DoD awards $114.8M contract to Verizon for Wired Telecommunications Carriers, full and open competition
Contract Overview
Contract Amount: $114,833,288 ($114.8M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-15
End Date: 2017-04-23
Contract Duration: 1,956 days
Daily Burn Rate: $58.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000423EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $114.8 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000423EBM Key points: 1. Significant contract value of $114.8 million awarded to Verizon. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over 1900 days, indicating a long-term service requirement. 4. The sector is Wired Telecommunications Carriers, crucial for defense communications.
Value Assessment
Rating: good
The contract value of $114.8M over 1956 days averages approximately $58,708 per day. This appears reasonable given the nature of telecommunications services for a large agency like DISA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of multiple award contracts (no=2) suggests a structured approach to competition.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the telecommunications services.
Public Impact
Ensures critical telecommunications infrastructure for the Department of Defense. Supports national security by providing reliable network services. Impacts users within the DoD who rely on these wired networks for daily operations.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in with long-term contracts.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for essential services.
- Utilizes a firm fixed price contract type, offering cost certainty.
Sector Analysis
The Wired Telecommunications Carriers sector is vital for government operations, providing the backbone for data transmission and communication. Spending in this sector is generally consistent, with significant portions allocated to large federal agencies requiring robust and secure networks.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. This contract appears to have been awarded to a large, established telecommunications provider.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a component of the Department of Defense, suggesting established oversight mechanisms. The use of a firm fixed price contract type aids in cost control.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Contract duration is lengthy (1956 days).
- No specific performance metrics provided.
- Potential for service obsolescence over the contract term.
- Lack of small business participation noted.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.8 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000423EBM
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 $114.8 million.
What is the period of performance?
Start: 2011-12-15. End: 2017-04-23.
What specific telecommunications services are included under this contract, and how do they align with current technological needs?
The provided data categorizes the service under 'Wired Telecommunications Carriers' (NAICS 517110). While the specific services are not detailed, this typically encompasses the provision and maintenance of wired network infrastructure, including broadband, dedicated lines, and related support. Further analysis would require reviewing the contract's statement of work to ensure alignment with evolving DoD technological requirements and to assess if it includes modern capabilities like fiber optics and high-speed data transmission.
What were the key factors considered during the 'full and open competition' that led to Verizon being selected?
During a 'full and open competition,' multiple factors are typically evaluated, including technical capabilities, past performance, price, and adherence to security requirements. For this contract, Verizon likely demonstrated a strong combination of network coverage, service reliability, and competitive pricing that met or exceeded the Defense Information Systems Agency's (DISA) requirements. The evaluation process would have aimed to identify the offeror providing the best overall value to the government.
How does the $114.8 million contract value compare to similar telecommunications contracts awarded by the DoD or other federal agencies?
The $114.8 million contract value over approximately five years is substantial but not unusual for large-scale telecommunications services supporting a major federal agency like the DoD. Benchmarking against similar contracts for wired telecommunications infrastructure and services would reveal if this represents a competitive price point. Factors like geographic coverage, service level agreements, and the specific technologies offered would influence comparisons, but this value suggests a significant, long-term commitment to network infrastructure.
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: $114,833,288
Exercised Options: $114,833,288
Current Obligation: $114,833,288
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: 2017-04-23
Potential End Date: 2017-04-23 00:00:00
Last Modified: 2021-02-19
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