DHS Coast Guard Spends $49K on Cradlepoint Routers via Competed SAP
Contract Overview
Contract Amount: $49,077 ($49.1K)
Contractor: RCN Communications LLC
Awarding Agency: Department of Homeland Security
Start Date: 2026-04-03
End Date: 2026-04-17
Contract Duration: 14 days
Daily Burn Rate: $3.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CRADLEPOINT E3000 SERIES ENTERPRISE ROUTER
Place of Performance
Location: WINFALL, PERQUIMANS County, NORTH CAROLINA, 27985
Plain-Language Summary
Department of Homeland Security obligated $49,076.71 to RCN COMMUNICATIONS LLC for work described as: CRADLEPOINT E3000 SERIES ENTERPRISE ROUTER Key points: 1. Spending on enterprise routers is common for agencies needing reliable connectivity. 2. Competition under SAP suggests some price discovery, but details are limited. 3. The primary risk is potential overspending if the SAP process wasn't fully leveraged. 4. The sector is IT hardware, a mature market with established players.
Value Assessment
Rating: fair
The price of $49,076.71 for 1 Cradlepoint E3000 Series router appears high for a single unit. Benchmarking against similar enterprise router purchases is needed to confirm value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating some level of competition. However, SAP limitations may restrict the number of bidders and the extent of price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for this purchase. The effectiveness of the SAP competition in securing the best price will determine the overall taxpayer impact.
Public Impact
Ensures operational communication capabilities for the U.S. Coast Guard. Supports critical infrastructure and mission readiness. Procurement of essential IT hardware for a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 35 / 10
Warning Flags
- Potential for overpayment due to limited competition under SAP.
- Lack of detailed cost breakdown for the router and any associated services.
- Short contract duration may necessitate frequent re-procurement.
Positive Signals
- Procurement utilized a competed process, not sole-source.
- Purchase Order is a standard and auditable contract vehicle.
Sector Analysis
The U.S. Coast Guard's purchase of enterprise routers falls within the IT hardware sector. Spending benchmarks for similar equipment vary widely based on features and volume, but this appears to be a single unit purchase.
Small Business Impact
There is no indication that small businesses were involved in this specific procurement. Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The use of SAP for this purchase should be reviewed to ensure compliance with procurement regulations and that maximum value was obtained. Oversight is needed to confirm the necessity and cost-effectiveness of the equipment.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition under SAP.
- High per-unit cost (pending benchmark).
- Lack of detailed justification for SAP.
- Short contract duration.
Tags
radio-and-television-broadcasting-and-wi, department-of-homeland-security, nc, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $49,076.71 to RCN COMMUNICATIONS LLC. CRADLEPOINT E3000 SERIES ENTERPRISE ROUTER
Who is the contractor on this award?
The obligated recipient is RCN COMMUNICATIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $49,076.71.
What is the period of performance?
Start: 2026-04-03. End: 2026-04-17.
What is the typical per-unit cost for a Cradlepoint E3000 Series Enterprise Router in the federal market?
The typical per-unit cost for a Cradlepoint E3000 Series Enterprise Router can vary significantly based on configuration, bundled services, and the specific procurement vehicle used. Without more detailed contract information or access to federal procurement databases, providing an exact benchmark is difficult. However, prices can range from a few hundred to over a thousand dollars per unit, excluding potential support contracts.
What are the risks associated with procuring IT hardware under Simplified Acquisition Procedures (SAP)?
Procuring IT hardware under SAP can increase efficiency but carries risks. These include potentially higher prices due to limited competition, reduced transparency, and a greater chance of non-compliance if procedures are not strictly followed. There's also a risk that the specific needs of the agency might not be fully met if the solicitation is too narrow or if vendors are discouraged from participating.
How does the firm fixed-price contract type impact the overall value and risk for this router purchase?
A firm fixed-price contract type is generally favorable for the government as it shifts the risk of cost overruns to the contractor. For this router purchase, it means the $49,076.71 price is fixed, providing budget certainty. The primary risk for the government shifts to ensuring the contractor delivers the specified product at the agreed-upon price and quality, rather than cost escalation.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 200 JENNINGS AVE, KNOXVILLE, TN, 37917
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $49,077
Exercised Options: $49,077
Current Obligation: $49,077
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-03
Current End Date: 2026-04-17
Potential End Date: 2026-04-17 01:55:09
Last Modified: 2026-04-06
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