GSA Awards $14.8M Task Order for Wired Telecommunications to Manhattan Telecommunications

Contract Overview

Contract Amount: $14,796,755 ($14.8M)

Contractor: Manhattan Telecommunications Corporation LLC

Awarding Agency: General Services Administration

Start Date: 2020-06-23

End Date: 2026-09-30

Contract Duration: 2,290 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 2- VOICE.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10041

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $14.8 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 2- VOICE. Key points: 1. The contract focuses on wired telecommunications services, a mature sector. 2. Manhattan Telecommunications Corporation LLC is the sole awardee. 3. The contract duration is over 6 years, indicating a long-term need. 4. Fixed Price with Economic Price Adjustment (FPEPA) pricing structure carries some inflation risk.

Value Assessment

Rating: fair

The contract's fixed price with economic price adjustment makes direct comparison difficult without specific economic index data. However, the duration and scope suggest a potentially fair market price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayer funds are utilized for essential telecommunications infrastructure, with the competitive award aiming for cost-effectiveness.

Public Impact

Ensures continued access to vital communication infrastructure for federal agencies. Supports federal operations through reliable wired telecommunications. The economic price adjustment clause may lead to increased costs if inflation rises significantly.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

Economic Price Adjustment (EPA) clause introduces potential for cost overruns due to inflation.
Long contract duration (over 6 years) may not fully capture market shifts or technological advancements.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Task order supports essential government communications infrastructure.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, which is characterized by established infrastructure and ongoing demand for connectivity. Spending in this area is generally stable, driven by the need for reliable communication networks.

Small Business Impact

The awardee, Manhattan Telecommunications Corporation LLC, is not identified as a small business. There is no specific indication of small business participation in this task order.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight would focus on ensuring service delivery meets the terms of the fixed-price with economic price adjustment contract and that the economic adjustments are applied appropriately.

Related Government Programs

Wired Telecommunications Carriers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost increases due to economic price adjustment.
Long contract duration may not reflect evolving market conditions or technology.
Lack of small business participation noted.
Sole awardee limits potential for future competitive pressure on pricing.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.8 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 2- VOICE.

Who is the contractor on this award?

The obligated recipient is MANHATTAN TELECOMMUNICATIONS CORPORATION LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2020-06-23. End: 2026-09-30.

What is the benchmark per-unit cost for similar wired telecommunications services provided to federal agencies of comparable size and scope?

Benchmarking per-unit costs for wired telecommunications is complex due to varying service levels, bandwidth, and geographic coverage. However, industry averages for dedicated fiber optic services can range from $50-$200 per Mbps per month, depending on the factors mentioned. A detailed analysis would require specific service details from the GSA contract.

What is the historical performance and financial stability of Manhattan Telecommunications Corporation LLC, and how does it mitigate potential risks?

Manhattan Telecommunications Corporation LLC has a history of providing telecommunications services. Assessing their historical performance and financial stability would involve reviewing past contract performance data, any reported disputes or issues, and their financial health. This information is crucial for understanding their capacity to fulfill the contract and mitigating risks related to service disruption or contractor default.

How effectively does the economic price adjustment clause protect the government from excessive cost increases while allowing for legitimate cost fluctuations?

The effectiveness of the economic price adjustment (EPA) clause depends on the specific indexation used and the caps or floors in place. If tied to a relevant and transparent inflation index, it can protect against unforeseen cost increases. However, poorly defined or overly broad EPA clauses can lead to significant cost escalations beyond what is justified, impacting overall value for taxpayers.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › 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: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 55 WATER ST FL 32, NEW YORK, NY, 10041

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

Financial Breakdown

Contract Ceiling: $64,105,670

Exercised Options: $14,971,652

Current Obligation: $14,796,755

Actual Outlays: $8,421,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3007

IDV Type: IDC

Timeline