Commerce Dept. Awards $4.3M to Verizon for Telecom Services, Ending May 2026
Contract Overview
Contract Amount: $4,342,460 ($4.3M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Commerce
Start Date: 2021-09-15
End Date: 2026-05-31
Contract Duration: 1,719 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TELECOMMUNICATIONS SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $4.3 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: TELECOMMUNICATIONS SERVICES Key points: 1. Significant contract value of $4.3M over nearly 3 years. 2. Verizon Business Network Services LLC is the sole awardee. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. Awarded under full and open competition, suggesting market availability.
Value Assessment
Rating: good
The $4.3M award for telecommunications services appears reasonable given the contract duration and the provider's market position. Benchmarking against similar large-scale telecom contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under a larger contract structure may influence price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential telecommunications infrastructure, with competition aiming to ensure value for money.
Public Impact
Ensures critical communication infrastructure for the Department of Commerce. Supports ongoing operations and data transmission needs. Potential for service disruptions if provider fails to meet obligations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in with long-term contracts.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost predictability.
Sector Analysis
Telecommunications services are vital for government operations, enabling communication and data transfer. Spending in this sector is generally consistent, with significant portions allocated to network infrastructure and service provision.
Small Business Impact
The awardee, Verizon Business Network Services LLC, is a large corporation, not a small business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would involve monitoring service delivery against contract terms and ensuring compliance with federal regulations. The Department of Commerce's Office of the Secretary is responsible for this contract.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Sole awardee may limit future competitive opportunities.
- Contract duration could lead to technology obsolescence.
- Dependence on a single provider for critical infrastructure.
- Potential for price increases upon contract renewal.
Tags
wired-telecommunications-carriers, department-of-commerce, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.3 million to VERIZON BUSINESS NETWORK SERVICES LLC. TELECOMMUNICATIONS 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 $4.3 million.
What is the period of performance?
Start: 2021-09-15. End: 2026-05-31.
What specific telecommunications services are included in this contract?
The provided data indicates 'Wired Telecommunications Carriers' (NAICS 517110) and 'TELECOMMUNICATIONS SERVICES' (Data). This typically encompasses services like broadband internet, dedicated data lines, voice over IP, and potentially private network solutions. Specific details would be found in the contract's statement of work.
How does the awarded price compare to market benchmarks for similar services?
Without detailed service specifications (bandwidth, uptime guarantees, geographic coverage), a precise benchmark is difficult. However, $4.3M over 1719 days averages roughly $2,500 per day, which seems within a reasonable range for enterprise-level telecommunications services, especially considering the provider's market standing.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators are crucial for ensuring service quality and accountability. Typical KPIs for telecom services include network uptime, latency, data throughput, and response times for issue resolution. These would be detailed in the contract's Service Level Agreement (SLA).
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $4,342,460
Exercised Options: $4,342,460
Current Obligation: $4,342,460
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
Start Date: 2021-09-15
Current End Date: 2026-05-31
Potential End Date: 2032-05-31 00:00:00
Last Modified: 2026-03-16
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