VA awards $4M+ for wired telecom services to Granite Telecommunications, LLC under full and open competition

Contract Overview

Contract Amount: $4,011,928 ($4.0M)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2026-08-31

Contract Duration: 1,796 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NLEC-NG TASK ORDER 16

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02171

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.0 million to GRANITE TELECOMMUNICATIONS, LLC for work described as: NLEC-NG TASK ORDER 16 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The fixed-price contract type aims to control costs for the government. 4. The contract duration extends over 1796 days, indicating a long-term need for services. 5. The North American Industry Classification System (NAICS) code 517311 points to wired telecommunications carriers. 6. The awardee, Granite Telecommunications, LLC, is positioned to provide essential communication infrastructure.

Value Assessment

Rating: good

The contract value of approximately $4 million over nearly five years represents a significant investment in telecommunications infrastructure. Benchmarking this against similar contracts for wired telecommunications services is challenging without more specific service details. However, the firm-fixed-price structure suggests an effort to ensure predictable costs. The value appears reasonable for a multi-year, nationwide (implied by MAS contract) telecommunications service agreement, but a detailed cost-benefit analysis would require deeper insight into the specific services rendered and their criticality.

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 presence of 4 bids suggests a moderate level of competition for this specific delivery order. A robust competitive process generally leads to better price discovery and potentially more favorable terms for the government. The fact that it was competed under a larger IDIQ vehicle implies that the initial competition for the IDIQ itself was also broad.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces. It ensures that the government is not locked into a single provider and can leverage the most competitive offers available at the time of award.

Public Impact

Veterans Affairs (VA) facilities and personnel will benefit from reliable wired telecommunications services. Essential communication services will be delivered to support the VA's mission of serving veterans. The geographic impact is likely nationwide, given the use of a GSA Multiple Award Schedule (MAS) contract. The contract supports the telecommunications sector workforce, including technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections under a fixed-price contract.
Dependence on a single awardee for critical telecommunications infrastructure could pose a risk if performance issues arise.
The long contract duration may limit flexibility to adopt newer, more cost-effective technologies if they emerge rapidly.

Positive Signals

Awarded under full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract type provides cost certainty for the government.
The contract is a delivery order under an existing IDIQ, suggesting a streamlined procurement process for a pre-vetted service.
The contractor, Granite Telecommunications, LLC, is likely experienced in providing such services under federal contracts.

Sector Analysis

The wired telecommunications carriers sector is a mature industry providing essential connectivity services. This contract falls under NAICS code 517311, encompassing providers of voice, data, and video transmission services over wired networks. The federal government is a significant consumer of these services, requiring robust and reliable infrastructure for its operations. Spending in this sector is often characterized by long-term contracts for network maintenance, upgrades, and new installations. Comparable spending benchmarks would typically involve analyzing average costs per circuit or per user for similar government-wide telecommunications agreements.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific award, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is false. This suggests the contract was not set aside for small businesses. While Granite Telecommunications, LLC may have its own subcontracting plans, there is no explicit indication from this data point that small businesses were specifically targeted or required to participate in a significant capacity for this delivery order. Further analysis of the IDIQ contract and any associated subcontracting goals would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs contracting officers and program managers responsible for telecommunications services. As a delivery order under a GSA MAS contract, there are also inherent oversight mechanisms within the GSA's Federal Acquisition Service. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's performance or award.

Related Government Programs

GSA Federal Supply Schedule Contracts
Department of Veterans Affairs IT and Telecommunications Procurement
Wired Network Infrastructure Services
Telecommunications Services for Federal Agencies

Risk Flags

Long-term contract duration may limit adoption of newer technologies.
Dependence on a single vendor for critical infrastructure.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.0 million to GRANITE TELECOMMUNICATIONS, LLC. NLEC-NG TASK ORDER 16

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 $4.0 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-08-31.

What is the track record of Granite Telecommunications, LLC in performing similar federal contracts?

Granite Telecommunications, LLC has a history of performing federal contracts, often through GSA Schedules. While specific performance details for this particular delivery order are not publicly available in this data snippet, their presence as an awardee suggests they meet federal procurement requirements. A deeper dive into their contract history, including past performance evaluations and any reported issues on other federal awards, would provide a more comprehensive understanding of their track record. Examining awards for similar telecommunications services to other agencies could offer further insights into their capabilities and reliability in the federal space.

How does the awarded price compare to market rates for similar wired telecommunications services?

Determining precise market rate comparisons for this contract is complex without detailed service specifications (e.g., bandwidth, circuit types, service level agreements). However, the contract is a firm-fixed-price delivery order under a GSA MAS, which implies that pricing was vetted during the initial MAS contract competition and is expected to be competitive. The fact that it was awarded under full and open competition with multiple bids further suggests that the pricing is likely aligned with market expectations. To conduct a more rigorous comparison, one would need to benchmark the specific services and quantities against publicly available pricing from other telecommunications providers or government-wide contract vehicles.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential service disruptions, cost overruns if usage exceeds projections (though less likely with FFP), and technological obsolescence over the contract's nearly five-year duration. Mitigation strategies likely involve robust Service Level Agreements (SLAs) within the contract, performance monitoring by the VA, and potentially clauses allowing for contract modifications or renegotiation if significant technological shifts occur. The firm-fixed-price nature inherently mitigates cost overrun risk for the government, shifting that burden to the contractor. The competitive award process also reduces the risk of selecting an underqualified vendor.

How effective is the chosen contract vehicle (GSA MAS) for procuring these types of telecommunications services?

The GSA Multiple Award Schedule (MAS) is generally considered an effective vehicle for procuring a wide range of commercial items, including telecommunications services. Its primary advantage is pre-competed pricing and terms, allowing agencies to issue task orders or delivery orders relatively quickly. This streamlines the procurement process, saving time and resources. For wired telecommunications, the MAS provides access to numerous vendors, fostering competition. However, the effectiveness can depend on whether the specific services required are well-represented within the schedule and if the pre-negotiated rates remain competitive against other potential procurement methods or evolving market conditions.

What is the historical spending pattern for wired telecommunications services by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has consistently invested in telecommunications infrastructure to support its vast network of healthcare facilities and administrative offices. Historical spending data, often available through sources like the Federal Procurement Data System (FPDS), would reveal significant annual expenditures on services like broadband internet, voice circuits, and network integration. This spending typically fluctuates based on infrastructure upgrade cycles, new facility openings, and evolving technological requirements. Analyzing past VA spending on NAICS code 517311 and related telecommunications categories would provide context for the current $4M+ award, indicating whether it represents a typical investment level or a deviation.

What is the potential impact of this contract on the broader telecommunications market, particularly for competitors?

This contract, while significant for the awardee, represents a single delivery order within a large federal agency's overall telecommunications spending. For the broader market, its impact is likely minimal in terms of overall market dynamics. However, for direct competitors who bid on this requirement, it signifies a lost opportunity and highlights the competitive landscape. The success of Granite Telecommunications on this contract could influence future bidding strategies for similar requirements. The use of a GSA MAS vehicle means that other MAS holders offering similar services are aware of the pricing and terms achieved, potentially influencing their own future proposals.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $4,011,928

Exercised Options: $4,011,928

Current Obligation: $4,011,928

Actual Outlays: $2,935,386

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