IRS Leases Antenna Site for $27K, Lacking Competition

Contract Overview

Contract Amount: $27,057 ($27.1K)

Contractor: GTP Structures I LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $74/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $27,056.76 to GTP STRUCTURES I LLC for work described as: LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026 Key points: 1. The IRS is leasing an antenna site for $27,056.76 for 12 months. 2. The contract was not competed under Simplified Acquisition Procedures (SAP). 3. The primary risk is the lack of competitive bidding, potentially leading to higher costs. 4. This falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.

Value Assessment

Rating: fair

The price of $27,056.76 for a 12-month antenna site lease appears reasonable on the surface. However, without competitive bids, it's difficult to definitively assess if it represents the best value compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored all available options, potentially impacting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for this antenna site lease.

Public Impact

Ensures IRS communication infrastructure remains operational. Potential for increased costs due to limited competition. Transparency in government contracting is reduced without a competitive process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This lease falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending benchmarks for similar antenna site leases can vary significantly based on location, size, and technical requirements, making direct comparison challenging without more data.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on whether small businesses were considered or participated in the limited competition.

Oversight & Accountability

The contracting officer's decision to not compete under SAP warrants further review to ensure adherence to procurement regulations and best practices for achieving value for the government.

Related Government Programs

Risk Flags

Tags

radio-and-television-broadcasting-and-wi, department-of-the-treasury, ma, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27,056.76 to GTP STRUCTURES I LLC. LEASE OF ANTENNA SITE JOHN HANCOCK WITH GTP STRUCTURES LLC FOR 12 MONTH WITH A PERIOD OF PERFORMANCE OF 10/01/2025 - 09/30/2026

Who is the contractor on this award?

The obligated recipient is GTP STRUCTURES I 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 $27,056.76.

What is the period of performance?

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

What was the justification for not competing this lease under SAP, and were any market research efforts conducted to ensure fair and reasonable pricing?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP.' A thorough review would require access to the contract file to understand the specific justification cited by the contracting officer. Typically, justifications for not competing, even under SAP, should involve documented market research to demonstrate that the selected vendor's pricing is fair and reasonable and that no other viable sources were overlooked.

What are the potential risks associated with leasing an antenna site without competitive bidding, particularly concerning long-term costs and service reliability?

The primary risk of not competitively bidding is paying a premium price. Without market comparison, the government may be overpaying. Additionally, limited competition can reduce the incentive for the awarded vendor to maintain high service standards, potentially impacting long-term reliability and increasing the likelihood of future price escalations.

How does this lease contribute to the IRS's overall mission effectiveness, and are there alternative solutions that could offer better value?

This antenna site lease is likely crucial for maintaining essential IRS communication systems, directly supporting operational effectiveness. However, without a competitive process, it's impossible to definitively state if it offers the best value. Exploring alternative solutions, such as shared infrastructure or different leasing models, could potentially yield cost savings or improved service levels in the future.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: LEASE/RENT FACILITIESLEASE/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: 750 PARK OF COMMERCE BLVD, BOCA RATON, FL, 33487

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

Financial Breakdown

Contract Ceiling: $27,057

Exercised Options: $27,057

Current Obligation: $27,057

Actual Outlays: $6,764

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2025-10-01

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 17:35:17

Last Modified: 2026-04-01

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