DoD's $67.6M Verizon Contract for Wired Telecom Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $67,597,333 ($67.6M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-15
End Date: 2015-10-31
Contract Duration: 1,416 days
Daily Burn Rate: $47.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000421EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $67.6 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000421EBM Key points: 1. Significant contract value of $67.6 million over 4 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. No small business participation noted, a potential area for review. 4. Sector is Wired Telecommunications Carriers, essential for defense operations.
Value Assessment
Rating: good
The contract value of $67.6 million over approximately 4 years suggests a substantial investment. Benchmarking against similar large-scale telecommunications contracts would be necessary for a precise assessment, but the firm-fixed-price structure provides cost certainty.
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 allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best overall value for the services procured.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of Defense. Supports the Defense Information Systems Agency's operational needs. Long-term contract (over 3 years) provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for vendor lock-in with long-term contracts.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is crucial for maintaining robust communication networks. Spending in this sector for government agencies can be significant, with benchmarks varying based on the scale and complexity of the required services.
Small Business Impact
The data indicates that this contract did not involve small businesses, as indicated by 'sb': false. Further analysis could explore if opportunities were missed for small business participation or if the nature of the requirement necessitated larger prime contractors.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract vehicle, suggesting that some level of pre-award oversight and competition may have occurred. Post-award oversight would focus on performance and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of small business participation.
- Potential for price increases in subsequent delivery orders.
- Dependence on a single large vendor for critical infrastructure.
- Contract duration may limit flexibility for adopting newer technologies.
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 $67.6 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000421EBM
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 $67.6 million.
What is the period of performance?
Start: 2011-12-15. End: 2015-10-31.
What was the specific nature of the wired telecommunications services provided under this contract, and how did they align with DISA's mission requirements?
The contract, NAICS code 517110, covers Wired Telecommunications Carriers. This typically includes services like providing access to telecommunications networks, dedicated lines, and related infrastructure. For DISA, these services are fundamental for secure and reliable command and control, data transmission, and communication support for military operations globally.
Given the $67.6 million value, what were the key performance indicators (KPIs) and service level agreements (SLAs) established to ensure effective service delivery and accountability?
While specific KPIs and SLAs are not detailed in the provided data, firm-fixed-price contracts often include performance metrics tied to uptime, latency, bandwidth, and response times for service restoration. Effective oversight by DISA would involve regular performance reviews against these metrics to ensure Verizon Business Network Services LLC met its contractual obligations.
Were there any specific cybersecurity requirements or compliance mandates associated with this contract, considering the sensitive nature of Department of Defense communications?
Given the agency (Department of Defense) and the nature of telecommunications services, it is highly probable that stringent cybersecurity requirements and compliance mandates were integrated into the contract. This would include adherence to specific DoD security protocols, data encryption standards, and potentially certifications for handling classified or sensitive information.
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: $67,597,333
Exercised Options: $67,597,333
Current Obligation: $67,597,333
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: 2015-10-31
Potential End Date: 2015-10-31 00:00:00
Last Modified: 2019-05-02
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