide a more comprehensive understanding of their track record.

How does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') impact taxpayer value?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' generally indicates a competitive process where all responsible sources were permitted to submit a bid, but specific sources were excluded for defined reasons (e.g., national security, specific capabilities). This level of competition is typically favorable for taxpayer value because it encourages multiple vendors to offer their best pricing and technical solutions to win the contract. The exclusion of certain sources, if justified and transparent, should not inherently detract from value as long as a sufficient number of competitive bids are received. The key is that the competition drives down prices and encourages innovation, ensuring the government receives quality services at a reasonable cost. The specific reasons for exclusion would need to be reviewed to ensure they were legitimate and did not unduly restrict competition.

What is the significance of this contract being awarded as a 'DELIVERY ORDER'?

Awarding this contract as a 'DELIVERY ORDER' (DO) signifies that it is likely a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure services or supplies over a period of time up to a certain maximum value, with specific orders placed as needed. This approach provides flexibility for the agency to acquire services incrementally. For taxpayers, this can be efficient if the IDIQ itself was competitively awarded, as it streamlines the procurement process for subsequent needs. However, it also means that the value and competition of the underlying IDIQ are crucial. If the IDIQ was not well-competed or if this delivery order represents a significant portion of the IDIQ's ceiling, it warrants closer scrutiny.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 KRAFT DR STE 2400, 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: $51,995,691

Exercised Options: $29,276,499

Current Obligation: $29,276,499

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AG3151C140024

IDV Type: IDC

Timeline