The decomposition of polynomials of one vector variable into irreducible modules for the orthogonal group is a crucial result in harmonic analysis which makes use of the Howe duality theorem and leads to the study of spherical harmonics. The aim of the present paper is to describe a decomposition of polynomials in two vector variables and to obtain projection operators on each of the irreducible components. To do so, a particular transvector algebra will be used as a new dual partner for the orthogonal group leading to a generalisation of the classical Howe duality. The results are subsequently used to obtain explicit projection operators and formulas for integration of polynomials over the associated Stiefel manifold.