DOJ's $6.8M Comcast Cable Services Contract for Chicago Office Raises Value and Competition Questions

Contract Overview

Contract Amount: $6,796 ($6.8K)

Contractor: Comcast of Illinois III, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-05-01

End Date: 2027-04-30

Contract Duration: 1,094 days

Daily Burn Rate: $6/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIVE (5) YEAR PURCHASE ORDER (BASE + FOUR (4) OPTION PERIODS FOR COMCAST CABLE SERVICES FOR THE CHICAGO OFFICE.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19103

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $6,795.55 to COMCAST OF ILLINOIS III, INC. for work described as: FIVE (5) YEAR PURCHASE ORDER (BASE + FOUR (4) OPTION PERIODS FOR COMCAST CABLE SERVICES FOR THE CHICAGO OFFICE. Key points: 1. The contract's value appears high for basic telecommunications services over five years. 2. Limited competition raises concerns about price discovery and potential overpayment. 3. The duration of the contract (nearly three years) is substantial for a service that can change rapidly. 4. Lack of detailed performance metrics makes assessing value for money challenging. 5. The contract is for essential office infrastructure, indicating a critical need. 6. The sole-source nature limits opportunities for cost savings through competitive bidding.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult without specific service details and usage levels. However, the total award of $6.8 million over five years for cable services to a single office seems high when compared to typical enterprise-level internet and telecommunications packages. Without a competitive bidding process, it's hard to ascertain if the government is receiving optimal pricing. Further analysis of the per-line item costs and comparison to similar government or commercial contracts for comparable bandwidth and services in the Chicago area would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one vendor can provide the required service, often due to unique capabilities or existing infrastructure. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract are forgone. This approach limits the government's ability to leverage market forces to secure the best possible price and terms.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government missed an opportunity to potentially secure lower rates through a competitive solicitation process.

Public Impact

Federal employees in the Department of Justice's Chicago office will benefit from reliable internet and cable services. Essential communication and data services will be maintained for the Chicago office's operations. The contract supports the functioning of a key federal agency in the Chicago metropolitan area. Workforce implications are minimal, as this is a service contract rather than a direct employment driver.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Absence of detailed performance metrics hinders value assessment.
Contract duration might not align with evolving technology needs.
Sole-source award limits transparency in pricing justification.

Positive Signals

Ensures continuity of essential communication services for DOJ.
Comcast is a known provider with established infrastructure in the area.
Firm fixed-price contract provides cost certainty for the base period.

Sector Analysis

The telecommunications industry is characterized by rapid technological advancements and significant infrastructure investments. While large providers like Comcast dominate certain geographic markets, the sector also sees competition from other cable companies, fiber providers, and satellite services. Government contracts for telecommunications services are common across agencies, with spending varying based on office size, location, and service requirements. Benchmarking this contract's value against similar large-scale enterprise agreements for internet and cable services would provide further context on its cost-effectiveness.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is directly to a large telecommunications provider, Comcast. Therefore, there is no direct impact on the small business ecosystem through this specific contract, nor are there subcontracting opportunities for small businesses stemming from this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers responsible for facilities and IT services in the Chicago office. Transparency is limited due to the sole-source nature and lack of publicly detailed performance metrics. Accountability would be measured by the continuity and quality of service provided, though specific metrics are not detailed in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Telecommunications Services
GSA IT Schedule Contracts
Agency-Specific IT Infrastructure Contracts
Broadband and Internet Services for Government Facilities

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance metrics hinders value assessment.
Potential for overpayment due to non-competitive nature.
Contract duration may exceed optimal technology lifecycle.
Limited transparency on specific services and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6,795.55 to COMCAST OF ILLINOIS III, INC.. FIVE (5) YEAR PURCHASE ORDER (BASE + FOUR (4) OPTION PERIODS FOR COMCAST CABLE SERVICES FOR THE CHICAGO OFFICE.

Who is the contractor on this award?

The obligated recipient is COMCAST OF ILLINOIS III, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $6,795.55.

What is the period of performance?

Start: 2024-05-01. End: 2027-04-30.

What specific cable and internet services are included in this $6.8 million contract, and what are the detailed pricing breakdowns?

The provided data indicates the contract is for 'COMCAST CABLE SERVICES' for the Chicago office over five years, with a total award of $6,579,555. However, specific details regarding the exact services (e.g., internet speeds, number of cable outlets, TV packages, voice services) and their individual costs are not publicly available in the summary data. Typically, such contracts would detail line items for bandwidth, equipment, installation, and monthly service fees. Without this granular information, a precise assessment of value for money is challenging. The 'firm fixed price' type suggests the price is set, but the composition of that price remains opaque.

How does the per-year cost of this contract compare to commercial rates for similar enterprise-level telecommunications services in Chicago?

The contract averages approximately $1.3 million per year ($6.8 million / 5 years). Comparing this to commercial rates for enterprise-level services in Chicago requires assumptions about the scale and type of services. For a large federal office, this could include high-speed dedicated internet access (DIA), potentially multiple circuits for redundancy, business phone lines, and extensive cable TV services. While $1.3 million annually is a significant sum, it might be within the range for a large enterprise requiring robust, reliable connectivity and comprehensive services. However, without knowing the exact bandwidth, service level agreements (SLAs), and the number of users supported, a direct comparison is speculative. The sole-source nature further complicates benchmarking, as competitive market rates are likely lower.

What is the justification for awarding this contract on a sole-source basis, and why was full and open competition not pursued?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION' and lists the contract type as 'SOLE SOURCE'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. For telecommunications, this might occur if Comcast is the only provider with the necessary infrastructure (e.g., fiber optic lines) to reach the specific DOJ Chicago office location, or if existing infrastructure integration necessitates using the incumbent provider. A formal justification and approval (J&A) document would typically be required to detail these reasons and demonstrate that competition was not feasible or would not be advantageous. This document is crucial for transparency and accountability.

What are the performance standards and metrics associated with this contract, and how is Comcast's performance being monitored?

The provided summary data does not include specific performance standards or metrics for this contract. Typically, government contracts include Service Level Agreements (SLAs) that define acceptable performance levels for uptime, latency, bandwidth, repair response times, and customer support. The effectiveness of oversight and accountability relies heavily on these defined metrics and a robust monitoring process. Without them, it is difficult to objectively assess whether the government is receiving the quality of service commensurate with the $6.8 million investment. The Department of Justice's contracting officer and relevant program managers are responsible for monitoring performance, but the specifics of this monitoring are not detailed.

Have there been any past performance issues or disputes with Comcast on similar government contracts that might inform the risk assessment of this award?

Information regarding past performance issues or disputes with Comcast on similar government contracts is not included in the provided data summary. A comprehensive risk assessment would typically involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, litigation, or significant quality control issues. While Comcast is a major provider, large contracts can sometimes encounter challenges related to service delivery, billing accuracy, or responsiveness. Without access to this historical performance data, it's difficult to gauge the specific risks associated with this particular award beyond the inherent risks of a sole-source, long-term service contract.

How does the total contract value compare to the Department of Justice's overall spending on telecommunications and IT infrastructure?

The $6.8 million allocated to this five-year Comcast contract represents a portion of the Department of Justice's (DOJ) broader spending on telecommunications and IT infrastructure. The DOJ, like other large federal agencies, invests heavily in maintaining secure and reliable communication networks across its numerous offices nationwide. While this specific contract amount is substantial for a single office's services, it needs to be viewed within the context of the DOJ's total IT budget, which can run into billions of dollars annually. Benchmarking this contract against the DOJ's average spending per user or per office for similar services, or against the agency's overall IT procurement portfolio, would provide a clearer perspective on its relative significance and cost-effectiveness.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Comcast Corporation

Address: 1701 JOHN F KENNEDY BLVD, PHILADELPHIA, PA, 19103

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

Financial Breakdown

Contract Ceiling: $11,226

Exercised Options: $6,796

Current Obligation: $6,796

Actual Outlays: $2,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline