USDA awards $27M for wireless services, with a 548-day performance period

Contract Overview

Contract Amount: $26,956,908 ($27.0M)

Contractor: Cellco Partnership

Awarding Agency: Department of Agriculture

Start Date: 2024-07-01

End Date: 2025-12-31

Contract Duration: 548 days

Daily Burn Rate: $49.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VERIZON WIRELESS SERVICES AND SERVICE ENABLED DEVICES CALL ORDER PERIOD OF PERFORMANCE - JULY 01, 2024 - JUNE 30, 2025

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80525

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.0 million to CELLCO PARTNERSHIP for work described as: VERIZON WIRELESS SERVICES AND SERVICE ENABLED DEVICES CALL ORDER PERIOD OF PERFORMANCE - JULY 01, 2024 - JUNE 30, 2025 Key points: 1. Value for money appears reasonable given the scale of wireless services required. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is a single call order under a larger BPA. 5. Sector positioning is within telecommunications services for government operations.

Value Assessment

Rating: good

The contract value of approximately $27 million for a 548-day period (roughly 18 months) for wireless telecommunications services appears to be in line with market rates for large government procurements. Benchmarking against similar large-scale wireless service contracts for federal agencies suggests this pricing is competitive. The firm-fixed-price structure also provides cost certainty for the Department of Agriculture.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but the open competition suggests a robust process that should lead to competitive pricing. This approach allows the government to leverage the market effectively for telecommunications services.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure the government receives fair market value for the wireless services procured.

Public Impact

Federal employees across the Department of Agriculture will benefit from reliable wireless communication services. Essential services include voice, data, and potentially mobile device management. The geographic impact is likely nationwide, supporting USDA operations across various locations. Workforce implications include enabling productivity and connectivity for government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost predictability.
The contract is a call order under a broader BPA, indicating existing framework agreements.

Sector Analysis

The telecommunications industry is a mature and highly competitive sector. Government spending on wireless services is substantial, supporting agency operations, data transmission, and mobile connectivity. This contract fits within the broader category of IT and communication services procured by federal agencies, with spending benchmarks varying widely based on scope and duration. The North American Industry Classification System (NAICS) code 517312, 'Wireless Telecommunications Carriers (except Satellite),' encompasses a range of providers.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award to Cellco Partnership (Verizon Wireless) suggests a large prime contractor. Further analysis would be needed to determine if small business participation is mandated through other means or if subcontracting opportunities exist within the awarded BPA call.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Office of the Chief Financial Officer and relevant program managers. As a call order under a BPA, the underlying BPA likely has established oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Other Agency Specific Wireless Contracts
Department of Agriculture IT Spending
Wireless Services for Federal Agencies

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical services
Need for ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.0 million to CELLCO PARTNERSHIP. VERIZON WIRELESS SERVICES AND SERVICE ENABLED DEVICES CALL ORDER PERIOD OF PERFORMANCE - JULY 01, 2024 - JUNE 30, 2025

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-12-31.

What is the historical spending pattern for wireless services by the Department of Agriculture?

Analyzing historical spending patterns for wireless services by the Department of Agriculture (USDA) is crucial for understanding the context of this $27 million call order. While specific historical data for this exact service category is not provided, federal agencies typically have ongoing needs for telecommunications. Agencies often utilize large indefinite-delivery, indefinite-quantity (IDIQ) contracts or Blanket Purchase Agreements (BPAs) to procure such services efficiently over multiple years. Examining past USDA expenditures on wireless services, potentially through FPDS or agency budget reports, would reveal trends in spending volume, average costs per user or device, and the primary vendors utilized. This comparison would help determine if the current award represents an increase, decrease, or stable level of investment in wireless capabilities and assess whether the pricing aligns with historical cost structures or reflects market shifts.

How does the performance period of this contract compare to typical wireless service contracts?

The performance period for this specific call order is from July 1, 2024, to June 30, 2025, with an extended end date of December 31, 2025, totaling approximately 548 days (about 18 months). This duration is relatively standard for call orders or task orders issued under larger, multi-year contract vehicles like Blanket Purchase Agreements (BPAs). Federal agencies often structure their procurements this way to maintain flexibility while ensuring service continuity. Longer-term, multi-year contracts (e.g., 3-5 years) are also common for core IT infrastructure and services, but shorter periods for specific call orders allow for adjustments based on evolving technology and agency needs. The extended end date suggests potential for option periods or flexibility in service delivery beyond the initial year.

What are the potential risks associated with relying on a single vendor for wireless services?

Relying on a single vendor, even if awarded through full and open competition, carries inherent risks. One primary risk is vendor lock-in, where switching providers becomes difficult and costly due to proprietary technology, service integration, or contractual obligations. This can reduce leverage in future negotiations. Another risk is service disruption; if the vendor experiences technical failures, network outages, or financial instability, it could significantly impact the USDA's operations. Furthermore, a lack of ongoing competition might lead to complacency from the vendor regarding service quality or innovation. While this contract was competitively awarded, the long-term reliance on one provider necessitates robust performance monitoring and contingency planning to mitigate these potential downsides.

What specific types of wireless services are typically included under NAICS code 517312 for a federal agency?

NAICS code 517312, 'Wireless Telecommunications Carriers (except Satellite),' typically covers a broad range of services essential for modern communication. For a federal agency like the Department of Agriculture, this would likely include mobile voice services (cellular plans for employees), mobile data services (internet access on smartphones, tablets, and laptops), and potentially dedicated mobile broadband solutions. It can also encompass services related to device management, mobile security solutions, and possibly specialized wireless communication systems depending on agency requirements. The contract's description as 'Wireless Telecommunications Carriers (except Satellite) and Service Enabled Devices' suggests it covers both the network access and the hardware itself, such as smartphones or other mobile devices necessary for USDA operations.

How does the BPA Call structure impact the flexibility and cost-effectiveness of this procurement?

Structuring this procurement as a Blanket Purchase Agreement (BPA) Call impacts flexibility and cost-effectiveness in several ways. A BPA is a simplified way to fill anticipated repetitive needs for supplies or services by establishing 'charge accounts' with qualified sources. A BPA Call is then an order placed against that BPA. This structure allows the USDA to procure wireless services quickly and efficiently, as the foundational BPA likely already established terms, conditions, and potentially negotiated pricing. This reduces the administrative burden and lead time compared to a new, standalone contract. For cost-effectiveness, BPAs often leverage pre-negotiated rates, which can be advantageous, especially when awarded under full and open competition. However, the specific call order's pricing is critical; while the BPA provides a framework, the call order itself must represent good value. The flexibility comes from being able to issue multiple calls for varying needs over the BPA's life.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 1 VERIZON WAY, BASKING RIDGE, NJ, 07920

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,265,545

Exercised Options: $29,265,545

Current Obligation: $26,956,908

Actual Outlays: $26,956,908

Parent Contract

Parent Award PIID: 12314424A0017

IDV Type: BPA

Timeline