NIST Telecom Services Contract Awarded to Verizon for $10.4M, Spanning 5 Years
Contract Overview
Contract Amount: $10,394,906 ($10.4M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Commerce
Start Date: 2021-08-31
End Date: 2026-05-31
Contract Duration: 1,734 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NIST TELECOMMUNICATION SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $10.4 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: NIST TELECOMMUNICATION SERVICES Key points: 1. Contract value of $10.4M over 5 years. 2. Sole provider is Verizon Business Network Services LLC. 3. Risk of limited competition due to sole provider. 4. Spending falls within the Wired Telecommunications Carriers sector.
Value Assessment
Rating: fair
The contract value of $10.4M over 5 years for telecommunication services appears reasonable given the duration and provider. However, without specific service details or benchmarks for similar government contracts, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the data indicates a single awardee, Verizon Business Network Services LLC, suggesting that only one bidder was successful or chosen.
Taxpayer Impact: The full and open competition process aims to ensure taxpayer funds are used efficiently. The final price reflects the outcome of this competitive process.
Public Impact
Ensures essential telecommunication services for the Department of Commerce. Supports NIST's operational needs through reliable connectivity. Potential for service disruptions if provider fails to meet obligations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of ongoing competition after initial award.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides budget stability.
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, which includes services like broadband internet, voice, and data transmission. Government spending in this sector is substantial, driven by the need for robust communication infrastructure across agencies.
Small Business Impact
The data indicates that this contract was not awarded to small businesses. There is no specific information provided regarding subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract is managed by the Department of Commerce, Office of the Secretary. Oversight would involve monitoring service delivery, performance metrics, and adherence to contract terms to ensure accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Sole awardee limits future competition.
- Potential for vendor lock-in.
- Dependence on a single provider for critical infrastructure.
- No indication of small business participation.
Tags
wired-telecommunications-carriers, department-of-commerce, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $10.4 million to VERIZON BUSINESS NETWORK SERVICES LLC. NIST 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 $10.4 million.
What is the period of performance?
Start: 2021-08-31. End: 2026-05-31.
What specific telecommunication services are included in this $10.4M contract, and how do they align with NIST's mission requirements?
The contract covers wired telecommunication services provided by Verizon Business Network Services LLC. While the exact services are not detailed, they likely include broadband internet, data transmission, and potentially voice services essential for NIST's research, development, and operational activities. The alignment with NIST's mission would depend on the specific bandwidth, reliability, and security features offered under the contract.
Given the 5-year duration and sole awardee, what mechanisms are in place to mitigate the risk of price increases or service degradation over time?
The contract is firm fixed price, which should protect against price increases for the defined services. However, service degradation risk remains. Mitigation strategies could include performance metrics, service level agreements (SLAs) with penalties, regular performance reviews by the Department of Commerce, and contingency planning for potential vendor issues.
How does the $10.4M contract value compare to similar telecommunication service contracts awarded by other federal agencies of comparable size and scope?
Benchmarking this $10.4M contract requires detailed comparison with similar government contracts for wired telecommunications services. Factors like duration, bandwidth, included services (e.g., dedicated lines, internet access), and geographic coverage are crucial. Without this granular data, it's challenging to definitively state if the price is competitive, though the full and open competition process suggests an effort towards fair pricing.
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: $10,394,906
Exercised Options: $10,394,906
Current Obligation: $10,394,906
Actual Outlays: $6,888
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: 2021-08-31
Current End Date: 2026-05-31
Potential End Date: 2032-05-31 00:00:00
Last Modified: 2026-03-05
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