DoD Awards $23.4M for Wired Telecommunications, Highlighting Long-Term Defense Information Systems Agency Contract
Contract Overview
Contract Amount: $23,442,560 ($23.4M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-12
End Date: 2025-05-29
Contract Duration: 5,585 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000193EBM
Place of Performance
Location: WAHIAWA, HONOLULU County, HAWAII, 96786
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000193EBM Key points: 1. Significant contract value of $23.4 million underscores the importance of reliable telecommunications for defense operations. 2. Competition method is 'FULL AND OPEN COMPETITION', suggesting a robust market for these services. 3. The contract duration extends to May 2025, indicating a long-term need and potential for sustained spending. 4. The sector is 'Wired Telecommunications Carriers', a critical infrastructure component for government agencies.
Value Assessment
Rating: good
The contract value of $23.4 million for wired telecommunications services appears reasonable given the extensive duration and the critical nature of the services provided to the Department of Defense. Benchmarking against similar long-term, high-availability network contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, as pricing is likely driven by market forces rather than sole-source limitations.
Public Impact
Ensures critical communication infrastructure for the Department of Defense remains operational. Supports national security by providing reliable telecommunications services to military operations. The long contract duration suggests a stable, ongoing need for these services, impacting future budget allocations. Potential for technological upgrades and service enhancements over the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Long-term contract for critical infrastructure
- Clear agency and service description
Sector Analysis
The 'Wired Telecommunications Carriers' sector is essential for government operations, providing the backbone for data transmission and communication. Spending in this sector is often characterized by long-term contracts due to the infrastructure investment required and the critical nature of the services.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular contract award. Further analysis would be needed to determine the extent of small business involvement in the broader telecommunications services market supporting the DoD.
Oversight & Accountability
The contract is managed by the Defense Information Systems Agency (DISA), which is responsible for providing information technology and communications support to the DoD. Oversight would focus on service delivery, performance metrics, and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration (over 15 years) may pose risks of technological obsolescence.
- Potential for vendor lock-in despite initial competition.
- Need for ongoing monitoring to ensure service quality and cost-effectiveness.
- Dependence on a single vendor for critical wired telecommunications infrastructure.
Tags
wired-telecommunications-carriers, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000193EBM
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 Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2010-02-12. End: 2025-05-29.
What specific telecommunications services are included under this contract, and how do they align with current and future DoD operational requirements?
The contract falls under the 'Wired Telecommunications Carriers' NAICS code (517110), suggesting services like dedicated network lines, broadband internet access, and potentially private network infrastructure. These are fundamental for secure and reliable data exchange, command and control systems, and general communication needs. Alignment with future requirements would depend on the contract's flexibility for upgrades and the evolving nature of DoD's digital transformation initiatives.
Are there any identified risks associated with the long duration of this contract, such as technological obsolescence or vendor lock-in?
A contract spanning from 2010 to 2025 carries inherent risks. Technological obsolescence is a concern, as telecommunications technology evolves rapidly. The government must ensure mechanisms are in place for service and equipment upgrades. Vendor lock-in is another potential risk, although mitigated by the initial 'full and open competition'. Regular performance reviews and market scans are crucial to manage these risks effectively.
How does the pricing structure (FIRM FIXED PRICE) ensure cost-effectiveness and value for taxpayer money over the contract's extended period?
A 'FIRM FIXED PRICE' contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. For a long-term contract, this structure aims to lock in favorable pricing early on. However, it requires careful initial negotiation to ensure the fixed price reflects realistic costs and includes provisions for potential market fluctuations or necessary service adjustments to maintain value over the entire duration.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $23,442,560
Exercised Options: $23,442,560
Current Obligation: $23,442,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101909D2000
IDV Type: IDC
Timeline
Start Date: 2010-02-12
Current End Date: 2025-05-29
Potential End Date: 2025-05-29 00:00:00
Last Modified: 2025-04-30
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