DOJ awards $44.3M to Verizon for Telecom Services, extending contract through 2025
Contract Overview
Contract Amount: $44,329,621 ($44.3M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Justice
Start Date: 2022-10-01
End Date: 2025-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $40.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Telecommunications
Official Description: TELECOMMUNICATION AND DATA SERVICES EIS-CONTINUATION OF 15JPSS19FPZM00047 MOD 0019
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $44.3 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: TELECOMMUNICATION AND DATA SERVICES EIS-CONTINUATION OF 15JPSS19FPZM00047 MOD 0019 Key points: 1. Contract Value: $44.3 million over 3 years. 2. Incumbent: Verizon Business Network Services LLC. 3. Risk: Moderate, given reliance on a single provider for essential services. 4. Sector: Telecommunications, supporting Federal Prison System operations.
Value Assessment
Rating: good
The contract value of $44.3 million for 3 years appears reasonable for comprehensive telecommunication and data services. Benchmarking against similar government-wide contracts like EIS would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This is a delivery order under a larger contract (EIS) that utilized full and open competition. This method generally promotes competitive pricing and ensures fair market value.
Taxpayer Impact: Taxpayer funds are being used to ensure reliable communication infrastructure for the Federal Prison System, which is essential for operations and security.
Public Impact
Ensures critical communication and data services for the Federal Prison System. Supports inmate management, staff operations, and facility security. Provides a stable telecommunications platform for essential government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed proactively.
- Reliance on a single provider for critical infrastructure.
Positive Signals
- Leverages existing government-wide contract (EIS).
- Clear contract duration and defined services.
Sector Analysis
This contract falls within the Telecommunications and Data Services sector, specifically Wired Telecommunications Carriers. Government spending in this area is substantial, supporting agency operations nationwide. Benchmarks for similar services vary widely based on scope and technology.
Small Business Impact
The data indicates this is a delivery order under a larger contract (EIS). While the primary awardee is Verizon, the underlying EIS contract likely had provisions for small business participation or subcontracting opportunities.
Oversight & Accountability
The contract is a delivery order under the larger Enterprise Infrastructure Solutions (EIS) contract, which is subject to ongoing oversight. The Department of Justice's Federal Prison System is responsible for managing this specific order.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single provider for critical infrastructure.
- Need for ongoing performance monitoring.
- Ensuring competitive pricing within the EIS framework.
Tags
wired-telecommunications-carriers, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $44.3 million to VERIZON BUSINESS NETWORK SERVICES LLC. TELECOMMUNICATION AND DATA SERVICES EIS-CONTINUATION OF 15JPSS19FPZM00047 MOD 0019
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 Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $44.3 million.
What is the period of performance?
Start: 2022-10-01. End: 2025-09-30.
What specific telecommunication and data services are included in this delivery order, and how do they align with the Bureau of Prisons' operational needs?
This delivery order likely covers a range of services such as voice, data, internet, and potentially video conferencing, tailored to the specific requirements of the Federal Prison System. These services are crucial for internal communications, security systems, inmate services, and administrative functions, ensuring the smooth and secure operation of correctional facilities across the nation.
Are there any performance metrics or service level agreements (SLAs) associated with this contract to ensure service quality and reliability?
While not explicitly detailed in the provided data, delivery orders under major government contracts like EIS typically include specific performance metrics and Service Level Agreements (SLAs). These define expectations for uptime, latency, and support response times, with potential penalties for non-compliance, ensuring the Federal Prison System receives reliable and high-quality telecommunication services.
How does the pricing of this delivery order compare to other similar telecommunication services procured by federal agencies under the EIS contract?
Benchmarking this delivery order's pricing against similar services procured by other agencies under the EIS contract is crucial for assessing value. While the $44.3 million over three years seems reasonable, a detailed comparison of per-unit costs for specific services (e.g., bandwidth, voice lines) would reveal if the Bureau of Prisons is achieving competitive rates.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15BNAS18Q00000488
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: $67,266,824
Exercised Options: $67,266,824
Current Obligation: $44,329,621
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,407,200
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
Start Date: 2022-10-01
Current End Date: 2025-09-30
Potential End Date: 2032-09-30 00:00:00
Last Modified: 2025-05-20
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