FCC's $62.6M contract for Emergency Broadband Benefit Program awarded to USAC

Contract Overview

Contract Amount: $62,603,600 ($62.6M)

Contractor: Universal Service Administrative Company

Awarding Agency: Federal Communications Commission

Start Date: 2021-04-28

End Date: 2023-04-27

Contract Duration: 729 days

Daily Burn Rate: $85.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USAC EMERGENCY BROADBAND BENEFIT PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $62.6 million to UNIVERSAL SERVICE ADMINISTRATIVE COMPANY for work described as: USAC EMERGENCY BROADBAND BENEFIT PROGRAM Key points: 1. The contract aims to support the Emergency Broadband Benefit Program, a significant initiative. 2. Competition was not pursued for this award, raising questions about price discovery. 3. The administrative management and general management consulting services sector is broad, making direct comparisons challenging. 4. Potential risks include lack of competitive pricing and limited oversight due to sole-source nature.

Value Assessment

Rating: questionable

The contract value of $62.6 million for administrative services is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar large-scale program management contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayer funds being used less efficiently than if a competitive process had been employed.

Public Impact

The Emergency Broadband Benefit Program provides crucial internet access to low-income households. This contract supports the operational and administrative functions necessary for program delivery. The FCC's role in managing such programs is vital for bridging the digital divide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award process

Positive Signals

Supports a critical government program
Addresses digital divide needs

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on the complexity and scope of services required, making direct benchmarks difficult without more detail.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the funds are used effectively and efficiently for the intended program purposes.

Related Government Programs

Administrative Management and General Management Consulting Services
Federal Communications Commission Contracting
Federal Communications Commission Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for inefficient use of taxpayer funds.
Limited transparency in the procurement process.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $62.6 million to UNIVERSAL SERVICE ADMINISTRATIVE COMPANY. USAC EMERGENCY BROADBAND BENEFIT PROGRAM

Who is the contractor on this award?

The obligated recipient is UNIVERSAL SERVICE ADMINISTRATIVE COMPANY.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $62.6 million.

What is the period of performance?

Start: 2021-04-28. End: 2023-04-27.

What specific administrative management services are being provided under this contract, and how do they align with the program's needs?

The contract specifies Administrative Management and General Management Consulting Services (NAICS 541611). These services likely encompass program planning, operational support, stakeholder coordination, and reporting for the Emergency Broadband Benefit Program. The exact scope would be detailed in the contract's statement of work, outlining how USAC manages the program's administration to ensure eligible households receive benefits.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award is not provided in the data. Typically, such awards require a documented justification, such as a unique capability or urgent need. Without this justification, it's impossible to assess the fairness of the pricing or if alternative solutions were considered, raising concerns about potential overpayment and lack of competitive pressure.

How will the effectiveness of the Emergency Broadband Benefit Program be measured, and what role does this contract play in that measurement?

The effectiveness of the EBB Program is likely measured by metrics such as the number of enrolled households, broadband adoption rates, and reduction in internet costs for beneficiaries. This contract supports the program's administration, which is crucial for accurate data collection and reporting on these effectiveness measures. USAC's management directly impacts the program's ability to reach its goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: National Exchange Carrier Association Inc

Address: 700 12TH ST STE 900, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $62,603,600

Exercised Options: $62,603,600

Current Obligation: $62,603,600

Actual Outlays: $62,603,600

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline