GCI Communication Corp. awarded $1.44M for Alaska internet services, a sole-source purchase order

Contract Overview

Contract Amount: $14,400 ($14.4K)

Contractor: GCI Communication Corp.

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $20/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMERCIAL INTERNET SERVICES USCG SECTOR WAK

Place of Performance

Location: FORT RICHARDSON, ANCHORAGE County, ALASKA, 99505

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14,400 to GCI COMMUNICATION CORP. for work described as: COMMERCIAL INTERNET SERVICES USCG SECTOR WAK Key points: 1. The contract value represents a significant investment in essential communication infrastructure for the U.S. Coast Guard in Alaska. 2. Limited competition suggests potential for higher costs compared to a more open bidding process. 3. The firm fixed-price contract type provides cost certainty for the government. 4. The duration of the contract (729 days) indicates a need for sustained service delivery. 5. The award to GCI Communication Corp. may reflect existing infrastructure or specialized capabilities required in remote Alaskan regions. 6. The absence of small business set-aside flags potential missed opportunities for smaller providers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable sole-source awards in similar remote locations. However, the $1.44 million for two years of commercial internet services in Alaska, particularly for a sole-source award, warrants scrutiny. The absence of competitive bids means the government did not benefit from price discovery through market forces. While GCI may have unique capabilities or existing infrastructure, the lack of competition raises questions about whether the price reflects the best possible value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This indicates that the U.S. Coast Guard identified GCI Communication Corp. as the only viable source for these services. The reasons for this could include unique geographic requirements, existing infrastructure ownership by GCI, or specialized technical capabilities that only GCI possesses in the specified Alaskan region. The lack of multiple bidders limits the government's ability to negotiate the most favorable terms and pricing.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing, as there was no opportunity for multiple vendors to bid and drive down costs through competition.

Public Impact

The U.S. Coast Guard personnel operating in Alaska will benefit from reliable commercial internet services, crucial for mission operations and communication. Essential communication services will be delivered to support the Coast Guard's maritime safety, security, and law enforcement missions in remote Alaskan areas. The geographic impact is concentrated in Alaska (ST: AK, SN: ALASKA), addressing the unique connectivity challenges in this region. The contract supports the operational readiness and effectiveness of the Coast Guard's presence in a strategically important area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source nature requires strong justification to ensure value for money.
Dependence on a single provider could pose risks if service is interrupted.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award to an established provider may ensure service reliability in a challenging region.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on commercial internet services. The market for such services in remote and challenging geographies like Alaska is often characterized by limited providers due to high infrastructure costs and logistical complexities. Comparable spending benchmarks for internet services in remote areas are difficult to establish without detailed service level agreements and geographic specifics, but the $1.44 million for two years suggests a substantial investment, reflecting the unique operational environment.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and the award was made to GCI Communication Corp. without explicit mention of subcontracting goals for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially missing out on the economic benefits that subcontracting can provide to the small business ecosystem in Alaska.

Oversight & Accountability

As a purchase order under the Department of Homeland Security, oversight would typically be managed by the contracting officer and relevant program managers within the U.S. Coast Guard. Transparency is generally facilitated through contract databases, though specific performance monitoring details are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USCG Communications Infrastructure
Alaska Regional Connectivity Programs
Department of Homeland Security Telecommunications Contracts

Risk Flags

Sole-source award
Potential for higher costs due to lack of competition
Limited transparency on specific service details and performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14,400 to GCI COMMUNICATION CORP.. COMMERCIAL INTERNET SERVICES USCG SECTOR WAK

Who is the contractor on this award?

The obligated recipient is GCI COMMUNICATION CORP..

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 $14,400.

What is the period of performance?

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

What specific services are included in the 'COMMERCIAL INTERNET SERVICES' for the U.S. Coast Guard in Alaska?

The provided data does not detail the specific services included beyond 'COMMERCIAL INTERNET SERVICES'. Typically, such contracts would encompass broadband internet access, potentially including dedicated bandwidth, service level agreements (SLAs) for uptime and latency, technical support, and maintenance. Given the location in Alaska and the sole-source nature, it's plausible that the services are tailored to meet the unique operational requirements of the U.S. Coast Guard in remote or challenging environments, possibly including satellite or specialized terrestrial connectivity solutions.

Why was this contract awarded on a sole-source basis to GCI Communication Corp.?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a sole-source purchase order. This implies that the U.S. Coast Guard determined GCI Communication Corp. to be the only responsible source capable of providing the required services. Common reasons for sole-source awards in remote areas like Alaska include GCI's existing infrastructure (e.g., fiber optic networks, satellite ground stations), unique technical capabilities, or the prohibitive cost and time required to establish competitive alternatives. The specific justification would be documented in the contract file.

How does the $1.44 million contract value compare to similar internet service contracts in remote U.S. locations?

Direct comparison is difficult without knowing the exact service levels, bandwidth, and geographic scope. However, $1.44 million for two years of commercial internet services ($720,000 annually) for a remote location like Alaska is substantial. Internet service costs in remote areas are typically higher due to infrastructure investment, maintenance challenges, and limited competition. For context, commercial broadband in major metropolitan areas can range from tens to hundreds of thousands of dollars annually depending on bandwidth and SLAs. This contract's value suggests it likely covers significant bandwidth and/or addresses extreme logistical challenges inherent to Alaska.

What are the potential risks associated with a sole-source award for critical communication services?

Sole-source awards carry inherent risks, primarily related to cost and performance. Without competition, there's less pressure on the contractor to offer the lowest possible price, potentially leading to overpayment. There's also a risk of complacency from the sole provider, potentially impacting service quality or responsiveness. Furthermore, reliance on a single vendor creates a single point of failure; any disruption in GCI's service could significantly impact U.S. Coast Guard operations in Alaska, and the government has limited immediate alternatives.

What is GCI Communication Corp.'s track record with government contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

The provided data does not include GCI Communication Corp.'s historical contract performance or track record with the government. However, GCI is a major telecommunications provider in Alaska, and it is common for agencies operating in specific regions to contract with established local providers who possess the necessary infrastructure and expertise. A comprehensive assessment would require reviewing past performance evaluations (e.g., CPARS reports) and any prior contract history between GCI and DHS/USCG.

What is the historical spending pattern for commercial internet services by the U.S. Coast Guard in Alaska?

The provided data does not offer historical spending patterns for commercial internet services by the U.S. Coast Guard in Alaska. To analyze this, one would need to access historical contract databases (like FPDS or USASpending) and filter for similar services, agencies, and geographic locations over previous fiscal years. Understanding past spending would help determine if this $1.44 million award represents an increase, decrease, or stable level of investment for these critical services.

Industry Classification

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

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: 37380PR250000039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2550 DENALI ST STE 1000, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $28,800

Exercised Options: $28,800

Current Obligation: $14,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline