DOJ's Bureau of Prisons awards $2.5M Verizon wireless contract for FY26, impacting Federal Prison System

Contract Overview

Contract Amount: $2,496 ($2.5K)

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: $8/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WIRELESS SERVICES FCI BERLIN FY26 OF SERVICES VERIZON WIRELESS SERVICES FOR OCT-JANUARY

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $2,495.95 to CELLCO PARTNERSHIP for work described as: WIRELESS SERVICES FCI BERLIN FY26 OF SERVICES VERIZON WIRELESS SERVICES FOR OCT-JANUARY Key points: 1. Spending on wireless services for federal prisons is a recurring need. 2. Verizon is a major provider in the wireless market, facing competition from AT&T and T-Mobile. 3. Potential risks include service disruptions, cost overruns, and vendor lock-in. 4. The IT sector, specifically telecommunications, is critical for government operations.

Value Assessment

Rating: fair

The contract value of $2.5M for a 10-month period appears reasonable given the scope of services for federal prisons. Benchmarking against similar government wireless contracts would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. While efficient for smaller procurements, this method may not always yield the best price discovery compared to full and open competition.

Taxpayer Impact: Taxpayers are impacted through the funding of essential communication services for correctional facilities. The limited competition may result in a slightly higher cost than if a broader competition were pursued.

Public Impact

Ensures communication capabilities within federal correctional facilities. Supports operational efficiency and security through reliable wireless services. Provides connectivity for staff and potentially inmate communication programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically telecommunications services. Government spending on wireless services is substantial, with benchmarks varying based on agency size, user volume, and service level agreements.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this particular award. Larger telecommunications contracts often involve major providers, but subcontracting opportunities may exist.

Oversight & Accountability

The use of SAP suggests a streamlined procurement process. Oversight would focus on contract performance, adherence to service level agreements, and ensuring continued value for taxpayer dollars throughout the contract period.

Related Government Programs

Risk Flags

Tags

wireless-telecommunications-carriers-exc, department-of-justice, nj, bpa-call, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2,495.95 to CELLCO PARTNERSHIP. WIRELESS SERVICES FCI BERLIN FY26 OF SERVICES VERIZON WIRELESS SERVICES FOR OCT-JANUARY

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 $2,495.95.

What is the period of performance?

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

What is the specific breakdown of services included in this $2.5M contract and how do they align with the operational needs of the Federal Prison System?

The contract is for wireless telecommunications services. While the exact breakdown isn't detailed, it likely includes voice, data, and potentially mobile broadband for staff communications, security systems, and administrative functions within federal prisons. The duration of 10 months suggests it covers a specific operational period, ensuring continuity of essential communication infrastructure.

Given the limited competition, what measures are in place to mitigate the risk of inflated pricing or suboptimal service quality from Verizon?

The agency likely relies on pre-negotiated rates within the SAP framework and potentially historical pricing data. Oversight will monitor service performance against agreed-upon metrics. However, the inherent risk of limited competition means proactive vendor management and periodic market research are crucial to ensure fair pricing and quality.

How does this contract contribute to the overall effectiveness and security of federal prison operations?

Reliable wireless communication is vital for the effectiveness and security of federal prisons. It enables real-time coordination among staff, facilitates the use of electronic monitoring and security systems, and supports administrative tasks. This contract ensures that these critical communication channels remain operational, thereby contributing to the safe and efficient management of correctional facilities.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications CarriersWireless Telecommunications Carriers (except Satellite)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: 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: $2,496

Exercised Options: $2,496

Current Obligation: $2,496

Actual Outlays: $999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS21A00000293

IDV Type: BPA

Timeline

Start Date: 2025-10-01

Current End Date: 2026-07-31

Potential End Date: 2026-07-31 00:00:00

Last Modified: 2026-04-09

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