Verizon awarded $3.27M for Managed Trusted Internet Protocol Service (MTIPS) by the Department of Labor

Contract Overview

Contract Amount: $3,266,918 ($3.3M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2026-12-31

Contract Duration: 2,285 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EIS FO1 - TASK AREA 4: MANAGED TRUSTED INTERNET PROTOCOL SERVICE (MTIPS). THE SCOPE OF THIS DOL REQUIREMENT INCLUDES THE DESIGN, ENGINEERING, PROVISIONING, MANAGEMENT, TRANSITION, MAINTENANCE AND EVOLUTION OF EXISTING AND NEW TELECOMMUNICATION SERVIC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $3.3 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: EIS FO1 - TASK AREA 4: MANAGED TRUSTED INTERNET PROTOCOL SERVICE (MTIPS). THE SCOPE OF THIS DOL REQUIREMENT INCLUDES THE DESIGN, ENGINEERING, PROVISIONING, MANAGEMENT, TRANSITION, MAINTENANCE AND EVOLUTION OF EXISTING AND NEW TELECOMMUNICATION SERVIC Key points: 1. Contract focuses on the design, engineering, and management of internet protocol services. 2. The award is a delivery order under a larger contract, indicating a phased approach to service provision. 3. The contract type is Time and Materials, which can pose cost control challenges if not closely monitored. 4. The duration of the contract extends to late 2026, suggesting a long-term need for these services. 5. The service area is Washington D.C., indicating a localized but critical infrastructure requirement.

Value Assessment

Rating: fair

The contract value of $3.27 million for a period of approximately 6 years (September 2020 to December 2026) for managed internet protocol services appears to be within a reasonable range for such specialized telecommunications infrastructure. However, the Time and Materials pricing model necessitates careful oversight to ensure costs do not escalate beyond initial projections. Benchmarking against similar managed network services contracts would provide a clearer picture of value for money, but without specific details on service levels and scope, a definitive assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it is a delivery order implies it was likely awarded under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework that underwent initial competition. The specific number of bidders for this particular delivery order is not provided, but the 'full and open' designation generally promotes competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions being considered, ultimately driving down costs and improving service quality.

Public Impact

The Department of Labor benefits from secure and reliable internet protocol services, crucial for its operations. Employees and contractors of the Department of Labor will have access to managed internet services. The services are geographically focused on Washington D.C., impacting federal agencies located in the capital. The contract supports the telecommunications sector workforce involved in network design, management, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model could lead to cost overruns if not managed diligently.
The scope of 'evolution of existing and new telecommunication services' is broad and may require continuous monitoring to control costs.
Dependence on a single provider for critical internet infrastructure raises concerns about vendor lock-in and future pricing negotiations.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract addresses a critical need for secure and managed internet services for a federal agency.
Long contract duration suggests a stable and predictable service provision for the Department of Labor.

Sector Analysis

The telecommunications industry, specifically the wired telecommunications carriers sector (NAICS 517110), is characterized by significant infrastructure investment and evolving technological demands. This contract falls within the managed network services segment, which is a growing area as organizations increasingly outsource complex network management. The market is dominated by large providers like Verizon, AT&T, and Lumen, offering a range of services from basic connectivity to sophisticated managed security and cloud integration. Spending in this area by federal agencies is substantial, driven by the need for secure, reliable, and high-performance networks to support mission-critical operations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Verizon Business Network Services LLC, is a large telecommunications provider. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Verizon has broader subcontracting initiatives not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's contracting officers and program managers. As a delivery order under a larger contract, there may be established oversight mechanisms from the initial award. The Time and Materials nature of the contract necessitates robust monitoring of labor hours and material costs to ensure compliance with the contract terms and prevent overspending. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Managed Trusted Internet Protocol Service (MTIPS)
Telecommunications Services Contracts
Network Infrastructure Services
Federal Agency IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Broad scope of 'evolution' may require careful management to control costs.
Dependence on a single large vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.3 million to VERIZON BUSINESS NETWORK SERVICES LLC. EIS FO1 - TASK AREA 4: MANAGED TRUSTED INTERNET PROTOCOL SERVICE (MTIPS). THE SCOPE OF THIS DOL REQUIREMENT INCLUDES THE DESIGN, ENGINEERING, PROVISIONING, MANAGEMENT, TRANSITION, MAINTENANCE AND EVOLUTION OF EXISTING AND NEW TELECOMMUNICATION SERVIC

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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-12-31.

What is the historical spending pattern for Managed Trusted Internet Protocol Service (MTIPS) by the Department of Labor?

Analyzing historical spending on MTIPS by the Department of Labor requires accessing detailed contract data over multiple fiscal years. Without specific historical data for this exact service line, it's difficult to provide precise figures. However, federal agencies, including the Department of Labor, have consistently invested in secure network services due to increasing cyber threats and the digitization of government operations. Spending on such services typically fluctuates based on infrastructure upgrades, evolving security requirements, and the consolidation of IT services. The current award of $3.27 million for MTIPS from 2020 to 2026 suggests a significant, multi-year commitment to maintaining and evolving these critical internet services, reflecting a sustained investment in network security and reliability.

How does the pricing of this Verizon contract compare to similar managed network services contracts awarded by other federal agencies?

Comparing the pricing of this $3.27 million contract for Managed Trusted Internet Protocol Service (MTIPS) requires detailed benchmarking against similar contracts. Key factors for comparison include the scope of services (e.g., bandwidth, security features, uptime guarantees, management level), contract duration, and the specific technologies employed. As this is a Time and Materials contract, the actual cost can vary. Generally, large federal agencies procure managed network services through competitive bidding processes, often under IDIQ vehicles. Prices can range significantly based on these variables. While Verizon is a major provider, its pricing needs to be evaluated against competitors like AT&T, Lumen, and others offering comparable services. Without specific service level agreements (SLAs) and detailed pricing breakdowns for this contract and its comparables, a precise value-for-money assessment is challenging, but the 'full and open competition' suggests an effort to achieve market-based pricing.

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

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Managed Trusted Internet Protocol Service (MTIPS) contract. However, for a contract of this nature, typical KPIs and SLAs would likely focus on network availability (uptime percentage), latency, packet loss, response times for issue resolution, and security incident response times. The 'design, engineering, provisioning, management, transition, maintenance and evolution' scope implies a comprehensive service requiring robust performance metrics. The Time and Materials (T&M) contract type suggests that while specific tasks and their associated costs are tracked, the overall service quality and reliability would be governed by agreed-upon performance standards to ensure the Department of Labor receives the expected level of service and security for its internet protocol infrastructure.

What is the track record of Verizon Business Network Services LLC in delivering similar managed telecommunications services to the federal government?

Verizon Business Network Services LLC has a substantial track record of delivering telecommunications and network services to the federal government. As a major telecommunications provider, Verizon holds numerous contracts across various federal agencies, including significant awards for network infrastructure, managed services, and cybersecurity solutions. Their experience spans large-scale deployments and complex network management. For instance, they are a key provider for services like the General Services Administration's (GSA) Enterprise Infrastructure Solutions (EIS) program, which encompasses a wide array of telecommunications and IT services. While specific performance details for every contract are not publicly available, Verizon's continued success in winning and performing on large federal contracts indicates a generally positive track record in managing complex network requirements and meeting government standards.

What are the potential risks associated with the Time and Materials (T&M) contract type for this MTIPS service?

The primary risk associated with a Time and Materials (T&M) contract, such as this MTIPS award, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements compensate the contractor for the actual labor hours and material costs incurred. If not managed diligently, this can lead to the final cost exceeding initial estimates or budget allocations. For the Department of Labor, this means that effective oversight is crucial. This includes rigorous tracking of all hours worked, verification of material purchases, and ensuring that the work performed is necessary and efficient. Without strong project management and continuous monitoring by the government's contracting officer's representative (COR), the contractor may have less incentive to control costs, potentially leading to a less favorable value for taxpayers.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $160,831,120

Exercised Options: $83,362,017

Current Obligation: $3,266,918

Actual Outlays: $2,587,548

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