Interior Department awards $44.4M contract for Native American education network services to Verizon

Contract Overview

Contract Amount: $44,379,931 ($44.4M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of the Interior

Start Date: 2020-08-01

End Date: 2026-06-30

Contract Duration: 2,159 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EDUCATION NATIVE AMERICAN NETWORK TRANSPORT SERVICES FOR BUREAU OF INDIAN AFFAIRS AND BUREAU OF INDIAN EDUCATION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $44.4 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: EDUCATION NATIVE AMERICAN NETWORK TRANSPORT SERVICES FOR BUREAU OF INDIAN AFFAIRS AND BUREAU OF INDIAN EDUCATION Key points: 1. Contract aims to enhance connectivity for Native American students and educators. 2. Verizon, a major telecommunications provider, is the sole awardee. 3. The contract duration spans nearly six years, indicating a long-term need. 4. Pricing appears to be a key factor in the firm-fixed-price structure. 5. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity contract. 6. Focus on essential communication infrastructure for underserved communities.

Value Assessment

Rating: good

The total award amount of $44.4 million over approximately six years suggests a significant investment in telecommunications infrastructure. Benchmarking this against similar large-scale network service contracts for federal agencies is challenging without more specific service details. However, given Verizon's established presence and the nature of the services (wired telecommunications), the pricing is likely competitive within the market for such extensive network solutions. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this type of specialized telecommunications service. While not an exhaustive number, it implies that the government sought and received proposals from qualified companies, allowing for price and technical evaluation to determine the best value.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions.

Public Impact

Provides essential internet and network services to Bureau of Indian Affairs and Bureau of Indian Education facilities. Benefits Native American students by improving access to educational resources and digital learning tools. Supports educators and administrative staff with reliable communication infrastructure. Aims to bridge the digital divide in remote and underserved Native American communities. Enhances the operational efficiency of educational programs managed by the Bureau of Indian Affairs and Bureau of Indian Education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specific to Verizon's infrastructure.
Dependence on a single provider for critical educational network services.
Ensuring equitable service distribution across all eligible facilities.
Monitoring service quality and uptime to meet educational demands.

Positive Signals

Award to a major, established telecommunications provider with a proven track record.
Firm-fixed-price contract provides budget predictability.
Full and open competition suggests a competitive bidding process.
Long-term contract duration allows for sustained service delivery and potential for infrastructure upgrades.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. The market for such services is dominated by large providers capable of managing extensive networks. Federal spending in this area is crucial for maintaining communication infrastructure across various agencies and programs, particularly those serving remote or underserved populations. Comparable spending benchmarks would involve analyzing other large-scale federal network service contracts, which often run into tens or hundreds of millions of dollars depending on scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of the services and the awardee, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though Verizon may engage them for specific local support or maintenance tasks. The focus is on a large-scale, integrated network solution typically provided by major telecommunications firms.

Oversight & Accountability

The contract is managed by the Department of the Interior, specifically the Bureau of Indian Affairs and Bureau of Indian Education. Oversight would involve regular performance reviews, service level agreement monitoring, and financial audits to ensure compliance with the firm-fixed-price terms. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) related spending
Bureau of Indian Affairs IT Services
Bureau of Indian Education Technology Initiatives
General Services Administration (GSA) Schedule contracts for telecommunications
Department of Education Technology Grants

Risk Flags

Potential for service disruption impacting educational continuity.
Risk of cost increases in future contract renewals if competition diminishes.
Ensuring equitable service delivery across diverse geographic locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $44.4 million to VERIZON BUSINESS NETWORK SERVICES LLC. EDUCATION NATIVE AMERICAN NETWORK TRANSPORT SERVICES FOR BUREAU OF INDIAN AFFAIRS AND BUREAU OF INDIAN EDUCATION

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 the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $44.4 million.

What is the period of performance?

Start: 2020-08-01. End: 2026-06-30.

What is the historical spending trend for network services for the Bureau of Indian Affairs and Bureau of Indian Education?

Analyzing historical spending requires access to detailed procurement data beyond this single award. However, the duration and value of this contract ($44.4 million over ~6 years) suggest a significant and sustained investment in network infrastructure. Previous contracts may have been smaller, fragmented, or provided by different vendors. Understanding the trend would involve comparing this award to prior periods to identify increases or decreases in spending, potential shifts in technology, and changes in the competitive landscape. Factors like increased demand for digital learning, expansion of services, or consolidation of contracts could influence historical spending patterns.

How does the per-unit cost of this contract compare to similar federal telecommunications contracts?

Determining a precise per-unit cost is difficult without granular data on the specific services provided (e.g., bandwidth per location, number of circuits, maintenance hours). The contract is a firm-fixed-price delivery order, meaning the total cost is set. Benchmarking would involve comparing the overall value and duration against contracts for similar geographic scope and service complexity. For instance, comparing it to other large-scale network build-outs or managed services contracts for agencies with dispersed facilities could offer insights. However, the unique focus on Native American educational networks may present a specialized market, making direct comparisons challenging.

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

While specific KPIs and SLAs are not detailed in the provided data, typical metrics for such telecommunications contracts include network uptime (e.g., 99.9% availability), latency, bandwidth guarantees, and response times for issue resolution and maintenance. The contract likely specifies these in an attached statement of work. The Department of the Interior would monitor these metrics to ensure Verizon meets its obligations. Failure to meet SLAs could result in penalties or deductions, depending on the contract's terms. These metrics are crucial for ensuring reliable educational access.

What is Verizon's track record in providing similar network services to federal agencies?

Verizon Business Network Services LLC is a major telecommunications provider with extensive experience serving federal, state, and local government agencies. They hold numerous contracts for various network solutions, including wide area networks (WAN), local area networks (LAN), internet access, and cybersecurity services. Their track record typically involves managing complex, large-scale networks requiring high reliability and security. Past performance evaluations and contract awards databases would provide more specific details on their performance with agencies similar in size and scope to the Department of the Interior's needs.

What are the potential risks associated with relying on a single vendor for these critical network services?

The primary risk of relying on a single vendor like Verizon is the potential for vendor lock-in, where switching providers becomes difficult and costly due to proprietary technology or integrated systems. This can reduce future negotiating leverage. Additionally, dependence on one provider for critical infrastructure creates vulnerability; any service disruptions, security breaches, or financial instability on the vendor's part could severely impact educational operations. Ensuring robust contract management, regular performance reviews, and contingency planning are essential to mitigate these risks.

How does this contract contribute to bridging the digital divide for Native American students?

This contract directly addresses the digital divide by providing essential, reliable internet and network connectivity to Bureau of Indian Affairs and Bureau of Indian Education facilities. These facilities are often located in remote or underserved areas where commercial broadband access may be limited or nonexistent. By ensuring robust network services, the contract enables students and educators to access online learning platforms, digital resources, research tools, and communication channels that are standard in better-served communities. This enhances educational equity and opportunity.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1618Q0073

Offers Received: 3

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: $158,782,877

Exercised Options: $57,780,352

Current Obligation: $44,379,931

Actual Outlays: $40,103,789

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