DoD's $49M Verizon contract for wired telecom services awarded via full and open competition
Contract Overview
Contract Amount: $49,145,333 ($49.1M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-15
End Date: 2016-11-03
Contract Duration: 1,785 days
Daily Burn Rate: $27.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000419EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.1 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000419EBM Key points: 1. Significant contract value of $49.1 million over nearly 5 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Spending falls within the 'Wired Telecommunications Carriers' sector.
Value Assessment
Rating: good
The contract's fixed-price nature provides cost certainty. Benchmarking against similar large-scale telecommunications contracts would be necessary for a precise value assessment, but the price appears reasonable for the duration and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure implies a structured procurement process.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in securing essential telecommunications services for the Department of Defense.
Public Impact
Ensures critical communication infrastructure for the Department of Defense. Supports national security by providing reliable network services. Impacts the telecommunications market through a significant contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Long-term service provision.
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, which is essential for government operations. Spending benchmarks for similar large-scale telecommunications services for federal agencies would provide further context on cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). The prime contractor, Verizon Business Network Services LLC, is a large corporation, suggesting limited direct opportunities for small businesses through this specific award.
Oversight & Accountability
The contract was awarded as a delivery order, implying it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance, service delivery, and adherence to contract terms by both the contractor and the Defense Information Systems Agency.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Service disruption risk.
- Technological obsolescence risk.
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 $49.1 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000419EBM
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 $49.1 million.
What is the period of performance?
Start: 2011-12-15. End: 2016-11-03.
What was the specific service provided under this contract?
This contract, identified by Duns Number VZBZ000419EBM, was for wired telecommunications carrier services. It was awarded to Verizon Business Network Services LLC by the Department of Defense's Defense Information Systems Agency, indicating a need for robust and reliable network infrastructure to support military communications and operations.
What are the primary risks associated with this contract?
While the contract utilized full and open competition and a firm fixed price, risks could include vendor lock-in if switching providers is difficult or costly, potential for service disruptions impacting critical DoD operations, and the possibility that the fixed price may not fully account for unforeseen technological advancements or market shifts over the contract's duration.
How effective is this contract in meeting DoD's telecommunications needs?
The contract's effectiveness is suggested by its nearly five-year duration and the fact that it was awarded to a major telecommunications provider. However, true effectiveness would be measured by the reliability, security, and performance of the delivered services, as well as the agency's ability to adapt to evolving technological requirements within the contracted framework.
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: $49,145,333
Exercised Options: $49,145,333
Current Obligation: $49,145,333
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: 2016-11-03
Potential End Date: 2016-11-03 00:00:00
Last Modified: 2019-05-02
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