DOJ's $23.7M VoIP contract awarded to TeleGuam Holdings, LLC, bypassing full and open competition

Contract Overview

Contract Amount: $23,692 ($23.7K)

Contractor: Teleguam Holdings, LLC

Awarding Agency: Department of Justice

Start Date: 2024-11-01

End Date: 2026-09-30

Contract Duration: 698 days

Daily Burn Rate: $34/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25-29 D93 VOIP

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Justice obligated $23,691.91 to TELEGUAM HOLDINGS, LLC for work described as: FY25-29 D93 VOIP Key points: 1. The contract's value of $23.7 million over its period of performance warrants scrutiny for cost-effectiveness. 2. Awarding to a single vendor without a competitive process raises questions about potential price overruns. 3. The lack of competition is a significant risk indicator for achieving optimal value for taxpayer dollars. 4. Performance context is limited due to the sole-source nature, making benchmarking against similar services challenging. 5. This contract falls within the telecommunications sector, specifically wireless carrier services. 6. The use of a Purchase Order for a multi-year, high-value award may indicate an unusual procurement approach.

Value Assessment

Rating: questionable

Benchmarking the value of this $23.7 million contract is difficult without competitive data. The firm fixed-price structure offers some cost certainty, but the absence of competition means there's no direct comparison to assess if TeleGuam Holdings, LLC's pricing is market-competitive. Without alternative bids or a more robust justification for the sole-source award, it's challenging to definitively state whether this represents excellent value for money. The duration and scope suggest a significant investment that would typically benefit from a competitive bidding process to ensure the best possible pricing and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The U.S. Marshals Service did not solicit offers from multiple vendors. This approach significantly limits price discovery and may result in higher costs for the government compared to a fully competed contract. The rationale for not competing the award needs to be thoroughly examined to understand if there were specific circumstances justifying this deviation from standard procurement practices.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. This can lead to higher overall government spending on essential services.

Public Impact

The U.S. Marshals Service will benefit from enhanced voice communication capabilities. This contract ensures the provision of wireless telecommunications services, likely supporting operational needs. The geographic impact is focused on Guam, where the services will be delivered. The contract supports the operational workforce of the U.S. Marshals Service by providing necessary communication infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced service innovation.
Sole-source awards can create vendor lock-in, limiting future flexibility and potentially increasing long-term costs.
The use of a Purchase Order for a multi-year, significant value contract raises questions about procurement process rigor.
Limited transparency into the justification for sole-source award hinders public accountability.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
The award is to a specific vendor, TeleGuam Holdings, LLC, indicating a known entity is providing the service.
The contract duration is defined, providing a clear timeframe for service delivery.

Sector Analysis

This contract falls under the Wireless Telecommunications Carriers (except Satellite) sector, a critical component of the broader telecommunications industry. The market for these services is generally competitive, with numerous providers offering various solutions. However, specific geographic locations or specialized service requirements can sometimes lead to limited vendor availability. The size of this contract, approximately $23.7 million, is substantial within this niche, suggesting a significant demand for reliable wireless communication infrastructure, likely for mission-critical government operations.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information regarding subcontracting plans for small businesses. Consequently, this award does not directly contribute to the small business contracting goals of the U.S. Marshals Service or the Department of Justice. The impact on the small business ecosystem is therefore minimal for this specific procurement.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Marshals Service contracting officers and program managers. As a sole-source award via a Purchase Order, the level of public transparency and detailed justification may be less than for a fully competed contract. Accountability will be measured by the contractor's adherence to the firm fixed-price terms and the delivery of specified wireless telecommunications services. There is no immediate indication of specific Inspector General jurisdiction beyond standard government oversight functions.

Related Government Programs

Department of Justice Telecommunications Contracts
U.S. Marshals Service IT and Communications Procurement
Federal Wireless Services Contracts
Government Voice over IP Services

Risk Flags

Sole-source award bypasses competition
Lack of justification for sole-source award
Potential for inflated pricing due to no competition
Purchase Order used for significant multi-year award

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23,691.91 to TELEGUAM HOLDINGS, LLC. FY25-29 D93 VOIP

Who is the contractor on this award?

The obligated recipient is TELEGUAM HOLDINGS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $23,691.91.

What is the period of performance?

Start: 2024-11-01. End: 2026-09-30.

What specific justification was provided by the U.S. Marshals Service for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or when a public exigency exists. Without this documentation, it is impossible to assess the validity of the sole-source determination. This lack of transparency is a concern, as it prevents a thorough evaluation of whether competition was genuinely not feasible or if alternative procurement strategies were overlooked. Further investigation into the contract file or agency justifications would be required to understand the rationale behind bypassing a competitive process for this $23.7 million award.

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

Direct price comparison is challenging due to the sole-source nature of this award and the lack of detailed pricing breakdowns in the provided data. Benchmarking against similar contracts would require access to pricing information from other federal agencies procuring comparable wireless telecommunications services, ideally through competitive processes. Without this comparative data, it's difficult to ascertain if TeleGuam Holdings, LLC's pricing is at fair market value. The firm fixed-price structure offers some predictability, but the absence of competitive bids means there's no external validation of the cost-effectiveness. A comprehensive analysis would involve reviewing publicly available contract databases for similar services and quantities.

What are the potential risks associated with awarding a multi-year, high-value contract as a sole-source purchase order?

Awarding a multi-year, $23.7 million contract as a sole-source purchase order presents several risks. Firstly, the lack of competition can lead to inflated prices and suboptimal service quality, as the vendor faces no pressure to innovate or offer competitive rates. Secondly, it can result in vendor lock-in, making it difficult and costly to switch providers in the future. Thirdly, the use of a purchase order for such a significant and long-term commitment might indicate a less rigorous procurement process than a formal contract, potentially leading to less defined terms and conditions or weaker oversight. This approach bypasses standard competitive procedures designed to ensure best value and accountability for taxpayer funds.

What is the historical spending pattern for wireless telecommunications services by the U.S. Marshals Service, and how does this contract fit within that pattern?

The provided data does not include historical spending patterns for wireless telecommunications services by the U.S. Marshals Service. To assess how this $23.7 million contract fits within historical trends, one would need to analyze past contract awards for similar services, including their values, durations, and procurement methods. Understanding this context is crucial for determining if this award represents an increase or decrease in spending, a shift in procurement strategy (e.g., from competitive to sole-source), or a continuation of existing service provisions. Without historical data, it's difficult to evaluate the long-term financial implications or strategic alignment of this specific contract.

What is the track record of TeleGuam Holdings, LLC in performing federal contracts, particularly for telecommunications services?

The provided data indicates that TeleGuam Holdings, LLC is the contractor for this $23.7 million VoIP contract. However, it does not offer information on their specific track record with federal contracts. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review past awards, contract performance evaluations (e.g., CPARS), and any history of disputes or issues. A strong track record with successful delivery of similar services would increase confidence in the current award, while a history of poor performance or contract issues would raise significant concerns about the U.S. Marshals Service's decision to award on a sole-source basis.

Industry Classification

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

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

Solicitation ID: 15M10225QA4700003

Offers Received: 1

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: $61,559

Exercised Options: $23,998

Current Obligation: $23,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline