DHS Secret Service Leases Antenna Site for $1.36M, Lacking Competition

Contract Overview

Contract Amount: $135,900 ($135.9K)

Contractor: Pinnacle Towers LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2027-02-28

Contract Duration: 515 days

Daily Burn Rate: $264/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANTENNA SIGHT LEASE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77024

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $135,899.88 to PINNACLE TOWERS LLC for work described as: ANTENNA SIGHT LEASE Key points: 1. Contract value of $1.36M for antenna site lease. 2. Sole-source award to Pinnacle Towers LLC raises competition concerns. 3. Lease duration of 515 days. 4. Sector: Real Estate/Telecommunications infrastructure.

Value Assessment

Rating: questionable

Pricing is difficult to assess without competitive bids. The $1.36M value over approximately 17 months suggests a monthly cost of around $80,000. Benchmarking against similar antenna site leases in Texas would be necessary for a thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Pinnacle Towers LLC. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.

Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for this antenna site lease.

Public Impact

Ensures critical infrastructure for U.S. Secret Service operations. Potential for higher costs due to lack of competitive bidding. Supports a specific vendor, Pinnacle Towers LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Supports critical government function

Sector Analysis

This contract falls within the real estate and telecommunications infrastructure sectors, specifically for leasing nonresidential buildings. Spending benchmarks for similar antenna site leases are not readily available but would typically vary based on location, size, and required infrastructure.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the vendor is Pinnacle Towers LLC and the 'sb' field is false. Further analysis would be needed to determine if alternative, competed options involving small businesses were explored.

Oversight & Accountability

Oversight is needed to ensure the lease terms are fair and that the government is receiving adequate value, especially given the sole-source nature of the award. Documentation justifying the sole-source decision should be reviewed.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency on pricing benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $135,899.88 to PINNACLE TOWERS LLC. ANTENNA SIGHT LEASE

Who is the contractor on this award?

The obligated recipient is PINNACLE TOWERS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $135,899.88.

What is the period of performance?

Start: 2025-10-01. End: 2027-02-28.

What is the justification for awarding this antenna site lease on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or specific site requirements that only Pinnacle Towers LLC can meet. A thorough review of the contract file would be necessary to confirm the specific rationale and ensure it aligns with federal procurement regulations.

What is the risk of overpaying for this lease due to the lack of competition?

The primary risk of overpaying stems directly from the absence of a competitive bidding process. Without multiple offers, the government lacks a benchmark to ensure the negotiated price is the best possible value. This sole-source award to Pinnacle Towers LLC could result in a price higher than what might have been achieved in a fully competed environment, potentially leading to inefficient use of taxpayer funds.

How does this lease contribute to the effectiveness of the U.S. Secret Service's mission?

This antenna site lease is crucial for providing essential communication and operational infrastructure for the U.S. Secret Service. Reliable antenna sites are fundamental for secure and effective command, control, and communication systems, which are vital for protecting national leaders and investigating financial crimes. The lease ensures the agency has the necessary physical assets to maintain its critical functions.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

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

Address: 8020 KATY FREEWAY, HOUSTON, TX, 77024

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

Financial Breakdown

Contract Ceiling: $623,529

Exercised Options: $190,875

Current Obligation: $135,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline