Treasury's IRS awards $8.5K antenna lease to Lyons Wireless Group, citing a non-competitive purchase order

Contract Overview

Contract Amount: $8,539 ($8.5K)

Contractor: Lyons Wireless Group LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $23/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANTENNA LEASE SERVICES -BASEHOR, KS BASE PLUS 4 OPTION YEARS (POP FOR BASE YR 7/1/2024-6/30/2025)

Place of Performance

Location: CHESTERFIELD, SAINT LOUIS County, MISSOURI, 63017

State: Missouri Government Spending

Plain-Language Summary

Department of the Treasury obligated $8,538.96 to LYONS WIRELESS GROUP LLC for work described as: ANTENNA LEASE SERVICES -BASEHOR, KS BASE PLUS 4 OPTION YEARS (POP FOR BASE YR 7/1/2024-6/30/2025) Key points: 1. The contract value is relatively small, suggesting a localized or specialized need. 2. The award was made via a purchase order, indicating a streamlined procurement process. 3. The fixed-price contract type helps manage cost certainty for this service. 4. The duration of one year aligns with typical operational needs for such services. 5. The lack of competition raises questions about potential cost efficiencies. 6. The specific NAICS code points to environmental or wildlife organizations, which seems unusual for antenna lease services.

Value Assessment

Rating: questionable

The contract value of $8,538.96 for a one-year antenna lease is difficult to benchmark without more specific details on the service provided. Given the lack of competition, it's challenging to assess if this represents fair market value. However, for a service of this apparent scale, the price does not appear excessively high on its face, but the absence of competitive bidding prevents a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was issued as a purchase order and noted as 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). This suggests it may have been awarded without a formal competitive solicitation, potentially due to its low value or a specific justification not detailed here. The lack of information on the competition process makes it impossible to determine the number of bidders or the implications for price discovery.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing due to the non-competitive nature of this award.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, likely for communication infrastructure. The service provided is antenna lease services. The geographic impact is limited to Missouri, as indicated by the state code 'MO'. There are no immediate workforce implications apparent from this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition prevents assurance of best value.
Unclear justification for non-competitive award under SAP.
NAICS code mismatch raises questions about service alignment.

Positive Signals

Firm fixed-price contract provides cost certainty.
Purchase order indicates efficient, low-value procurement.
Short duration aligns with operational needs.

Sector Analysis

The telecommunications infrastructure sector, particularly services related to antenna leasing, is a niche but essential part of maintaining communication networks. While this specific contract is small, it falls within the broader IT and communications services market. Comparable spending benchmarks for antenna leases vary widely based on location, type of antenna, and associated services, but typically, smaller, localized leases are priced in the thousands to tens of thousands of dollars annually.

Small Business Impact

The contract was not awarded to a small business (ss: false) and there is no indication of small business subcontracting requirements (sb: false). Therefore, this award has no direct positive or negative impact on the small business ecosystem.

Oversight & Accountability

As a purchase order, oversight is typically managed through the agency's internal procurement and financial management systems. Transparency is limited due to the non-competitive nature and lack of detailed public justification. There is no specific mention of an Inspector General's involvement for this particular award.

Related Government Programs

IRS Communications Infrastructure Leases
Federal Telecommunications Services
Government Antenna and Tower Leases

Risk Flags

Non-competitive award
Unusual NAICS code assignment
Lack of detailed service description

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8,538.96 to LYONS WIRELESS GROUP LLC. ANTENNA LEASE SERVICES -BASEHOR, KS BASE PLUS 4 OPTION YEARS (POP FOR BASE YR 7/1/2024-6/30/2025)

Who is the contractor on this award?

The obligated recipient is LYONS WIRELESS GROUP 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 $8,538.96.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the specific nature of the antenna lease service being provided by Lyons Wireless Group LLC to the IRS?

The provided data does not specify the exact nature of the antenna lease service. However, given the context of government agencies, it likely pertains to communication infrastructure, potentially for radio frequency transmission, data relay, or other wireless communication needs. The NAICS code '813312' (Environment, Conservation and Wildlife Organizations) is unusual for this type of service and may indicate a specialized application or a data entry error in the procurement system. Further investigation would be needed to clarify the precise service and its alignment with the assigned NAICS code.

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

The data indicates the contract was 'NOT COMPETED UNDER SAP'. Simplified Acquisition Procedures are typically used for purchases below the micro-purchase threshold (currently $10,000) or for certain other categories of acquisition. The contract value of $8,538.96 falls within this range. The notation suggests that while it was eligible for SAP, it was not formally competed, possibly due to a sole-source justification, an existing relationship, or a specific agency policy that allowed for direct award under these circumstances. Without further documentation, the precise reason for non-competition remains unclear.

How does the price of $8,538.96 for a one-year antenna lease compare to market rates?

Benchmarking this specific antenna lease cost is challenging without detailed specifications of the service, location, and type of antenna. However, for a basic, localized antenna lease service, $8,538.96 for one year is within a plausible range for commercial offerings. Government contracts can sometimes be higher or lower than market rates depending on procurement efficiencies, competition, and specific requirements. The absence of competition here makes a definitive value comparison difficult, but the absolute dollar amount is relatively modest.

What is the track record of Lyons Wireless Group LLC in securing federal contracts?

The provided data only shows this single award to Lyons Wireless Group LLC. Therefore, it is not possible to assess their broader track record in securing federal contracts based solely on this information. A comprehensive review would require searching federal procurement databases for any other awards, contract types, agencies served, and performance history associated with this vendor.

What are the potential risks associated with a non-competitively awarded contract of this nature?

The primary risk associated with a non-competitively awarded contract, even for a small amount, is the potential for paying a higher price than could be achieved through competition. It also raises concerns about whether the selected vendor is truly the best source for the service in terms of capability and value. Furthermore, the lack of transparency in the award process can obscure potential conflicts of interest or other improprieties. For this specific contract, the unusual NAICS code adds a layer of risk regarding the appropriateness of the service being procured.

Industry Classification

NAICS: Other Services (except Public Administration) › Social Advocacy Organizations › Environment, Conservation and Wildlife Organizations

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: 7817 MEADOW BEND DR, INDIANAPOLIS, IN, 46259

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,539

Exercised Options: $8,539

Current Obligation: $8,539

Actual Outlays: $8,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline