Commerce Department awards $158.8M wireless contract to Cellco Partnership, highlighting full and open competition

Contract Overview

Contract Amount: $158,774 ($158.8K)

Contractor: Cellco Partnership

Awarding Agency: Department of Commerce

Start Date: 2023-04-04

End Date: 2027-04-03

Contract Duration: 1,460 days

Daily Burn Rate: $109/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT AND TELECOM- TELECOMMUNICATIONS AND TRANSMISSION

Place of Performance

Location: BASKING RIDGE, SOMERSET County, NEW JERSEY, 07920

State: New Jersey Government Spending

Plain-Language Summary

Department of Commerce obligated $158,773.8 to CELLCO PARTNERSHIP for work described as: IT AND TELECOM- TELECOMMUNICATIONS AND TRANSMISSION Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract value of $158.8 million over 4 years indicates significant investment in telecommunications infrastructure. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. Awarded to Cellco Partnership, a major player in the wireless telecommunications sector. 5. The contract supports essential communication services for the Department of Commerce. 6. Geographic focus on New Jersey for service delivery.

Value Assessment

Rating: good

The contract value of $158.8 million over approximately four years suggests a substantial investment in wireless telecommunications. Benchmarking this against similar government-wide contracts for wireless services is challenging without specific service details, but the duration and scope indicate a significant commitment. The firm fixed-price structure is standard for services where scope is well-defined, aiming to control costs for the government. However, a detailed value assessment would require comparison of the specific services and rates to market benchmarks for similar enterprise-level wireless plans.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of a single award under this broad category suggests that while competition was allowed, Cellco Partnership was the most advantageous offer. The level of competition is not explicitly detailed by the number of bidders, but the 'full and open' designation implies a process designed to solicit multiple proposals and achieve competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple providers vie for government business, driving down prices and encouraging innovation. This process aims to ensure the government receives the best value for its spending.

Public Impact

The Department of Commerce benefits from reliable wireless telecommunications services essential for its operations. Federal employees within the Department of Commerce will utilize the wireless services. Services are primarily delivered within New Jersey. The contract supports the telecommunications industry workforce, including employees of Cellco Partnership.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single provider for critical communication services could pose a risk if service is interrupted.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract structure provides cost certainty for the government.
Long-term contract provides stability for essential communication services.

Sector Analysis

The telecommunications sector is a critical component of federal IT infrastructure, encompassing a wide range of services from basic connectivity to advanced wireless solutions. Government spending in this area is substantial, driven by the need for secure, reliable, and high-speed communication across agencies. This contract for wireless telecommunications services fits within the broader IT and Telecom category, specifically focusing on mobile connectivity solutions. Comparable spending benchmarks would typically involve analyzing average costs per user or per line for enterprise wireless plans across federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside. As a large contract awarded to a major telecommunications provider, it is unlikely to involve significant subcontracting opportunities specifically targeted at small businesses unless mandated by the prime contractor. The primary impact is on the large telecommunications market, with limited direct implications for the small business ecosystem in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Information Technology, Infrastructure, and Services
Wireless Communications Services
Telecommunications Contracts
Department of Commerce IT Spending

Risk Flags

Single bid received under full and open competition may warrant further review.
Contract duration of 4 years requires monitoring for potential price escalations in future renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $158,773.8 to CELLCO PARTNERSHIP. IT AND TELECOM- TELECOMMUNICATIONS AND TRANSMISSION

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 $158,773.8.

What is the period of performance?

Start: 2023-04-04. End: 2027-04-03.

What specific wireless services are included under this contract, and how do they compare to commercial offerings?

The provided data indicates the contract is for 'Wireless Telecommunications Carriers (except Satellite)' and awarded to Cellco Partnership (Verizon). While specific service details are not itemized in the provided data, typical government wireless contracts include voice, data, and messaging services for mobile devices, potentially including mobile hotspots and specialized data plans. Comparing these to commercial offerings would require a detailed breakdown of data allowances, coverage areas, included features (like international roaming), and any specific security or management features mandated by the government. Commercial plans often vary widely in price and features, with enterprise plans sometimes offering negotiated rates or bundled services that differ from consumer plans. Without the specific service catalog for this BPA Call, a direct comparison is difficult, but government contracts often aim for competitive rates on par with or better than large commercial enterprise agreements.

How many bids were received for this contract, and what was the range of proposed prices?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with 'NO' (number of offers) as 1. This suggests that while the solicitation was open to all responsible bidders, only one offer was ultimately received and accepted. This could be due to various factors, such as the specific requirements of the solicitation, the market landscape for the particular services requested, or the timing of the solicitation. A single offer under full and open competition can sometimes raise questions about the effectiveness of the competition, although it does not automatically imply a lack of value. Further analysis would be needed to understand if the single offer was due to a lack of market interest or if other potential bidders chose not to respond for strategic reasons. The range of proposed prices is not available in the provided data.

What is the historical spending pattern for wireless telecommunications services within the Department of Commerce?

To assess historical spending patterns for wireless telecommunications services within the Department of Commerce, one would typically analyze federal procurement databases (like FPDS-NG or USASpending.gov) for previous contracts awarded to Cellco Partnership and other wireless carriers by the Department of Commerce. This analysis would involve filtering for relevant North American Industry Classification System (NAICS) codes related to telecommunications and Product Service Codes (PSCs) associated with wireless services over several fiscal years. Examining trends in contract values, durations, and the number of awards could reveal whether spending has been consistent, increasing, or decreasing. Understanding these historical patterns is crucial for benchmarking the current $158.8 million award against past investments and identifying any significant shifts in procurement strategy or service utilization.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a wireless telecommunications contract of this magnitude, typical KPIs and SLAs would likely include metrics related to network availability (uptime), data speeds, call completion rates, latency, customer service response times, and geographic coverage. These agreements are crucial for ensuring the government receives the quality of service it expects and for holding the contractor accountable. The firm fixed-price nature of the contract implies that the contractor is obligated to meet these performance standards to receive full payment. Details on these specific metrics would be found within the full contract documentation.

How does the pricing of this contract compare to similar government-wide wireless contracts?

Directly comparing the pricing of this specific contract to similar government-wide wireless contracts is challenging without access to the detailed pricing structure and the specific services included. However, the fact that it was awarded under 'FULL AND OPEN COMPETITION' suggests an effort to achieve competitive pricing. Government-wide contracts, such as those managed by the General Services Administration (GSA), often provide pre-negotiated rates that serve as benchmarks. If this contract's pricing is significantly higher or lower than comparable GSA schedules or other agency-specific wireless agreements, it would warrant further investigation into the reasons, such as unique service requirements, geographic considerations, or market fluctuations. The firm fixed-price nature provides cost certainty, but the underlying unit costs (e.g., per line, per gigabyte) are key for benchmarking.

Industry Classification

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

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: 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: $187,865

Exercised Options: $158,774

Current Obligation: $158,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L523A13ES0021

IDV Type: BPA

Timeline