State Dept. Spends $10K on German Cell Service via Full Competition

Contract Overview

Contract Amount: $10,067 ($10.1K)

Contractor: Telekom Deutschland Gmbh

Awarding Agency: Department of State

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $28/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CELL PHONE SERVICES GERMANY

Plain-Language Summary

Department of State obligated $10,066.69 to TELEKOM DEUTSCHLAND GMBH for work described as: CELL PHONE SERVICES GERMANY Key points: 1. Spending is minimal at $10,066.69, indicating a small-scale need. 2. Sole provider Telekom Deutschland GmbH suggests potential lack of local competition. 3. Risk is low due to small contract value, but vendor lock-in is a concern. 4. Sector is Wired Telecommunications Carriers, a standard utility service.

Value Assessment

Rating: fair

The contract value is very low, making direct price comparisons difficult. However, for a single user or small group in Germany, this price point is not inherently unreasonable for business-grade service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a fair process. However, the specific vendor, Telekom Deutschland GmbH, is a dominant player in Germany, which may limit practical alternatives for certain service types.

Taxpayer Impact: The taxpayer impact is negligible given the small contract value of approximately $10,000.

Public Impact

Ensures communication capabilities for State Department personnel in Germany. Supports diplomatic and operational functions requiring reliable connectivity. Minimal direct impact on the general public, primarily an internal government function.

Waste & Efficiency Indicators

Waste Risk Score: 28 / 10

Warning Flags

Potential vendor lock-in with dominant German provider.
Limited visibility into specific service features and usage.

Positive Signals

Awarded under full and open competition.
Clear contract end date.

Sector Analysis

The contract falls within the Wired Telecommunications Carriers sector. Spending benchmarks for this sector vary widely based on service type, volume, and geographic location. This specific contract appears to be a very small procurement.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The award went to a large, established telecommunications provider.

Oversight & Accountability

The Department of State managed this procurement. Standard oversight for delivery orders applies, focusing on adherence to contract terms and delivery of services.

Related Government Programs

Wired Telecommunications Carriers
Department of State Contracting
Department of State Programs

Risk Flags

Potential for limited competition due to market dominance.
Lack of detailed service specifications for granular analysis.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10,066.69 to TELEKOM DEUTSCHLAND GMBH. CELL PHONE SERVICES GERMANY

Who is the contractor on this award?

The obligated recipient is TELEKOM DEUTSCHLAND GMBH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10,066.69.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific service being procured beyond 'cell phone services'?

The data provided is limited and categorizes the service broadly as 'CELL PHONE SERVICES GERMANY' under the NAICS code '517111 - Wired Telecommunications Carriers'. Further details on the exact service plan, data allowances, or included features are not available in this summary, making a precise value assessment challenging.

What is the risk associated with using a dominant local provider in Germany?

The primary risk is potential vendor lock-in and limited leverage for future negotiations if Telekom Deutschland GmbH is the only viable provider for the specific service requirements. While competition was sought, the market structure in Germany might inherently favor established players, potentially leading to less competitive pricing over time or difficulty switching providers.

How effective is this contract in ensuring reliable communication for personnel?

Assuming Telekom Deutschland GmbH provides reliable service, the contract is likely effective in meeting the immediate communication needs of the State Department personnel in Germany. The firm fixed-price structure provides cost certainty. However, effectiveness also depends on service quality, uptime, and whether it meets evolving operational requirements.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19GE5022R0059

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HAHNSTR. 43 D, FRANKFURT

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

Financial Breakdown

Contract Ceiling: $10,067

Exercised Options: $10,067

Current Obligation: $10,067

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19GE5023D0007

IDV Type: IDC

Timeline