State Department awards $25K for wired telecom services, completing delivery in 16 days

Contract Overview

Contract Amount: $25,172 ($25.2K)

Contractor: Proximus SA

Awarding Agency: Department of State

Start Date: 2026-01-20

End Date: 2026-02-05

Contract Duration: 16 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROXIMUS MOBILE - 2026-02-01 TO 2026-03-31 - DOS

Plain-Language Summary

Department of State obligated $25,172.21 to PROXIMUS SA for work described as: PROXIMUS MOBILE - 2026-02-01 TO 2026-03-31 - DOS Key points: 1. The contract was awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 2. The short performance period of 16 days suggests a need for immediate or short-term telecommunications support. 3. The firm-fixed-price contract type helps manage cost certainty for this short duration. 4. The award was made to PROXIMUS SA, a single contractor. 5. The North American Industry Classification System (NAICS) code 517111 points to wired telecommunications carriers. 6. The contract value is relatively small, suggesting a niche or specific operational requirement.

Value Assessment

Rating: fair

The contract value of $25,172.21 for a 16-day period is difficult to benchmark without more context on the specific services provided. Given the short duration and the nature of wired telecommunications, the price appears reasonable for a rapid deployment or short-term need. However, without details on the scope of services, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders, often through requests for quotes to pre-qualified vendors or through publicly available sources for small purchases. The specific competition details are not provided, but SAP generally implies less extensive competition than full and open procedures. This approach is suitable for smaller dollar value procurements where extensive competition may not be cost-effective.

Taxpayer Impact: For taxpayers, SAP aims to balance the need for competition with administrative efficiency. While it may not yield the absolute lowest price compared to a full and open competition, it ensures fair pricing for smaller acquisitions and speeds up the procurement process, allowing agencies to meet urgent needs.

Public Impact

The Department of State benefits from the provision of essential wired telecommunications services. The services likely support diplomatic or operational functions requiring reliable communication infrastructure. The geographic impact is likely localized to the operational area of the Department of State where the services are deployed. The contract supports the telecommunications sector by engaging a service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it hard to assess if the price is truly competitive.
Limited competition under SAP might mean a missed opportunity for greater cost savings.
The short performance period could indicate a reactive rather than strategic procurement.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Rapid execution (award to completion in under a month) suggests responsiveness to agency needs.
Use of SAP is appropriate for the contract's relatively low dollar value.

Sector Analysis

The wired telecommunications carriers sector (NAICS 517111) encompasses companies that provide telecommunications services to the public and to other businesses through a network of wired infrastructure. This includes services like local and long-distance phone calls, broadband internet, and private line services. Federal spending in this sector supports agency communication needs, often for critical infrastructure and operations. Comparable spending benchmarks are highly variable, depending on the specific services and duration, but this contract appears to be a small-scale engagement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The value of the contract is below the threshold where small business subcontracting plans are typically mandated. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would fall under the Department of State's internal procurement and financial management controls. As a small value award under SAP, it likely undergoes standard review processes. Transparency is facilitated by contract award databases, but detailed performance oversight information is not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State Communications Infrastructure
Wired Telecommunications Services
Simplified Acquisition Procedures (SAP) Contracts

Risk Flags

Short performance duration may indicate an urgent or reactive need.
Limited competition under SAP could impact price optimality.
Lack of detailed service scope hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $25,172.21 to PROXIMUS SA. PROXIMUS MOBILE - 2026-02-01 TO 2026-03-31 - DOS

Who is the contractor on this award?

The obligated recipient is PROXIMUS SA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25,172.21.

What is the period of performance?

Start: 2026-01-20. End: 2026-02-05.

What specific wired telecommunications services were procured under this contract?

The provided data indicates the contract falls under NAICS code 517111 (Wired Telecommunications Carriers) and was awarded to PROXIMUS SA. However, the specific services rendered are not detailed. Typically, this NAICS code covers services such as local and long-distance voice transmission, broadband internet access, and dedicated private line services delivered over wired networks. Given the short duration (16 days) and the relatively low value ($25,172.21), the services could range from temporary network setup, emergency repairs, or the provision of specific communication lines for an event or short-term operational requirement. Without further documentation, the exact nature of the services remains unspecified.

How does the price of $25,172.21 for 16 days of service compare to similar contracts?

Benchmarking this contract's price is challenging without knowing the exact services provided. A 16-day duration for wired telecommunications services at approximately $25,000 suggests a daily rate of around $1,573. This rate could be reasonable if it includes installation, maintenance, and bandwidth for a specialized or high-demand requirement, especially if it involves rapid deployment. However, if it represents standard broadband or voice services, it might be on the higher side. Contracts under Simplified Acquisition Procedures (SAP) often have less rigorous price competition, which can sometimes lead to higher unit costs compared to large-scale, full-and-open competitions. A more precise comparison would require access to contract line item details and market research data for similar short-term, specialized telecommunications needs within the federal government.

What are the potential risks associated with a contract awarded under Simplified Acquisition Procedures (SAP)?

Contracts awarded under SAP, like this one, are designed for procurements below the threshold for full and open competition (currently $250,000, but specific agency thresholds can vary). While SAP offers efficiency and speed, potential risks include reduced price competition, which could lead to higher costs than might be achieved through a broader solicitation. There's also a risk of less thorough vetting of contractors or services compared to larger procurements. Furthermore, the focus on speed might sometimes overlook potential performance or technical risks if due diligence is abbreviated. For taxpayers, the primary risk is potentially paying more than necessary due to limited competition. However, for small dollar amounts and urgent needs, the efficiency gains often outweigh these risks.

What is the significance of the contract being a Firm Fixed Price (FFP) type?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience during performance. For the Department of State, this provides significant cost certainty for the $25,172.21 award. The contractor, PROXIMUS SA, assumes the risk of cost overruns. This contract structure is generally preferred by the government when the scope of work is well-defined and the risk of unforeseen costs is manageable. For a short-duration contract like this (16 days), FFP is a suitable choice as it simplifies financial management and budgeting, ensuring the agency knows the exact cost upfront.

What does the short performance duration (16 days) imply about the agency's needs?

The extremely short performance duration of 16 days (from estimated start date of 2026-01-20 to estimated end date of 2026-02-05, with the award date being 2026-01-20) suggests an urgent or temporary requirement. This could be for a specific event, a short-term operational need, an emergency situation, or a gap-filling measure while a longer-term solution is procured. It implies that the Department of State needed these wired telecommunications services immediately and for a very limited time. Such short-term needs are often met through SAP to expedite the acquisition process, as full competition and longer contract cycles would not align with the urgency.

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 - END USER

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BOULEVARD DU ROI ALBERT II 27, BRUXELLES

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,172

Exercised Options: $25,172

Current Obligation: $25,172

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19GE5025D0021

IDV Type: IDC

Timeline