Treasury's IRS awards $4,911 antenna lease for 3 months, raising questions on value and competition

Contract Overview

Contract Amount: $4,912 ($4.9K)

Contractor: Pinnacle Towers LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 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: 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

Place of Performance

Location: BONITA SPRINGS, LEE County, FLORIDA, 34135

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $4,911.69 to PINNACLE TOWERS LLC for work described as: 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 Key points: 1. The contract's short duration and specific location suggest a focused operational need. 2. The award method, 'NOT COMPETED UNDER SAP', indicates a lack of broad market solicitation. 3. The fixed-price contract type provides cost certainty for the government. 4. The small value of the contract may limit the scope for significant cost savings or overruns. 5. The vendor, PINNACLE TOWERS LLC, is a new entity in this specific contract award. 6. The lease is for a critical communication asset, highlighting its operational importance.

Value Assessment

Rating: questionable

The contract value of $4,911.69 for a 3-month antenna lease appears high for a short-term rental, especially considering it's for a single location. Without comparable market data for similar antenna leases in the Bonita Springs, Florida area, it is difficult to definitively benchmark the value. However, the lack of competition suggests potential for inflated pricing. The IRS should ensure this rate aligns with industry standards for similar tower access or equipment rental.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), which typically allows for broader competition for purchases below a certain threshold. The 'NOT COMPETED UNDER SAP' designation suggests that either the procurement process was streamlined due to urgency, or it was a direct award without a formal solicitation. The absence of multiple bidders means there was no opportunity to leverage competitive pressure to secure the best possible price or terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding, as the government did not explore alternative vendors or negotiate pricing against multiple offers.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS), which gains access to essential communication infrastructure. The service delivered is the lease of an antenna for a specific tower location. The geographic impact is localized to Bonita Springs, Florida. There are no direct workforce implications as this is a service contract for equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Short-term nature of the contract could indicate a lack of long-term strategic planning for communication infrastructure.
Limited transparency on the selection process for PINNACLE TOWERS LLC.

Positive Signals

The contract is for a fixed price, providing cost predictability.
The lease supports critical IRS communication operations.
The short duration allows for flexibility to re-evaluate needs after the initial period.

Sector Analysis

The telecommunications sector, particularly wireless infrastructure, is vital for government operations. This contract falls under the broader category of communications equipment and services. While the specific value is small, it represents a micro-transaction within the vast federal spending on IT and communications. Benchmarking this specific lease against broader telecommunications infrastructure contracts is challenging due to its niche nature and short term.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the small value and the nature of the service (antenna lease), it's unlikely to involve significant subcontracting opportunities for small businesses. The primary vendor, PINNACLE TOWERS LLC, is a single entity, and its size or status as a small business is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Internal Revenue Service's contracting officers and program managers. As a purchase order, it is subject to standard procurement regulations and internal financial controls. Transparency is limited by the 'NOT COMPETED UNDER SAP' designation, making it difficult to assess the full extent of oversight applied during the vendor selection process.

Related Government Programs

IRS Communication Infrastructure Leases
Federal Wireless Communication Services
Treasury Department IT Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency in Award

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4,911.69 to PINNACLE TOWERS LLC. 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

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 $4,911.69.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

What is the track record of PINNACLE TOWERS LLC with federal contracts?

Based on the provided data, PINNACLE TOWERS LLC is listed as the contractor for this specific antenna lease. However, the data does not offer any historical information regarding their previous federal contract awards, performance history, or past performance ratings. Further investigation would be required to ascertain their broader experience and reliability within the federal contracting landscape. The 'NOT COMPETED UNDER SAP' status suggests this might be an early or sole engagement with this vendor for this specific need.

How does the lease cost compare to market rates for similar antenna leases?

Benchmarking the $4,911.69 cost for a 3-month antenna lease is challenging without specific market data for the Bonita Springs, Florida area. Antenna lease costs can vary significantly based on location, height, existing infrastructure, bandwidth capacity, and the provider's ownership of the tower. Given the lack of competition and the 'NOT COMPETED UNDER SAP' status, it is plausible that the rate may not be the most cost-effective available. A formal market research or competitive solicitation would be necessary to establish a true market rate.

What are the specific risks associated with a 'NOT COMPETED UNDER SAP' award for this service?

The primary risk associated with a 'NOT COMPETED UNDER SAP' award is the potential for paying a higher price than could be achieved through competition. Without soliciting multiple bids, the government foregoes the opportunity to leverage market forces to secure the best value. There's also a risk of selecting a vendor that may not be the most qualified or reliable, although this is mitigated by the contracting officer's responsibility to ensure vendor capability. Transparency is reduced, making it harder to justify the award decision to oversight bodies or the public.

What is the operational necessity driving this specific antenna lease?

The operational necessity for this antenna lease is to ensure the continuity and effectiveness of IRS communication systems in the Bonita Springs, Florida area. Antennas are critical components for wireless communication, enabling data transmission, voice calls, and potentially supporting field operations or remote access. The short 3-month base period, with a 3-month option, suggests a need for immediate, temporary, or transitional communication support, possibly related to equipment maintenance, relocation, or testing of new infrastructure.

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

The provided data does not include historical spending patterns for similar antenna leases by the IRS or the Department of the Treasury. To assess historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for contracts with similar keywords (e.g., 'antenna lease', 'tower rental', 'wireless communication') awarded to the IRS or Treasury over previous fiscal years. Analyzing these patterns would help determine if this $4,911.69 award is consistent with past expenditures or represents an anomaly.

Could this antenna lease requirement have been fulfilled through existing government-owned infrastructure or a more competitive vehicle?

It is possible that this antenna lease requirement could have been fulfilled through existing government-owned infrastructure or a more competitive vehicle, but this cannot be determined from the provided data alone. The IRS contracting officer would have assessed whether existing assets met the need and if leveraging a pre-existing General Services Administration (GSA) schedule or a competitively awarded blanket purchase agreement (BPA) was feasible and cost-effective. The decision to pursue a non-competed award suggests these alternatives were either unavailable, unsuitable, or deemed less efficient for this specific, short-term need.

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: 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: $9,971

Exercised Options: $4,912

Current Obligation: $4,912

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline