IRS Leases Antenna Site for $27K, Lacking Competition
Contract Overview
Contract Amount: $27,057 ($27.1K)
Contractor: GTP Structures I LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $74/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of the Treasury obligated $27,056.76 to GTP STRUCTURES I LLC for work described as: LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026 Key points: 1. The IRS is leasing an antenna site for $27,056.76 for 12 months. 2. The contract was not competed under Simplified Acquisition Procedures (SAP). 3. The primary risk is the lack of competitive bidding, potentially leading to higher costs. 4. This falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: fair
The price of $27,056.76 for a 12-month antenna site lease appears reasonable on the surface. However, without competitive bids, it's difficult to definitively assess if it represents the best value compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored all available options, potentially impacting price discovery and the government's ability to secure the most cost-effective solution.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for this antenna site lease.
Public Impact
Ensures IRS communication infrastructure remains operational. Potential for increased costs due to limited competition. Transparency in government contracting is reduced without a competitive process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited Competition
- Lack of SAP Competition
Positive Signals
- Essential Service
- Clear Period of Performance
Sector Analysis
This lease falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending benchmarks for similar antenna site leases can vary significantly based on location, size, and technical requirements, making direct comparison challenging without more data.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on whether small businesses were considered or participated in the limited competition.
Oversight & Accountability
The contracting officer's decision to not compete under SAP warrants further review to ensure adherence to procurement regulations and best practices for achieving value for the government.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition
- Potential for overpayment
- Lack of transparency in procurement
- No clear justification for sole-source/limited source
Tags
radio-and-television-broadcasting-and-wi, department-of-the-treasury, ma, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $27,056.76 to GTP STRUCTURES I LLC. LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026
Who is the contractor on this award?
The obligated recipient is GTP STRUCTURES I 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 $27,056.76.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What was the justification for not competing this lease under SAP, and were any market research efforts conducted to ensure fair and reasonable pricing?
The provided data indicates the contract was 'NOT COMPETED UNDER SAP.' A thorough review would require access to the contract file to understand the specific justification cited by the contracting officer. Typically, justifications for not competing, even under SAP, should involve documented market research to demonstrate that the selected vendor's pricing is fair and reasonable and that no other viable sources were overlooked.
What are the potential risks associated with leasing an antenna site without competitive bidding, particularly concerning long-term costs and service reliability?
The primary risk of not competitively bidding is paying a premium price. Without market comparison, the government may be overpaying. Additionally, limited competition can reduce the incentive for the awarded vendor to maintain high service standards, potentially impacting long-term reliability and increasing the likelihood of future price escalations.
How does this lease contribute to the IRS's overall mission effectiveness, and are there alternative solutions that could offer better value?
This antenna site lease is likely crucial for maintaining essential IRS communication systems, directly supporting operational effectiveness. However, without a competitive process, it's impossible to definitively state if it offers the best value. Exploring alternative solutions, such as shared infrastructure or different leasing models, could potentially yield cost savings or improved service levels in the future.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
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: 750 PARK OF COMMERCE BLVD, BOCA RATON, FL, 33487
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,057
Exercised Options: $27,057
Current Obligation: $27,057
Actual Outlays: $6,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 17:35:17
Last Modified: 2026-04-01
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