Interior's Bureau of Land Management awards $252K for Zayo Internet Service, ending April 2026

Contract Overview

Contract Amount: $25,200 ($25.2K)

Contractor: Zayo Group LLC

Awarding Agency: Department of the Interior

Start Date: 2026-04-12

End Date: 2026-09-30

Contract Duration: 171 days

Daily Burn Rate: $147/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ZAYO INTERNET SERVICE, OR950

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $25,200 to ZAYO GROUP LLC for work described as: ZAYO INTERNET SERVICE, OR950 Key points: 1. Spending on wired telecommunications carriers is a common government expense. 2. Zayo Group LLC is a significant player in the telecommunications infrastructure market. 3. The contract's limited competition raises potential value concerns. 4. The sector is characterized by high infrastructure costs and ongoing technological advancements.

Value Assessment

Rating: questionable

The award amount of $252,000 for approximately 171 days of service appears high. Without a clear benchmark or competitive pricing, it's difficult to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a potential lack of broad market solicitation. This limited competition may have resulted in a less favorable price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential communication services, but the lack of competition could lead to overpayment.

Public Impact

Ensures connectivity for Bureau of Land Management operations in Colorado. Supports critical data transmission for land management activities. Potential for higher costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potentially high per-unit cost
Short contract duration may indicate interim solution

Positive Signals

Essential service provision
Clear end date
Firm fixed price contract

Sector Analysis

The telecommunications sector, particularly wired services, requires significant infrastructure investment. Government spending in this area is crucial for operational continuity, but competitive bidding is vital to ensure cost-effectiveness.

Small Business Impact

The awardee, Zayo Group LLC, is a large telecommunications provider, not a small business. There is no indication that small businesses were considered or subcontracted for this service.

Oversight & Accountability

The contract was awarded via a purchase order, which typically involves less stringent oversight than larger contract vehicles. Further review of the justification for limited competition is warranted.

Related Government Programs

Wired Telecommunications Carriers
Department of the Interior Contracting
Bureau of Land Management Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency in award process
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25,200 to ZAYO GROUP LLC. ZAYO INTERNET SERVICE, OR950

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 $25,200.

What is the period of performance?

Start: 2026-04-12. End: 2026-09-30.

What was the justification for not competing this contract more broadly?

The data indicates the contract was 'NOT COMPETED UNDER SAP'. This suggests it may have been awarded under specific exceptions or sole-source justifications. Understanding the rationale behind this decision is crucial for assessing whether the government received fair value and explored all viable options.

What is the benchmark pricing for similar internet services in the Colorado region?

Benchmarking is essential to determine if the $252,000 award for approximately 171 days of service is reasonable. Without comparable contract data or market research, it's difficult to ascertain if the Bureau of Land Management secured a competitive price for Zayo's wired telecommunications services.

How does this contract support the Bureau of Land Management's mission effectiveness?

Reliable internet service is fundamental for modern land management, enabling data collection, communication, and operational coordination. This contract ensures the BLM has the necessary connectivity in Colorado, but the method of procurement raises questions about the efficiency and cost-effectiveness of achieving this mission support.

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: $25,200

Exercised Options: $25,200

Current Obligation: $25,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline