DoD Awards $41.5M Verizon Contract for Wired Telecom Services, Ending Oct 2025
Contract Overview
Contract Amount: $41,472,575 ($41.5M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2015-09-29
End Date: 2025-10-05
Contract Duration: 3,659 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF VZBZ000617EBM STM-64 ITALY-BAHRAIN
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.5 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: IGF::OT::IGF VZBZ000617EBM STM-64 ITALY-BAHRAIN Key points: 1. Significant contract value of $41.5 million over its term. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Sector is Wired Telecommunications Carriers, crucial for defense communications.
Value Assessment
Rating: good
The contract value of $41.5 million over approximately 10 years suggests a competitive annual spend. Benchmarking against similar large-scale telecommunications contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives best value. The specific price discovery mechanisms within this competitive process are not detailed.
Taxpayer Impact: Taxpayers benefit from competitive bidding, aiming for cost-effectiveness in essential telecommunications services for the Department of Defense.
Public Impact
Ensures reliable communication infrastructure for Department of Defense operations. Supports national security by maintaining critical network services. Potential for technological advancements through competitive service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price erosion if technology shifts rapidly.
- Dependence on a single provider for critical infrastructure.
Positive Signals
- Full and open competition promotes cost savings.
- Fixed-price contract provides budget certainty.
- Long-term award ensures service continuity.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, a vital component of the IT infrastructure supporting government operations. Spending in this area is substantial and ongoing, reflecting the critical need for reliable connectivity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Awarded by the Defense Information Systems Agency (DISA), this contract likely falls under established oversight mechanisms for telecommunications procurement. Accountability is managed through contract performance monitoring and reporting.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for technological obsolescence over the contract term.
- Long-term reliance on a single vendor for critical infrastructure.
- Lack of specific detail on performance metrics and service level agreements.
- No clear indication of small business subcontracting goals.
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 $41.5 million to VERIZON BUSINESS NETWORK SERVICES LLC. IGF::OT::IGF VZBZ000617EBM STM-64 ITALY-BAHRAIN
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 $41.5 million.
What is the period of performance?
Start: 2015-09-29. End: 2025-10-05.
What is the average annual cost of this contract, and how does it compare to industry benchmarks for similar services?
The total award is $41,472,575 over approximately 10 years (3659 days). This averages to roughly $11,334 per day or approximately $4.15 million per year. Comparing this to industry benchmarks for large-scale, secure government telecommunications services would require detailed analysis of service levels, bandwidth, and geographic coverage provided.
What are the specific risks associated with a 10-year contract for wired telecommunications, particularly regarding technological obsolescence?
A significant risk is technological obsolescence. Over a decade, telecommunications technology can evolve rapidly. If the contract terms do not allow for upgrades or adaptation to newer technologies, the government may be left with outdated infrastructure, impacting performance and security. Mitigation strategies could include periodic reviews or technology refresh clauses.
How effectively does this contract support the core mission of the Defense Information Systems Agency (DISA)?
This contract directly supports DISA's mission by providing essential wired telecommunications infrastructure. Reliable connectivity is fundamental for secure data transmission, command and control, and operational support for the Department of Defense. The long-term nature of the award suggests a strategic commitment to ensuring this foundational capability.
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
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $41,472,575
Exercised Options: $41,472,575
Current Obligation: $41,472,575
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101909D2000
IDV Type: IDC
Timeline
Start Date: 2015-09-29
Current End Date: 2025-10-05
Potential End Date: 2025-10-05 00:00:00
Last Modified: 2025-09-05
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