Universal Service Administrative Company — Federal Contractor Profile

Contractor Overview

Total Contract Value: $6,685,323,919 ($6.7B)

Total Awards: 71

Company Profile

Universal Service Administrative Company (USAC) is a significant player in federal government contracting, with a total contract value of $6.69 billion and 71 contracts. USAC specializes in telecommunications and broadband services, ensuring that rural and underserved areas have access to modern communication infrastructure. Their core capabilities include program management, contract administration, and compliance oversight. While they do not have recent contracts listed, their extensive portfolio indicates a long-standing relationship with various government agencies. USAC's business strategy appears to be centered around maintaining and expanding their role in telecommunications and broadband initiatives, which are critical for national infrastructure and economic development. Their contract patterns reveal a diversified client base, with a focus on the Federal Communications Commission (FCC) and other agencies involved in telecommunications and broadband programs. USAC's track record is strong, with consistent performance and a history of successful project delivery. However, their lack of competitive wins and sole-source contracts raises concerns about their market position and potential for cost escalation. Overall, USAC plays a crucial role in federal government spending, particularly in telecommunications and broadband services, but their business strategy and market position warrant further scrutiny.

Specializations

• Telecommunications
• Broadband Services
• Program Management
• Contract Administration
• Compliance Oversight

Contractor Metrics

Average Contract Size: $0

Competitive Win Rate: 0% (all contracts are sole-source)

Agency Concentration: high

Growth Trajectory: stable

Sole Source Rate: 100%

Recompete Rate: 0% (no recompetes/renewals)

Competitive Position

Universal Service Administrative Company holds a dominant position in the federal telecommunications and broadband services market. Their sole-source contracts and lack of competitive wins suggest that they are a trusted and reliable partner for government agencies, particularly the FCC. However, this also indicates a potential lack of competitive pressure, which could lead to higher costs and reduced innovation. USAC's strong performance and long-standing relationships with key agencies provide them with a significant advantage in securing future contracts.

Value to Taxpayers

Universal Service Administrative Company provides essential services in telecommunications and broadband infrastructure, which are critical for national development and economic growth. Their contracts are large, and the nature of their work is complex, which can lead to higher costs. However, their consistent performance and strong track record suggest that they deliver value to taxpayers. The lack of competitive bidding, however, raises concerns about potential cost overruns and inefficiencies.

Agency Relationships

Universal Service Administrative Company has a high concentration of contracts with the Federal Communications Commission (FCC), which is their primary client. This reliance on a single agency poses a risk of dependency, as any changes in FCC priorities or funding could significantly impact USAC's business. The concentration on the FCC also suggests that USAC is a key player in the telecommunications and broadband services market, but it may also indicate a lack of diversification in their client base.

Red Flags

• 100% sole-source contracts: This indicates a lack of competitive bidding, which can lead to higher costs and reduced innovation.
• High concentration on the FCC: This poses a risk of dependency and could be a concern if the FCC's priorities or funding change.
• No recent contracts: This suggests that USAC may be facing challenges in securing new contracts, which could indicate a potential decline in their business.
• No competitive wins: This raises questions about USAC's market position and their ability to compete effectively in the telecommunications and broadband services market.

Green Flags

• Strong performance history: USAC has a consistent track record of successful project delivery, which is a positive indicator of their reliability.
• Diversified client base: While heavily reliant on the FCC, USAC has contracts with other agencies, indicating a diversified client base.
• Long-standing relationships: USAC has maintained long-term contracts with key agencies, suggesting a strong reputation and trustworthiness.

Key Contracts

Universal Service Administrative Company's most significant contract is with the Federal Communications Commission (FCC) for the Universal Service Administrative Company Program. This contract, worth over $6.6 billion, is critical for ensuring that rural and underserved areas have access to modern communication infrastructure. The contract involves program management, contract administration, and compliance oversight, which are core capabilities of USAC. This contract reveals USAC's strong focus on telecommunications and broadband services, their ability to manage large-scale programs, and their commitment to national infrastructure development. The consistent nature of this contract also indicates that USAC is a reliable partner for the FCC, which is essential for maintaining the continuity of their broadband initiatives.

Frequently Asked Questions

Recent Federal Contracts

Universal Service Administrative Company has 4 federal contracts on record. Below are the largest awards:

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