Interior's $11M Verizon contract for wireless services awarded via full and open competition

Contract Overview

Contract Amount: $10,997,845 ($11.0M)

Contractor: Cellco Partnership

Awarding Agency: Department of the Interior

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VERIZON WIRELESS SRVCS FY21 BASE YR

Place of Performance

Location: BASKING RIDGE, SOMERSET County, NEW JERSEY, 07920

State: New Jersey Government Spending

Plain-Language Summary

Department of the Interior obligated $11.0 million to CELLCO PARTNERSHIP for work described as: VERIZON WIRELESS SRVCS FY21 BASE YR Key points: 1. Contract awarded at a competitive price point, indicating good value for taxpayer dollars. 2. Full and open competition suggests a robust market for wireless telecommunications services. 3. No immediate risk indicators identified, but ongoing performance monitoring is crucial. 4. Contract duration of five years provides stability for essential communication needs. 5. Positioned within the telecommunications sector, supporting agency operational requirements. 6. Firm fixed-price structure offers cost certainty for the government.

Value Assessment

Rating: good

The contract's base year value of approximately $11 million for wireless services appears reasonable when benchmarked against similar federal contracts for large-scale telecommunications solutions. The firm fixed-price nature of the award provides cost predictability. While specific per-unit cost comparisons are difficult without detailed service breakdowns, the competitive award process suggests that the pricing achieved is likely aligned with market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors were eligible to bid. The presence of three bidders suggests a healthy level of competition within the wireless telecommunications market for federal contracts. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from the most competitive pricing available, as multiple providers vied for the contract, driving down costs.

Public Impact

Benefits the Department of the Interior and its Bureau of Reclamation by providing essential wireless communication services. Enables critical operational functions and data transmission across various agency locations. Supports agency personnel in carrying out their duties, particularly in field operations. Geographic impact is primarily within New Jersey, where the vendor is registered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract type provides cost certainty and limits financial risk.
Contract duration of five years allows for consistent service delivery.
Multiple bidders participated, suggesting a competitive marketplace.

Sector Analysis

The telecommunications sector is a critical enabler for government operations, providing the backbone for communication and data transfer. Federal spending in this area is substantial, encompassing a wide range of services from basic connectivity to advanced network solutions. This contract for wireless telecommunications services fits within the broader category of IT infrastructure spending, supporting the agency's need for mobile and reliable communication capabilities. Benchmarks for similar contracts often vary widely based on the scope of services, geographic coverage, and specific technologies deployed.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of large-scale telecommunications services, it is common for prime contracts to be awarded to larger, established providers. Subcontracting opportunities for small businesses may exist within the execution of this contract, but this information is not detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on whether Verizon utilizes small businesses for support or infrastructure needs.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price structure provides a degree of financial oversight by limiting cost overruns. Accountability for service delivery rests with the Bureau of Reclamation, which will monitor performance against contract requirements. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Information Technology Contracts
Telecommunications Services Contracts
Department of the Interior IT Spending
Bureau of Reclamation Operational Support

Risk Flags

Potential for technological obsolescence over the five-year contract term.
Need for ongoing performance monitoring to ensure service level adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.0 million to CELLCO PARTNERSHIP. VERIZON WIRELESS SRVCS FY21 BASE YR

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What is the historical spending trend for wireless telecommunications services by the Bureau of Reclamation?

Analyzing historical spending data for wireless telecommunications services by the Bureau of Reclamation is crucial for understanding long-term trends and identifying potential cost efficiencies or escalations. While the provided data focuses on a single contract awarded in FY21 with a base year value of approximately $11 million, a comprehensive review would involve examining spending across multiple fiscal years and potentially across different vendors. This analysis would help determine if current spending levels are consistent with past expenditures, if there has been a significant increase or decrease, and whether the agency is achieving better pricing over time through competitive bidding or contract consolidation. Understanding historical patterns can also inform future budgeting and procurement strategies, ensuring that the agency secures reliable and cost-effective communication services.

How does the number of bidders in this contract compare to similar federal wireless service procurements?

The fact that this contract received three bids under full and open competition provides a valuable data point for comparison. To assess the competitiveness accurately, one would need to benchmark this against similar federal wireless service procurements of comparable size and scope. If three bidders are typical or above average for this type of contract, it suggests a healthy market and effective competition. Conversely, if the average number of bidders for similar contracts is significantly higher, it might indicate potential issues with the solicitation, the market's responsiveness, or the specific requirements of this procurement. A lower number of bidders could potentially lead to less favorable pricing for the government. Therefore, comparing this metric to a broader dataset of federal wireless contracts is essential for a thorough value assessment.

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

The specific performance metrics and Service Level Agreements (SLAs) are critical components of this contract that define the expected quality, reliability, and availability of the wireless telecommunications services provided by Verizon. While not detailed in the summary data, these metrics typically include factors such as network uptime, data transmission speeds, latency, call completion rates, and response times for technical support. The Bureau of Reclamation would have established these SLAs to ensure that the services meet their operational needs. Performance against these SLAs would be monitored throughout the contract's duration, and failure to meet them could result in penalties or corrective actions. Understanding these metrics is key to assessing the true value and effectiveness of the contract beyond just its monetary value.

What is Verizon's track record in fulfilling federal contracts for wireless services, particularly with agencies of similar size and scope?

Verizon's track record in fulfilling federal contracts is a significant factor in assessing the risk and reliability of this specific award. As a major telecommunications provider, Verizon likely holds numerous federal contracts across various agencies. A review of their past performance, including contract completion rates, customer satisfaction, adherence to SLAs, and any history of disputes or contract terminations, would provide valuable insights. Specifically, examining their performance with agencies similar in size and scope to the Department of the Interior, or for similar wireless telecommunications services, would offer the most relevant context. Positive past performance suggests a lower risk of disruption and a higher likelihood of successful service delivery, while any negative history would warrant closer scrutiny and potentially more robust oversight measures.

Are there any potential risks associated with the five-year duration of this contract, such as technological obsolescence or changing service needs?

The five-year duration of this contract presents both benefits of stability and potential risks. A primary risk is technological obsolescence; the wireless telecommunications landscape evolves rapidly, and services or technologies available today might be outdated within five years. This could lead to the government paying for services that are no longer cutting-edge or efficient. Another risk is the potential for changing service needs within the Bureau of Reclamation. Agency requirements may evolve due to new initiatives, shifts in operational focus, or changes in technology adoption, potentially making the contracted services less suitable over time. Mitigating these risks often involves contract clauses that allow for adjustments, technology refresh options, or regular reviews to ensure alignment with current and future needs.

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

Solicitation ID: 140R8121Q0008

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: $10,997,845

Exercised Options: $10,997,845

Current Obligation: $10,997,845

Actual Outlays: $9,312,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D00B5

IDV Type: FSS

Timeline