Treasury's IRS awards $28,920 antenna lease to Gray Local Media Inc. for one year

Contract Overview

Contract Amount: $28,920 ($28.9K)

Contractor: Gray Local Media Inc

Awarding Agency: Department of the Treasury

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $79/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANTENNA LEASE IN GAINESVILLE FLORIDA FOR 6 MONTH BASE AND 6 MONTH OPTION PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32653

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $28,920 to GRAY LOCAL MEDIA INC for work described as: ANTENNA LEASE IN GAINESVILLE FLORIDA FOR 6 MONTH BASE AND 6 MONTH OPTION PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026 Key points: 1. The contract value appears reasonable for a short-term antenna lease. 2. The lease is for a critical communication need, supporting IRS operations. 3. Limited competition raises concerns about optimal pricing and value. 4. The contract duration is short, allowing for re-evaluation of needs. 5. This spending falls within the broader category of communications infrastructure.

Value Assessment

Rating: fair

The contract value of $28,920 for a 12-month period (including option) for an antenna lease seems within a reasonable range for specialized communication equipment. However, without specific details on the antenna's capabilities, location, and market rates for similar services in Gainesville, Florida, a precise value-for-money assessment is difficult. Benchmarking against other federal or commercial antenna leases of similar specifications would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The specific justification for this approach is not provided, but it suggests that only one vendor was identified or deemed capable of meeting the requirement. This lack of broad competition may have limited price discovery and potentially led to a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process.

Public Impact

The Internal Revenue Service (IRS) benefits from this lease by securing necessary communication infrastructure. The antenna lease supports critical operational functions for the IRS in Florida. The geographic impact is localized to Gainesville, Florida, where the antenna is located. There are no direct workforce implications mentioned for this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
The specific technical requirements and justification for sole-source award are not detailed.

Positive Signals

The contract supports essential IRS communication needs.
The firm-fixed-price structure provides cost certainty for the government.

Sector Analysis

This contract falls within the telecommunications and broadcasting sector, specifically related to wireless communications equipment. The market for antenna leases can vary significantly based on technical specifications, location, and duration. While this is a relatively small contract, it highlights the government's reliance on specialized communication services to maintain operational capabilities across various agencies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside. There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem for this specific award is minimal.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer and the agency's procurement department. Transparency is limited due to the sole-source nature and lack of detailed public justification. Further oversight would depend on internal IRS review processes and any potential Inspector General involvement if performance issues arise.

Related Government Programs

IRS Communications Infrastructure Leases
Federal Radio and Television Broadcasting Contracts
Wireless Communications Equipment Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on technical requirements and vendor selection.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28,920 to GRAY LOCAL MEDIA INC. ANTENNA LEASE IN GAINESVILLE FLORIDA FOR 6 MONTH BASE AND 6 MONTH OPTION PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026

Who is the contractor on this award?

The obligated recipient is GRAY LOCAL MEDIA INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $28,920.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What are the specific technical requirements for the antenna lease, and why was Gray Local Media Inc. the sole source?

The provided data does not detail the specific technical requirements for the antenna lease. The contract was awarded as 'NOT COMPETED UNDER SAP,' which typically implies a sole-source justification or an award made under simplified acquisition procedures where competition might be limited. Without further documentation, the precise reasons for selecting Gray Local Media Inc. as the sole source remain unclear. This could be due to unique site access, specialized equipment compatibility, or a specific regulatory requirement that only Gray Local Media Inc. could fulfill. A deeper dive into the contract file or agency justification would be needed to ascertain the exact rationale.

How does the lease cost of approximately $2,300 per month compare to market rates for similar antenna leases in Florida?

The monthly cost for this antenna lease is approximately $2,300 ($28,920 / 12 months). Benchmarking this against market rates for similar antenna leases in Florida is challenging without more specific information on the antenna's technical specifications (e.g., frequency range, gain, power handling), location requirements, and the services included (e.g., maintenance, installation). Generally, specialized communication equipment leases can vary widely. For a basic antenna, this rate might be on the higher side, but if it involves unique infrastructure, high bandwidth, or specific regulatory compliance, it could be competitive. A comprehensive market analysis comparing technical capabilities and service level agreements would be necessary for a definitive comparison.

What is the track record of Gray Local Media Inc. in providing similar services to federal agencies?

The provided data does not include information on Gray Local Media Inc.'s track record in providing similar services to federal agencies. Gray Local Media Inc. is primarily known as a media company involved in radio and television broadcasting. While they may possess the necessary infrastructure or expertise for antenna leasing, their history with federal contracts, particularly for specialized communication equipment, is not detailed here. Further investigation into federal procurement databases like SAM.gov or FPDS would be required to assess their past performance and experience with government clients.

What are the potential risks associated with a sole-source award for essential communication infrastructure?

The primary risk associated with a sole-source award for essential communication infrastructure is the potential for inflated costs due to a lack of competition. Without multiple bids, the government may not achieve the most favorable pricing. Additionally, sole-source awards can limit innovation and the opportunity to leverage a wider range of technological solutions available in the market. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially hindering future flexibility and cost-saving opportunities. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations.

What is the historical spending pattern for antenna leases by the IRS or the Department of the Treasury?

The provided data does not offer historical spending patterns for antenna leases by the IRS or the Department of the Treasury. To analyze this, one would need to query federal procurement databases for similar contracts over several fiscal years, filtering by agency, product/service code (PSC), and keywords related to antenna leases or communication equipment rentals. Understanding historical spending would help contextualize the current $28,920 award, revealing whether this is a typical expenditure, an increase, or a decrease in spending for such services.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

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: 6220 NW 43RD ST, GAINESVILLE, FL, 32653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,920

Exercised Options: $28,920

Current Obligation: $28,920

Actual Outlays: $9,640

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline