Homeland Security's $32.4M Border Patrol internet contract awarded to Cox Arizona Telecom without competition

Contract Overview

Contract Amount: $32,407 ($32.4K)

Contractor: COX Arizona Telecom LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $44/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CABLE TV/INTERNET SERVICES FOR THE UNITED STATES BORDER PATROL TUCSON SECTOR

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85711

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32,406.67 to COX ARIZONA TELECOM LLC for work described as: CABLE TV/INTERNET SERVICES FOR THE UNITED STATES BORDER PATROL TUCSON SECTOR Key points: 1. The contract value represents a significant investment in essential communication infrastructure for border security operations. 2. The sole-source award raises questions about potential missed opportunities for cost savings through competitive bidding. 3. The duration of the contract (729 days) suggests a long-term need for these services. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The lack of competition may limit price discovery and potentially lead to higher-than-market rates. 6. The services are critical for real-time data transmission and operational coordination within the Tucson Sector.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar services in other border sectors. However, the absence of competition suggests that the government may not have secured the most favorable pricing. A competitive process could have potentially yielded lower per-unit costs or additional value-added services. The fixed-price nature provides predictability, but the overall value proposition is weakened by the lack of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that only one vendor, Cox Arizona Telecom LLC, was considered for this requirement. The lack of competition means that other potential providers of wired telecommunications services were not given an opportunity to bid, which can limit price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of a competitive bidding process. Without multiple offers, there is less assurance that the government is receiving the best possible price for the required internet and cable TV services.

Public Impact

The United States Border Patrol in the Tucson Sector will benefit from enhanced communication capabilities. Essential services include internet and cable TV, crucial for operational awareness and data management. The geographic impact is focused on the Arizona border region, supporting critical national security functions. Workforce implications include enabling agents and personnel with reliable connectivity for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Sole-source awards can indicate potential market failures or inadequate planning.
Limited transparency in pricing due to absence of bids.

Positive Signals

Contract provides essential services for a critical national security mission.
Fixed-price contract offers cost certainty.
Established provider likely ensures reliable service delivery.

Sector Analysis

The Wired Telecommunications Carriers industry (NAICS 517111) encompasses companies that provide telecommunications services to businesses and households via wired networks. This contract falls within the broader telecommunications sector, which is vital for supporting government operations, including national security. Spending in this sector is often characterized by long-term infrastructure investments and service agreements. Comparable spending benchmarks are difficult to ascertain for sole-source awards, but the overall market for broadband and telecommunications services is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting opportunities for small businesses within the provided data. The award to a large telecommunications provider suggests that the primary focus was on securing established service capabilities rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and contract management processes. The U.S. Customs and Border Protection is responsible for managing the day-to-day performance. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the pricing and vendor selection process more difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Technology
Telecommunications Services
Information Technology Infrastructure

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32,406.67 to COX ARIZONA TELECOM LLC. CABLE TV/INTERNET SERVICES FOR THE UNITED STATES BORDER PATROL TUCSON SECTOR

Who is the contractor on this award?

The obligated recipient is COX ARIZONA TELECOM LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $32,406.67.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the historical spending on cable TV/internet services for the United States Border Patrol Tucson Sector?

Historical spending data for this specific contract line item for the Tucson Sector is not provided in the current dataset. However, the award of a new 729-day purchase order valued at $32.4 million indicates a significant and ongoing requirement for these services. To assess historical spending patterns, one would need access to previous contract awards and modifications for telecommunications services specifically for the Tucson Sector, potentially dating back several years. Analyzing past expenditures would help determine if this current award represents an increase, decrease, or stable level of investment in these critical communication services for border operations in that region.

How does the per-unit cost of this contract compare to similar contracts for telecommunications services awarded to other federal agencies?

A direct per-unit cost comparison is not feasible with the provided data, as specific service details (e.g., bandwidth, data caps, number of lines, specific cable packages) and their associated costs are not itemized. Furthermore, the contract was awarded sole-source, making direct benchmarking against competitively bid contracts difficult. To perform such a comparison, one would need to identify similar contracts for telecommunications services (internet and cable TV) awarded to other federal agencies, ideally in geographically similar regions or to similar types of end-users (e.g., law enforcement, remote operational sites). The analysis would then involve normalizing costs based on service levels and contract duration to identify potential price discrepancies.

What are the specific risks associated with awarding a sole-source contract for critical border infrastructure?

The primary risk associated with awarding a sole-source contract for critical border infrastructure like telecommunications services is the potential for inflated costs due to the lack of competition. Without multiple bids, the government may not be receiving the most cost-effective solution available in the market. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility and negotiation power. There's also a reduced incentive for the sole-source provider to innovate or offer superior service levels, as they face no direct competitive pressure. Furthermore, sole-source awards can sometimes raise concerns about transparency and fairness in the procurement process, potentially leading to public scrutiny or challenges.

What is the track record of Cox Arizona Telecom LLC in providing telecommunications services to government entities?

Cox Arizona Telecom LLC is a subsidiary of Cox Communications, a major telecommunications provider in the United States. While specific details of their government contracting history are not provided in this dataset, large telecommunications companies typically have experience serving government clients at federal, state, and local levels. Their track record would generally involve providing broadband internet, cable television, and potentially other communication services. To fully assess their track record for this specific contract, one would need to review past performance evaluations, any reported issues or disputes on previous government contracts, and the scope and scale of services they have previously delivered to similar agencies or for comparable operational needs.

How does the total contract value of $32.4 million align with typical spending for telecommunications services in similar federal operational contexts?

The total contract value of $32.4 million over approximately two years (729 days) represents a substantial investment. Without specific details on the bandwidth, data volume, and service level agreements (SLAs) included, it's difficult to definitively benchmark this against 'typical' spending. However, for critical operational infrastructure supporting a large federal agency like the Border Patrol in a significant sector like Tucson, substantial funding is expected. If this contract covers high-speed, reliable internet and comprehensive cable services across multiple facilities and remote sites, the cost could be justifiable. A comparison would require analyzing spending on similar services for other large federal installations or law enforcement agencies, ideally those with comparable geographic coverage and operational demands.

What are the potential implications for service continuity and future upgrades given this sole-source award?

A sole-source award can have mixed implications for service continuity and future upgrades. On the positive side, continuity is often assured as the incumbent provider is familiar with the existing infrastructure and operational needs, potentially leading to smoother service delivery. However, future upgrades might be less dynamic. Without competitive pressure, Cox Arizona Telecom may have less incentive to proactively offer cutting-edge upgrades or the most cost-effective technological advancements. The government's ability to negotiate favorable terms for future upgrades or transitions to new technologies could also be limited, as they are negotiating with a single, established provider. This could necessitate a future sole-source award or a potentially complex and costly transition if the government decides to seek a different provider later.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 20149266

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550 W DEER VALLEY RD, PHOENIX, AZ, 85027

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

Financial Breakdown

Contract Ceiling: $166,807

Exercised Options: $66,007

Current Obligation: $32,407

Actual Outlays: $5,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline