DOJ's $105M Verizon Wireless Contract Awarded to Cellco Partnership for Essential Communications

Contract Overview

Contract Amount: $105,343 ($105.3K)

Contractor: Cellco Partnership

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2026-07-23

Contract Duration: 1,391 days

Daily Burn Rate: $76/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: D77- FY23-FY26 VERIZON WIRELESS AND BROADBAND DATA SERVICES

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $105,343.28 to CELLCO PARTNERSHIP for work described as: D77- FY23-FY26 VERIZON WIRELESS AND BROADBAND DATA SERVICES Key points: 1. Contract provides critical wireless and broadband services to the U.S. Marshals Service. 2. Awarded under a streamlined process (SAP), suggesting potential for faster procurement. 3. The contract's duration spans over three years, indicating a long-term need for these services. 4. Firm Fixed Price contract type offers cost predictability for the government. 5. The single awardee, Cellco Partnership, highlights a concentrated market for these specific services. 6. Geographic coverage extends to New Jersey, impacting operations within that state.

Value Assessment

Rating: good

The contract value of $105.3 million over approximately three years for wireless and broadband data services appears reasonable given the scale and duration. Benchmarking against similar large-scale government wireless contracts is challenging without more specific service details, but the fixed-price nature provides a degree of cost control. The U.S. Marshals Service is a critical law enforcement agency, and reliable communication infrastructure is paramount to its operations, suggesting the investment is justified by operational necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which is typically used for procurements valued below certain thresholds, allowing for a broader range of potential bidders. While the specific number of bidders is not detailed, the use of SAP suggests a competitive process was intended. The award to a single entity, Cellco Partnership (Verizon Wireless), indicates that they were the most advantageous offeror based on the evaluation criteria.

Taxpayer Impact: The competitive nature of the procurement, even under SAP, aims to ensure that taxpayer funds are used efficiently by securing favorable pricing and terms.

Public Impact

Federal law enforcement agencies, specifically the U.S. Marshals Service, will benefit from enhanced and reliable wireless communication capabilities. Essential services include wireless voice and data, crucial for field operations, investigations, and inter-agency communication. The geographic impact is focused on New Jersey, supporting the operational needs of Marshals Service personnel and activities within the state. Workforce implications include ensuring that agents and support staff have the necessary tools to perform their duties effectively and securely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long-term nature of the contract and specialized services.
Reliance on a single provider could pose risks if service disruptions occur.
Ensuring competitive pricing over the contract's lifecycle requires ongoing monitoring.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Award to a well-established provider (Verizon) suggests a high likelihood of reliable service delivery.
Contract supports critical law enforcement functions, aligning with national security priorities.

Sector Analysis

The telecommunications sector, particularly wireless carriers, is a vital component of government infrastructure. This contract falls under the 'Wireless Telecommunications Carriers (except Satellite)' industry. The market is dominated by a few major players, making competition dynamics unique. Government spending in this area is substantial, supporting everything from basic communication to advanced data services for national security and public safety. Benchmarking requires comparing against similar large-scale enterprise wireless agreements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Given the nature of large-scale wireless telecommunications services, primary contracts are often awarded to major providers. Further analysis would be needed to determine if small businesses are involved in subcontracting roles within the broader service delivery.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Marshals Service contracting officer and program managers. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Schedule Contracts
Department of Defense (DoD) Telecommunications Services
FBI Wireless Communications
Other Federal Law Enforcement Agency Communications Contracts

Risk Flags

Single-source awardee for critical infrastructure.
Long contract duration may limit flexibility.
Reliance on commercial carrier network stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $105,343.28 to CELLCO PARTNERSHIP. D77- FY23-FY26 VERIZON WIRELESS AND BROADBAND DATA SERVICES

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $105,343.28.

What is the period of performance?

Start: 2022-10-01. End: 2026-07-23.

What is the historical spending pattern for wireless services by the U.S. Marshals Service?

Analyzing historical spending for wireless services by the U.S. Marshals Service is crucial for understanding trends and justifying current expenditures. While specific historical data for this exact contract is not provided, general federal spending on telecommunications, including wireless services, has been steadily increasing over the past decade. Agencies like the Marshals Service rely heavily on mobile communication for field operations, investigations, and emergency response. Previous contracts, potentially with different providers or service scopes, would offer insights into price fluctuations, technology adoption rates, and the evolution of service requirements. Understanding if this $105.3 million award represents an increase, decrease, or stable level of investment compared to prior periods requires access to historical contract databases and agency budget allocations for telecommunications.

How does the pricing of this contract compare to similar government wireless contracts?

Directly comparing the pricing of this $105.3 million Verizon Wireless contract to similar government contracts is challenging without detailed service level agreements (SLAs) and usage metrics for each. However, the contract's Firm Fixed Price (FFP) structure is a positive indicator for cost control, as it locks in the price regardless of usage fluctuations, assuming the scope remains constant. The award to Cellco Partnership (Verizon) suggests competitive bidding occurred under Simplified Acquisition Procedures (SAP). To benchmark effectively, one would need to compare per-unit costs (e.g., cost per line, cost per gigabyte of data) against other large federal or state government wireless agreements. Given Verizon's market position, pricing is likely competitive but also reflects the premium associated with a major carrier's network reliability and breadth of services, which are critical for law enforcement.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this magnitude supporting the U.S. Marshals Service, critical KPIs would likely include network uptime/availability (e.g., 99.9% or higher), data throughput speeds, latency, call completion rates, and response times for technical support. SLAs would define the remedies or credits the government receives if these performance standards are not met. These metrics are essential for ensuring the reliability and effectiveness of the wireless communications vital for law enforcement operations, ensuring that agents can communicate securely and efficiently in the field.

What is the track record of Cellco Partnership (Verizon) in fulfilling similar government contracts?

Cellco Partnership, operating as Verizon Wireless, has a significant track record of fulfilling large-scale telecommunications contracts with various U.S. government agencies, including defense, law enforcement, and civilian departments. They are one of the primary providers of wireless services to the federal government, often securing major agreements due to their extensive network coverage and service offerings. Past performance evaluations, available through government contract databases and agency reports, generally indicate a strong capability to deliver reliable wireless and data services. However, like any large provider, specific contract performance can vary, and agencies typically conduct thorough past performance reviews during the procurement process to assess suitability and reliability.

Are there any identified risks associated with relying on a single provider for these critical communication services?

Yes, there are inherent risks associated with relying on a single provider, such as Cellco Partnership (Verizon), for critical communication services. These risks include potential service disruptions due to network outages, natural disasters, or cyberattacks affecting the sole vendor. A single point of failure can significantly impact the operational capabilities of the U.S. Marshals Service. Furthermore, a lack of ongoing competition could potentially lead to less favorable pricing or service innovation over the long term compared to a multi-vendor environment. Mitigation strategies often involve robust contingency planning, service level agreements with penalties, and regular performance monitoring by the contracting agency.

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: 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: $106,408

Exercised Options: $106,408

Current Obligation: $105,343

Actual Outlays: $43,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS21A00000293

IDV Type: BPA

Timeline