EEOC awards $7.86M to Verizon for Telecom Transition, ending 2026

Contract Overview

Contract Amount: $7,858,489 ($7.9M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Equal Employment Opportunity Commission

Start Date: 2019-09-25

End Date: 2026-09-24

Contract Duration: 2,556 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS - TELECOM TRANSITION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20507

State: District of Columbia Government Spending

Plain-Language Summary

Equal Employment Opportunity Commission obligated $7.9 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS - TELECOM TRANSITION Key points: 1. Significant contract value of $7.86 million. 2. Sole provider identified as Verizon Business Network Services LLC. 3. Potential risk associated with a single provider for critical telecom services. 4. Spending falls within the Wired Telecommunications Carriers sector.

Value Assessment

Rating: fair

The contract value of $7.86 million over approximately 7 years appears reasonable for enterprise-level telecommunications services. Benchmarking against similar government-wide contracts for telecom infrastructure 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 a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process is expected to yield a fair price for taxpayers, although specific savings from competition are not detailed.

Public Impact

Ensures continued telecommunications services for the EEOC. Supports the agency's operational needs through reliable network infrastructure. Potential for service disruptions if provider fails to meet contractual obligations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential vendor lock-in despite initial competition.

Positive Signals

Awarded under full and open competition.
Long-term contract provides service stability.

Sector Analysis

This contract falls under the Wired Telecommunications Carriers sector, which includes services like broadband, voice, and data transmission. Government spending in this sector is substantial, supporting agency operations nationwide.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.

Oversight & Accountability

The Equal Employment Opportunity Commission is responsible for overseeing this contract. Standard government procurement oversight processes should apply to ensure compliance and performance.

Related Government Programs

Wired Telecommunications Carriers
Equal Employment Opportunity Commission Contracting
Equal Employment Opportunity Commission Programs

Risk Flags

Potential for vendor lock-in.
Economic price adjustment introduces cost uncertainty.
Long contract duration may limit flexibility.
No explicit mention of cybersecurity requirements.

Frequently Asked Questions

What is this federal contract paying for?

Equal Employment Opportunity Commission awarded $7.9 million to VERIZON BUSINESS NETWORK SERVICES LLC. ENTERPRISE INFRASTRUCTURE SOLUTIONS - TELECOM TRANSITION

Who is the contractor on this award?

The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Equal Employment Opportunity Commission (Equal Employment Opportunity Commission).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2019-09-25. End: 2026-09-24.

What is the specific nature of the 'Telecom Transition' and its impact on EEOC's operations?

The 'Telecom Transition' likely refers to an upgrade or migration of the EEOC's telecommunications infrastructure to more modern or efficient systems. This could involve moving from legacy systems to cloud-based solutions, upgrading network hardware, or consolidating service providers. The impact on operations would depend on the scope, potentially leading to improved connectivity, enhanced security, or reduced downtime if successful, but also risks of disruption during the transition phase.

Are there any identified risks associated with Verizon's sole provision of these services post-transition?

While awarded under full and open competition, the long duration (ending 2026) and the nature of enterprise infrastructure mean Verizon becomes the sole provider for the contract term. Risks include potential price increases upon renewal, dependency on a single vendor's technology roadmap, and the challenge of switching providers if performance issues arise or if better solutions emerge elsewhere. Mitigation strategies might involve strong performance clauses and regular market reviews.

How does the fixed price with economic price adjustment clause impact overall cost certainty for taxpayers?

The 'Fixed Price with Economic Price Adjustment' (FP-EPA) clause allows for price changes based on an agreed-upon index, typically related to inflation or specific input costs. While the base price is fixed, the EPA introduces variability, making precise long-term cost forecasting challenging for taxpayers. It aims to protect both the government from excessive price hikes and the contractor from unforeseen cost increases, but requires careful monitoring of the adjustment mechanism.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 45310019R0001

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,812,654

Exercised Options: $9,363,654

Current Obligation: $7,858,489

Actual Outlays: $3,111,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3009

IDV Type: IDC

Timeline