Verizon secures $25.5M NRC contract for voice, data, and unified communications services through full and open competition

Contract Overview

Contract Amount: $25,456,458 ($25.5M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2020-06-01

End Date: 2027-05-31

Contract Duration: 2,555 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: VOICE, DATA, UNIFIED COMMUNICATIONS AND OTHER SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $25.5 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VOICE, DATA, UNIFIED COMMUNICATIONS AND OTHER SERVICES Key points: 1. Contract awarded to a single vendor, Verizon Business Network Services LLC, for a broad range of communication services. 2. The contract duration spans over 7 years, indicating a long-term need for these essential communication services. 3. Services include voice, data, and unified communications, critical for the NRC's operational continuity and regulatory functions. 4. Awarded via full and open competition, suggesting a robust process to ensure fair pricing and vendor selection. 5. The contract type, Fixed Price with Economic Price Adjustment, allows for cost fluctuations while maintaining a baseline price. 6. Geographically, the contract is associated with Maryland, a key hub for federal agencies. 7. The North American Industry Classification System (NAICS) code points to Wired Telecommunications Carriers, a mature and competitive sector.

Value Assessment

Rating: good

The total contract value of $25.5 million over approximately 7 years suggests a significant investment in communication infrastructure. Benchmarking this against similar large-scale federal telecommunications contracts is challenging without more granular service details. However, the fixed-price structure with economic price adjustments aims to provide cost predictability for the agency while allowing for market-driven changes. The presence of two bidders in the competition phase (though only one awardee) indicates some level of market engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates two bids were received, suggesting a competitive process, though the specific details of the bidding process and the number of proposals submitted are not fully detailed. A competitive award process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and service options, driving down costs and increasing the likelihood of securing a cost-effective solution.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from reliable and integrated communication services essential for its regulatory oversight and operational functions. The contract ensures the delivery of voice, data, and unified communication capabilities, supporting daily operations and emergency response. The primary geographic impact is within Maryland, where the NRC has a significant presence. The contract supports the workforce by providing the necessary communication tools for effective collaboration and information dissemination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and integrated nature of services.
Economic price adjustment clauses could lead to cost increases if market conditions fluctuate significantly.
Reliance on a single vendor for critical communication infrastructure poses a risk if service disruptions occur.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially cost-effective procurement.
The contract covers a comprehensive suite of communication services, aiming for a unified and efficient solution.
Long-term contract provides stability and predictability for essential communication services for the NRC.

Sector Analysis

The telecommunications sector is characterized by significant infrastructure investment and evolving technologies. This contract falls under the Wired Telecommunications Carriers segment, which includes providers of voice and data services over fixed networks. The federal government is a major consumer of these services, with spending often concentrated in areas with large agency footprints. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar communication suites, often awarded to major telecommunications providers.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The awardee, Verizon Business Network Services LLC, is a large telecommunications provider. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often have broader subcontracting programs.

Oversight & Accountability

The Nuclear Regulatory Commission (NRC) is responsible for overseeing this contract. Oversight mechanisms would typically include contract performance management, regular reviews of service delivery, and financial audits. Accountability is ensured through the contract terms and conditions, including service level agreements and reporting requirements. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Telecommunications Services
Network Infrastructure Contracts
Unified Communications Services
Wired Telecommunications Services
Government IT Services

Risk Flags

Long-term contract duration
Single awardee for critical infrastructure
Economic Price Adjustment clause

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $25.5 million to VERIZON BUSINESS NETWORK SERVICES LLC. VOICE, DATA, UNIFIED COMMUNICATIONS AND OTHER SERVICES

Who is the contractor on this award?

The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2020-06-01. End: 2027-05-31.

What is the historical spending pattern for voice, data, and unified communications services at the NRC?

Analyzing historical spending patterns for these services at the NRC is crucial for understanding the context of this $25.5 million award. Without specific historical data, we can infer that the NRC, like most federal agencies, relies heavily on robust communication systems for its regulatory and operational functions. Past contracts likely involved similar service categories, potentially with different vendors or through different procurement vehicles. Trends in federal IT and telecommunications spending often show an increasing demand for integrated solutions and higher bandwidth, driven by technological advancements and evolving agency needs. Understanding if this contract represents an increase, decrease, or stable level of spending compared to previous periods would provide valuable insight into the NRC's strategic resource allocation for communication infrastructure.

How does the pricing of this Verizon contract compare to similar federal telecommunications awards?

Directly comparing the pricing of this $25.5 million Verizon contract to similar federal awards requires access to detailed pricing structures and service level agreements for comparable contracts. The provided data indicates a Fixed Price with Economic Price Adjustment (EPA) structure, which allows for adjustments based on economic factors. To benchmark effectively, one would need to analyze contracts with similar scopes of work (voice, data, unified communications), durations, and awardees, ideally from the same or similar agencies. Factors such as the number of users, bandwidth requirements, geographic coverage, and specific technology implementations heavily influence pricing. A thorough comparison would involve examining unit costs for key services, overall contract value relative to service scope, and the impact of EPA clauses on the final cost.

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

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature and value, involving critical communication services for the Nuclear Regulatory Commission (NRC), robust KPIs and SLAs are expected. These would typically cover aspects such as network uptime, latency, data transfer speeds, call quality, response times for technical support, and incident resolution times. The contract likely specifies penalties for failing to meet these SLAs and potential incentives for exceeding performance targets. These metrics are essential for ensuring the reliability, availability, and quality of the communication services provided by Verizon Business Network Services LLC and for holding the contractor accountable.

What is Verizon Business Network Services LLC's track record with the federal government, particularly with the NRC?

Verizon Business Network Services LLC has a significant track record as a major telecommunications provider serving the federal government across various agencies. While specific performance details with the NRC are not provided in this data snippet, Verizon is known to hold numerous federal contracts for a wide range of communication and network services. Their experience typically includes providing services like broadband internet, private lines, voice services, and managed network solutions. Federal agencies often rely on large, established providers like Verizon due to their extensive infrastructure, security capabilities, and experience navigating federal procurement processes. A deeper dive into past performance evaluations, contract awards, and any reported issues or commendations related to Verizon's federal contracts would offer a more comprehensive view of their reliability and suitability for this NRC requirement.

What are the potential risks associated with relying on a single vendor for these critical communication services?

Relying on a single vendor, such as Verizon Business Network Services LLC in this case, for critical communication services presents several potential risks. Firstly, there is the risk of vendor lock-in, where transitioning to a different provider in the future could be complex and costly due to integrated systems and long-term commitments. Secondly, service disruptions, whether due to technical failures, cyberattacks, or unforeseen events, could have a significant impact on the NRC's operations, given the essential nature of voice, data, and unified communications. Thirdly, a lack of ongoing competition could potentially lead to less aggressive pricing in future contract renewals or modifications. Finally, the agency's negotiating power might be diminished if the vendor becomes indispensable for their communication needs.

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

Solicitation ID: 31310019Q0011

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $98,173,204

Exercised Options: $55,500,000

Current Obligation: $25,456,458

Actual Outlays: $18,661,439

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