State Department awards $3.5M for Barbados internet, raising questions on competition and value

Contract Overview

Contract Amount: $3,479 ($3.5K)

Contractor: Cable & Wireless Jamaica Limited

Awarding Agency: Department of State

Start Date: 2025-10-21

End Date: 2026-10-31

Contract Duration: 375 days

Daily Burn Rate: $9/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDC - INTERNET SERVICE 15MB DIA [BARBADOS]

Plain-Language Summary

Department of State obligated $3,479.2 to CABLE & WIRELESS JAMAICA LIMITED for work described as: CDC - INTERNET SERVICE 15MB DIA [BARBADOS] Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Limited competition may lead to suboptimal pricing for taxpayers. 3. Performance period of over a year suggests a need for reliable service. 4. Service is for internet connectivity in Barbados, indicating international operational needs. 5. The award type is a purchase order, typically for smaller or simpler acquisitions. 6. Fixed-price contract type aims to control costs, but initial price needs benchmarking.

Value Assessment

Rating: questionable

The contract value of $3.5 million for internet service over approximately one year appears high for a single 15MB DIA connection, even in an international location. Without comparable contract data for similar services in Barbados or other Caribbean nations, it is difficult to definitively benchmark the value. The lack of competition exacerbates this concern, as there is no market validation of the pricing. Further analysis would be needed to compare this rate against commercial offerings for similar bandwidth and service levels in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' procurement method, indicating a sole-source or limited competition scenario. The specific justification for not competing the award is not provided in the data. This approach bypasses the standard competitive bidding process, which typically ensures a wider range of offers and potentially lower prices. The absence of multiple bidders means the government did not benefit from the price discovery mechanisms inherent in a competitive solicitation.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not secure the most economical price available in the market.

Public Impact

Provides essential internet connectivity for U.S. Department of State operations in Barbados. Supports diplomatic and consular functions requiring reliable data transmission. Ensures continuity of communication for government personnel stationed abroad. Facilitates access to U.S. government networks and resources for the embassy/consulate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
High contract value for a single internet line warrants scrutiny.
International service delivery can introduce unique risks and cost factors.

Positive Signals

Firm fixed-price contract type helps to cap costs.
Award is for a defined period, providing budget certainty.
Service is essential for maintaining diplomatic operations.

Sector Analysis

The telecommunications sector, particularly internet service providers, is a critical component of global infrastructure. This contract falls within the broader IT and telecommunications services category. While specific market data for Barbados's internet service provider landscape is not detailed here, the U.S. government relies on such services to maintain its global presence. Comparable spending benchmarks for international internet services are highly variable based on location, bandwidth, and provider.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of telecommunications infrastructure and international service delivery, it is unlikely that small businesses would be primary providers or subcontractors in this specific instance. The award to a large telecommunications provider suggests a focus on established capabilities rather than small business participation.

Oversight & Accountability

As a purchase order, oversight may be managed through the contracting officer's representative (COR) responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is limited by the non-competitive nature of the award. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected, but the initial award process itself lacks the transparency of a competed contract.

Related Government Programs

Department of State - Overseas Communications Services
Federal Telecommunications Services
International Connectivity Contracts

Risk Flags

Non-competitive award
Potentially high cost
Lack of performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3,479.2 to CABLE & WIRELESS JAMAICA LIMITED. CDC - INTERNET SERVICE 15MB DIA [BARBADOS]

Who is the contractor on this award?

The obligated recipient is CABLE & WIRELESS JAMAICA LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,479.2.

What is the period of performance?

Start: 2025-10-21. End: 2026-10-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which typically implies a sole-source award or a limited competition where only one offer was solicited or received. The specific justification, such as the unavailability of other providers, urgent need, or unique capabilities, is not detailed in the summary data. Government agencies must document and justify sole-source awards according to Federal Acquisition Regulation (FAR) Part 6.3. Without this documentation, it's impossible to assess the validity of the non-competitive decision. This justification is crucial for understanding why the government did not seek multiple bids, which is the standard practice to ensure fair pricing and best value.

How does the $3.5 million price compare to market rates for similar internet services in Barbados?

Benchmarking this contract's price against market rates is challenging without specific data on commercial internet service offerings in Barbados for 15MB DIA (Dedicated Internet Access). Commercial rates can vary significantly based on the provider, Service Level Agreements (SLAs), and the specific infrastructure available. Given the contract's value of approximately $3.5 million over roughly 13 months (October 2025 to October 2026), the monthly cost is around $269,000. This figure seems exceptionally high for a 15MB connection, even for dedicated international access. Further investigation into local Barbados telecom providers' pricing structures for business-grade dedicated internet would be necessary to determine if this represents fair market value or an inflated cost due to the non-competitive award.

What are the potential risks associated with a sole-source award for critical infrastructure like internet service?

Sole-source awards for critical infrastructure, such as internet service, carry several risks. Primarily, the lack of competition can lead to inflated prices, meaning taxpayers may be overpaying for the service. It also reduces the incentive for the awarded contractor to innovate or provide superior service, as there is no immediate threat of losing the contract to a competitor. Furthermore, it limits the government's ability to explore alternative technologies or providers that might offer better value, security, or reliability. In this case, the government is reliant on a single provider, potentially creating a single point of failure if that provider experiences significant outages or service degradation.

What is the track record of CABLE & WIRELESS JAMAICA LIMITED in providing government services?

Information regarding CABLE & WIRELESS JAMAICA LIMITED's specific track record with the U.S. Department of State or other federal agencies is not detailed in the provided data. However, as a known telecommunications provider in the Caribbean region, they likely have experience serving commercial and potentially governmental clients. A thorough assessment would require reviewing past performance evaluations, any documented issues or successes on previous government contracts, and their overall financial stability and technical capabilities relevant to providing reliable international internet services. Without this specific performance history, it's difficult to gauge their reliability and past value delivery.

How does this spending compare to other U.S. government internet service contracts in similar international locations?

Comparing this $3.5 million contract for 15MB DIA in Barbados to other U.S. government internet service contracts in similar international locations is difficult without a broader dataset of comparable contracts. Factors such as the specific country's infrastructure, the presence of multiple competing ISPs, the required bandwidth, and the contract duration significantly influence pricing. However, the reported value suggests a potentially high cost per megabit per second compared to services in more developed markets or locations with robust competition. A comprehensive analysis would involve querying federal procurement databases for similar international telecommunications awards to establish a more accurate benchmark.

What are the performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) for this internet service contract. Typically, contracts for dedicated internet access include guarantees regarding uptime (e.g., 99.9% availability), latency, packet loss, and repair times in case of outages. The firm fixed-price nature suggests that the contractor is obligated to meet certain performance standards. Without the specific SLAs, it is impossible to assess the level of service the Department of State expects and how performance will be measured and enforced. These details are critical for ensuring the service meets the operational needs of the embassy/consulate.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-6, CARLTON CRESCENT, KINGSTON

Business Categories: Category Business, Foreign Owned, International Organization, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,479

Exercised Options: $3,479

Current Obligation: $3,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline