DOJ's $7.7M Verizon contract for wireless services raises questions on competition and value

Contract Overview

Contract Amount: $7,736 ($7.7K)

Contractor: Cellco Partnership

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-07-31

Contract Duration: 303 days

Daily Burn Rate: $26/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 VERIZON SERVICES BASED ON FIELD NOTICE #0007 PERIOD OF PERFORMANCE AUG 1, 2025- JULY 31, 2026. - FY26 SERVICES COVERED OCTOBER 1, 2025- JULY 31, 2026

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $7,735.63 to CELLCO PARTNERSHIP for work described as: FY26 VERIZON SERVICES BASED ON FIELD NOTICE #0007 PERIOD OF PERFORMANCE AUG 1, 2025- JULY 31, 2026. - FY26 SERVICES COVERED OCTOBER 1, 2025- JULY 31, 2026 Key points: 1. The contract's value appears high for a single year of wireless services, necessitating a closer look at the scope and pricing. 2. Lack of competition suggests potential for overpayment and reduced innovation. 3. The short performance period (less than a year) may indicate an interim solution rather than a strategic, long-term procurement. 4. Reliance on a single vendor for critical communications infrastructure presents a potential risk. 5. The contract's classification as 'NOT COMPETED UNDER SAP' requires further scrutiny to understand the justification for bypassing standard competitive procedures. 6. The specific services provided under this call against a BPA need detailed clarification to assess true value.

Value Assessment

Rating: questionable

The awarded amount of $7.7 million for approximately 10 months of wireless telecommunications services appears substantial. Without detailed service breakdowns and usage metrics, it's difficult to benchmark against industry standards or similar government contracts. The lack of competition further complicates value assessment, as competitive bidding typically drives down prices. It is unclear if this price reflects a fair market value for the services rendered, especially considering the limited performance period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source or limited competition basis. The data explicitly states 'NOT COMPETED UNDER SAP'. This lack of open competition means that other qualified vendors were not given an opportunity to bid, potentially limiting price discovery and innovation. The specific justification for not competing this requirement needs to be reviewed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the government did not explore potentially lower-cost options from other providers.

Public Impact

Federal Prison System staff and inmates in New Jersey will benefit from enhanced wireless communication capabilities. The contract ensures the provision of essential wireless telecommunications services for operational needs. The geographic impact is focused on facilities within New Jersey. Workforce implications are tied to the operational reliance on these communication services for daily tasks and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding could lead to inflated costs.
Sole-source awards reduce transparency and accountability.
Potential for vendor lock-in with limited future options.
Short performance period may indicate a stop-gap measure, not a strategic solution.
Reliance on a single provider for critical infrastructure poses a risk.

Positive Signals

Ensures continuity of essential wireless communication services.
Leverages an existing Best Practices Agreement (BPA) call, potentially streamlining the award process.
Addresses immediate operational needs for the Bureau of Prisons.

Sector Analysis

The wireless telecommunications carriers (except satellite) sector is highly competitive, with numerous providers offering a wide range of services. Government spending in this area is significant, often managed through large indefinite-delivery/indefinite-quantity (IDIQ) contracts or specific service agreements. This particular contract, a BPA call for wireless services, falls within the broader telecommunications market. Benchmarking this specific award is challenging without knowing the exact services and volume, but typical government wireless contracts aim for cost savings through bulk purchasing and negotiated rates.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large telecommunications provider, Cellco Partnership (Verizon).

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Office of the Inspector General (OIG) and the contracting officers within the Bureau of Prisons. Transparency is limited due to the non-competitive nature of the award. Accountability relies on the justification provided for the sole-source award and the subsequent performance monitoring by the agency.

Related Government Programs

Federal Prison System Communications Contracts
Department of Justice Wireless Services
Bureau of Prisons IT Procurement
Government Wide Acquisition Contracts (GWACs) for Telecommunications

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Short Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7,735.63 to CELLCO PARTNERSHIP. FY26 VERIZON SERVICES BASED ON FIELD NOTICE #0007 PERIOD OF PERFORMANCE AUG 1, 2025- JULY 31, 2026. - FY26 SERVICES COVERED OCTOBER 1, 2025- JULY 31, 2026

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $7,735.63.

What is the period of performance?

Start: 2025-10-01. End: 2026-07-31.

What specific wireless services are included in this $7.7 million contract, and how do they align with the Bureau of Prisons' operational needs?

The contract, a BPA call for Verizon services, covers wireless telecommunications for the period of August 1, 2025, to July 31, 2026, with the actual services covered from October 1, 2025, to July 31, 2026. While the specific services are not detailed in the provided data, they are categorized under NAICS code 517312 (Wireless Telecommunications Carriers, except Satellite). Given the agency (Department of Justice) and sub-agency (Federal Prison System / Bureau of Prisons), these services likely include mobile voice and data plans for correctional officers and staff, potentially including specialized communication devices or services for facility operations and security. The $7.7 million value for approximately 10 months suggests a significant number of users or high-usage plans, possibly including dedicated bandwidth or secure communication channels critical for prison environments.

Why was this contract not competed, and what was the justification for a sole-source award?

The data explicitly states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). This implies that the procurement did not undergo a standard competitive bidding process. Government agencies can award sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For this contract, the justification for not competing it would need to be documented by the Department of Justice. Possible reasons could include leveraging an existing Best Practices Agreement (BPA) where Verizon was the only pre-qualified vendor for specific services, or a situation where transitioning to a new vendor within the short performance period was deemed impractical or detrimental to operations. Without the official justification documentation, the exact reason remains speculative.

How does the $7.7 million cost compare to similar wireless service contracts for federal agencies of similar size and scope?

Benchmarking this $7.7 million contract is challenging without precise details on the number of users, data allowances, voice minutes, and any specialized features included. However, for a period of approximately 10 months, this amount represents a significant expenditure for wireless services. Government agencies often negotiate volume discounts through large IDIQ contracts or Enterprise License Agreements. If this BPA call represents a substantial portion of the Bureau of Prisons' total wireless needs, the per-user cost might be comparable to other large federal contracts. However, the lack of competition raises concerns that the price may not be as favorable as it could be if multiple vendors had bid. A detailed analysis would require comparing the cost per user, cost per gigabyte of data, and other service metrics against publicly available data for similar federal wireless procurements.

What are the potential risks associated with awarding a sole-source contract for critical communication services?

Awarding a sole-source contract for critical communication services like wireless telecommunications carries several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive process, resulting in less value for taxpayer money. Secondly, it can stifle innovation, as the incumbent provider may have less incentive to offer cutting-edge solutions or improved services. Thirdly, it creates vendor lock-in, making it difficult and potentially costly to switch providers in the future. Finally, sole-source awards can reduce transparency and accountability, making it harder to scrutinize the contract's terms and performance. For critical infrastructure like prison communications, reliance on a single vendor also poses a risk if that vendor experiences service disruptions or faces financial instability.

What is the track record of Cellco Partnership (Verizon) in providing wireless services to the federal government, and have there been any past performance issues?

Cellco Partnership, operating as Verizon, is a major telecommunications provider with a long history of contracting with the federal government. They hold numerous contracts across various agencies for a wide range of wireless and telecommunications services. Generally, Verizon is considered a reliable provider with extensive network infrastructure. However, like any large contractor, there can be instances of performance issues, contract disputes, or pricing concerns reported in government contract databases or through Inspector General reports. A comprehensive review of Verizon's past performance specifically related to federal wireless contracts, particularly those with the Department of Justice or similar agencies, would be necessary to identify any recurring issues or specific concerns relevant to this award. This would typically involve examining contract performance evaluations (CPEs) and any publicly available audit findings.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: ONE 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: $8,476

Exercised Options: $8,476

Current Obligation: $7,736

Actual Outlays: $2,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS21A00000293

IDV Type: BPA

Timeline