State Department awards $47.9M for wired telecommunications, renewing a contract with Netnam Corporation

Contract Overview

Contract Amount: $47,897 ($47.9K)

Contractor: Netnam Corporation Branch in HO CHI Minh City

Awarding Agency: Department of State

Start Date: 2026-04-01

End Date: 2027-04-02

Contract Duration: 366 days

Daily Burn Rate: $131/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HCMC/DT/FY25-ISP SERVICE RENEWAL 2025-2026

Plain-Language Summary

Department of State obligated $47,897.11 to NETNAM CORPORATION BRANCH IN HO CHI MINH CITY for work described as: HCMC/DT/FY25-ISP SERVICE RENEWAL 2025-2026 Key points: 1. The contract value represents a significant investment in essential communication infrastructure. 2. Renewal suggests satisfaction with Netnam Corporation's previous performance and service delivery. 3. The firm fixed-price structure aims to control costs and provide budget certainty. 4. Limited competition could potentially impact price competitiveness. 5. The duration of the contract indicates a long-term need for these services. 6. The specific services provided are critical for the agency's operational continuity.

Value Assessment

Rating: fair

Benchmarking the value of this $47.9 million contract is challenging without detailed service specifics and historical pricing. However, the renewal of a contract with Netnam Corporation suggests that the pricing was deemed acceptable in previous periods. The firm fixed-price nature of the award provides cost certainty, but the lack of competitive bidding means there's no current market validation of the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of State identified Netnam Corporation as the only responsible source capable of meeting the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The justification for a sole-source award needs to be carefully scrutinized to ensure it aligns with federal procurement regulations and that no viable alternatives were overlooked.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competitive pricing that drives down expenses.

Public Impact

The Department of State benefits from reliable and continuous wired telecommunications services, essential for its global operations. The contract ensures the delivery of critical communication infrastructure, supporting diplomatic and operational functions. Geographic impact is likely concentrated around the Department's facilities where Netnam Corporation provides services. Workforce implications are minimal for the agency, as the contract is for services, not direct hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced innovation.
Sole-source justification requires rigorous review to ensure necessity and prevent potential abuse.
Transparency in the sole-source process is crucial for public trust and accountability.

Positive Signals

Contract renewal indicates a level of satisfaction with the incumbent provider's performance.
Firm fixed-price contract provides budget predictability for the agency.
The duration of the contract suggests a stable and ongoing need for these services.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. This sector is characterized by significant infrastructure investment and often involves long-term service agreements. The market can be competitive, but specialized services or geographic limitations can sometimes lead to sole-source or limited-competition scenarios. Comparable spending benchmarks would depend on the specific services and scale required by the Department of State, but large government contracts in this area can range from millions to billions of dollars.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to Netnam Corporation, there is no indication of subcontracting opportunities for small businesses being mandated or actively pursued through this specific procurement. The impact on the small business ecosystem is therefore neutral to negative, as opportunities that might have arisen from a competitive bidding process are not present.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is a concern given the sole-source nature; while justifications are typically documented, public access to these details can be limited. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Telecommunications Services
Federal Wired Network Infrastructure
Government Communication Contracts

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for contractor complacency due to lack of competition.
Transparency concerns regarding sole-source justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $47,897.11 to NETNAM CORPORATION BRANCH IN HO CHI MINH CITY. HCMC/DT/FY25-ISP SERVICE RENEWAL 2025-2026

Who is the contractor on this award?

The obligated recipient is NETNAM CORPORATION BRANCH IN HO CHI MINH CITY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47,897.11.

What is the period of performance?

Start: 2026-04-01. End: 2027-04-02.

What specific wired telecommunications services are being provided under this contract?

The provided data indicates the contract is for 'Wired Telecommunications Carriers' (NAICS code 517111) and is a service renewal. While the exact details are not specified in the abbreviated data, this typically encompasses services such as dedicated internet access, private line services, voice over IP (VoIP) trunking, and other managed network services delivered over physical wired infrastructure. These services are crucial for enabling secure and reliable data and voice communication for the Department of State's domestic and international operations, supporting everything from email and video conferencing to secure diplomatic communications.

What is the historical spending pattern for this service with Netnam Corporation?

The provided data indicates this is a renewal for FY25-FY26, with a current award value of $47,897.11. However, this value appears to be a placeholder or a very small portion of the total contract value, given the duration of 366 days and the nature of telecommunications services for a large agency like the Department of State. To understand the historical spending pattern, one would need to access the full contract history, including previous award values, contract types, and any modifications. Without this historical data, it's impossible to determine if the current award amount reflects a consistent spending level or a significant change.

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

The data explicitly states the contract was 'NOT COMPETED' and lists the contract type as 'SOLE SOURCE'. Federal procurement regulations allow for sole-source awards when only one responsible source can satisfy the agency's needs. Common justifications include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when a previous contract expires and a follow-on is necessary due to vendor lock-in or specialized knowledge. The Department of State would have a documented justification, likely available through federal procurement databases like SAM.gov, detailing why Netnam Corporation was the only viable option for this specific telecommunications service renewal.

How does the firm fixed-price contract type benefit the Department of State?

A Firm Fixed Price (FFP) contract type is generally advantageous for the buyer (the Department of State) because it shifts the risk of cost overruns to the contractor (Netnam Corporation). This means the price is set and will not change, regardless of the contractor's actual costs incurred in performing the work. This provides budget certainty and predictability, allowing the agency to manage its finances more effectively. It also incentivizes the contractor to control costs and operate efficiently to maximize their profit margin. For services like telecommunications, where the scope is well-defined, FFP is a common and suitable contract type.

What are the potential risks associated with a sole-source telecommunications contract?

The primary risk associated with a sole-source telecommunications contract is the lack of competitive pressure, which can lead to inflated prices compared to what might be achieved in an open market. Without competing bids, the agency may be paying more than necessary for the services. Another risk is potential complacency from the contractor, as there is no immediate threat of losing the business to a competitor. This could potentially impact service quality or innovation over time. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, requiring robust justification and oversight to mitigate.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10A NGUYEN THI MINH KHAI, DA KAO WARD, HO CHI MINH CITY

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $47,897

Exercised Options: $47,897

Current Obligation: $47,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline