DoD awards $41.6M for Wired Telecommunications Carriers to Verizon Business Network Services LLC
Contract Overview
Contract Amount: $41,575,000 ($41.6M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-15
End Date: 2016-03-18
Contract Duration: 1,555 days
Daily Burn Rate: $26.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000418EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.6 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000418EBM Key points: 1. Significant contract value of $41.6 million awarded. 2. Full and open competition utilized, suggesting a competitive bidding process. 3. Contract duration of 1555 days indicates a long-term service requirement. 4. Firm fixed price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $41.6 million for wired telecommunications services appears reasonable given the 5-year duration. Benchmarking against similar large-scale telecommunications contracts would be necessary for a definitive assessment.
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 price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, although the specific savings compared to other procurement methods are not detailed.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of Defense. Supports national security operations through reliable network services. Impacts the telecommunications sector by awarding a substantial contract to a major provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or service level agreements in provided data.
- Potential for price escalation if contract terms are not tightly managed over the 5-year period.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
- Long-term award suggests a stable and reliable service provider.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is crucial for government operations. Spending in this sector is generally high due to the essential nature of communication networks.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor is Verizon Business Network Services LLC, a large corporation, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a component of the DoD responsible for information technology. Oversight would likely involve DISA's contract management and performance monitoring processes.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed service scope.
- Absence of specific performance metrics.
- Potential for vendor lock-in with a large, long-term contract.
- Limited visibility into small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.6 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000418EBM
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 $41.6 million.
What is the period of performance?
Start: 2011-12-15. End: 2016-03-18.
What specific telecommunications services are included in this contract and how do they align with current DoD technological needs?
The provided data identifies the North American Industry Classification System (NAICS) code 517110 for Wired Telecommunications Carriers. This typically encompasses services like broadband internet, dedicated lines, and voice transmission. However, the specific services procured under this $41.6 million award are not detailed. It's crucial to assess if these services meet the evolving technological requirements of the DoD, considering advancements in cybersecurity and network capabilities.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective service delivery?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. While the firm fixed price structure aims for cost control, the absence of explicit performance metrics raises concerns about ensuring optimal service quality and reliability. Effective oversight would require clearly defined SLAs to measure Verizon's performance against DoD requirements.
How does the $41.6 million award compare to industry benchmarks for similar wired telecommunications services over a 5-year period?
Without detailed service specifications, a precise benchmark is difficult. However, $41.6 million over approximately 5 years averages to about $8.32 million annually. This figure needs to be compared against market rates for comparable enterprise-level telecommunications solutions, considering factors like bandwidth, redundancy, and geographic coverage provided to the DoD.
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 Communications Inc (UEI: 107212169)
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: $41,575,000
Exercised Options: $41,575,000
Current Obligation: $41,575,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101909D2000
IDV Type: IDC
Timeline
Start Date: 2011-12-15
Current End Date: 2016-03-18
Potential End Date: 2016-03-18 00:00:00
Last Modified: 2019-05-02
More Contracts from Verizon Business Network Services LLC
- Centralized HHS EIS Requirement — $398.5M (Department of Health and Human Services)
- Enterprise Infrastructure Solutions (EIS) Program - SSA Data Network Services (ssanet) — $283.5M (Social Security Administration)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Department of the Treasury)
- National Security and Emergency Preparedness (ns/Ep) Priority Service (PS) With Verizon Business Services — $205.1M (Department of Defense)
- Toll Free Contact Center (tfcc)-Verizon-Exercise Option Period 1 YR 3 — $192.8M (Department of the Treasury)
View all Verizon Business Network Services LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)