VA awards $88.3M contract for enterprise wireless telecommunications services to Cellco Partnership

Contract Overview

Contract Amount: $88,273,771 ($88.3M)

Contractor: Cellco Partnership

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-07

End Date: 2026-09-30

Contract Duration: 1,303 days

Daily Burn Rate: $67.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $88.3 million to CELLCO PARTNERSHIP for work described as: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE Key points: 1. Contract provides essential wireless services including data, voice, and internet for the VA enterprise. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The duration of the contract is over three years, indicating a long-term need for these services. 5. The awardee, Cellco Partnership, is a major player in the telecommunications sector. 6. The contract's value is substantial, reflecting the scale of the VA's wireless needs.

Value Assessment

Rating: good

The contract value of approximately $88.3 million over its term appears reasonable for enterprise-wide wireless telecommunications services, considering the scale and scope of the Department of Veterans Affairs. Benchmarking against similar large-scale government wireless contracts would provide a more precise value-for-money assessment. The firm-fixed-price type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed service level agreements and usage data, a definitive assessment of cost-effectiveness per user or per service unit is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a moderately competitive environment for this significant telecommunications requirement. While three bidders are present, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not fully detailed here. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and service terms, potentially leading to cost savings and better value.

Public Impact

Veterans and VA staff will benefit from reliable and comprehensive wireless communication services across the enterprise. Essential services include data (email), voice (telephony/voicemail), and wireless internet access. The services are intended for the entire VA enterprise, implying a nationwide or broad geographic impact. The contract supports the operational efficiency and connectivity of VA personnel, indirectly benefiting veterans through improved service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new provider is complex or costly.
Ensuring consistent service quality and coverage across all VA locations may present challenges.
The fixed-price nature might disincentivize innovation or upgrades unless explicitly contracted.

Positive Signals

Award to a known, established provider (Cellco Partnership) suggests reliability and experience.
Firm-fixed-price contract provides budget certainty for the VA.
Full and open competition indicates a potentially competitive price was secured.

Sector Analysis

This contract falls within the telecommunications sector, specifically wireless carriers. The North American Industry Classification System (NAICS) code 517112, 'Wireless Telecommunications Carriers (except Satellite),' confirms this. The market for enterprise wireless services is highly competitive, dominated by a few major providers. Government contracts for such services are substantial due to the extensive communication needs of federal agencies. Benchmarks for similar large-scale government wireless contracts would typically range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of enterprise-wide wireless telecommunications services, it is likely that the prime contract was awarded to a large telecommunications provider. Subcontracting opportunities for small businesses may exist within the execution of this contract, such as for local installation, maintenance, or specialized support services, but these are not detailed in the provided data.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight mechanisms would typically involve contract officers, program managers, and potentially contracting officer's representatives (CORs) to monitor performance, adherence to service level agreements, and billing. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Schedule contracts for telecommunications.
Other agency-specific wireless service procurements.
Enterprise IT services contracts.

Risk Flags

Potential for technology obsolescence over contract duration.
Dependence on a single provider for critical communication infrastructure.
Ensuring consistent service quality across diverse geographic locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $88.3 million to CELLCO PARTNERSHIP. WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $88.3 million.

What is the period of performance?

Start: 2023-03-07. End: 2026-09-30.

What is the historical spending pattern for wireless telecommunications services by the Department of Veterans Affairs?

Analyzing historical spending for wireless telecommunications services by the VA is crucial for understanding trends, identifying potential cost savings, and assessing the value of current and future contracts. Without specific historical data for the VA's wireless spending, a general observation can be made that federal agencies increasingly rely on robust wireless solutions to support mobile workforces and enhance operational efficiency. Spending in this area has generally trended upwards across the government due to the proliferation of mobile devices and the demand for high-speed data. Comparing the current $88.3 million contract value to previous VA expenditures on similar services would reveal whether this award represents an increase, decrease, or stable level of investment. It would also help determine if the VA has consolidated its wireless services or is expanding its offerings. Further investigation into prior contracts, including their duration, scope, and awarded amounts, would provide a comprehensive view of the VA's commitment to wireless infrastructure.

How does the awarded price compare to market rates for similar enterprise wireless services?

Determining if the $88.3 million award represents a competitive market rate requires a detailed comparison with similar contracts awarded to other large federal agencies or commercial enterprises of comparable size and scope. Factors such as the specific services included (e.g., data speeds, voice features, international roaming, device management), geographic coverage, service level agreements (SLAs), and contract duration significantly influence pricing. While the firm-fixed-price structure provides budget certainty, it's essential to assess if the price reflects the actual market value for the services rendered. A comprehensive analysis would involve benchmarking against publicly available contract data (e.g., from SAM.gov) for similar telecommunications procurements, considering the volume discounts typically available for large government contracts. Without access to the specific details of the bids received and the VA's internal cost estimates or benchmarks, a precise comparison is difficult, but the presence of three bidders suggests a degree of market competitiveness.

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

Key performance indicators (KPIs) and service level agreements (SLAs) are critical for ensuring the VA receives the quality and reliability of wireless telecommunications services it requires. While not detailed in the provided summary data, typical KPIs for such a contract would likely include network uptime percentages, data transmission speeds, call clarity and completion rates, response times for technical support, and device provisioning timelines. SLAs would define the minimum acceptable performance levels for these KPIs and outline remedies or credits if these levels are not met. For instance, an SLA might stipulate a 99.9% network uptime or a maximum latency for data services. The firm-fixed-price nature of the contract implies that the contractor is responsible for meeting these defined performance standards. Effective monitoring and enforcement of these KPIs and SLAs by the VA are essential to ensure value for money and operational continuity.

What is Cellco Partnership's track record with large federal government contracts, particularly for telecommunications?

Cellco Partnership, operating under the brand Verizon, has a significant track record of securing and performing on large federal government contracts, including those for telecommunications services. As one of the largest wireless carriers in the United States, Verizon consistently bids on and wins substantial government procurements across various agencies. Their experience typically encompasses providing a wide range of wireless solutions, from basic voice and data plans to advanced mobile device management, secure network solutions, and specialized communication services for defense and civilian agencies. Federal agencies often rely on established providers like Cellco Partnership due to their extensive network infrastructure, proven reliability, and established security protocols. A review of federal procurement databases would likely reveal numerous awards to Cellco Partnership/Verizon for wireless services, indicating a substantial presence and experience in serving the government market. Their ability to secure this VA contract further underscores their established position.

What are the potential risks associated with a long-term (over 3 years) contract for wireless services?

Long-term contracts for wireless services, such as this over three-year agreement, carry several potential risks. Technological advancements in wireless communication can occur rapidly; a three-year contract might mean the VA is not leveraging the latest, most efficient, or cost-effective technologies available towards the end of the term. There's also the risk of vendor lock-in, where transitioning to a new provider after the contract expires could be complex, costly, and disruptive to operations. Price escalation clauses, even in fixed-price contracts, or the potential for unforeseen increases in usage could lead to costs exceeding initial projections if not managed carefully. Furthermore, changes in the competitive landscape or the financial stability of the awarded vendor could pose risks. To mitigate these, contracts often include provisions for technology refreshes, clear transition-out plans, and performance-based metrics that incentivize the vendor to maintain high service standards throughout the contract duration.

How does this contract align with the VA's broader IT modernization and digital transformation goals?

This contract for enterprise-wide wireless telecommunications services is fundamental to the VA's broader IT modernization and digital transformation goals. Reliable and ubiquitous wireless connectivity is a foundational element for enabling advanced digital services, supporting a mobile healthcare workforce, and improving access to patient data. Modernizing wireless infrastructure allows the VA to deploy new technologies such as telehealth platforms, mobile electronic health record (EHR) access, and improved communication tools for staff, ultimately enhancing the quality and efficiency of care for veterans. By ensuring robust wireless capabilities, the VA can better support its digital initiatives, improve data sharing across its network, and provide a more seamless experience for both employees and beneficiaries. This contract, therefore, directly contributes to the VA's strategic objectives of leveraging technology to better serve the veteran community.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B22R0118

Offers Received: 3

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: $424,915,254

Exercised Options: $88,273,771

Current Obligation: $88,273,771

Actual Outlays: $53,835,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline