Commerce Department awards $37.6M for broadband mapping, raising questions on competition and value

Contract Overview

Contract Amount: $37,608,039 ($37.6M)

Contractor: Costquest Associates LLC

Awarding Agency: Department of Commerce

Start Date: 2023-02-14

End Date: 2027-02-13

Contract Duration: 1,460 days

Daily Burn Rate: $25.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NTIA BROADBAND FABRIC MAPPING DATA

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45202

State: Ohio Government Spending

Plain-Language Summary

Department of Commerce obligated $37.6 million to COSTQUEST ASSOCIATES LLC for work described as: NTIA BROADBAND FABRIC MAPPING DATA Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm-fixed-price structure provides cost certainty but may not incentivize efficiency. 3. Limited competition raises concerns about whether the government secured the best possible value. 4. The contract duration of four years suggests a significant, long-term project. 5. Geographic scope is limited to Ohio, indicating a focused, regional application. 6. The service category, Geophysical Surveying and Mapping, is specialized and may have few qualified bidders.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable sole-source awards. The fixed-price nature provides some cost control, but the lack of competition means the government cannot leverage market forces to drive down prices. The total award amount of $37.6 million over four years suggests a substantial investment, and without competitive bids, it's difficult to definitively assess if this represents excellent value for money. Further analysis of the contractor's proposed costs against industry standards for similar mapping services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, COSTQUEST ASSOCIATES LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and may result in higher costs for the government compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the potential cost savings that arise from vendors vying for the contract.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing bids, there's a risk that the price paid is higher than what could have been achieved through a competitive process.

Public Impact

The primary beneficiaries are the residents and businesses within Ohio who will gain access to improved broadband availability data. The contract will deliver detailed mapping data crucial for understanding and expanding broadband infrastructure. The geographic impact is confined to the state of Ohio. The contract supports the NTIA Broadband Fabric Mapping initiative, contributing to national broadband deployment goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to lack of market comparison.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contractor is likely specialized in geophysical surveying and mapping.
Supports a critical national initiative for broadband expansion.

Sector Analysis

The geophysical surveying and mapping sector is essential for infrastructure development and resource management. This contract falls within the broader IT and professional services landscape, specifically focusing on data collection and analysis for telecommunications infrastructure. The market for specialized mapping services can be niche, with a limited number of firms possessing the required expertise and technology. Comparable spending benchmarks are difficult to establish without more specific details on the scope and methodology of the mapping services required.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a specific firm, it is unlikely to directly benefit the small business ecosystem through subcontracting opportunities unless the prime contractor voluntarily engages small businesses. Further investigation into the prime contractor's subcontracting plans would be necessary to assess any potential impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officer and program managers. Transparency regarding the sole-source justification and performance metrics is crucial. The contract's fixed-price nature simplifies some aspects of financial oversight, but performance monitoring remains key. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NTIA Broadband Data Collection
Federal Broadband Infrastructure Programs
Geospatial Data Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of public justification for sole-source procurement.
Contract duration of four years requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $37.6 million to COSTQUEST ASSOCIATES LLC. NTIA BROADBAND FABRIC MAPPING DATA

Who is the contractor on this award?

The obligated recipient is COSTQUEST ASSOCIATES LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $37.6 million.

What is the period of performance?

Start: 2023-02-14. End: 2027-02-13.

What specific methodology and technology will COSTQUEST ASSOCIATES LLC employ for the broadband fabric mapping in Ohio?

The provided data does not detail the specific methodology or technology COSTQUEST ASSOCIATES LLC will employ. However, geophysical surveying and mapping services for broadband infrastructure typically involve a combination of techniques such as aerial surveys (using drones or aircraft equipped with sensors like LiDAR), ground-based surveys, and analysis of existing infrastructure data. The goal is to create a granular map of existing broadband deployment, identify gaps, and understand the physical characteristics of the terrain and infrastructure that may affect deployment. The NTIA Broadband Fabric Mapping initiative aims for high accuracy and granularity, suggesting advanced data collection and processing techniques will be utilized. Further details would likely be found in the contract's statement of work.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the summary data. Typically, sole-source contracts are justified when only one responsible source is available or possesses unique capabilities, or in cases of urgent and compelling need. For specialized services like geophysical surveying and mapping for broadband, the justification might stem from the contractor possessing proprietary technology, unique expertise, or having already completed prior phases of related work that make them the only viable option. The Department of Commerce would have had to formally document and approve this justification, often requiring public notice and a period for other potential contractors to respond if they believe they could meet the need.

How does the $37.6 million award compare to similar broadband mapping initiatives in other states or at the federal level?

Direct comparison of the $37.6 million award for Ohio's broadband mapping to similar initiatives is difficult without more granular data on the scope, duration, and specific services rendered in other contracts. Federal and state broadband mapping efforts vary significantly in their geographic coverage, the level of detail required (e.g., household-level vs. census block-level), and the technologies employed. The NTIA Broadband Fabric Mapping program itself is a large-scale effort, and this award represents a portion of that. To make a meaningful comparison, one would need to analyze contracts for similar geographic areas, similar data granularity requirements, and similar timeframes, ideally from competitive procurements to establish a benchmark for value.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement methods for this contract. However, for a broadband mapping contract, typical KPIs would likely include the accuracy and completeness of the data collected, adherence to mapping standards (e.g., NTIA's data requirements), timeliness of deliverables, and the usability of the final mapped products. Performance would likely be monitored by the contracting officer's representative (COR) through regular progress reports, data validation checks, and potentially site visits or reviews of the mapping products against the contract's statement of work and technical requirements.

What is the historical spending pattern of the Department of Commerce with COSTQUEST ASSOCIATES LLC for similar services?

The provided data only includes information for this specific contract and does not offer historical spending patterns with COSTQUEST ASSOCIATES LLC. To assess historical spending, one would need to query federal procurement databases (like USASpending.gov or FPDS) for all contracts awarded to this vendor by the Department of Commerce or other federal agencies, filter by service category (e.g., mapping, surveying, data analysis), and analyze the total amounts and trends over time. This would help determine if this $37.6 million award is an outlier or part of a consistent pattern of significant awards to this contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Geophysical Surveying and Mapping Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 659 VAN METER ST STE 520, CINCINNATI, OH, 45202

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,918,524

Exercised Options: $37,608,039

Current Obligation: $37,608,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline