USAGM spent $19.9M on broadcast transmission services, a contract awarded without competition

Contract Overview

Contract Amount: $19,868,133 ($19.9M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: U.S. Agency for Global Media

Start Date: 2002-12-01

End Date: 2013-09-30

Contract Duration: 3,956 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEASE FOR BROADCAST TRANSMISSION SERVICES OF BBG PROVIDED PROGRAMMING.

Plain-Language Summary

U.S. Agency for Global Media obligated $19.9 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: LEASE FOR BROADCAST TRANSMISSION SERVICES OF BBG PROVIDED PROGRAMMING. Key points: 1. The contract value of $19.9M over 11 years suggests a significant investment in broadcast infrastructure. 2. Awarded as 'Not Competed', this raises questions about potential cost efficiencies and market alternatives. 3. The long duration (3956 days) indicates a need for stable, long-term service provision. 4. The service category 'Radio Networks' points to a specific niche within broadcasting. 5. The absence of small business participation suggests larger entities likely dominated this service area.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its unique nature and lack of competitive bidding. The total value of $19.9M spread over nearly 11 years averages to approximately $1.8M annually. Without comparable contracts or market data for similar broadcast transmission services awarded competitively, it's difficult to definitively assess if this represents good value for money. The 'Not Competed' status inherently limits the ability to verify pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Competed' basis, meaning it was not subjected to a full and open competition. The specific reasons for this sole-source award are not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required services. This lack of competition limits the government's ability to explore a wider range of providers and potentially secure more favorable pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the government did not benefit from multiple bids to drive down costs.

Public Impact

The primary beneficiary is the U.S. Agency for Global Media (USAGM), which received broadcast transmission services. The services delivered enabled the broadcasting of programming, likely for international audiences. The geographic impact is not specified but is implied to be related to the reach of broadcast signals. Workforce implications are not directly evident but may involve personnel managing or utilizing these transmission services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in given the long contract duration and specialized service.

Positive Signals

Ensured continuity of essential broadcast transmission services for USAGM.
Long-term contract provided stability for service delivery.
Firm Fixed Price contract structure offered cost certainty for the government.

Sector Analysis

The contract falls within the broader telecommunications and broadcasting sector, specifically focusing on transmission services. This sector is characterized by significant infrastructure investment and regulatory oversight. The market for broadcast transmission can be specialized, with a limited number of providers capable of offering global reach or specific technical capabilities. The $19.9M value over 11 years represents a substantial, albeit niche, expenditure within this sector, likely reflecting the specialized nature of the services provided.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false) and there is no information on subcontracting. This suggests that the nature of broadcast transmission services, or the specific requirements of this contract, were likely beyond the scope or capacity of most small businesses. Consequently, there was no direct set-aside for small businesses, and the broader small business ecosystem may not have significantly benefited from this particular award.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. However, as a contract awarded by the U.S. Agency for Global Media, it would fall under the agency's internal oversight processes and potentially the jurisdiction of the agency's Inspector General. Transparency regarding the justification for the sole-source award and the performance monitoring would be key aspects of effective oversight.

Related Government Programs

Global Broadcasting Services
International Media Operations
Radio and Television Broadcasting
Telecommunications Infrastructure

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may limit flexibility and cost optimization.
Limited transparency on performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $19.9 million to MISCELLANEOUS FOREIGN AWARDEES. LEASE FOR BROADCAST TRANSMISSION SERVICES OF BBG PROVIDED PROGRAMMING.

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2002-12-01. End: 2013-09-30.

What was the specific justification for awarding this broadcast transmission contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED', signifying a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements include situations where only one vendor possesses the unique capability, technology, or security clearance required for the service. For broadcast transmission, this could involve exclusive access to specific transmission facilities, proprietary technology, or established international agreements that make competition impractical or impossible. Without further documentation from the U.S. Agency for Global Media, the precise rationale remains speculative but likely centers on the unique and indispensable nature of the awarded vendor's services.

How does the annual cost of this contract compare to similar broadcast transmission services?

The total contract value of $19,868,132.80 over a duration of 3956 days (approximately 10.84 years) equates to an average annual cost of roughly $1,832,800. Benchmarking this against similar contracts is difficult without more specific details on the scope, geographic reach, and technical specifications of the transmission services. Broadcast transmission costs can vary widely based on factors like satellite versus terrestrial, bandwidth, encryption, and global coverage. Given the 'Not Competed' status, a direct comparison to competitively bid contracts for similar services is not feasible, making it challenging to definitively assess value for money.

What are the potential risks associated with a long-term, sole-source contract for broadcast transmission?

A significant risk associated with long-term, sole-source contracts is the potential for inflated costs due to the lack of competitive pressure. The vendor may have less incentive to offer cost reductions or efficiency improvements over time. Another risk is vendor lock-in; the government becomes dependent on a single provider, making it difficult and costly to switch even if performance issues arise or better alternatives become available. Furthermore, without regular competition, there's a reduced opportunity to incorporate technological advancements or benefit from market innovations. The extended duration also increases the risk of the contracted service becoming obsolete or misaligned with evolving agency needs.

What was the historical spending pattern for broadcast transmission services by the U.S. Agency for Global Media?

The provided data reflects a single contract for broadcast transmission services awarded in December 2002 and ending in September 2013, with a total value of approximately $19.9 million. This suggests that for this specific period and service, USAGM utilized a long-term, sole-source approach. Without access to broader historical procurement data for USAGM, it's impossible to determine if this was a recurring strategy for broadcast transmission or an isolated case. It is also unclear if USAGM has engaged in competitive procurements for similar services before or after this contract's period of performance.

What is the significance of the 'Radio Networks' NAICS code (515111) in the context of this contract?

The North American Industry Classification System (NAICS) code 515111 specifically designates 'Radio Networks'. This code indicates that the primary business activity of the contractor, or the service being procured, relates to the operation and provision of radio broadcasting networks. For this contract, it signifies that the $19.9 million expenditure was directed towards securing the infrastructure and services necessary for the transmission and distribution of radio programming, likely on a national or international scale, as managed by the U.S. Agency for Global Media.

Industry Classification

NAICS: Information › Radio and Television Broadcasting › Radio Networks

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,868,133

Exercised Options: $19,868,133

Current Obligation: $19,868,133

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline