Department of State awards $574K for Telecom Services, including microwave links
Contract Overview
Contract Amount: $57,446 ($57.4K)
Contractor: Radio Comunicaciones, Sociedad Anonima DE Capital Variable
Awarding Agency: Department of State
Start Date: 2026-04-01
End Date: 2026-04-03
Contract Duration: 2 days
Daily Burn Rate: $28.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DT - TAR - RENEWAL RENT AND MICROWAVE LINK
Plain-Language Summary
Department of State obligated $57,445.8 to RADIO COMUNICACIONES, SOCIEDAD ANONIMA DE CAPITAL VARIABLE for work described as: DT - TAR - RENEWAL RENT AND MICROWAVE LINK Key points: 1. Contract awarded to RADIO COMUNICACIONES, SOCIEDAD ANONIMA DE CAPITAL VARIABLE. 2. Spending falls under NAICS code 517810 (All Other Telecommunications). 3. Contract type is Firm Fixed Price. 4. Duration is 2 years, ending April 2026.
Value Assessment
Rating: fair
The contract value of $574,458 over two years suggests a moderate annual spend. Benchmarking against similar telecommunications service contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (System for Award Management), indicating a limited competition approach. This method may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential telecommunications infrastructure and services for the Department of State.
Public Impact
Ensures continued operation of critical communication systems for the Department of State. Supports diplomatic and operational functions through reliable telecommunications. Potential for cost savings if competition under SAP was robust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Reliance on a single vendor for critical services.
- Potential for scope creep or unaddressed needs in future renewals.
Positive Signals
- Contract supports essential government functions.
- Clear contract duration and end date.
- Fixed price contract provides cost certainty.
Sector Analysis
The telecommunications sector is vital for government operations, providing essential connectivity. Spending benchmarks vary widely based on service type and scale, but this contract appears to be for specialized services.
Small Business Impact
No information is provided regarding small business participation in this contract award.
Oversight & Accountability
Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money throughout the contract period.
Related Government Programs
- All Other Telecommunications
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition.
- Potential for vendor lock-in.
- Lack of transparency on small business participation.
- Need for detailed cost-benefit analysis for renewal.
Tags
all-other-telecommunications, department-of-state, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $57,445.8 to RADIO COMUNICACIONES, SOCIEDAD ANONIMA DE CAPITAL VARIABLE. DT - TAR - RENEWAL RENT AND MICROWAVE LINK
Who is the contractor on this award?
The obligated recipient is RADIO COMUNICACIONES, SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $57,445.8.
What is the period of performance?
Start: 2026-04-01. End: 2026-04-03.
What is the specific nature of the 'RENEWAL RENT AND MICROWAVE LINK' services being procured, and how critical are they to the Department of State's operations?
The specific services likely involve the rental of microwave transmission links and associated maintenance or operational support. These are critical for secure and reliable data and voice communication, potentially for remote or high-security locations where traditional terrestrial networks are unavailable or insufficient. Their criticality stems from enabling seamless communication for diplomatic missions and operational continuity.
What was the justification for competing this requirement under SAP, and what steps were taken to ensure fair and reasonable pricing within this limited competition framework?
Competition under SAP (Simplified Acquisition Procedures) is typically used for purchases below certain thresholds or when specific conditions apply, such as urgency or limited sources. The justification would need to detail why full and open competition was not feasible. Ensuring fair and reasonable pricing would involve market research, obtaining quotes from multiple sources if possible within SAP guidelines, and comparing pricing to historical data or industry benchmarks.
How does the awarded price of $574,458 over two years compare to industry benchmarks for similar microwave link rental and telecommunications services, considering the specific geographic and security
Without detailed specifications of the service (bandwidth, uptime guarantees, geographic coverage, security protocols), a precise benchmark is difficult. However, for specialized services like dedicated microwave links, costs can be significant due to infrastructure, maintenance, and licensing. A comparative analysis against similar government or commercial contracts, factoring in the unique demands of the Department of State, is crucial to assess if the price represents good value.
Industry Classification
NAICS: Information › All Other Telecommunications › All Other Telecommunications
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 89 AVE NORTE, 341, COLONIA ESCALON, SAN SALVADOR
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $57,446
Exercised Options: $57,446
Current Obligation: $57,446
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-04-03
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-04-01
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