USPTO awards Verizon $5.29M for telecom and VPN services, with 1,460 days duration

Contract Overview

Contract Amount: $5,290,265 ($5.3M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of Commerce

Start Date: 2022-09-22

End Date: 2026-09-21

Contract Duration: 1,460 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNITED STATES PATENT AND TRADEMARK OFFICE (USPTO) TELECOM ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) AND VIRTUAL PRIVATE NETWORKS SECURE (VPNS) SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $5.3 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: UNITED STATES PATENT AND TRADEMARK OFFICE (USPTO) TELECOM ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) AND VIRTUAL PRIVATE NETWORKS SECURE (VPNS) SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1460 days (4 years) provides long-term service stability. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The award is a delivery order under a larger contract vehicle. 5. Services include enterprise infrastructure solutions and secure virtual private networks. 6. The value of this specific order is approximately $5.29 million.

Value Assessment

Rating: good

The contract value of $5.29 million over four years averages to approximately $1.32 million annually. Benchmarking this against similar large-scale telecommunications and VPN contracts for federal agencies is challenging without more specific service details. However, given the fixed-price nature and full competition, the pricing is likely competitive. The award to a major provider like Verizon suggests a focus on reliability and established service levels, which can justify the cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process. This approach is designed to ensure the government receives the best possible value by leveraging market forces to drive down prices and improve service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages providers to offer their most attractive terms.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced and secure telecommunications infrastructure. Services delivered include enterprise-wide network connectivity and secure VPN access for USPTO personnel. The geographic impact is primarily within the USPTO's operational locations, likely supporting federal employees nationwide. Workforce implications include ensuring USPTO staff have reliable and secure communication tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specialized and tied to Verizon's proprietary solutions.
Reliance on a single large vendor for critical infrastructure could pose risks if the vendor experiences service disruptions.
Ensuring ongoing competitive pricing for potential future modifications or extensions beyond the current contract term.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Fixed-price contract type helps control costs and provides budget certainty.
Long contract duration (4 years) offers stability and reduces administrative burden of frequent re-competition.
Service to a critical government agency (USPTO) ensures support for essential government functions.

Sector Analysis

This contract falls within the Telecommunications industry, specifically focusing on enterprise network infrastructure and secure connectivity solutions. The market for federal telecommunications services is substantial, with agencies relying heavily on robust networks for operations. Major telecommunications providers like Verizon compete for these contracts, often leveraging existing large-scale contract vehicles. Spending benchmarks for similar federal telecom contracts vary widely based on scope, but this award represents a moderate investment for a specific set of services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a delivery order under a larger vehicle, subcontracting opportunities for small businesses may exist, but this is not explicitly detailed. The primary awardee is a large corporation, suggesting the focus is on established, large-scale service delivery capabilities rather than direct small business participation in the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. As a delivery order under a larger contract, the underlying contract vehicle likely has its own oversight mechanisms. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

USPTO IT Modernization Efforts
Federal Network Infrastructure Contracts
GSA Schedule Contracts (if applicable)
Telecommunications Services for Federal Agencies
Cybersecurity and VPN Services for Government

Risk Flags

Potential for vendor lock-in
Reliance on single large provider for critical infrastructure
Ensuring competitive pricing for future needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.3 million to VERIZON BUSINESS NETWORK SERVICES LLC. UNITED STATES PATENT AND TRADEMARK OFFICE (USPTO) TELECOM ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) AND VIRTUAL PRIVATE NETWORKS SECURE (VPNS) SERVICES

Who is the contractor on this award?

The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2022-09-22. End: 2026-09-21.

What is the specific scope of 'Enterprise Infrastructure Solutions' and 'Virtual Private Networks Secure Services' covered under this delivery order?

The 'Enterprise Infrastructure Solutions' likely encompass a range of services related to the USPTO's core network, including data transport, internet access, and potentially voice services. 'Virtual Private Networks Secure Services' would refer to the provision of secure, encrypted connections that allow USPTO employees to access internal resources remotely or connect different office locations securely over public networks. Specific details on bandwidth, network architecture, security protocols (e.g., encryption standards, VPN types like IPsec or SSL VPN), and service level agreements (SLAs) for uptime and performance would be crucial for a complete understanding. Without the detailed Performance Work Statement (PWS), the exact technical specifications and deliverables remain generalized.

How does the $5.29 million value compare to previous USPTO spending on similar telecom and VPN services?

To accurately compare, historical spending data for USPTO's telecom and VPN services would be needed. This contract, valued at $5.29 million over four years, averages roughly $1.32 million annually. If the USPTO has historically spent significantly more or less on comparable services, it would provide context for whether this award represents an increase, decrease, or stable level of investment. Factors such as changes in technology, user demand, or agency size could influence spending patterns. A review of past contracts, particularly those awarded through competitive processes, would be necessary to establish a meaningful benchmark.

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

Key performance indicators and service level agreements (SLAs) are critical for ensuring the USPTO receives the expected quality and reliability of telecom and VPN services. While not detailed in the provided summary, typical KPIs for such contracts include network uptime (e.g., 99.9% availability), latency (delay in data transmission), jitter (variation in latency), packet loss, and response times for issue resolution. SLAs would define the specific metrics, measurement methods, reporting requirements, and potential remedies or service credits if performance targets are not met. The contract's Performance Work Statement (PWS) would contain these critical details.

What is Verizon Business Network Services LLC's track record with the USPTO and similar federal agencies for providing these types of services?

Verizon Business Network Services LLC is a major telecommunications provider with extensive experience serving government agencies. Their track record with the USPTO and other federal entities would likely include numerous contracts for network infrastructure, internet services, and secure communication solutions. Assessing their performance would involve reviewing past contract performance evaluations (e.g., CPARS reports), any past performance issues or disputes, and their success in delivering similar services under large-scale federal agreements. Given their market position, it's probable they have a substantial history of fulfilling such requirements, but specific performance data is key.

Are there any identified risks associated with the long-term reliance on Verizon for critical USPTO network infrastructure?

Potential risks associated with long-term reliance on a single provider like Verizon include vendor lock-in, where switching providers becomes difficult or costly due to proprietary technologies or integrated systems. There's also the risk of service disruptions, although major providers typically have robust redundancy measures. Financial stability of the vendor is another consideration, though Verizon is a financially sound entity. Furthermore, ensuring that pricing remains competitive throughout the contract term and for any future renewals or expansions is a risk that requires ongoing monitoring and potentially re-competition.

What is the estimated total spending for USPTO telecom and VPN services over the life of the contract, including potential options or extensions?

The provided data specifies a contract value of $5,290,265.14 with a duration of 1460 days (approximately 4 years). This value represents the total obligated amount or ceiling for this specific delivery order. The contract type is 'FIRM FIXED PRICE', suggesting this is the maximum amount payable. Without information on potential options, modifications, or subsequent contract vehicles, $5.29 million is the best estimate for the total spending directly attributable to this particular award. Future needs might necessitate new contracts or modifications, which could increase overall spending but are not included in this figure.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

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: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,541,158

Exercised Options: $5,290,265

Current Obligation: $5,290,265

Actual Outlays: $-2,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3009

IDV Type: IDC

Timeline