DoD's $43.3M Verizon contract for wired telecom services awarded via full and open competition
Contract Overview
Contract Amount: $43,359,500 ($43.4M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-15
End Date: 2014-11-30
Contract Duration: 1,081 days
Daily Burn Rate: $40.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000422EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.4 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000422EBM Key points: 1. Significant contract value for telecommunications infrastructure. 2. Competition was open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to service delivery and technology obsolescence. 4. Sector is IT/Telecommunications, crucial for defense operations.
Value Assessment
Rating: good
The contract value of $43.3M over approximately three years appears reasonable for large-scale telecommunications services. Benchmarking against similar large federal contracts for enterprise network services would provide a more precise 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 can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it allows for market forces to drive pricing.
Public Impact
Ensures critical communication infrastructure for the Department of Defense. Supports national security by providing reliable network services. Potential for technology upgrades and service enhancements through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed carefully.
- Reliance on a single vendor for critical infrastructure.
- Service disruptions could impact military operations.
Positive Signals
- Awarded through full and open competition.
- Fixed-price contract type helps control costs.
- Long-term contract provides service stability.
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically wired telecommunications carriers. Spending in this area is substantial across government agencies, supporting essential operational needs and data transmission.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no direct indication of small business participation in this specific award.
Oversight & Accountability
The award was a delivery order under a larger contract vehicle, suggesting existing oversight mechanisms. Further review of the parent contract and DISA's procurement processes would clarify specific oversight measures.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Service disruption risk
- Technology obsolescence
- Vendor lock-in potential
- Dependence on critical infrastructure
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 $43.4 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000422EBM
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 $43.4 million.
What is the period of performance?
Start: 2011-12-15. End: 2014-11-30.
What is the specific service level agreement (SLA) and performance metrics associated with this contract, and how are they monitored?
The provided data does not detail the specific Service Level Agreements (SLAs) or performance metrics. However, for a contract of this nature supporting the Department of Defense, robust SLAs are typically expected, covering aspects like uptime, latency, and repair times. Monitoring would likely involve regular performance reports from Verizon and audits by the Defense Information Systems Agency (DISA) to ensure compliance and identify any service deficiencies.
How does the pricing of this contract compare to industry benchmarks for similar large-scale enterprise network services, considering the duration and scope?
Without specific details on the services provided (e.g., bandwidth, circuit types, locations), a precise comparison is difficult. However, $43.3 million over roughly three years for enterprise-wide telecommunications services for a major agency like the DoD suggests a significant investment. Benchmarking would require comparing unit costs for specific services against GSA schedules or other large federal/commercial contracts to assess value.
What is the plan for technology refresh or transition to newer telecommunications technologies beyond the contract's end date to avoid obsolescence?
The data does not specify a technology refresh plan. Given the contract end date of November 2014, the DoD would have needed to plan for transition or renewal well in advance. Agencies typically issue new solicitations or modifications to incorporate newer technologies, ensuring they stay current with advancements in wired telecommunications to maintain operational effectiveness and security.
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: $43,359,500
Exercised Options: $43,359,500
Current Obligation: $43,359,500
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: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2019-05-02
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