DOJ's DEA Awards $3.38 Billion for Verizon Broadband Services in FY25
Contract Overview
Contract Amount: $3,380 ($3.4K)
Contractor: Cellco Partnership
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $9/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VERIZON - BROADBAND SERVICES FY 2025
Place of Performance
Location: BASKING RIDGE, SOMERSET County, NEW JERSEY, 07920
Plain-Language Summary
Department of Justice obligated $3,380.34 to CELLCO PARTNERSHIP for work described as: VERIZON - BROADBAND SERVICES FY 2025 Key points: 1. Significant contract value highlights reliance on major telecom providers. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk lies in vendor lock-in and the long-term cost-effectiveness of broadband services. 4. The IT sector, specifically telecommunications, is a key area of federal spending.
Value Assessment
Rating: good
The contract value of $3.38 billion for FY25 is substantial. Benchmarking against similar large-scale broadband service contracts is difficult without more granular data on service levels and geographic coverage. However, the firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to drive competitive pricing and ensure fair market value.
Taxpayer Impact: The firm fixed-price nature of this large contract provides budget predictability for taxpayers, although the overall cost is significant.
Public Impact
Ensures critical broadband connectivity for the Drug Enforcement Administration's operations. Supports law enforcement activities nationwide through reliable communication infrastructure. Impacts the telecommunications market by awarding a substantial portion of federal spending to a major provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for essential services.
- Cybersecurity risks associated with large-scale data transmission.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Supports critical law enforcement functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically telecommunications services. Federal spending on broadband and wireless services is substantial, driven by the need for secure and reliable communication across various agencies.
Small Business Impact
This contract was awarded to a major telecommunications provider (Verizon/Cellco Partnership) and does not appear to include specific provisions for small business participation in this particular award. Large federal contracts often involve prime contractors who may then subcontract, but direct small business involvement is not evident here.
Oversight & Accountability
The Department of Justice, through the Drug Enforcement Administration, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- High contract value.
- Long contract duration (implied by FY25 award for a 364-day period, suggesting potential for renewal).
- Dependence on a single large telecommunications provider.
- Potential for future price escalations.
- Lack of specific small business participation noted.
Tags
wireless-telecommunications-carriers-exc, department-of-justice, nj, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $3,380.34 to CELLCO PARTNERSHIP. VERIZON - BROADBAND SERVICES FY 2025
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $3,380.34.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the specific breakdown of services and associated costs within this $3.38 billion contract to ensure value for money?
The provided data lacks granular detail on the specific broadband services, bandwidth, geographic coverage, and service level agreements included in the $3.38 billion contract. A comprehensive value assessment requires understanding these specifics to compare against industry benchmarks and ensure the DEA is receiving optimal performance and features for the price paid.
What are the long-term risks associated with a multi-year, high-value contract for broadband services with a single provider like Verizon?
Long-term risks include potential vendor lock-in, making it difficult and costly to switch providers even if better options emerge. There's also the risk of escalating costs over time if the fixed price doesn't account for future technological advancements or market shifts. Furthermore, over-reliance on one provider can create a single point of failure for critical communications.
How does the use of 'full and open competition' for this significant contract ensure effective price discovery and optimal resource allocation for taxpayers?
Full and open competition allows multiple qualified vendors to submit bids, fostering a competitive environment that typically drives down prices and encourages innovation. This process helps ensure the government secures services at a fair market rate, preventing overpayment and promoting efficient use of taxpayer funds. The transparency of the bidding process also aids in accountability.
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
Offers Received: 1
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: $3,380
Exercised Options: $3,380
Current Obligation: $3,380
Actual Outlays: $3,389
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA20D00B5
IDV Type: FSS
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-09
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