DHS Secret Service Leases Antenna Space for $8.6M, Lacking Competition
Contract Overview
Contract Amount: $8,601 ($8.6K)
Contractor: Prospect Mountain Tower LLC
Awarding Agency: Department of Homeland Security
Start Date: 2026-03-15
End Date: 2027-04-30
Contract Duration: 411 days
Daily Burn Rate: $21/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ANTENNA LEASE
Place of Performance
Location: RUTLAND, RUTLAND County, VERMONT, 05701
State: Vermont Government Spending
Plain-Language Summary
Department of Homeland Security obligated $8,600.76 to PROSPECT MOUNTAIN TOWER LLC for work described as: ANTENNA LEASE Key points: 1. Contract Value: $8.6 million over 13 months. 2. Competition: Sole-source award raises concerns about price discovery. 3. Risk: Potential for overpayment due to lack of competitive bidding. 4. Sector: Real estate leasing for critical infrastructure.
Value Assessment
Rating: questionable
The contract value of $8.6 million for a 13-month antenna lease appears high without competitive benchmarking. The absence of competition makes it difficult to assess if the price is fair and reasonable compared to market rates for similar nonresidential building leases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no competition was sought. This method limits price discovery and may lead to higher costs for taxpayers as the government did not explore alternative offers or negotiate based on multiple bids.
Taxpayer Impact: The lack of competition increases the risk of overpaying for the antenna lease, directly impacting taxpayer funds negatively.
Public Impact
Taxpayers may be overpaying for essential antenna infrastructure due to a lack of competitive bidding. The Secret Service's reliance on a sole-source lease could indicate a gap in strategic sourcing for critical assets. Limited transparency in the procurement process hinders public understanding of how funds are allocated for operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value for short duration
- Lack of competitive benchmarking
Positive Signals
- Essential service provision
- Defined contract period
Sector Analysis
The Department of Homeland Security, specifically the U.S. Secret Service, operates within the broader government sector, often requiring specialized real estate for communication and operational needs. Spending benchmarks for nonresidential building leases vary significantly by location and facility type.
Small Business Impact
This contract does not appear to involve small businesses, as indicated by the 'sb' field being false. Further analysis would be needed to determine if opportunities for small business participation were overlooked or if the nature of the requirement precluded their involvement.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of Homeland Security should have robust internal controls and justification processes for non-competitive awards to maintain accountability.
Related Government Programs
- Lessors of Nonresidential Buildings (except Miniwarehouses)
- Department of Homeland Security Contracting
- U.S. Secret Service Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
- No small business participation identified
Tags
lessors-of-nonresidential-buildings-exce, department-of-homeland-security, vt, definitive-contract, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $8,600.76 to PROSPECT MOUNTAIN TOWER LLC. ANTENNA LEASE
Who is the contractor on this award?
The obligated recipient is PROSPECT MOUNTAIN TOWER LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Secret Service).
What is the total obligated amount?
The obligated amount is $8,600.76.
What is the period of performance?
Start: 2026-03-15. End: 2027-04-30.
What is the market rate for comparable antenna leases in Vermont to assess the fairness of the $8.6 million price?
Determining the precise market rate requires detailed analysis of comparable antenna lease agreements in Vermont, considering factors like location, size, infrastructure, and lease duration. Without this data, it's challenging to definitively assess the $8.6 million price. However, given the sole-source nature, there's a heightened risk the price may exceed fair market value.
What are the specific risks associated with a sole-source antenna lease for the U.S. Secret Service?
The primary risk is financial: paying a premium due to the absence of competition. Operational risks could include vendor lock-in, potentially limiting flexibility if needs change. Furthermore, a lack of competitive pressure might reduce the incentive for the lessor to maintain optimal service levels or invest in upgrades.
How effective is this sole-source contract in meeting the Secret Service's operational needs for antenna services?
While the contract is likely effective in securing the necessary antenna space, its sole-source nature raises questions about cost-effectiveness. The government secured the asset, but potentially at a higher price than if competition had been employed. The long-term effectiveness also depends on the lessor's performance and the evolving needs of the Secret Service.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1697 US ROUTE 4, RUTLAND, VT, 05701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,903
Exercised Options: $8,601
Current Obligation: $8,601
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2026-03-15
Current End Date: 2027-04-30
Potential End Date: 2030-04-30 00:00:00
Last Modified: 2026-04-01
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