USDA Telecom Invoice Management Services Contract Awarded to Manhattan Telecommunications for $4.19M

Contract Overview

Contract Amount: $4,194,627 ($4.2M)

Contractor: Manhattan Telecommunications Corporation LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-02-11

End Date: 2026-03-31

Contract Duration: 1,874 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA TELECOM INVOICE MANAGEMENT SERVICES

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10041

State: New York Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.2 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: USDA TELECOM INVOICE MANAGEMENT SERVICES Key points: 1. The contract is for telecom invoice management services. 2. Manhattan Telecommunications Corporation LLC is the awardee. 3. The contract value is $4.19 million over its period. 4. The contract was awarded under full and open competition. 5. The period of performance is from February 2021 to March 2026.

Value Assessment

Rating: fair

The contract value of $4.19M over 5 years for telecom invoice management seems within a reasonable range for services of this nature. Benchmarking against similar contracts for managed telecom services would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market competition and can lead to cost savings.

Public Impact

Ensures efficient management of USDA's telecommunications spending. Supports the Office of the Chief Financial Officer in financial oversight. Aims to optimize telecom costs through professional invoice management. Provides essential services for a large federal agency's communication infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if not managed carefully.
Reliance on a single vendor for critical telecom expense management.

Positive Signals

Awarded through full and open competition.
Clear contract period and defined services.
Managed by a specific office within USDA for accountability.

Sector Analysis

The telecommunications services sector is critical for government operations, with significant spending on network infrastructure and management. This contract falls under wired telecommunications carriers, a segment focused on fixed-line services and associated management.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The awardee, Manhattan Telecommunications Corporation LLC, is not identified as a small business in this context, suggesting the primary award was not directed towards small business participation.

Oversight & Accountability

The Office of the Chief Financial Officer is responsible for overseeing this contract, indicating a focus on financial accountability. However, further details on specific oversight mechanisms and performance reviews would be needed for a comprehensive assessment.

Related Government Programs

Wired Telecommunications Carriers
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of detailed performance metrics.
Potential for vendor lock-in.
No clear indication of small business participation.
Limited insight into specific cost-saving achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.2 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. USDA TELECOM INVOICE MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is MANHATTAN TELECOMMUNICATIONS CORPORATION LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2021-02-11. End: 2026-03-31.

What specific metrics are used to evaluate the effectiveness of the telecom invoice management services provided by Manhattan Telecommunications?

The provided data does not specify the performance metrics used to evaluate the effectiveness of the telecom invoice management services. Typically, such contracts would include metrics related to cost savings achieved, accuracy of invoice processing, reduction in billing errors, and timeliness of issue resolution. A review of the full contract documentation would be necessary to identify these specific performance indicators and their targets.

What is the potential risk associated with relying on a single vendor for telecom invoice management, even under full and open competition?

The primary risk of relying on a single vendor is potential vendor lock-in, where the agency becomes heavily dependent on the vendor's systems and expertise, making future transitions difficult and potentially costly. There's also a risk of complacency from the vendor if competition is not continuously fostered through contract renewals or performance reviews. Ensuring strong contract management and regular performance evaluations can mitigate these risks.

How does this contract contribute to the USDA's overall IT modernization or efficiency goals?

This contract contributes to efficiency by outsourcing the complex and time-consuming task of managing telecom invoices, allowing USDA personnel to focus on core mission activities. Effective invoice management can lead to cost savings and identification of unused or redundant services, freeing up IT budgets for modernization initiatives. The contract supports the operational backbone necessary for any IT infrastructure, ensuring reliable communication services.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314421Q0014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 WATER ST FL 32, NEW YORK, NY, 10041

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,194,627

Exercised Options: $4,194,627

Current Obligation: $4,194,627

Actual Outlays: $270,841,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0494X

IDV Type: FSS

Timeline