Commerce Department's $108M Cellco Partnership Contract for Wireless Services Under Full and Open Competition
Contract Overview
Contract Amount: $10,800 ($10.8K)
Contractor: Cellco Partnership
Awarding Agency: Department of Commerce
Start Date: 2026-04-01
End Date: 2027-03-31
Contract Duration: 364 days
Daily Burn Rate: $30/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CELLULAR SERVICES
Place of Performance
Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $10,800 to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICES Key points: 1. The contract is for cellular services, a common and essential government need. 2. Cellco Partnership is the awarded vendor, indicating a competitive selection process. 3. The contract duration extends to April 2027, suggesting a medium-term need. 4. The use of a BPA Call implies a streamlined procurement for established agreements.
Value Assessment
Rating: fair
The contract value of $108 million over approximately one year is substantial. Without specific per-unit data or comparison points for similar government cellular service contracts, assessing value for money is challenging. The firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a BPA Call indicates that this specific task order likely leveraged an existing Blanket Purchase Agreement, which itself was competitively awarded.
Taxpayer Impact: Taxpayer funds are being used for essential communication services. The competitive nature of the award aims to ensure reasonable pricing, but the overall value needs further scrutiny against market rates.
Public Impact
Ensures reliable communication services for Department of Commerce operations. Supports agency functions through mobile connectivity for personnel and devices. The contract's value represents a significant investment in telecommunications infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for benchmarking.
- Potential for price creep if service needs expand beyond initial scope.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost predictability.
- BPA Call suggests efficient procurement leveraging existing agreements.
Sector Analysis
Cellular services fall under the broader telecommunications sector. Government spending in this area is consistent, driven by the need for mobile connectivity. Benchmarks for similar large-scale cellular service contracts would typically focus on cost per user or data volume.
Small Business Impact
The data does not indicate whether small businesses were involved in the competition or subcontracting. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract falls under the Department of Commerce's Office of the Secretary. Standard government procurement oversight processes should apply, including review of contract performance and adherence to terms.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Contract duration extends beyond one year.
- Lack of detailed cost breakdown.
- Potential for vendor lock-in if not managed properly.
- Reliance on a single vendor (Cellco Partnership) for a significant service.
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 $10,800 to CELLCO PARTNERSHIP. 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 $10,800.
What is the period of performance?
Start: 2026-04-01. End: 2027-03-31.
What is the average cost per user or per line for these cellular services, and how does it compare to industry benchmarks for similar government contracts?
The provided data lacks specific per-unit cost details, making a direct comparison difficult. To assess value, one would need to analyze the average cost per line or user based on the total contract value and the number of lines/users procured. This figure should then be benchmarked against government-wide contracts or GSA schedules for similar wireless services to determine if the pricing is competitive and reflects fair market value.
What are the specific risks associated with a firm fixed-price contract for cellular services, especially given the potential for evolving technology and usage needs?
A primary risk with firm fixed-price contracts for cellular services is inflexibility. If technology rapidly advances or agency usage patterns change significantly (e.g., increased data demands), the fixed price may become disadvantageous, either overpaying for unused capacity or requiring costly modifications. Ensuring the contract includes clear terms for service level adjustments and potential scope changes is crucial to mitigate these risks.
How effectively does the use of a BPA Call streamline the procurement process for these cellular services while still ensuring competitive pricing?
Utilizing a BPA Call for cellular services can significantly streamline procurement by leveraging a pre-negotiated, competitively awarded Blanket Purchase Agreement. This reduces administrative burden and speeds up delivery. However, the effectiveness in ensuring competitive pricing depends on the original BPA's terms and the number of vendors solicited for the specific call-off. A well-structured BPA with multiple participating vendors generally leads to better price discovery.
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: 3
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: $10,800
Exercised Options: $10,800
Current Obligation: $10,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L523A13ES0021
IDV Type: BPA
Timeline
Start Date: 2026-04-01
Current End Date: 2027-03-31
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-01
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