Interior awards $900K for wired telecom services to Zayo Group LLC, a sole-source purchase order

Contract Overview

Contract Amount: $90,000 ($90.0K)

Contractor: Zayo Group LLC

Awarding Agency: Department of the Interior

Start Date: 2025-09-15

End Date: 2026-05-02

Contract Duration: 229 days

Daily Burn Rate: $393/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ZAYO TELECOMMUNICATIONS SERVICE

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $90,000 to ZAYO GROUP LLC for work described as: ZAYO TELECOMMUNICATIONS SERVICE Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, as the contract was not competed. 3. Risk indicators are moderate, given the reliance on a single vendor without competitive pressure. 4. Performance context is limited to the duration and fixed-price nature of the award. 5. Sector positioning places this within the telecommunications infrastructure services for government operations.

Value Assessment

Rating: fair

The award of $900,000 for wired telecommunications services to Zayo Group LLC is a sole-source purchase order. Without competitive bidding, it is challenging to benchmark the pricing against market rates or similar government contracts. The fixed-price nature provides some cost certainty, but the lack of competition raises questions about whether the government secured the best possible value. Further analysis would require understanding the specific service requirements and comparing them to industry standards for similar deployments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. The Bureau of Land Management directly awarded the contract to Zayo Group LLC without soliciting bids from other vendors. This approach bypasses the typical competitive process, which can limit price discovery and potentially lead to higher costs for the government. The absence of multiple bidders means there was no direct comparison of offerings or pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution available. Without a bidding process, there is no assurance that Zayo Group's pricing is competitive.

Public Impact

The Bureau of Land Management benefits from this contract by securing essential wired telecommunications services. These services are critical for supporting the agency's operational needs within Idaho. The contract ensures connectivity for government functions, potentially impacting remote operations and data transmission. The geographic impact is focused on Idaho, where the Bureau of Land Management operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may reduce incentive for vendor to offer best value.
Dependence on a single provider for critical infrastructure.

Positive Signals

Fixed-price contract provides cost certainty for the awarded amount.
Awarded to a known entity, Zayo Group LLC, suggesting potential existing relationship or expertise.
Contract duration is defined, allowing for future re-evaluation of needs.

Sector Analysis

This contract falls within the telecommunications services sector, specifically wired telecommunications carriers. This industry is characterized by significant infrastructure investment and is essential for modern government operations, enabling data transmission, communication, and network connectivity. The market includes large established providers and specialized service companies. Government spending in this area often supports agency-wide networks, data centers, and remote site connectivity.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Zayo Group LLC, a large telecommunications provider, suggests that small business participation is unlikely in this specific contract. This award does not appear to contribute to the small business ecosystem or provide opportunities for small business subcontractors.

Oversight & Accountability

As a purchase order, oversight mechanisms are typically managed through the contracting officer and agency procurement regulations. Transparency is limited due to the sole-source nature, with less public information available compared to competed contracts. Accountability rests with the Bureau of Land Management to ensure the services meet the contract's requirements and are delivered as specified. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Federal Telecommunications Services
Network Infrastructure Contracts
Bureau of Land Management IT Spending
Wired Communications Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $90,000 to ZAYO GROUP LLC. ZAYO TELECOMMUNICATIONS SERVICE

Who is the contractor on this award?

The obligated recipient is ZAYO GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $90,000.

What is the period of performance?

Start: 2025-09-15. End: 2026-05-02.

What is Zayo Group LLC's track record with federal contracts, particularly for wired telecommunications services?

Zayo Group LLC has a history of federal contracts, often providing telecommunications and network infrastructure services. While specific details for this agency and contract type would require deeper database analysis, Zayo is a recognized provider in the industry. Their federal contracting history generally involves providing bandwidth, dark fiber, and managed network services. It is important to review past performance evaluations and any reported issues on previous government contracts to assess their reliability and service quality. Without access to specific contract performance data for Zayo's prior federal awards, a comprehensive assessment of their track record remains limited to general industry reputation and publicly available contract award data.

How does the $900,000 award compare to similar wired telecommunications contracts awarded by the federal government?

Benchmarking this $900,000 award requires comparing it to similar wired telecommunications contracts, considering factors like service scope, duration, and geographic location. Given this is a sole-source award for a 229-day period (approximately 7.5 months), the total value is relatively modest for telecommunications infrastructure. Larger, multi-year contracts for comprehensive network build-outs or managed services can run into millions or tens of millions of dollars. However, for specific point-to-point connectivity or localized service extensions, $900,000 could represent a significant investment. Without knowing the exact services provided (e.g., dedicated fiber, broadband access, specific bandwidth), a precise comparison is difficult. The absence of competition further complicates value assessment against market rates.

What are the primary risks associated with a sole-source award for critical telecommunications infrastructure?

The primary risks associated with a sole-source award for critical telecommunications infrastructure include potential overpayment due to lack of competitive pricing, reduced incentive for the vendor to innovate or provide superior service, and vendor lock-in. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences financial difficulties, service disruptions, or changes its business strategy. The government also loses the opportunity to explore alternative technologies or service providers that might offer better performance or value. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations.

What is the expected effectiveness of these wired telecommunications services for the Bureau of Land Management's operations in Idaho?

The effectiveness of these wired telecommunications services is expected to be high, assuming Zayo Group LLC delivers reliable and high-performance connectivity as per the contract terms. Reliable wired telecommunications are fundamental for modern government operations, enabling secure data transfer, communication between offices, access to cloud services, and support for field operations. For the Bureau of Land Management in Idaho, these services likely underpin critical functions such as land management data processing, communication with remote field stations, and administrative operations. The fixed-price nature of the contract suggests a defined scope, which, if met, should ensure the services fulfill their intended purpose. However, effectiveness is ultimately tied to the quality of service delivery and its alignment with the BLM's specific operational requirements.

How has federal spending on wired telecommunications carriers evolved over the past five years, and where does this award fit?

Federal spending on wired telecommunications carriers has generally remained substantial, driven by the ongoing need for robust and secure communication networks across various agencies. While specific figures fluctuate annually based on agency needs, technology upgrades, and contract renewals, the overall trend indicates consistent investment in maintaining and expanding federal communication infrastructure. This $900,000 award represents a small fraction of the total federal expenditure in this category. It fits within the pattern of agencies procuring specific telecommunications services to meet localized or project-specific needs, rather than a large-scale network overhaul. Such awards are common for maintaining operational connectivity in specific geographic areas or for particular programs.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 WYNKOOP ST STE 500, DENVER, CO, 80202

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

Financial Breakdown

Contract Ceiling: $90,000

Exercised Options: $90,000

Current Obligation: $90,000

Actual Outlays: $9,367

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline