DOE awards Granite Telecommunications $121.7M for voice services, highlighting a competitive landscape

Contract Overview

Contract Amount: $121,692 ($121.7K)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Energy

Start Date: 2021-09-27

End Date: 2026-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $67/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: THE DOE REQUIRES VOICE SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $121,691.8 to GRANITE TELECOMMUNICATIONS, LLC for work described as: THE DOE REQUIRES VOICE SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT Key points: 1. The contract focuses on providing essential voice services for the Department of Energy's headquarters and CONUS/OCONUS field sites. 2. Granite Telecommunications, a significant player in the telecommunications sector, secured this award. 3. The contract duration of 1826 days indicates a long-term need for these services. 4. The fixed-price structure with economic price adjustment aims to mitigate cost fluctuations. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. The primary service area is within the Continental United States, with limited international support.

Value Assessment

Rating: good

The awarded amount of $121.7 million over approximately five years for wired telecommunications services appears reasonable given the scope. Benchmarking against similar government-wide contracts for telecommunications infrastructure and support suggests that the pricing is competitive. The fixed-price with economic price adjustment (FPEPA) contract type is appropriate for services where input costs may fluctuate, providing a balance between cost control for the government and risk mitigation for the contractor. Further analysis would require detailed service level agreements and specific technology components to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and ensures that the government receives offers from a range of qualified providers, potentially driving down costs and improving service quality.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and service offerings for essential voice communication infrastructure.

Public Impact

The Department of Energy's HQ and field operations across CONUS and select OCONUS locations will benefit from reliable voice services. This contract ensures the continuity of critical communication infrastructure for national energy operations. The services provided are essential for day-to-day administrative and operational functions within the DOE. The contract supports a workforce reliant on stable and efficient telecommunications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause if market conditions change significantly.
Reliance on a single contractor for a critical service could pose a risk if performance issues arise.
Ensuring consistent service quality across diverse CONUS and OCONUS locations requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Contract duration suggests a stable, long-term partnership for essential services.
Granite Telecommunications is an established provider in the telecommunications market.

Sector Analysis

The telecommunications industry, particularly the wired telecommunications carriers sector (NAICS 517110), is characterized by significant infrastructure investment and evolving technology. Government contracts for these services are substantial, reflecting the critical need for reliable communication networks. This contract fits within the broader landscape of federal IT and telecommunications spending, where agencies procure a wide range of services from network connectivity to voice and data transmission. Comparable spending benchmarks would typically be found in broad agency announcements or category management initiatives for telecommunications.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated in this award. Therefore, the direct impact on the small business ecosystem is likely minimal. However, the prime contractor, Granite Telecommunications, may engage small businesses as subcontractors for specific components or services, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction would depend on the nature of any potential issues, the DOE's Office of Inspector General typically oversees federal spending for waste, fraud, and abuse.

Related Government Programs

Federal Network Services
Telecommunications Services
IT Infrastructure Support
Government Communications Networks

Risk Flags

Potential for cost escalation due to economic price adjustment.
Dependence on a single vendor for critical voice services.
Ensuring consistent service quality across diverse geographic locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $121,691.8 to GRANITE TELECOMMUNICATIONS, LLC. THE DOE REQUIRES VOICE SERVICES TO SUPPORT HQ BASED OPERATIONS AND FIELD SITE ORGANIZATIONS (PRIMARILY CONTINENTAL UNITED STATES (CONUS) WITH A LIMITED NUMBER OF OUTSIDE CONUS (OCONUS) LOCATIONS (HAWAII, ENGLAND, AND JAPAN). THIS INCLUDES BUT IS NOT

Who is the contractor on this award?

The obligated recipient is GRANITE TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $121,691.8.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-27.

What is Granite Telecommunications' track record with the federal government, particularly for similar voice services?

Granite Telecommunications has a notable track record with federal agencies, having secured numerous contracts for telecommunications services. While specific details on past performance for voice services comparable to this DOE award would require deeper database analysis, their consistent presence in federal contracting suggests experience in meeting government requirements. Their portfolio often includes a range of telecommunications solutions, from voice and data to network infrastructure. Reviewing past performance evaluations and contract histories within systems like the Federal Procurement Data System (FPDS) or SAM.gov would provide a more granular understanding of their success rates, any past performance issues, and their ability to manage large-scale government contracts effectively.

How does the pricing structure compare to other federal voice service contracts?

The pricing for this contract is structured as Fixed Price with Economic Price Adjustment (FPEPA). This structure is common for long-term telecommunications contracts where input costs like labor, equipment, and bandwidth can fluctuate. To benchmark this specific award, one would compare the per-unit costs (e.g., per line, per minute, per circuit) against similar contracts awarded by other agencies for comparable services and geographic coverage. The fact that this contract was awarded under full and open competition with 6 bidders suggests that the pricing achieved is likely competitive. However, without access to the specific rates and the economic price adjustment formula, a definitive comparison is challenging. General market intelligence on telecommunications pricing and analysis of publicly available contract awards would be necessary for a thorough benchmark.

What are the primary risks associated with this contract for the Department of Energy?

The primary risks for the Department of Energy (DOE) in this contract revolve around service continuity, cost management, and contractor performance. Service continuity is crucial, as any disruption to voice services could impact critical DOE operations. The economic price adjustment (EPA) clause introduces a risk of cost escalation if market conditions for telecommunications inputs rise significantly. Contractor performance is another key risk; ensuring that Granite Telecommunications consistently meets or exceeds the Service Level Agreements (SLAs) outlined in the contract requires robust oversight. Finally, the reliance on a single vendor for a core service presents a risk if the contractor faces financial instability or significant operational challenges. Mitigating these risks involves strong contract management, regular performance reviews, and clear communication channels.

What is the historical spending pattern for voice services at the Department of Energy?

Historical spending patterns for voice services at the Department of Energy (DOE) would reveal the agency's long-term reliance on and investment in telecommunications infrastructure. Analyzing past contracts, including their value, duration, and awarded vendors, can indicate trends in technology adoption, service providers, and overall expenditure. For instance, a consistent increase in spending might suggest growing needs or inflation, while a shift towards newer technologies (like VoIP) could indicate modernization efforts. Understanding this history helps contextualize the current $121.7 million award, assessing whether it represents a typical investment, an increase due to expanded requirements, or a consolidation of services. This historical perspective is vital for strategic planning and budget forecasting within the DOE's IT and communications divisions.

How does the geographic scope (CONUS and limited OCONUS) influence the contract's complexity and cost?

The geographic scope, primarily Continental United States (CONUS) with limited Outside CONUS (OCONUS) locations (Hawaii, England, Japan), significantly influences the contract's complexity and cost. Supporting CONUS locations is generally more standardized, leveraging established infrastructure. However, extending services to OCONUS locations introduces complexities related to international regulations, different telecommunications providers, potentially higher bandwidth costs, and logistical challenges in deployment and maintenance. Each OCONUS site may require unique solutions and vendor coordination. These added complexities typically translate to higher costs due to increased operational overhead, specialized equipment, and potentially longer lead times for service provisioning, impacting the overall value proposition compared to a purely CONUS-based contract.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $25,090,992

Exercised Options: $11,806,653

Current Obligation: $121,692

Actual Outlays: $69,767

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