Interior's Navajo Communications Awarded $468K for Farm High School Telephone Service

Contract Overview

Contract Amount: $46,832 ($46.8K)

Contractor: Navajo Communications CO., Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-12-14

End Date: 2025-12-31

Contract Duration: 1,113 days

Daily Burn Rate: $42/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TELEPHONE SERVICE - MANY FARMS HIGH SCHOOL

Place of Performance

Location: MANY FARMS, APACHE County, ARIZONA, 86538

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $46,832.19 to NAVAJO COMMUNICATIONS CO., INC. for work described as: TELEPHONE SERVICE - MANY FARMS HIGH SCHOOL Key points: 1. Spending on telephone services for educational facilities is essential for modern learning. 2. The contract value is relatively small, suggesting a localized need. 3. Reliance on a single provider for essential services can pose a risk if alternatives are not explored. 4. The IT sector, specifically telecommunications, is critical for infrastructure.

Value Assessment

Rating: fair

The contract value of $468,321.90 over three years for telephone services appears reasonable for a high school. However, without specific details on the scope of services (e.g., number of lines, data speeds), a direct comparison to similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the service had been competitively bid.

Public Impact

Ensures essential communication infrastructure for students and staff at Many Farms High School. Supports educational continuity by providing reliable telephone services. Potential for increased costs due to the absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Supports educational needs
Essential service provision

Sector Analysis

The telecommunications sector is vital for providing connectivity to educational institutions. Spending benchmarks for such services vary widely based on location, student population, and service level agreements. This contract falls within the IT sector.

Small Business Impact

The awardee, Navajo Communications Co., Inc., is not identified as a small business. Analysis of small business participation is not applicable for this sole-source contract.

Oversight & Accountability

The Department of the Interior, through the Bureau of Indian Affairs and Bureau of Indian Education, is responsible for overseeing this contract. Standard procurement regulations should apply, but the sole-source nature warrants scrutiny.

Related Government Programs

Wired Telecommunications Carriers
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in vendor selection
No identified small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $46,832.19 to NAVAJO COMMUNICATIONS CO., INC.. TELEPHONE SERVICE - MANY FARMS HIGH SCHOOL

Who is the contractor on this award?

The obligated recipient is NAVAJO COMMUNICATIONS CO., INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $46,832.19.

What is the period of performance?

Start: 2022-12-14. End: 2025-12-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. For this contract, the specific rationale from the Department of the Interior is needed to understand why Navajo Communications Co., Inc. was the only viable option and if any market research was conducted to confirm this.

What is the potential cost impact of this sole-source award compared to a competitive process?

Without a competitive bidding process, it is difficult to quantify the exact cost impact. However, sole-source contracts often result in higher prices because the vendor faces no pressure to offer the lowest possible cost. A benchmark analysis against similar services in Arizona could provide an estimated range of savings.

Are there plans to explore competitive bidding for future telecommunication needs at Many Farms High School?

Exploring competitive bidding for future contracts is crucial for ensuring cost-effectiveness and value for taxpayer money. The Department of the Interior should assess the market for telecommunications services in the region to determine if future procurements can be opened to competition, potentially leading to better pricing and service options.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: STATE HWY 264, SAINT MICHAELS, AZ, 86511

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

Financial Breakdown

Contract Ceiling: $75,383

Exercised Options: $46,832

Current Obligation: $46,832

Actual Outlays: $46,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline