HHS awards $90.8K for short-term telecom services in Arizona

Contract Overview

Contract Amount: $90,804 ($90.8K)

Contractor: Frontier Southwest Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2023-04-11

End Date: 2026-04-10

Contract Duration: 1,095 days

Daily Burn Rate: $83/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHORT TERM TELECOM SERVICE FOR PEACH SPRINGS

Place of Performance

Location: PEACH SPRINGS, MOHAVE County, ARIZONA, 86434

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90,803.85 to FRONTIER SOUTHWEST INCORPORATED for work described as: SHORT TERM TELECOM SERVICE FOR PEACH SPRINGS Key points: 1. The contract value is relatively small, suggesting a focused need for telecom services. 2. The award was made under the Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller purchases. 3. The fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is three years, providing a stable service period. 5. The service is for wired telecommunications, a mature and competitive market. 6. The geographic focus is Arizona, potentially serving a specific regional need.

Value Assessment

Rating: good

The contract value of approximately $90.8K for three years of telecom services appears reasonable for a localized, short-term need. Benchmarking against similar small-scale telecom service contracts would provide a more precise value assessment, but the amount does not immediately suggest overpricing for the scope. The firm fixed-price structure offers cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for purchases below the simplified acquisition threshold. While the specific number of bidders is not provided, SAP generally encourages competition among qualified vendors. This method aims to balance competition with efficiency for smaller procurements.

Taxpayer Impact: Competition under SAP ensures that taxpayers receive competitive pricing for these essential telecom services, even for smaller contract values.

Public Impact

The Department of Health and Human Services (HHS) benefits from reliable short-term telecommunications. Essential wired telecommunications services are delivered. The services are geographically focused within Arizona. The contract supports the operational needs of the specific HHS office awarding the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under SAP, promoting efficient procurement for smaller dollar values.
Firm Fixed Price contract type provides cost certainty.
Three-year duration offers stable service delivery.

Sector Analysis

The wired telecommunications carriers industry is a well-established sector providing essential infrastructure. This contract falls within the IT and Communications sector, specifically supporting the operational needs of a federal agency. Spending in this area is consistent with government requirements for connectivity and communication services, with numerous providers available.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the relatively small value and the nature of telecommunications services, it is possible that larger providers or their authorized resellers could have bid. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

As a purchase order awarded under SAP, oversight would typically be managed by the contracting officer within the Office of the Assistant Secretary for Financial Resources at HHS. Standard procurement regulations and internal agency policies would govern accountability and transparency. The specific Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services
IT Infrastructure Procurement
Agency Operational Support Services

Risk Flags

Potential for limited vendor choice in rural areas.
Reliance on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90,803.85 to FRONTIER SOUTHWEST INCORPORATED. SHORT TERM TELECOM SERVICE FOR PEACH SPRINGS

Who is the contractor on this award?

The obligated recipient is FRONTIER SOUTHWEST INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $90,803.85.

What is the period of performance?

Start: 2023-04-11. End: 2026-04-10.

What is the specific nature of the 'short term' telecom service required by HHS in Arizona?

The data indicates 'SHORT TERM TELECOM SERVICE FOR PEACH SPRINGS' with a duration of 1095 days (3 years). While 'short term' is relative, the three-year duration suggests it's for a defined period, possibly related to a specific project, temporary facility, or transition phase rather than a permanent, long-term infrastructure commitment. The service type is 'Wired Telecommunications Carriers'. Further details on the exact services (e.g., internet access, voice lines, data circuits) and the specific location within Peach Springs, Arizona, would clarify the 'short term' aspect and its operational necessity.

How does the awarded price of $90,803.85 compare to market rates for similar telecom services in Arizona?

Benchmarking this specific award requires detailed market data for wired telecommunications services in Peach Springs, Arizona, for the period of performance (April 2023 - April 2026). However, for context, the average annual cost is approximately $30,267.95. Given that Peach Springs is a smaller community, costs might differ from major metropolitan areas. The 'COMPETED UNDER SAP' designation suggests the price was considered fair and reasonable within the simplified acquisition framework, which aims for competitive pricing without extensive market surveys required for larger contracts. Without specific service level agreements (SLAs) and bandwidth details, a precise comparison is difficult, but the overall value appears modest for a three-year government contract.

What are the potential risks associated with a three-year fixed-price telecom contract of this value?

For a contract of this value ($90.8K over 3 years), the primary risks are relatively low but could include service disruptions if the provider (FRONTIER SOUTHWEST INCORPORATED) experiences technical issues or financial instability. Price escalation risk is mitigated by the firm fixed-price structure. A potential risk is vendor lock-in if alternative providers are scarce in the specific Peach Springs location, potentially limiting future competitive options upon contract expiration. Ensuring robust performance standards and clear termination clauses in the contract are key mitigation strategies. The relatively small value also means that the impact of any single failure is contained.

What is the track record of FRONTIER SOUTHWEST INCORPORATED with federal contracts, particularly with HHS?

A comprehensive review of FRONTIER SOUTHWEST INCORPORATED's federal contract history would require access to databases like FPDS or SAM.gov. However, as a provider of wired telecommunications services, it is likely they have existing contracts with various government agencies. Without specific data on past performance, it's difficult to assess their track record definitively. Key indicators to examine would include past performance ratings on similar contracts, any history of contract disputes or terminations, and their experience with government-specific compliance requirements. Their ability to secure this contract suggests they met the basic qualifications and were deemed a responsible contractor by HHS for this specific procurement.

How does this contract fit into the broader spending patterns for telecommunications services within HHS?

This $90.8K contract represents a very small fraction of HHS's overall IT and telecommunications budget, which likely runs into hundreds of millions or even billions of dollars annually to support its vast network of agencies and programs nationwide. This specific award appears to be for a localized, potentially niche requirement, rather than a large-scale enterprise-wide solution. HHS, like other large federal agencies, procures a wide array of telecommunications services, from basic POTS lines and internet access to complex data circuits and cloud-based communication platforms. This contract likely addresses a specific, limited operational need in a particular geographic area.

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 - DELIVERY

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: 1398 S WOODLAND BLVD, DELAND, FL, 32720

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

Financial Breakdown

Contract Ceiling: $136,812

Exercised Options: $90,804

Current Obligation: $90,804

Actual Outlays: $41,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline