Treasury's $130M Wireless Mobility Contract with Cellco Partnership Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $129,576 ($129.6K)
Contractor: Cellco Partnership
Awarding Agency: Department of the Treasury
Start Date: 2022-05-24
End Date: 2026-09-23
Contract Duration: 1,583 days
Daily Burn Rate: $82/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: WIRELESS MOBILITY SERVICES
Place of Performance
Location: BASKING RIDGE, SOMERSET County, NEW JERSEY, 07920
Plain-Language Summary
Department of the Treasury obligated $129,576.03 to CELLCO PARTNERSHIP for work described as: WIRELESS MOBILITY SERVICES Key points: 1. The contract's value of $129.6 million over its term raises questions about cost-effectiveness. 2. Full and open competition was cited, but the specific pricing mechanisms need review. 3. Potential risks include vendor lock-in and the need for ongoing market analysis. 4. The IT sector, particularly telecommunications, is subject to rapid technological change, impacting long-term value.
Value Assessment
Rating: fair
The contract's pricing is based on a firm fixed price for delivery orders. Benchmarking against similar government wireless mobility contracts is necessary to determine if the $129.6 million total value represents a fair price for the services rendered over the contract's duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the impact of this competition on price discovery and the final negotiated price requires further examination to ensure optimal value for taxpayers.
Taxpayer Impact: The total value of $129.6 million represents a significant taxpayer investment. Ensuring competitive pricing and efficient service delivery is crucial to maximize the return on this investment.
Public Impact
Federal employees rely on these wireless services for daily operations and communication. The contract's duration and value impact the Treasury's budget and resource allocation. Ensuring reliable and secure wireless communication is vital for government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep over contract duration
- Need for ongoing market analysis to ensure competitive rates
- Dependence on a single vendor for critical mobility services
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract structure provides cost certainty
Sector Analysis
This contract falls within the Information Technology sector, specifically wireless telecommunications. Government spending in this area is substantial, driven by the need for ubiquitous connectivity and mobile workforce support. Benchmarks for similar contracts often focus on per-user costs and data allowances.
Small Business Impact
The data does not indicate specific provisions or set-asides for small businesses within this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate in the competition or if subcontracting opportunities exist.
Oversight & Accountability
The Bureau of the Fiscal Service is responsible for this contract. Oversight should focus on performance monitoring, adherence to contract terms, and ensuring continued cost-effectiveness throughout the contract's lifecycle.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for price increases over contract term
- Lack of detailed performance metrics in provided data
- Limited visibility into specific service components and their costs
- Need for independent market research to validate pricing
Tags
wireless-telecommunications-carriers-exc, department-of-the-treasury, nj, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $129,576.03 to CELLCO PARTNERSHIP. WIRELESS MOBILITY SERVICES
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $129,576.03.
What is the period of performance?
Start: 2022-05-24. End: 2026-09-23.
How does the per-unit cost of wireless services under this contract compare to industry benchmarks for similar government contracts?
A detailed analysis of the per-unit cost, considering data plans, device allowances, and service levels, is required. Comparing these figures against government-wide schedules and publicly available commercial rates for similar enterprise mobility solutions will reveal if the Treasury is achieving competitive pricing and maximizing value for taxpayer dollars.
What are the specific risks associated with relying on Cellco Partnership for wireless mobility services over a 4-year period?
Key risks include potential vendor lock-in, limiting future flexibility and negotiation power. Rapid technological advancements in wireless could render current services suboptimal or overpriced. Furthermore, dependence on a single provider could pose a security risk or lead to service disruptions if the vendor experiences issues.
How effectively does this contract support the Treasury's operational needs and mission objectives?
The effectiveness hinges on the reliability, security, and performance of the wireless services provided. If the services consistently meet the demands of the Treasury's mobile workforce and facilitate seamless communication and data access, the contract is effective. Conversely, any service disruptions or performance shortfalls would indicate a lack of effectiveness.
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 - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $129,576
Exercised Options: $129,576
Current Obligation: $129,576
Actual Outlays: $106,297
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA20D00B5
IDV Type: FSS
Timeline
Start Date: 2022-05-24
Current End Date: 2026-09-23
Potential End Date: 2026-09-23 00:00:00
Last Modified: 2026-04-03
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