Commerce Dept. Awards $74.5M Cellular Service Contract to Cellco Partnership
Contract Overview
Contract Amount: $74,565 ($74.6K)
Contractor: Cellco Partnership
Awarding Agency: Department of Commerce
Start Date: 2023-06-22
End Date: 2030-06-30
Contract Duration: 2,565 days
Daily Burn Rate: $29/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CELLULAR SERVICE
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $74,565.28 to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICE Key points: 1. Contract Value: $74.56 million over its lifespan. 2. Competition: Awarded under full and open competition. 3. Risk: Firm fixed price contract mitigates cost overrun risk. 4. Sector: Wireless Telecommunications Carriers (except Satellite).
Value Assessment
Rating: good
The contract value of $74.56 million for cellular services appears reasonable given the 7.5-year duration and the nature of telecommunications services. Benchmarking against similar government-wide contracts for wireless services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are encouraged to bid.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the cellular services procured.
Public Impact
Ensures reliable communication services for Department of Commerce personnel. Supports agency operations across various locations. Potential for future technology upgrades within the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed effectively.
- Reliance on a single vendor for critical communication infrastructure.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Long-term contract allows for stable service provision.
- Awarded through full and open competition.
Sector Analysis
The contract falls within the Wireless Telecommunications Carriers sector, a critical area for government operations. Spending in this sector is substantial, and competitive procurement is essential to manage costs effectively.
Small Business Impact
While the award was made to Cellco Partnership, it's important to assess if subcontracting opportunities were made available to small businesses. The data does not indicate direct small business participation in this award.
Oversight & Accountability
The contract duration and value suggest a need for ongoing oversight to ensure service quality and adherence to terms. The Department of Commerce's Office of the Secretary is responsible for managing this agreement.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Potential for price increases in future contract modifications.
- Dependence on a single provider for essential communication.
Tags
wireless-telecommunications-carriers-exc, department-of-commerce, md, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $74,565.28 to CELLCO PARTNERSHIP. CELLULAR SERVICE
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 $74,565.28.
What is the period of performance?
Start: 2023-06-22. End: 2030-06-30.
What is the estimated per-unit cost for cellular services under this contract?
The provided data does not include a specific per-unit cost breakdown. The total contract value is $74.56 million over approximately 2565 days (roughly 7.5 years). To estimate per-unit costs, one would need to know the number of lines, data plans, or other service units included in the contract.
What are the primary risks associated with a long-term cellular service contract?
Primary risks include technological obsolescence, where newer, more efficient technologies emerge during the contract term. Another risk is vendor lock-in, making it difficult to switch providers if better terms or services become available elsewhere. Price increases or service degradation are also potential concerns if not managed through contract oversight.
How does this contract ensure effective service delivery for the Department of Commerce?
The contract's firm fixed price structure incentivizes the vendor to deliver services efficiently and within budget. The full and open competition process likely selected a vendor capable of meeting the Department's specific needs. Ongoing performance monitoring by the contracting officer will be crucial for ensuring effectiveness.
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: 4
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: $74,565
Exercised Options: $74,565
Current Obligation: $74,565
Actual Outlays: $70,115
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L523A13ES0021
IDV Type: BPA
Timeline
Start Date: 2023-06-22
Current End Date: 2030-06-30
Potential End Date: 2030-06-30 00:00:00
Last Modified: 2026-04-10
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