Verizon Federal Inc. awarded $37.7M for telecommunications equipment, with a significant portion for Fort Lewis

Contract Overview

Contract Amount: $37,691,551 ($37.7M)

Contractor: Verizon Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-04

End Date: 2011-08-31

Contract Duration: 1,945 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200608!003935!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL017 !A!N! !N!0040 ! !20060504!20080430!178041406!121732804!107212169!N!VERIZON FEDERAL INC !1320 N COURTHOUSE ROAD, 8!ARLINGTON !VA!22201!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000007518623!N!N!000000000000!5805!TELEPHONE AND TELEGRAPH EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334210!E! !5!B!M! !A! !99990909!B! ! !N!Z!A!N!J!2!003!B! !Z!N!C! ! !Y!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to VERIZON FEDERAL INC. for work described as: 200608!003935!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL017 !A!N! !N!0040 ! !20060504!20080430!178041406!121732804!107212169!N!VERIZON FEDERAL INC !1320 N COURTHOUSE ROAD, 8!ARLINGTON !VA!22201!24915!053!53!FORT LEWIS !PIER… Key points: 1. Contract value of $37.7M over 5 years indicates substantial investment in communication infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, though specific bidder numbers are not detailed. 3. The contract's duration and value present moderate performance and financial risks. 4. This contract supports essential communication services for military operations at Fort Lewis. 5. Positioned within the broader IT and telecommunications sector, this contract addresses critical infrastructure needs.

Value Assessment

Rating: good

The contract value of $37.7 million over approximately five years for telecommunications equipment appears reasonable given the scope of supporting a major military installation like Fort Lewis. Benchmarking against similar large-scale telecommunications contracts for government facilities would provide a more precise value-for-money assessment. However, the firm-fixed-price structure generally offers cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters price discovery and encourages competitive pricing. The agency's choice of this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to a competitive bidding environment.

Public Impact

Military personnel and operations at Fort Lewis, Washington, benefit from enhanced and reliable communication services. The contract delivers telephone and telegraph equipment, crucial for command, control, and daily operations. The primary geographic impact is centered around Fort Lewis, Pierce County, Washington. The contract supports the operational readiness and technological infrastructure of the U.S. Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are deployed.
Ensuring long-term serviceability and upgrade paths for the deployed equipment.
Managing the integration of new telecommunications systems with existing military networks.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for sustained support and infrastructure development.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on electronic and communication equipment. The market for such equipment is large and competitive, with numerous vendors capable of supplying government needs. This contract represents a significant investment in maintaining and upgrading critical communication infrastructure for a major military installation, aligning with broader government efforts to modernize defense capabilities.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting plans within the provided data. As a large contract awarded to a major telecommunications provider, the primary focus is likely on direct service delivery. Further analysis would be needed to determine if small businesses are involved in the supply chain or subcontracting opportunities.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for contract administration and performance. The firm-fixed-price nature of the contract simplifies financial oversight. Transparency is generally maintained through contract award databases, but specific performance metrics and detailed spending breakdowns would require further inquiry.

Related Government Programs

Defense-wide Telecommunications Services
Base Communications Infrastructure Modernization
Tactical Communications Systems
Network Modernization Programs

Risk Flags

Potential for obsolescence of technology over the contract's lifespan.
Dependence on a single large provider for critical communication infrastructure.
Ensuring cybersecurity of the deployed telecommunications systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to VERIZON FEDERAL INC.. 200608!003935!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0797DL017 !A!N! !N!0040 ! !20060504!20080430!178041406!121732804!107212169!N!VERIZON FEDERAL INC !1320 N COURTHOUSE ROAD, 8!ARLINGTON !VA!22201!24915!053!53!FORT LEWIS !PIERCE !WASHINGTON!+000007518623!N!N!000000000000!5805!TELEPHONE AND TELEGRAPH EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334210!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is VERIZON FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2006-05-04. End: 2011-08-31.

What is the specific nature of the 'TELEPHONE AND TELEGRAPH EQUIPMENT' being procured under this contract?

The contract specifies 'TELEPHONE AND TELEGRAPH EQUIPMENT' (PSC code 5805) and 'ELECTRONICS AND COMMUNICATION EQUIP' (Product Service Code A7). While the exact models or types of equipment are not detailed in the summary data, this typically encompasses a range of telecommunications hardware. This could include switching equipment, transmission systems, user terminals (phones, fax machines), and associated network infrastructure components necessary for voice and data communication services at Fort Lewis. The contract likely covers procurement, installation, and potentially maintenance of these systems to ensure reliable communication for base operations.

How does the awarded amount compare to typical spending on similar telecommunications infrastructure for military bases of comparable size?

The awarded amount of approximately $37.7 million over a period of roughly five years (from May 2006 to August 2011, with an initial order value of $17.8 million and a total potential value of $37.7 million) suggests a substantial investment. To benchmark this effectively, one would need to compare it against contracts for similar-sized Army installations or other Department of Defense facilities. Factors such as the scope of services (e.g., voice, data, video, security), the existing infrastructure's condition, and the specific technological requirements of Fort Lewis would influence the comparison. Without detailed data on comparable contracts, it's difficult to definitively state if this represents high or low spending, but the value indicates a significant upgrade or sustainment effort.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for telecommunications equipment and services supporting a military installation, typical KPIs would likely include network uptime/availability (e.g., 99.9% availability), call completion rates, data transmission speeds, latency, mean time to repair (MTTR) for outages, and response times for service requests. The firm-fixed-price nature suggests that the contractor is responsible for delivering the specified equipment and services, with penalties or remedies potentially in place for failing to meet agreed-upon performance standards.

What is Verizon Federal Inc.'s track record with similar government telecommunications contracts?

Verizon Federal Inc. has a significant history of providing telecommunications services to government agencies, including the Department of Defense. As a major telecommunications provider, they are experienced in large-scale network deployment and management. While specific details on past performance for this exact type of contract at Fort Lewis are not in the summary, Verizon's broader portfolio includes numerous contracts for federal agencies, covering areas like broadband, wireless, and secure communication networks. Their established presence suggests a capacity to handle complex government requirements, though individual contract performance can vary.

What is the potential impact of this contract on future telecommunications technology adoption at Fort Lewis?

This contract, awarded in 2006 and extending through 2011, likely focused on deploying or upgrading existing telecommunications infrastructure based on the technologies available at that time. It may have laid the groundwork for subsequent technology refreshes. The equipment procured would have been state-of-the-art for its era, potentially including advancements in digital switching, fiber optics, or early forms of broadband data services. Its long-term impact would depend on the contract's provisions for upgrades and the base's subsequent modernization efforts, influencing the pace at which newer technologies like advanced IP-based networks or 5G capabilities were integrated.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Communications Inc

Address: 22001 LOUDON COUNTY PKWY STE C 2 1, ASHBURN, VA, 20147

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DAAB0797DL017

IDV Type: IDC

Timeline