Commerce Dept. awards $2.48M for telecom services, with 3 bidders competing

Contract Overview

Contract Amount: $2,477,497 ($2.5M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of Commerce

Start Date: 2021-06-10

End Date: 2026-05-31

Contract Duration: 1,816 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NTIA TELECOMMUNICATION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $2.5 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: NTIA TELECOMMUNICATION SERVICES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest fair pricing was achieved. 3. No immediate risk indicators are apparent from the contract details. 4. This contract supports essential telecommunication infrastructure for the Department of Commerce. 5. The award falls within the broader IT and telecommunications sector spending.

Value Assessment

Rating: good

The contract value of $2.48 million over its period of performance (approximately 5 years) appears reasonable, especially considering it was awarded under full and open competition. Benchmarking against similar telecommunication service contracts would provide a more precise value assessment, but the presence of multiple bidders suggests a competitive pricing environment. The firm-fixed-price structure also helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition generally leads to better price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition award.

Public Impact

The Department of Commerce benefits from reliable wired telecommunications services. Essential communication infrastructure is maintained for government operations. Services are delivered within the District of Columbia. The contract supports the IT infrastructure backbone for federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Multiple bidders participated in the procurement process.
Firm fixed price contract type helps manage cost certainty.
Contract duration aligns with typical telecommunications service agreements.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers industry, a segment of the broader Information Technology sector. Spending in this area supports the fundamental communication networks essential for government operations. Comparable spending benchmarks for federal telecommunications services vary widely based on scope and duration, but this award represents a moderate investment for essential connectivity.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions, nor is there information on subcontracting plans. As it was awarded under full and open competition, the primary focus was likely on obtaining the best value from the overall market, rather than specifically targeting small businesses for this particular award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Commerce's Office of the Secretary is responsible for managing and overseeing this contract. Transparency is maintained through federal procurement databases. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services
Network Infrastructure Contracts
IT Services for Government Agencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.5 million to VERIZON BUSINESS NETWORK SERVICES LLC. NTIA TELECOMMUNICATION SERVICES

Who is the contractor on this award?

The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2021-06-10. End: 2026-05-31.

What is the track record of Verizon Business Network Services LLC in fulfilling federal telecommunications contracts?

Verizon Business Network Services LLC has a significant history of serving federal agencies with telecommunications and network services. They are a major provider in the telecommunications industry, often competing for and winning large government contracts. Their track record typically includes providing a wide range of services such as broadband internet, private lines, and managed network solutions. While specific performance metrics for this particular contract are not detailed here, their extensive experience suggests a capacity to meet federal requirements. Federal procurement data often shows a consistent presence of Verizon in large-scale telecommunications awards across various agencies, indicating a generally reliable performance history, though like any large contractor, specific contract performance can vary.

How does the awarded price compare to similar federal telecommunications contracts?

Direct comparison of the $2.48 million total award value is challenging without knowing the specific service levels, bandwidth, and duration details. However, the contract was awarded under full and open competition with three bidders, which generally drives prices toward market rates. For context, federal agencies spend billions annually on telecommunications services. Contracts for similar wired telecommunications carriers can range from tens of thousands for localized services to hundreds of millions for nationwide networks. The firm-fixed-price nature and the competitive bidding process suggest this award is likely within a reasonable range for the services provided to the Department of Commerce, assuming standard service offerings.

What are the primary risks associated with this telecommunications services contract?

The primary risks for this contract are generally related to service disruptions, potential cost overruns if the firm-fixed-price model doesn't account for unforeseen technical issues, and vendor lock-in if transitioning providers becomes difficult. Service disruptions could impact the Department of Commerce's operations. However, the contract's duration (ending May 2026) is relatively standard for such services, and the firm-fixed-price structure mitigates direct cost overrun risk for the government. The competitive award process and the established nature of the vendor suggest these risks are likely well-managed, but ongoing monitoring of service level agreements (SLAs) and performance is crucial.

How effective is this contract in ensuring reliable telecommunication services for the Department of Commerce?

The effectiveness of this contract in ensuring reliable telecommunication services hinges on the performance of Verizon Business Network Services LLC against the agreed-upon Service Level Agreements (SLAs). As a major telecommunications provider awarded through a competitive process, there's a baseline expectation of reliability. The firm-fixed-price structure incentivizes the contractor to deliver services efficiently. Effectiveness is typically measured by uptime, latency, and adherence to technical specifications outlined in the contract. The Department of Commerce's internal monitoring and reporting mechanisms, along with potential recourse for non-performance, are key to ensuring the contract's effectiveness in maintaining critical communication infrastructure.

What are the historical spending patterns for telecommunications services within the Department of Commerce?

Historical spending patterns for telecommunications services within the Department of Commerce are likely substantial, reflecting the agency's need for robust communication infrastructure. While specific historical data for this exact contract isn't provided, agencies of this size typically have ongoing requirements for wired and wireless telecommunications, data transmission, and network management. Spending often fluctuates based on technology upgrades, network expansion, and consolidation efforts. The NTIA (National Telecommunications and Information Administration), part of Commerce, also has significant telecom-related activities. This $2.48 million award represents a portion of the department's overall IT and telecommunications budget, which is generally consistent year-over-year, with variations driven by specific project needs and federal budget allocations.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $2,477,497

Exercised Options: $2,477,497

Current Obligation: $2,477,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3009

IDV Type: IDC

Timeline