NOAA awards $2.59M for Guam telecommunications to support NWS, with a 365-day duration

Contract Overview

Contract Amount: $25,920 ($25.9K)

Contractor: Teleguam Holdings, LLC

Awarding Agency: Department of Commerce

Start Date: 2025-06-24

End Date: 2026-06-24

Contract Duration: 365 days

Daily Burn Rate: $71/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA) N-WAVE NETWORK REQUIRES RELIABLE TELECOMMUNICATIONS CONNECTIVITY IN THE REGION OF GUAM TO SUPPORT THE NATIONAL WEATHER SERVICE (NWS) GUAM WEATHER FORECAST OFFICE

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Commerce obligated $25,920 to TELEGUAM HOLDINGS, LLC for work described as: THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA) N-WAVE NETWORK REQUIRES RELIABLE TELECOMMUNICATIONS CONNECTIVITY IN THE REGION OF GUAM TO SUPPORT THE NATIONAL WEATHER SERVICE (NWS) GUAM WEATHER FORECAST OFFICE Key points: 1. The contract focuses on essential telecommunications for weather forecasting in Guam. 2. Competition dynamics appear favorable given the contract type and location. 3. Performance risk is likely moderate, dependent on service reliability. 4. This spending supports critical national weather service operations. 5. The telecommunications sector in Guam is a key enabler for such services. 6. Contract value is relatively small in the context of federal IT spending.

Value Assessment

Rating: good

The contract value of $2.59 million for a one-year telecommunications service in Guam appears reasonable, especially considering the specific requirements for supporting a National Weather Service office. Benchmarking against similar contracts for remote or island-based telecommunications infrastructure would provide a more precise value assessment. However, the firm fixed-price nature suggests that the government has a clear understanding of costs, and the price is likely competitive for the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below a certain threshold. While the specific number of bidders is not provided, SAP generally encourages broad participation. This competitive approach is expected to yield fair market pricing for the telecommunications services required by NOAA in Guam.

Taxpayer Impact: A competitive process, even under SAP, helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The National Weather Service Guam Weather Forecast Office benefits directly through reliable connectivity. The public in Guam and surrounding regions will receive more accurate and timely weather forecasts and warnings. Geographic impact is concentrated in Guam, supporting critical infrastructure on the island. The contract supports the operational workforce of the NWS Guam office.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the telecommunications provider experiences outages.
Dependence on a single provider for a critical function could pose a risk.
Ensuring consistent service quality and uptime in a remote location.

Positive Signals

Firm fixed-price contract provides cost certainty.
Competition under SAP suggests a fair market price was likely achieved.
Supports a critical government function (weather forecasting).

Sector Analysis

This contract falls within the telecommunications services sector, specifically wired telecommunications carriers. The market for such services in island territories like Guam can be limited, making reliable providers essential. The spending supports the operational needs of a federal agency, aligning with broader government investments in maintaining critical infrastructure and data transmission capabilities across its facilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed for this award. Given the nature of telecommunications services and the specific provider, it's possible that larger firms dominate this particular market segment in Guam. Further analysis would be needed to determine if small businesses had opportunities to participate or subcontract.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and program officials within NOAA. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Weather Service Operations
NOAA Telecommunications Infrastructure
Federal Network Connectivity
Guam Government Services

Risk Flags

Potential for service disruption in a critical operational area.
Limited competition pool for telecommunications in island territories.
Dependence on a single provider for essential connectivity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25,920 to TELEGUAM HOLDINGS, LLC. THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA) N-WAVE NETWORK REQUIRES RELIABLE TELECOMMUNICATIONS CONNECTIVITY IN THE REGION OF GUAM TO SUPPORT THE NATIONAL WEATHER SERVICE (NWS) GUAM WEATHER FORECAST OFFICE

Who is the contractor on this award?

The obligated recipient is TELEGUAM HOLDINGS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $25,920.

What is the period of performance?

Start: 2025-06-24. End: 2026-06-24.

What is the track record of TeleGuam Holdings, LLC in providing similar telecommunications services to government entities?

Information on TeleGuam Holdings, LLC's specific track record with government contracts is not detailed in the provided data. However, as a provider of wired telecommunications services in Guam, their operational history and existing infrastructure are key factors. A thorough review would involve examining past performance evaluations, any previous government contracts they have held, and their reputation for reliability and service quality within the region. Understanding their experience with critical infrastructure support, such as for weather forecasting, would be particularly relevant for assessing their suitability for this NOAA contract.

How does the $2.59 million contract value compare to similar telecommunications contracts in remote or island locations?

The $2.59 million contract value for one year of service in Guam is a significant investment. To benchmark effectively, comparisons should be made with contracts for similar telecommunications services in other U.S. territories or remote island locations where infrastructure costs and logistical challenges can drive up prices. Factors such as bandwidth requirements, service level agreements (SLAs), and the specific technologies employed will influence comparability. Without direct comparative data, it's challenging to definitively state if this price is high or low, but it warrants scrutiny against regional market rates and similar federal procurements.

What are the primary risks associated with this telecommunications contract for NOAA?

The primary risks associated with this contract revolve around service reliability and continuity. Given that the telecommunications connectivity is critical for the National Weather Service's Guam Weather Forecast Office, any disruption could have significant consequences for weather monitoring and public warnings. Risks include potential outages due to infrastructure failures, natural disasters impacting the service area, or issues with the provider's operational capacity. The firm fixed-price nature mitigates cost overrun risks for the government, but performance risks remain a key concern that must be managed through robust SLAs and monitoring.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for telecommunications in Guam?

The Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below a certain dollar threshold, encouraging competition among a broader range of vendors, including small businesses. For telecommunications services in Guam, SAP aims to ensure competitive pricing by allowing for more flexible solicitation and evaluation methods compared to full-scale competitive bidding. The effectiveness hinges on the number of qualified vendors in the region and the clarity of the solicitation. While SAP generally promotes fair pricing, the specific market dynamics of Guam's telecommunications sector will ultimately determine the degree of price competition achieved.

What is the historical spending pattern for telecommunications services by NOAA in Guam?

Historical spending data for NOAA's telecommunications services specifically in Guam is not provided in this context. To assess historical patterns, one would need to analyze past contracts awarded by NOAA or its sub-agencies (like NWS) for similar services in the same geographic region. This would involve looking at contract values, durations, and providers over several fiscal years. Understanding these patterns can reveal trends in pricing, vendor stability, and the overall investment in supporting critical infrastructure in Guam, helping to contextualize the current $2.59 million award.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M425Q0051

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 624 N MARINE CORPS DR, TAMUNING, GU, 96913

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

Financial Breakdown

Contract Ceiling: $64,800

Exercised Options: $25,920

Current Obligation: $25,920

Actual Outlays: $5,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline