VA awards $60.8M for Louisiana telecom services, with Granite Telecommunications securing the contract

Contract Overview

Contract Amount: $60,835 ($60.8K)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2026-05-01

Contract Duration: 2,039 days

Daily Burn Rate: $30/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOCAL EXCHANGE CARRIER SERVICES IN THE STATE OF LOUISIANA

Place of Performance

Location: LAFAYETTE, LAFAYETTE County, LOUISIANA, 70506

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $60,834.78 to GRANITE TELECOMMUNICATIONS, LLC for work described as: LOCAL EXCHANGE CARRIER SERVICES IN THE STATE OF LOUISIANA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is over 2000 days, indicating a long-term need for these services. 3. Services are for wired telecommunications, a critical infrastructure component for the VA. 4. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The fixed-price nature of the contract provides cost certainty for the government. 6. The award to a single contractor implies a focus on specific capabilities or a competitive outcome.

Value Assessment

Rating: good

The contract value of $60.8 million over approximately 6.7 years (2039 days) for local exchange carrier services in Louisiana appears reasonable given the duration and scope. Benchmarking against similar large-scale telecommunications contracts is challenging without more specific service details, but the firm fixed-price structure helps control costs. The award to Granite Telecommunications, a known provider in this space, suggests a competitive selection process that likely yielded a fair market price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it resulted in a single award suggests that Granite Telecommunications offered the most advantageous proposal based on the evaluation criteria. While the number of bidders is not specified, full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring the government receives competitive pricing.

Public Impact

Veterans in Louisiana will benefit from reliable telecommunications services supporting VA facilities. Essential wired telecommunications infrastructure will be maintained and potentially upgraded. The contract supports the operational continuity of the Department of Veterans Affairs in the region. The contract ensures the availability of critical communication lines for healthcare and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service needs expand beyond the current scope.
Reliance on a single provider for critical infrastructure could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract provides cost predictability.
Long-term contract ensures service continuity for essential VA operations.

Sector Analysis

This contract falls within the Telecommunications sector, specifically focusing on wired telecommunications carriers. The market for local exchange carrier services is mature, with established providers like Granite Telecommunications serving government and commercial clients. Government spending in this area is consistent, supporting the vast network infrastructure required for federal agencies. The $60.8 million award is a significant but not unusual amount for multi-year, state-wide telecommunications services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Granite Telecommunications, may engage small businesses as subcontractors depending on their internal policies and the specific service delivery needs within Louisiana.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a delivery order under a potential IDIQ, oversight would focus on performance against the established terms and conditions, service level agreements, and invoicing. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Local Exchange Carrier Services
Wired Telecommunications Carriers
Federal Telecommunications Infrastructure
Department of Veterans Affairs IT Services

Risk Flags

Long contract duration may limit flexibility.
Single award could indicate limited competition or specific capability requirements.
Reliance on one vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $60,834.78 to GRANITE TELECOMMUNICATIONS, LLC. LOCAL EXCHANGE CARRIER SERVICES IN THE STATE OF LOUISIANA

Who is the contractor on this award?

The obligated recipient is GRANITE TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $60,834.78.

What is the period of performance?

Start: 2020-09-30. End: 2026-05-01.

What is the historical spending pattern for local exchange carrier services by the Department of Veterans Affairs in Louisiana?

Analyzing historical spending for local exchange carrier services by the VA in Louisiana requires access to detailed procurement data over multiple fiscal years. While this specific contract is for $60.8 million from September 2020 to May 2026, understanding the VA's broader spending trends in this category is crucial for context. Typically, federal agencies like the VA have ongoing needs for telecommunications, often managed through large IDIQ contracts or specific delivery orders. Previous awards for similar services in Louisiana or other states could provide benchmarks. Without specific historical data for this precise service category and location, it's difficult to ascertain if this $60.8 million represents an increase, decrease, or stable level of spending compared to prior periods. However, the duration and value suggest a significant and sustained requirement.

How does the per-unit cost of this contract compare to similar VA telecommunications contracts?

Determining the precise per-unit cost for this contract is challenging without detailed breakdowns of the services provided (e.g., cost per line, cost per Mbps, cost per circuit). The contract is for 'LOCAL EXCHANGE CARRIER SERVICES IN THE STATE OF LOUISIANA' valued at $60.8 million over approximately 2039 days. To compare per-unit costs, we would need to know the exact quantity and type of services procured. For instance, if this contract provides 10,000 phone lines, the per-line cost could be calculated. Benchmarking against other VA contracts for similar services in different states or against contracts awarded under different competition levels would require access to detailed service descriptions and pricing structures. Generally, larger, longer-term contracts awarded through full and open competition aim for competitive per-unit pricing, but variations exist based on geographic scope, service complexity, and market conditions.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any government contract to ensure service quality and contractor performance. For a contract like this, providing local exchange carrier services, typical KPIs and SLAs would likely focus on network uptime and availability (e.g., 99.99% uptime), service restoration times in case of outages (e.g., restore service within 4 hours), call completion rates, latency, and jitter for data services. Other potential metrics could include response times for technical support and adherence to security protocols. The Department of Veterans Affairs would have defined these metrics in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Failure to meet these KPIs/SLAs could result in financial penalties, corrective action plans, or even contract termination, underscoring their importance for both the VA and Granite Telecommunications.

What is Granite Telecommunications' track record with the Department of Veterans Affairs and other federal agencies?

Granite Telecommunications has a notable track record serving the federal government, including the Department of Veterans Affairs (VA). They have been awarded numerous contracts across various agencies for telecommunications and related services. Publicly available data often shows Granite as a recipient of significant federal contracts, indicating their ability to navigate federal procurement processes and meet agency requirements. Their experience often includes providing services similar to those in this Louisiana contract, such as local exchange, long-distance, and data transport services. A review of federal procurement databases would likely reveal a history of successful contract performance, though like any large contractor, specific performance details or any past issues would require deeper investigation into individual contract histories and performance evaluations.

What is the potential impact of this contract on small businesses in the Louisiana telecommunications market?

Since this contract was awarded under full and open competition and was not specifically set aside for small businesses, its direct impact on small businesses in Louisiana is primarily indirect. The prime contractor, Granite Telecommunications, is a large entity. While they are not mandated to subcontract a specific portion to small businesses under this award, they may choose to do so based on their own business strategies or if specific niche services are required that are best provided by smaller, local firms. The presence of a large contract like this can sometimes stimulate the local market by increasing overall demand for telecommunications infrastructure and support services, which could indirectly benefit small businesses in the supply chain. However, without specific subcontracting plans, the direct positive impact on small business set-asides or participation is likely minimal.

Are there any specific risks associated with relying on a single provider for these critical telecommunications services in Louisiana?

Relying on a single provider, Granite Telecommunications in this case, for critical local exchange carrier services presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA might find it difficult or costly to switch providers even if better options emerge, especially given the long contract duration. Secondly, service disruptions or performance degradation by the sole provider could have a significant impact on VA operations in Louisiana, potentially affecting healthcare delivery and administrative functions. Thirdly, a lack of ongoing competition could potentially lead to complacency in service quality or innovation from the contractor. Mitigating these risks typically involves robust contract management, clearly defined SLAs with penalties, and contingency planning by the VA to ensure service continuity even if the primary provider fails.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 NEWPORT AVENUE EXT, QUINCY, MA, 02171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,835

Exercised Options: $60,835

Current Obligation: $60,835

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B20D0031

IDV Type: IDC

Timeline