DHS awards $8.6M for local telecom services to Granite Telecommunications, LLC

Contract Overview

Contract Amount: $8,625,307 ($8.6M)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-01

End Date: 2026-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: NEW TASK ORDER - LOCAL TELECOMMUNICATIONS SERVICES "VOICE"

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.6 million to GRANITE TELECOMMUNICATIONS, LLC for work described as: NEW TASK ORDER - LOCAL TELECOMMUNICATIONS SERVICES "VOICE" Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract with economic price adjustment may lead to cost fluctuations. 3. The contract duration of 1460 days (4 years) indicates a long-term need for services. 4. Services are for wired telecommunications carriers, a critical infrastructure component. 5. The contract is a delivery order under a larger contract vehicle. 6. Geographic focus on Washington D.C. suggests localized service delivery.

Value Assessment

Rating: fair

The contract value of $8.6 million over four years averages to $2.15 million annually. Benchmarking this against similar telecommunications service contracts is challenging without more specific service details. However, the fixed-price with economic price adjustment structure introduces potential for cost increases beyond initial projections, which warrants careful monitoring. The value appears reasonable for a government-wide telecommunications service contract, but a detailed cost-benefit analysis would be needed for a definitive assessment.

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 a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The competitive nature should theoretically drive down costs and improve service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and better value for the services rendered.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. The contract provides essential wired telecommunications services, likely including voice and data connectivity. Services are geographically focused on the District of Columbia. The contract supports federal government operations and potentially the workforce reliant on these communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to costs exceeding initial estimates.
Lack of specific performance metrics makes it difficult to assess service quality impact.
Reliance on a single delivery order under a larger contract vehicle may limit flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Long-term contract (4 years) provides stability for essential telecommunications services.
Contractor, Granite Telecommunications, LLC, is an established provider in the telecommunications sector.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, a mature industry providing essential communication infrastructure. The market is characterized by significant capital investment and regulatory oversight. Government contracts for telecommunications are common, with spending often driven by the need for secure, reliable, and widespread connectivity. Comparable spending benchmarks would depend on the specific bandwidth, features, and service level agreements required, but federal spending in this area is substantial.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process or could be involved as subcontractors. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Immigration and Customs Enforcement (ICE) contracting office within DHS. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services
Wired Network Infrastructure
Government Communications Contracts
Department of Homeland Security IT Spending
ICE Operational Support

Risk Flags

Potential for cost increases due to Economic Price Adjustment.
Lack of detailed performance metrics in summary data.
Dependence on a potentially pre-existing contract vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.6 million to GRANITE TELECOMMUNICATIONS, LLC. NEW TASK ORDER - LOCAL TELECOMMUNICATIONS SERVICES "VOICE"

Who is the contractor on this award?

The obligated recipient is GRANITE TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-07-31.

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

Granite Telecommunications, LLC has a history of performing telecommunications services for various federal agencies. A review of federal procurement data indicates they have been awarded numerous contracts for voice and data services, often under competitive bidding processes. Their experience spans providing solutions to agencies like the Department of Veterans Affairs and the General Services Administration. While specific performance ratings for individual contracts are not always publicly detailed, their continued success in securing federal awards suggests a generally positive track record. Further investigation into past performance evaluations and any reported issues would provide a more comprehensive understanding of their reliability and capability in fulfilling government requirements.

How does the pricing of this contract compare to similar telecommunications services procured by the federal government?

Direct comparison of pricing for this $8.6 million, four-year contract for wired telecommunications services in D.C. is difficult without detailed service specifications (e.g., bandwidth, number of lines, specific features). However, the contract type, Fixed Price with Economic Price Adjustment (FPEPA), suggests that while a base price is set, there's a mechanism for adjusting costs based on economic factors like inflation. This can sometimes lead to higher overall costs compared to a firm fixed-price contract if economic conditions are unfavorable. Benchmarking would require analyzing contracts with similar scope, duration, and geographic location, considering factors like the number of bidders and the specific technologies employed. Generally, competitive awards aim for market-based pricing, but the FPEPA element introduces a variable that needs monitoring.

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

Key risks include potential cost overruns due to the Economic Price Adjustment (EPA) clause, which allows for price increases based on economic factors. If inflation is high, the final cost could significantly exceed the initial estimate. Another risk is service disruption or degradation, impacting critical ICE operations. This is managed through the contract's performance standards and service level agreements (SLAs), though specifics aren't detailed here. Vendor lock-in or difficulty switching providers could be a long-term risk if the services become deeply integrated. Finally, cybersecurity threats are inherent in telecommunications; robust security protocols and monitoring by DHS are crucial mitigation strategies. The contract's duration also presents a risk if technology rapidly evolves, making the procured services obsolete.

What is the overall effectiveness of using a delivery order under a larger contract vehicle for these services?

Using a delivery order under a larger contract vehicle, such as the one this task order falls under, can offer significant efficiencies. It allows agencies to procure specific services or products quickly without initiating a new, full procurement process, saving time and administrative costs. This is particularly useful for established needs like telecommunications. The effectiveness hinges on the quality of the original contract vehicle's competition and terms. If the parent contract was well-competed and offers favorable pricing and terms, then delivery orders are an effective way to leverage that. However, if the parent contract itself was not optimal, or if this specific delivery order deviates significantly from the original scope, its effectiveness might be diminished. For ICE, it likely provides a streamlined way to obtain necessary telecom services.

How has federal spending on wired telecommunications carriers evolved, and where does this contract fit in?

Federal spending on wired telecommunications carriers has historically been substantial, driven by the need for secure and reliable communication networks across numerous agencies. While specific figures fluctuate based on technological shifts (e.g., migration to cloud services, increased reliance on wireless), the demand for robust wired infrastructure remains. This $8.6 million contract for ICE represents a segment of that ongoing spending. It fits within the broader category of federal IT and communications infrastructure investments. Compared to massive agency-wide IT overhauls, this contract is focused on a specific, essential service. Its value is significant for the localized need it addresses but is a fraction of the total federal IT budget. Trends show a continued need for these services, even as newer technologies emerge.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD022R00000006

Offers Received: 1

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

Evaluated Preference: NONE

Contractor Details

Address: 1 HERITAGE DR, 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: $55,305,586

Exercised Options: $8,625,307

Current Obligation: $8,625,307

Actual Outlays: $3,274,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3004

IDV Type: IDC

Timeline