Commerce Dept. Spends $42.8M on Verizon Cellular Services via BPA Call
Contract Overview
Contract Amount: $42,769 ($42.8K)
Contractor: Cellco Partnership
Awarding Agency: Department of Commerce
Start Date: 2022-09-04
End Date: 2024-03-03
Contract Duration: 546 days
Daily Burn Rate: $78/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VERIZON CELLULAR SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $42,768.76 to CELLCO PARTNERSHIP for work described as: VERIZON CELLULAR SERVICES Key points: 1. Significant spending on a major telecommunications provider. 2. Competition method was 'Full and Open', suggesting potential for price discovery. 3. Contract duration is substantial at 546 days. 4. No explicit small business participation noted.
Value Assessment
Rating: fair
The contract value of $42.8M over 546 days for cellular services is substantial. Benchmarking against similar government-wide contracts for Verizon services would be necessary to assess value, as pricing can vary significantly based on volume and specific service packages.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition' via a BPA Call. This method allows all responsible sources to submit offers, which generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: Taxpayer funds are being used for essential communication services. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Ensures critical communication infrastructure for the Department of Commerce. Supports agency operations across various departments and locations. Potential for cost savings through competitive bidding on a large-scale service.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Lack of specific small business participation details.
- Potential for price creep over the contract duration if not actively managed.
Positive Signals
- Awarded under full and open competition.
- Utilizes a Blanket Purchase Agreement (BPA) Call, suggesting established terms.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The telecommunications sector is vital for government operations, providing essential connectivity. Spending benchmarks for wireless services vary widely based on data needs, user volume, and contract structure. This $42.8M expenditure represents a significant investment in communication capabilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses and does not explicitly mention small business participation. Further investigation may be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The use of a BPA Call suggests that a broader contract vehicle is in place, which may have undergone initial oversight. However, the specific call and its execution warrant review to ensure adherence to procurement regulations and value for money.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of detailed service breakdown.
- No explicit small business participation.
- Potential for uncompetitive pricing if BPA terms are not regularly re-evaluated.
- Contract duration could lead to technology obsolescence.
Tags
wireless-telecommunications-carriers-exc, department-of-commerce, dc, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $42,768.76 to CELLCO PARTNERSHIP. VERIZON CELLULAR SERVICES
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $42,768.76.
What is the period of performance?
Start: 2022-09-04. End: 2024-03-03.
What specific cellular services are included in this $42.8M contract, and how do they align with the Department of Commerce's operational needs?
The contract likely covers a range of Verizon cellular services, potentially including voice, data, mobile hotspot, and possibly specialized plans for government use. Alignment with operational needs would depend on the specific requirements documented in the BPA call, such as device provisioning, data allowances, and geographic coverage necessary for Commerce Department personnel and functions.
Given the 'Full and Open Competition' award, what was the competitive landscape, and were there significant price differences between competing offers?
While awarded under full and open competition, the specific details of the bidding process, including the number of offers received and the price spread, are not provided. A competitive landscape analysis would require access to the solicitation and award documents to understand how Verizon's pricing compared to other potential bidders and if the chosen offer represented the best value.
How does the per-user or per-line cost compare to industry benchmarks or other government agency contracts for similar Verizon services?
Without specific details on the number of users/lines and the exact service packages included, a precise per-unit cost benchmark is difficult. However, comparing the average monthly cost per line against government-wide schedules (like GSA) or publicly available commercial plans for similar enterprise-level services would be the next step to assess cost-effectiveness.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wireless Telecommunications Carriers (except Satellite)
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: $42,769
Exercised Options: $42,769
Current Obligation: $42,769
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L522A13ES0009
IDV Type: BPA
Timeline
Start Date: 2022-09-04
Current End Date: 2024-03-03
Potential End Date: 2024-03-03 00:00:00
Last Modified: 2026-04-02
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