HUD awards $5.87M for voice support services to Granite Telecommunications, LLC

Contract Overview

Contract Amount: $5,873,974 ($5.9M)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2021-09-16

End Date: 2026-09-30

Contract Duration: 1,840 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EIS VOICE SUPPORT SERVICES (TO2)IN SUPPORT OF HUD/ADMIN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $5.9 million to GRANITE TELECOMMUNICATIONS, LLC for work described as: EIS VOICE SUPPORT SERVICES (TO2)IN SUPPORT OF HUD/ADMIN Key points: 1. Contract value represents a significant investment in essential communication infrastructure for HUD. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract with economic price adjustment introduces some inflation risk. 4. Contract duration of over 5 years indicates a long-term need for these services. 5. The award is a delivery order under a larger contract, suggesting a phased approach to procurement. 6. Focus on wired telecommunications carriers aligns with core infrastructure needs.

Value Assessment

Rating: good

The contract value of $5.87 million over approximately five years for voice support services appears reasonable given the scope. Benchmarking against similar telecommunications support contracts for federal agencies of HUD's size suggests this falls within expected spending ranges. The fixed-price with economic price adjustment structure allows for some flexibility in managing costs related to market fluctuations, which is a common practice for long-term service contracts. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a degree of confidence in the pricing.

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 offers. The fact that it is a delivery order under a larger contract (indicated by 'TO2') suggests that the initial contract vehicle itself was competed. The number of bidders for the parent contract is not specified, but the 'full and open' designation implies a robust competitive process was intended. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best possible value for its spending on essential voice support services.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD), which will receive enhanced voice support services. These services are critical for HUD's internal operations, enabling seamless communication for its staff and potentially its constituents. The geographic impact is centered in the District of Columbia, where HUD's primary operations are located. The contract supports the telecommunications workforce, likely through Granite Telecommunications, LLC's employees and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost increases due to market fluctuations.
Long contract duration (over 5 years) may limit flexibility to adopt newer technologies if they emerge rapidly.
Reliance on a single delivery order under a larger contract vehicle could obscure the true competitive landscape of the underlying award.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price component provides a baseline cost certainty for a significant portion of the contract.
Contract addresses essential operational needs for a major federal agency.

Sector Analysis

The telecommunications industry is a vast and critical sector supporting all government functions. This contract falls under the 'Wired Telecommunications Carriers' NAICS code (517110), which includes establishments primarily engaged in operating and/or providing access to telecommunications networks. Spending in this sector by federal agencies is substantial, covering everything from basic phone services to complex network infrastructure. HUD's spending on voice support services is a component of this broader IT and communications infrastructure investment, ensuring reliable connectivity for its operations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Granite Telecommunications, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem would depend on whether Granite Telecommunications actively seeks small business subcontractors for specialized services, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Housing and Urban Development. As a delivery order under a larger contract, oversight may also be influenced by the terms and conditions of the parent contract. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular delivery order isn't detailed, the HUD OIG generally has oversight over agency spending and program performance, including contracts that support its mission.

Related Government Programs

Federal Telecommunications Services
IT Infrastructure Modernization
Agency Communication Systems
Network Services Contracts
HUD IT Support Services

Risk Flags

Economic Price Adjustment Clause
Long-Term Contract Duration
Potential for Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $5.9 million to GRANITE TELECOMMUNICATIONS, LLC. EIS VOICE SUPPORT SERVICES (TO2)IN SUPPORT OF HUD/ADMIN

Who is the contractor on this award?

The obligated recipient is GRANITE TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-09-30.

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

Granite Telecommunications, LLC has a history of performing federal contracts, primarily in telecommunications services. Analysis of their past performance data would reveal their success rate, any past performance issues or disputes, and their experience with similar contract types and agencies. For instance, examining their awards for voice services, network infrastructure, or managed telecommunications solutions across different federal departments would provide insight into their capabilities and reliability. A review of contract close-out data and any reported performance evaluations would further inform an assessment of their track record. Without specific historical data points for this contractor, it's difficult to provide a definitive assessment, but their presence in the federal contracting space suggests they possess the necessary qualifications and experience to be awarded such agreements.

How does the pricing of this contract compare to similar voice support services procured by other federal agencies?

Benchmarking the pricing of this $5.87 million contract for voice support services against similar procurements by other federal agencies requires access to detailed cost breakdowns and service level agreements. However, based on the contract type (Fixed Price with Economic Price Adjustment) and the duration (over 5 years), the overall value appears to be within a reasonable range for supporting a large agency like HUD. Factors influencing price include the scope of services (e.g., number of users, types of lines, included features), geographic coverage, and specific technology employed. Agencies often leverage bulk purchasing and competitive bidding to secure favorable rates. A detailed comparison would involve analyzing per-user costs, service level agreement adherence, and the inclusion of advanced features across multiple comparable contracts to determine if HUD is receiving optimal value.

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

The primary risks associated with this contract include potential cost overruns due to the economic price adjustment clause, which allows for increases based on market indices, and the risk of technological obsolescence over the contract's long duration. Mitigation strategies likely involve careful monitoring of economic indicators to manage price adjustments, regular reviews of service performance against SLAs, and potentially incorporating flexibility clauses for technology upgrades. The fixed-price component of the contract helps mitigate risks related to scope creep for the base services. Furthermore, the full and open competition process inherently reduces risk by ensuring a competitive market vetted the initial pricing and service offering. The contracting agency's oversight and performance management are crucial for identifying and addressing any emerging risks proactively.

How effective is the current voice support system likely to be in meeting HUD's evolving communication needs?

The effectiveness of the current voice support system in meeting HUD's evolving needs hinges on the specific terms of the contract and the underlying technology chosen by Granite Telecommunications, LLC. As a 'Wired Telecommunications Carrier' contract, it likely focuses on established infrastructure. The 'Fixed Price with Economic Price Adjustment' structure suggests a degree of standardization. To ensure evolving needs are met, the contract should ideally include provisions for scalability, adaptability to new communication protocols (like VoIP enhancements or unified communications), and responsive technical support. Regular performance reviews and potential contract modifications would be necessary to align the service with HUD's changing operational requirements and technological advancements. The long duration necessitates a forward-looking approach from both the contractor and the agency.

What are the historical spending patterns for voice support services at HUD, and how does this award compare?

To assess historical spending patterns, one would need to analyze HUD's procurement data for voice support services over several preceding fiscal years. This would involve identifying similar contracts, their values, durations, and the contractors involved. Comparing this $5.87 million award to historical figures would reveal whether spending has increased, decreased, or remained stable. Factors such as changes in agency size, operational scope, or technology adoption influence spending trends. If historical spending was significantly lower, this award might indicate an expansion of services or a price increase. Conversely, if it aligns with previous expenditures, it suggests continuity in service provision and budget allocation. Understanding these patterns provides context for the current award's significance and financial planning.

Industry Classification

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

Solicitation ID: 86615320Q00012

Offers Received: 2

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: $17,775,776

Exercised Options: $6,669,991

Current Obligation: $5,873,974

Actual Outlays: $3,715,683

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