DOJ's $637K Cable Services Contract Awarded to Charter Communications, Not Competed Under SAP

Contract Overview

Contract Amount: $63,684 ($63.7K)

Contractor: Charter Communications Operating LLC

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $58/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REQUESTING CABLE SERVICES FOR GREENSBORO, NC, ASHEVILLE, NC, WILMINGTON, NC, APEX, NC AND BOTH CABLE AND INTERNET SERVICES FOR CHARLOTTE, NC. ATTACHED SPREADSHEET INCLUDES BREAKDOWN OF SERVICES NEEDED

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63131

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $63,684.48 to CHARTER COMMUNICATIONS OPERATING LLC for work described as: REQUESTING CABLE SERVICES FOR GREENSBORO, NC, ASHEVILLE, NC, WILMINGTON, NC, APEX, NC AND BOTH CABLE AND INTERNET SERVICES FOR CHARLOTTE, NC. ATTACHED SPREADSHEET INCLUDES BREAKDOWN OF SERVICES NEEDED Key points: 1. Value for money is difficult to assess due to the lack of competition and limited public data on service specifics. 2. Competition dynamics indicate a sole-source or limited competition award, potentially leading to higher prices. 3. Risk indicators include the absence of a competitive bidding process and reliance on a single provider. 4. Performance context is limited as the contract is a purchase order for telecommunications services. 5. Sector positioning places this contract within the Wired Telecommunications Carriers industry.

Value Assessment

Rating: fair

The contract value of $636,84.48 for telecommunications services over three years appears reasonable on the surface, but without a competitive bidding process, it's challenging to benchmark against market rates or similar contracts. The absence of competition means there's no direct comparison to assess if Charter Communications offered the best possible price. Further analysis would require detailed service level agreements and pricing structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), suggesting it was likely awarded on a sole-source or limited competition basis. The data indicates only one awardee, Charter Communications Operating LLC, and no information is provided on the number of bidders or the solicitation method. This lack of competition limits the government's ability to secure the most favorable pricing and terms.

Taxpayer Impact: Taxpayers may not be receiving the best value for these essential telecommunications services due to the absence of a competitive bidding process. The government may have paid a premium compared to what could have been achieved in an open market.

Public Impact

The U.S. Marshals Service benefits from this contract by securing necessary cable and internet services for its operations in multiple North Carolina locations. Essential telecommunications services, including cable and internet, are delivered to support the operational needs of the Department of Justice. The geographic impact is concentrated in North Carolina, specifically in Greensboro, Asheville, Wilmington, Apex, and Charlotte. Workforce implications are indirect, as reliable communication services are crucial for the productivity and effectiveness of DOJ personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about price fairness and potential overpayment.
Limited transparency on the specific services and pricing structure makes value assessment difficult.
Reliance on a single provider for critical infrastructure could pose service disruption risks.

Positive Signals

The contract provides essential services to support federal law enforcement operations.
The awardee, Charter Communications, is a known provider of telecommunications services.
The contract duration of three years offers some stability for service provision.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, a segment of the broader telecommunications industry. This sector involves the provision of broadband internet access, cable television, and other communication services over wired networks. The market is often characterized by significant infrastructure investment and varying levels of competition depending on geographic location and regulatory environment. Comparable spending benchmarks for government telecommunications services can vary widely based on service type, volume, and location.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made to Charter Communications Operating LLC, a large telecommunications provider. Further analysis would be needed to determine if any portion of the work was subcontracted to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service and the Department of Justice's contracting and financial management offices. As a purchase order, it is subject to standard procurement regulations and internal agency oversight. Transparency is limited due to the lack of competitive bidding details and public service breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Telecommunications Services
Government Wide Acquisition Contracts (GWACs)
Information Technology Services
Network Infrastructure Services

Risk Flags

Lack of Competition
Limited Transparency
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $63,684.48 to CHARTER COMMUNICATIONS OPERATING LLC. REQUESTING CABLE SERVICES FOR GREENSBORO, NC, ASHEVILLE, NC, WILMINGTON, NC, APEX, NC AND BOTH CABLE AND INTERNET SERVICES FOR CHARLOTTE, NC. ATTACHED SPREADSHEET INCLUDES BREAKDOWN OF SERVICES NEEDED

Who is the contractor on this award?

The obligated recipient is CHARTER COMMUNICATIONS OPERATING LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $63,684.48.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What specific telecommunications services are being procured under this contract, and what are their individual costs?

The provided data indicates the procurement is for 'CABLE SERVICES FOR GREENSBORO, NC, ASHEVILLE, NC, WILMINGTON, NC, APEX, NC AND BOTH CABLE AND INTERNET SERVICES FOR CHARLOTTE, NC.' An attached spreadsheet, not provided here, is stated to include a breakdown of services needed. Without this breakdown, it is impossible to determine the specific services and their individual costs. The total award amount is $636,84.48 over 1095 days (3 years). The lack of detail prevents a granular analysis of value for money on a per-service basis.

Why was this contract not competed under the Simplified Acquisition Procedures (SAP)?

The reason for not competing this contract under SAP is not explicitly stated in the provided data. Simplified Acquisition Procedures are typically used for purchases below a certain dollar threshold (e.g., $250,000) to streamline the acquisition process. If this contract was valued below that threshold, it could have been competed under SAP. However, the 'NOT COMPETED UNDER SAP' notation suggests it might have been handled through other non-competitive means, such as a sole-source justification, or perhaps it exceeded the SAP threshold and was handled via other non-competitive methods. A formal justification for other than full and open competition would typically be required in such cases.

What is the track record of Charter Communications Operating LLC in providing similar services to federal agencies?

Charter Communications Operating LLC, operating under various brands like Spectrum, is a major telecommunications provider in the United States. While specific contract details with federal agencies are not provided here, Charter has a history of providing cable, internet, and phone services to both commercial and residential customers. Federal agencies often procure such services through established contracts, potentially including General Services Administration (GSA) schedules or direct purchase orders. Assessing their track record would involve reviewing past performance evaluations, any reported issues with service delivery or billing, and their experience with government-specific requirements like security and reporting.

How does the total contract value compare to historical spending for similar services by the U.S. Marshals Service or the Department of Justice?

Without access to historical spending data for the U.S. Marshals Service or the Department of Justice specifically for cable and internet services in these North Carolina locations, a direct comparison is not possible. The total contract value of $636,84.48 over three years averages to approximately $212,281.49 per year. This figure needs to be evaluated against the scope and scale of services provided. If similar procurements in the past were competed and resulted in significantly lower annual costs, it would suggest this contract may not represent optimal value. Conversely, if past services were more extensive or costly, this award might be in line with historical spending.

What are the potential risks associated with awarding a telecommunications contract without full and open competition?

The primary risk associated with awarding a telecommunications contract without full and open competition is the potential for paying a higher price than necessary. When competition is limited or non-existent, the government loses the leverage to negotiate the best possible rates and terms. This can lead to inflated costs for taxpayers. Additionally, a lack of competition may reduce the incentive for the awarded contractor to provide superior service or innovate, as there are fewer alternatives for the government to switch to. There's also a risk of vendor lock-in, making it difficult and costly to transition to a different provider in the future if service quality declines or needs change.

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

Solicitation ID: M-24-A34-R-000005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12405 POWERSCOURT DR, SAINT LOUIS, MO, 63131

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

Financial Breakdown

Contract Ceiling: $63,684

Exercised Options: $63,684

Current Obligation: $63,684

Actual Outlays: $19,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline