GSA awards $1.29M task order to Manhattan Telecommunications for wired telecom services

Contract Overview

Contract Amount: $31,536,675 ($31.5M)

Contractor: Manhattan Telecommunications Corporation LLC

Awarding Agency: General Services Administration

Start Date: 2020-06-23

End Date: 2026-09-30

Contract Duration: 2,290 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 1 - NETWORK. NOV 17-$1,289,859.26 CORRECTED TO $1,289,850.26

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10041

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $31.5 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 1 - NETWORK. NOV 17-$1,289,859.26 CORRECTED TO $1,289,850.26 Key points: 1. The contract value represents a small fraction of the overall GICS IDIQ ceiling, indicating potential for further task orders. 2. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces some risk of cost escalation over the performance period. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 517110 points to services within the Wired Telecommunications Carriers sector. 5. The contract duration of 2290 days (approximately 6.3 years) allows for long-term service provision. 6. The task order is a Delivery Order under an existing IDIQ contract, implying a pre-established framework and vendor. 7. The contract is not set aside for small businesses, suggesting larger prime contractors are likely involved.

Value Assessment

Rating: fair

The task order value of $1.29 million is relatively modest within the context of federal IT and telecommunications spending. Benchmarking this specific task order's value against similar network services contracts is challenging without more granular data on service scope and duration. However, the fixed-price with economic price adjustment structure introduces potential for cost increases over the contract's multi-year term, which warrants monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that GSA sought proposals from all responsible sources. The presence of 4 bids suggests a reasonable level of competition for this specific requirement. A competitive process generally helps ensure fair pricing and encourages vendors to offer their best value propositions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price, reducing the risk of overpayment for essential telecommunications infrastructure.

Public Impact

Federal agencies utilizing GSA's GICS contract will benefit from reliable wired telecommunications services. The services delivered will support the operational needs of government entities, ensuring connectivity for critical functions. The geographic impact is primarily within New York, where Manhattan Telecommunications Corporation LLC is based, but services may extend to other locations as needed by federal agencies. The contract supports jobs within the telecommunications sector, particularly for Manhattan Telecommunications Corporation LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to increased costs over the contract's lifespan.
Reliance on a single task order under a larger IDIQ may not fully capture the competitive landscape for all potential services.
The specific scope of 'network' services is broad and requires detailed understanding to assess true value.
Long contract duration (over 6 years) may not always align with rapidly evolving telecommunications technology.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bids received (4), suggesting a healthy level of vendor interest and competition.
Task order issued under an established IDIQ contract (GICS), implying pre-vetted vendor capabilities.
Fixed-price component provides some cost certainty for the base service.

Sector Analysis

The wired telecommunications carriers sector is a mature industry focused on providing voice and data services over physical infrastructure like fiber optic and copper lines. Federal spending in this area supports agency communication needs, data transmission, and network infrastructure. GSA's GICS contract vehicle aims to streamline procurement for these services across government. Comparable spending benchmarks for similar network services can vary widely based on bandwidth, service level agreements, and geographic coverage.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the prime contract was awarded to a company that is not classified as a small business, or that the specific task order did not meet the criteria for a small business set-aside. There is no explicit information on subcontracting plans for small businesses within the provided data, which could represent missed opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this task order would fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a task order under an IDIQ, the primary contract vehicle likely has established oversight mechanisms. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

GSA Federal Supply Schedule (FSS)
General Services Administration Information Technology (IT) Schedule
Network Infrastructure Services
Telecommunications Services

Risk Flags

Potential for cost escalation due to Economic Price Adjustment clause.
Long contract duration may not align with rapid technological advancements in telecommunications.
Lack of specific small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.5 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. GSA INFRASTRUCTURE AND COMMUNICATIONS SOLUTIONS (GICS) - TASK ORDER 1 - NETWORK. NOV 17-$1,289,859.26 CORRECTED TO $1,289,850.26

Who is the contractor on this award?

The obligated recipient is MANHATTAN TELECOMMUNICATIONS CORPORATION LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2020-06-23. End: 2026-09-30.

What is the specific scope of 'network' services covered by this task order?

The provided data does not detail the specific 'network' services included in this task order. Typically, under NAICS code 517110 (Wired Telecommunications Carriers), this could encompass a range of services such as dedicated internet access, private line services, Ethernet transport, voice over IP (VoIP) trunking, and other managed network solutions. The exact deliverables would be defined in the task order's statement of work (SOW), which is not included in the provided data. Understanding the precise services is crucial for a comprehensive value assessment and comparison to market rates.

How does the pricing of this task order compare to similar federal contracts for wired telecommunications?

Direct comparison of pricing for this $1.29 million task order to similar federal contracts is difficult without detailed service specifications (e.g., bandwidth, uptime guarantees, service level agreements) and contract durations. However, the fact that it was awarded under full and open competition with 4 bids suggests that the pricing is likely competitive within the market. The Economic Price Adjustment (EPA) clause introduces a variable that could impact the final cost over the contract's lifespan, making a static price comparison less definitive. Further analysis would require benchmarking against contracts with comparable scopes and performance periods.

What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this task order?

The primary risk associated with a Fixed Price with Economic Price Adjustment (FPEPA) contract is cost escalation. While the base price is fixed, the EPA clause allows for adjustments based on pre-defined economic factors, typically related to inflation or specific commodity indices. This means the total cost to the government could exceed the initial $1.29 million estimate if these economic factors increase significantly over the contract's duration (2290 days). This introduces budget uncertainty for the agency and potential for overspending compared to a firm fixed-price contract.

What is the historical spending pattern for Manhattan Telecommunications Corporation LLC with the GSA or similar agencies?

The provided data indicates Manhattan Telecommunications Corporation LLC has received this specific task order from the General Services Administration (GSA). To assess their historical spending patterns, one would need to query federal procurement databases (like USASpending.gov) for all contracts awarded to this entity across all agencies and contract vehicles. This would reveal the total value of contracts held, the types of services provided, and the agencies they have served. Without this broader data, it's impossible to establish a comprehensive historical spending pattern or track record.

How does the duration of this contract (over 6 years) align with the typical lifecycle of wired telecommunications technology?

A contract duration of approximately 6.3 years (2290 days) for wired telecommunications services is relatively long in the context of rapidly evolving technology. While core infrastructure like fiber optic cabling has a long lifespan, the equipment and services layered on top (e.g., routers, switches, bandwidth capabilities) can become outdated more quickly. This extended duration, coupled with the EPA clause, could mean the government is locked into potentially suboptimal technology or paying for services that could be procured more cost-effectively through newer solutions later in the contract term. However, for stable, foundational network services, a longer term can offer price stability and reduced administrative burden.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 55 WATER ST FL 32, NEW YORK, NY, 10041

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

Financial Breakdown

Contract Ceiling: $168,028,622

Exercised Options: $39,203,693

Current Obligation: $31,536,675

Actual Outlays: $20,437,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3007

IDV Type: IDC

Timeline