Commerce Department's $4.15M Cellular Service Contract Awarded to Cellco Partnership Under Full and Open Competition

Contract Overview

Contract Amount: $4,149,504 ($4.1M)

Contractor: Cellco Partnership

Awarding Agency: Department of Commerce

Start Date: 2024-05-01

End Date: 2026-11-30

Contract Duration: 943 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CELLULAR SERVICE

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $4.1 million to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICE Key points: 1. The contract value represents a moderate investment in essential communication services for the agency. 2. Full and open competition suggests a potentially competitive bidding process, which can drive favorable pricing. 3. The fixed-price contract type offers cost certainty for the government, mitigating budget risks. 4. The contract duration of over two years allows for sustained service delivery. 5. The award to a major carrier indicates reliance on established infrastructure and service capabilities. 6. The small business status of the awardee is not applicable, suggesting a focus on large-scale providers.

Value Assessment

Rating: good

The contract value of approximately $4.15 million over its term appears reasonable for cellular services provided to a federal agency. Benchmarking against similar government contracts for wireless telecommunications services would provide a more precise assessment of value for money. However, given the duration and the nature of the services, the overall cost seems aligned with market expectations for enterprise-level mobile communication solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this requirement. This competitive environment is generally expected to lead to more favorable pricing and better terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and service, potentially leading to cost savings and a more efficient use of public funds.

Public Impact

Federal employees within the Department of Commerce will benefit from reliable cellular communication services, enabling efficient operations and connectivity. The contract ensures the provision of wireless telecommunications services, crucial for daily administrative and operational tasks. The primary geographic impact is within Maryland, where the services are likely utilized by agency personnel. The contract supports the operational workforce of the Department of Commerce by providing essential communication tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract terms are not carefully managed.
Reliance on a single vendor for critical communication infrastructure could pose a risk.
Ensuring consistent service quality and coverage across all required locations is paramount.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type provides budget certainty and cost control.
The contract duration allows for stable service provision without frequent re-procurement.

Sector Analysis

The wireless telecommunications market is a mature and highly competitive sector dominated by a few major providers. Federal agencies are significant consumers of these services, often leveraging large-scale contracts to meet the communication needs of their workforces. This contract fits within the broader category of telecommunications services procurement, where agencies seek reliable and cost-effective mobile solutions. Comparable spending benchmarks would typically involve analyzing the per-user costs or total contract values for similar government-wide or agency-specific wireless agreements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. The awardee, Cellco Partnership, is a major telecommunications provider, not typically classified as a small business. This suggests that the procurement focused on capabilities and scale offered by larger entities. There is no explicit information provided regarding subcontracting plans for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Commerce's contracting officers and program managers. Accountability measures are embedded in the contract terms and conditions, including service level agreements and performance metrics. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

General Services Administration (GSA) Schedule 70
Wireless Telecommunications Services
Federal Information Technology Acquisition Reform Act (FITARA) related procurements

Risk Flags

Potential for service disruption impacting agency operations.
Risk of increased costs if competition diminishes over contract life.
Ensuring adequate data security and privacy for government communications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.1 million 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 $4.1 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-11-30.

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

Analyzing historical spending for cellular services within the Department of Commerce is crucial for understanding trends and identifying potential cost efficiencies. While specific historical data for this exact contract is not provided, agencies typically have ongoing needs for wireless communication. Past procurements might reveal fluctuations in spending based on agency size, technological shifts (e.g., transition from older technologies to 5G), and changes in service provider contracts. Examining prior contract values, durations, and the number of vendors involved can offer insights into the agency's evolving reliance on cellular services and its success in managing these costs over time. Without direct historical figures for this department's cellular spending, a comparative analysis with similar-sized agencies or government-wide telecommunications spending trends would be necessary for a comprehensive understanding.

How does the per-user cost of this contract compare to industry benchmarks for enterprise cellular plans?

Determining the precise per-user cost requires knowing the number of users or devices covered by this $4.15 million contract over its duration. Assuming an average of, for example, 1,000 users over 2.5 years, the annual cost per user would be approximately $830, or about $69 per user per month. This figure needs to be compared against industry benchmarks for enterprise cellular plans, which can vary significantly based on data allowances, international roaming, device types, and included features. Major carriers often offer tiered pricing for large business accounts. If this contract includes unlimited data and extensive features, the cost might be competitive. However, if it's for basic voice and limited data, it could be on the higher side. A detailed breakdown of services included in the contract is necessary for an accurate benchmark comparison.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this cellular service contract. Typically, such contracts would include clauses defining expected network availability (e.g., 99.9% uptime), data speeds, call clarity, response times for technical support, and geographic coverage requirements. Failure to meet these SLAs often results in financial penalties or credits for the government. The 'BPA CALL' award type suggests this might be a call-off from a larger Blanket Purchase Agreement, which would have its own set of overarching SLAs. The Office of the Secretary within the Department of Commerce would be responsible for monitoring adherence to these performance standards and ensuring the contractor meets all contractual obligations.

What is the track record of Cellco Partnership (Verizon) in fulfilling federal government contracts for wireless services?

Cellco Partnership, operating as Verizon Wireless, has a significant track record of serving federal government clients. They are a major telecommunications provider and frequently win contracts for wireless services across various agencies. Their experience typically includes providing mobile voice, data, and mobile device management solutions. Government contract databases often show numerous awards to Verizon for similar services. While specific performance details for every contract are not publicly available, their continued success in winning federal bids suggests a generally positive performance history and capability to meet government requirements. However, as with any large contractor, individual contract performance can vary, and specific oversight is always necessary.

Are there any identified risks associated with the reliance on a single provider for these essential communication services?

Reliance on a single provider like Cellco Partnership for essential communication services presents several potential risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if service quality degrades or pricing becomes unfavorable. Secondly, service disruptions, whether due to technical failures, natural disasters, or cyberattacks affecting the provider, could have a widespread impact on the Department of Commerce's operations. Thirdly, a lack of ongoing competition could reduce the incentive for the provider to innovate or offer the most competitive pricing over the long term. Mitigating these risks often involves robust contract management, clear performance expectations, contingency planning, and periodic market research to ensure continued value.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

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: $8,482,342

Exercised Options: $4,149,504

Current Obligation: $4,149,504

Actual Outlays: $3,379,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L523A13ES0021

IDV Type: BPA

Timeline