IRS Leases Antenna Site for Criminal Investigations for $9,823.38
Contract Overview
Contract Amount: $9,823 ($9.8K)
Contractor: Pinnacle Towers LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-10-01
End Date: 2026-03-31
Contract Duration: 181 days
Daily Burn Rate: $54/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS IS A LAW ENFORCEMENT ACQUISITION. THIS ACQUISITION IS TO LEASE AN ANTENNA SITE FOR THE PURPOSE OF OPERATING A TRANSMITTER ANTENNA FOR CRIMINAL INVESTIGATIONS.
Place of Performance
Location: GREENVILLE, BUTLER County, ALABAMA, 36037
State: Alabama Government Spending
Plain-Language Summary
Department of the Treasury obligated $9,823.38 to PINNACLE TOWERS LLC for work described as: THIS IS A LAW ENFORCEMENT ACQUISITION. THIS ACQUISITION IS TO LEASE AN ANTENNA SITE FOR THE PURPOSE OF OPERATING A TRANSMITTER ANTENNA FOR CRIMINAL INVESTIGATIONS. Key points: 1. The IRS is leasing an antenna site for criminal investigations, a critical but niche function. 2. The sole provider, Pinnacle Towers LLC, suggests limited competition. 3. The primary risk is the lack of competitive bidding potentially leading to inflated costs. 4. This falls under 'Other Activities Related to Real Estate' within the broader real estate sector.
Value Assessment
Rating: fair
The contract value is relatively low at $9,823.38 for an 181-day lease. Without comparable lease data for specialized antenna sites, a precise pricing assessment is difficult, but the lack of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The acquisition was not competed under SAP (Simplified Acquisition Procedures) and is listed as 'NOT COMPETED UNDER SAP'. This indicates a sole-source or limited competition approach, which can hinder price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The taxpayer impact is likely minimal due to the low contract value, but the principle of competitive sourcing is not being applied.
Public Impact
Supports law enforcement operations by providing essential infrastructure for criminal investigations. Ensures the IRS has the necessary tools for surveillance and communication in sensitive investigations. The lease duration is short-term, allowing for reassessment of needs and potential future competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in sole-source award
Positive Signals
- Supports critical law enforcement function
- Short-term lease minimizes long-term commitment risk
Sector Analysis
This acquisition falls under 'Other Activities Related to Real Estate' (NAICS 531390). Spending in this sector is broad, encompassing various property management and leasing services. The specific niche of antenna site leasing for law enforcement is not a major spending benchmark.
Small Business Impact
The data does not indicate whether small businesses were considered or participated in this acquisition. Given the sole-source nature, it is unlikely small businesses were involved.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation suggests that standard competitive procedures were bypassed. Further oversight would be needed to confirm the justification for this approach and ensure proper approval was obtained.
Related Government Programs
- Other Activities Related to Real Estate
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Limited justification for non-competition
Tags
other-activities-related-to-real-estate, department-of-the-treasury, al, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $9,823.38 to PINNACLE TOWERS LLC. THIS IS A LAW ENFORCEMENT ACQUISITION. THIS ACQUISITION IS TO LEASE AN ANTENNA SITE FOR THE PURPOSE OF OPERATING A TRANSMITTER ANTENNA FOR CRIMINAL INVESTIGATIONS.
Who is the contractor on this award?
The obligated recipient is PINNACLE TOWERS LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $9,823.38.
What is the period of performance?
Start: 2025-10-01. End: 2026-03-31.
What is the justification for not competing this antenna site lease, especially given its critical function?
The justification for not competing this lease is not provided in the data. Typically, sole-source procurements require a documented justification, such as the unavailability of other sources or a unique requirement that only one vendor can meet. For an antenna site, it's possible the location or specific infrastructure is unique to Pinnacle Towers LLC.
What is the potential risk associated with leasing an antenna site without competition?
The primary risk of leasing without competition is paying a price above fair market value. Without competing offers, the government lacks a benchmark to ensure cost-effectiveness. This can lead to inefficient use of taxpayer funds. Additionally, it may signal a lack of proactive planning or market analysis by the agency.
How effective is this lease in supporting the IRS's criminal investigation needs?
The effectiveness of this lease is directly tied to the operational success of the transmitter antenna it supports. Assuming the site and equipment function as intended, it is effective in providing the necessary infrastructure. However, the overall effectiveness from a value perspective is questionable due to the lack of competitive pricing.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8020 KATY FREEWAY, HOUSTON, TX, 77024
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,823
Exercised Options: $9,823
Current Obligation: $9,823
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 15:34:47
Last Modified: 2026-04-10
More Contracts from Pinnacle Towers LLC
- Antenna Sight Lease — $135.9K (Department of Homeland Security)
- This IS a LAW Enforcement Acquisition. This IS a Lease of an Antenna Site in Huntsville Alabama, for Criminal Investigations Radio Transmitter — $19.9K (Department of the Treasury)
- Lease of Antenna Site Tallahassee Florida for 6 Months Base, 6 Months Option for a Period of Performance of 10/01/2025 - 09/30/2026 — $10.3K (Department of the Treasury)
- This IS a LAW Enforcement Acquisition. This IS a Lease of Antenna Site, Motorola Mobile for Criminal Investigations Radio Transmitter — $9.8K (Department of the Treasury)
- Antenna Lease for Site Bonita Springs Tower Road Florida for 3 Month Base, 3 Month Option for a Period of Performance of 10/01/2025 - 03/31/2026 — $4.9K (Department of the Treasury)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)