DOT awards $3.8M FFP task order to Verizon for telecom lab planning and design

Contract Overview

Contract Amount: $3,799,742 ($3.8M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of Transportation

Start Date: 2026-01-16

End Date: 2026-06-30

Contract Duration: 165 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS IS A FIRM FIXED PRICE (FFP) TASK ORDER FOR LOW LEVEL DESIGN (LLD) AND VERIZON PROOF OF CONCEPT LAB PLANNING. THIS TASK ORDER IS ORDERED IN ACCORDANCE WITH SECTION C.4.2, SUPPORT SERVICES (EXCLUDING ALL SUBSECTIONS AND C.4.1 J ATTACHMENTS).

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.8 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: THIS IS A FIRM FIXED PRICE (FFP) TASK ORDER FOR LOW LEVEL DESIGN (LLD) AND VERIZON PROOF OF CONCEPT LAB PLANNING. THIS TASK ORDER IS ORDERED IN ACCORDANCE WITH SECTION C.4.2, SUPPORT SERVICES (EXCLUDING ALL SUBSECTIONS AND C.4.1 J ATTACHMENTS). Key points: 1. Task order awarded under a broader support services contract, indicating potential for follow-on work. 2. Firm Fixed Price (FFP) contract type suggests a defined scope and cost, reducing financial risk for the government. 3. The contract is for low-level design and proof-of-concept lab planning, a foundational step in technology deployment. 4. Competition was full and open, implying a robust market for these services and potential for competitive pricing. 5. The contract duration of 165 days is relatively short, suggesting a focused, project-specific objective. 6. The North American Industry Classification System (NAICS) code 517111 points to wired telecommunications carriers, a specialized sector.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive indicator for value. While specific cost comparisons are difficult without more detailed scope information, the price appears reasonable for specialized telecommunications design and planning services. The benchmark for similar task orders would depend heavily on the complexity of the lab and the specific design deliverables required. The total award amount of approximately $3.8 million for a 165-day period suggests a focused effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these specialized telecommunications services. This process is designed to ensure the government receives the best value by leveraging market competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through vendor rivalry and ensuring that the government is not locked into a single provider, leading to more cost-effective solutions.

Public Impact

The Federal Aviation Administration (FAA) benefits from improved planning for its telecommunications infrastructure. Verizon Business Network Services LLC will deliver low-level design and proof-of-concept lab planning services. The services are geographically focused within Virginia, where the FAA's operations are likely concentrated. The contract supports the modernization and efficiency of critical FAA communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'proof of concept' phase expands beyond initial planning.
Dependence on Verizon's specific technical expertise could limit future flexibility if not well-documented.
The short duration might indicate a tightly constrained scope, requiring efficient execution.

Positive Signals

Firm Fixed Price contract reduces cost overrun risk for the government.
Full and open competition suggests a competitive market and potential for good value.
Task order awarded under an existing contract vehicle, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. The market for such services is characterized by significant infrastructure investment and technological evolution. The FAA's need for advanced telecommunications design and planning is crucial for maintaining and upgrading its operational capabilities. Comparable spending benchmarks would typically be found within IT and communications infrastructure procurements for large federal agencies, often involving multi-year, multi-million dollar investments.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation in this specific task order. However, the prime contractor, Verizon, may engage small businesses as subcontractors, though this is not detailed in the provided information. The impact on the small business ecosystem would depend on whether subcontracting opportunities are made available.

Oversight & Accountability

Oversight for this task order would likely fall under the Federal Aviation Administration's contracting officer and program managers. Accountability measures are inherent in the Firm Fixed Price (FFP) contract type, which obligates the contractor to deliver the specified scope within the agreed-upon price. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA Telecommunications Modernization Programs
Department of Transportation IT Infrastructure Contracts
Federal Network Services Contracts
Cloud and Network Services Contracts

Risk Flags

Short contract duration may indicate a tightly scoped project, requiring efficient execution.
Proof-of-concept phase requires clear definition of success metrics to avoid scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.8 million to VERIZON BUSINESS NETWORK SERVICES LLC. THIS IS A FIRM FIXED PRICE (FFP) TASK ORDER FOR LOW LEVEL DESIGN (LLD) AND VERIZON PROOF OF CONCEPT LAB PLANNING. THIS TASK ORDER IS ORDERED IN ACCORDANCE WITH SECTION C.4.2, SUPPORT SERVICES (EXCLUDING ALL SUBSECTIONS AND C.4.1 J ATTACHMENTS).

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 Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2026-01-16. End: 2026-06-30.

What is the specific scope of the 'low level design' and 'proof of concept lab planning' for this task order?

The provided data indicates the task order is for 'Low Level Design (LLD) and Verizon Proof of Concept Lab Planning'. Low-level design typically involves detailed technical specifications and blueprints for implementing a system or network. Proof-of-concept lab planning refers to the preparatory work for setting up a controlled environment to test and validate new technologies or solutions before full-scale deployment. For the FAA, this likely pertains to planning for advanced telecommunications infrastructure, potentially related to air traffic control systems, network upgrades, or new communication technologies. The exact deliverables would be detailed in the Statement of Work (SOW) attached to the task order, which is not provided here but would specify the technical requirements, testing protocols, and expected outcomes for the lab setup and design.

How does the $3.8 million award compare to similar telecommunications design and planning contracts within the federal government?

Benchmarking this $3.8 million award requires comparing it to similar task orders for telecommunications design and proof-of-concept lab planning within federal agencies. Without access to detailed contract databases filtered by specific services (LLD, PoC planning) and duration (165 days), a precise comparison is challenging. However, for specialized, short-term design and planning efforts, this amount appears within a reasonable range for a large agency like the FAA. Larger, multi-year network infrastructure projects would naturally command significantly higher figures. The firm fixed price nature suggests a well-defined scope, which aids in value assessment. Further analysis would involve examining contracts with similar NAICS codes (517111) and contract types (FFP) awarded over the past 1-2 years.

What are the potential risks associated with this contract, given its focus on proof-of-concept planning?

The primary risks associated with this proof-of-concept planning contract revolve around the transition from planning to execution and the definition of success. A key risk is the potential for scope creep if the 'proof of concept' phase is not tightly managed, leading to unforeseen costs and delays beyond the initial $3.8 million award. Another risk is the successful translation of the lab planning into a functional and effective real-world implementation; a poorly planned proof-of-concept might not accurately reflect operational needs. Furthermore, dependence on Verizon's proprietary solutions or expertise for the proof-of-concept could pose a future risk if the FAA seeks to diversify its technology providers or if the chosen solution proves suboptimal. Clear success metrics and a well-defined exit strategy from the proof-of-concept phase are crucial to mitigate these risks.

What is Verizon Business Network Services LLC's track record with the Federal Aviation Administration or Department of Transportation?

Verizon Business Network Services LLC has a history of contracting with federal agencies, including the Department of Transportation (DOT) and its various administrations like the Federal Aviation Administration (FAA). While the specific details of their past performance on similar task orders are not provided in the given data, Verizon is a major telecommunications provider that frequently secures contracts for network infrastructure, telecommunications services, and IT support across the federal government. Their track record typically involves providing a wide range of services from basic connectivity to complex network solutions. A deeper dive into federal procurement databases would reveal the extent and nature of their previous awards with the FAA and DOT, including contract values, performance ratings, and the types of services rendered, which would offer a more comprehensive view of their experience.

How does the contract duration of 165 days impact the assessment of value for money?

The contract duration of 165 days (approximately 5.5 months) suggests a focused, project-specific effort rather than a long-term service provision. For a firm fixed-price contract, a shorter duration generally implies a well-defined and achievable scope within that timeframe. This can be advantageous for value for money assessment, as it limits the period during which costs are incurred and reduces the potential for prolonged inefficiencies. It indicates that the FAA likely has a clear, near-term objective for the lab planning and design. However, it also means that the value derived is tied to the successful completion of these specific planning deliverables within the set period. If the planning is complex, 165 days might be tight, potentially leading to rushed work if not managed effectively, which could indirectly impact long-term value.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $3,799,742

Exercised Options: $3,799,742

Current Obligation: $3,799,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA823D00010

IDV Type: IDC

Timeline