IRS leases Huntsville antenna site for $19,941 annually to Pinnacle Towers LLC for criminal investigations

Contract Overview

Contract Amount: $19,941 ($19.9K)

Contractor: Pinnacle Towers LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $55/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A LAW ENFORCEMENT ACQUISITION. THIS IS A LEASE OF AN ANTENNA SITE IN HUNTSVILLE ALABAMA, FOR CRIMINAL INVESTIGATIONS RADIO TRANSMITTER.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35803

State: Alabama Government Spending

Plain-Language Summary

Department of the Treasury obligated $19,941.42 to PINNACLE TOWERS LLC for work described as: THIS IS A LAW ENFORCEMENT ACQUISITION. THIS IS A LEASE OF AN ANTENNA SITE IN HUNTSVILLE ALABAMA, FOR CRIMINAL INVESTIGATIONS RADIO TRANSMITTER. Key points: 1. Annual cost of $19,941 for a 364-day lease represents a specific need for radio transmission infrastructure. 2. The contract is a firm-fixed-price purchase order, indicating predictable costs for the IRS. 3. Lease duration of one year with potential for renewal suggests ongoing operational requirements. 4. The acquisition is for law enforcement purposes, specifically supporting criminal investigations. 5. The vendor, Pinnacle Towers LLC, is providing a specialized real estate service for a critical function.

Value Assessment

Rating: fair

The annual cost of $19,941 for a one-year lease of an antenna site appears reasonable given the specialized nature of the service and its law enforcement application. Benchmarking this specific type of real estate lease for radio transmission infrastructure is challenging without more granular market data. However, the fixed price suggests cost certainty for the agency. The value is derived from enabling critical criminal investigation communications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely procured through a sole-source or limited competition process. The absence of a competitive bidding process means that the IRS did not explore multiple vendor options, which could potentially lead to higher costs than if full and open competition had been pursued.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the lack of competition. The IRS secured the necessary service, but the cost-effectiveness could be improved with a more competitive process.

Public Impact

Law enforcement agencies, specifically the IRS, benefit from enhanced radio transmission capabilities for criminal investigations. The service delivered is the lease of an antenna site, crucial for communication infrastructure. The geographic impact is localized to Huntsville, Alabama, where the antenna site is located. There are no direct workforce implications mentioned, as this is a real estate lease.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than a fully competed contract.
Limited transparency into the sole-source justification and vendor selection process.
Potential for price increases in future renewal periods if competition is not introduced.

Positive Signals

Provides essential infrastructure for critical law enforcement operations.
Firm-fixed-price contract ensures cost predictability for the agency.
Vendor is specialized in providing tower and antenna site services.

Sector Analysis

This contract falls within the 'Other Activities Related to Real Estate' sector, specifically supporting critical infrastructure for government operations. The market for specialized antenna sites is niche, often involving significant upfront investment and regulatory compliance. Comparable spending benchmarks are difficult to establish without detailed knowledge of site specifications, transmission requirements, and local real estate market conditions for such facilities.

Small Business Impact

This contract does not appear to involve a small business set-aside. There is no indication of subcontracting requirements for small businesses. The focus is on securing a specific real estate asset for operational needs, rather than stimulating small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's internal procurement and financial management controls. As a purchase order for a lease, it is subject to standard financial audits. Transparency is limited due to the sole-source nature of the award, but the contract details and payment information should be publicly accessible through federal procurement databases.

Related Government Programs

Federal Law Enforcement Communications
IRS Criminal Investigations Support
Government Real Estate Leases
Radio Transmission Infrastructure

Risk Flags

Sole-source procurement limits price competition.
Lack of detailed market data for benchmarking.
Potential for increased costs without competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19,941.42 to PINNACLE TOWERS LLC. THIS IS A LAW ENFORCEMENT ACQUISITION. THIS IS A LEASE OF AN ANTENNA SITE IN HUNTSVILLE ALABAMA, FOR CRIMINAL INVESTIGATIONS RADIO TRANSMITTER.

Who is the contractor on this award?

The obligated recipient is PINNACLE TOWERS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $19,941.42.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the specific justification for procuring this antenna site on a sole-source basis?

The provided data does not explicitly state the justification for the sole-source award. However, for law enforcement and critical infrastructure like radio transmitters, sole-source procurement is often justified by factors such as unique site requirements, immediate operational needs, lack of available alternatives in a specific geographic area, or the existence of a single responsible source capable of meeting the demanding technical specifications. Without further documentation, it is presumed that the IRS determined that Pinnacle Towers LLC was the only entity that could fulfill the requirement under the necessary conditions and timeline.

How does the annual lease cost of $19,941 compare to market rates for similar antenna sites in Huntsville, Alabama?

Directly comparing the annual lease cost of $19,941 to market rates for similar antenna sites in Huntsville, Alabama, is challenging without specific details on the site's location, size, height, power access, security features, and the specific transmission capabilities it supports. Antenna site leases can vary significantly based on these factors. Given that this is a sole-source acquisition for a law enforcement function, the IRS likely conducted some form of internal valuation or relied on existing knowledge of the vendor's pricing. A formal market research report or a comparison with other government leases for similar infrastructure would be needed for a definitive benchmark.

What are the potential risks associated with a sole-source lease for critical law enforcement infrastructure?

The primary risk associated with a sole-source lease for critical law enforcement infrastructure is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility in the future. Furthermore, without competition, there might be less incentive for the vendor to innovate or offer superior service levels. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks.

What is Pinnacle Towers LLC's track record with government contracts, particularly for real estate or communication infrastructure leases?

The provided data indicates that Pinnacle Towers LLC is the contractor for this specific lease. However, it does not offer information regarding their broader track record with government contracts, including past performance, previous awards, or any history of issues. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review their contract history, including any performance evaluations or past disputes. This information is crucial for understanding their reliability and experience in providing similar services to government entities.

What is the historical spending pattern for similar antenna site leases by the IRS or other law enforcement agencies?

The provided data focuses on a single, current contract and does not offer historical spending patterns for similar antenna site leases by the IRS or other law enforcement agencies. To analyze historical spending, one would need to query federal procurement databases for contracts with similar Product Service Codes (PSCs) or keywords related to 'antenna site lease,' 'radio transmitter site,' or 'communication infrastructure' awarded to various agencies over several fiscal years. This would allow for an assessment of trends in pricing, contract duration, and vendor landscape.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

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: 8020 KATY FREEWAY, HOUSTON, TX, 77024

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

Financial Breakdown

Contract Ceiling: $19,941

Exercised Options: $19,941

Current Obligation: $19,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline