DHS awards $16.7M contract for wireless services to Cellco Partnership (Verizon), with a 1660-day duration

Contract Overview

Contract Amount: $16,717,790 ($16.7M)

Contractor: Cellco Partnership

Awarding Agency: Department of Homeland Security

Start Date: 2021-03-15

End Date: 2025-09-30

Contract Duration: 1,660 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VERISON WIRELESS

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.7 million to CELLCO PARTNERSHIP for work described as: VERISON WIRELESS Key points: 1. The contract value represents a significant investment in telecommunications infrastructure for U.S. Customs and Border Protection. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration of 1660 days indicates a long-term need for these wireless services. 5. The North American Industry Classification System (NAICS) code 541519 suggests a focus on computer-related services beyond standard telecommunications. 6. The contract is managed by the Department of Homeland Security, highlighting its critical operational importance.

Value Assessment

Rating: good

The contract value of $16.7 million over approximately 4.5 years for wireless services appears reasonable given the scope and duration. Benchmarking against similar large-scale federal telecommunications contracts suggests that pricing is likely competitive, especially considering the firm-fixed-price structure which shifts cost risk to the contractor. The absence of specific performance metrics in the provided data makes a detailed value-for-money assessment challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The use of full and open competition suggests that the agency sought the best possible value through a broad solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential wireless services, preventing potential overspending associated with less competitive or sole-source awards.

Public Impact

U.S. Customs and Border Protection officers and personnel will benefit from reliable wireless communication services essential for border security operations. The services delivered will support critical functions such as data transmission, communication, and operational coordination across various locations. The contract's geographic impact is likely nationwide, supporting CBP operations across U.S. borders and potentially inland facilities. The contract supports the technology infrastructure necessary for the CBP workforce, enabling them to perform their duties more effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess service quality and contractor responsiveness.
The long contract duration could lead to potential lock-in and reduced flexibility if technology or needs change significantly.
Reliance on a single vendor for critical wireless services could pose a risk if the vendor experiences service disruptions.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides budget certainty and transfers cost overrun risk to the contractor.
The contractor, Cellco Partnership (Verizon), is a major telecommunications provider with extensive infrastructure and experience.

Sector Analysis

The telecommunications sector is a vital component of federal IT infrastructure, enabling communication and data transfer across all government agencies. This contract falls within the broader IT services market, specifically focusing on wireless communication solutions. The federal government is a significant consumer of telecommunications services, with spending often driven by the need for secure, reliable, and widespread connectivity to support diverse operational requirements. Benchmarks for similar large-scale wireless service contracts would typically consider factors like data volume, user count, geographic coverage, and service level agreements.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Cellco Partnership (Verizon), may engage small businesses as subcontractors to fulfill parts of the contract, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting plan.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Homeland Security, specifically U.S. Customs and Border Protection. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Telecommunications Services
Wireless Communication Contracts
Department of Homeland Security IT Spending
U.S. Customs and Border Protection Operations
Information Technology Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Dependence on a single provider for critical services.
Potential for service disruptions impacting operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.7 million to CELLCO PARTNERSHIP. VERISON WIRELESS

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2021-03-15. End: 2025-09-30.

What is the historical spending pattern for wireless services by U.S. Customs and Border Protection?

Analyzing historical spending requires access to detailed contract databases beyond the provided data. However, federal agencies like CBP typically have ongoing needs for wireless services, often awarded through multiple contracts over time. Spending patterns can fluctuate based on technological advancements, operational expansions, and budget allocations. A review of past awards for similar services would reveal trends in contract values, durations, and awarded vendors. For instance, if CBP has consistently awarded large, multi-year contracts for wireless services, it indicates a stable and significant requirement. Conversely, a shift towards smaller, more frequent awards might suggest a move towards more agile procurement or evolving service needs. Without specific historical data, it's presumed that CBP maintains a consistent investment in wireless communications to support its vast operational mandate.

How does the per-unit cost of this contract compare to market rates for similar wireless services?

A precise per-unit cost comparison is challenging without detailed service specifications (e.g., data per user, voice minutes, device types) and specific market rate data for comparable federal contracts. However, the contract's firm-fixed-price nature and full and open competition suggest an effort to align costs with market realities. Major providers like Verizon typically offer tiered pricing based on volume and service levels. To benchmark effectively, one would need to identify the exact services procured (e.g., cellular data plans, mobile hotspots, satellite communication) and compare the aggregated cost against industry price lists or rates paid by other large organizations for similar service packages. Given Verizon's market position, it's plausible the negotiated rates are competitive, but a definitive assessment requires granular data on service components and market benchmarks.

What are the key performance indicators (KPIs) associated with this contract, and how is performance monitored?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, for wireless services contracts, typical KPIs often include network availability (uptime), data speeds, latency, call completion rates, and customer support response times. Performance monitoring by U.S. Customs and Border Protection would likely involve regular reporting from the contractor (Cellco Partnership/Verizon), periodic service reviews, and potentially the use of network monitoring tools. The agency would track these KPIs against agreed-upon service level agreements (SLAs) outlined in the contract. Failure to meet KPIs could result in penalties or remedies as defined in the contract terms, although the specifics are not detailed here.

What is the track record of Cellco Partnership (Verizon) in fulfilling similar federal wireless service contracts?

Cellco Partnership, operating as Verizon, has a substantial track record of fulfilling federal government contracts for wireless and telecommunications services. As one of the largest mobile network operators in the United States, Verizon possesses extensive infrastructure and experience serving large enterprise and government clients. Their history includes numerous awards for providing mobile data, voice, and related services to various federal agencies. While specific performance details for past contracts are not provided here, Verizon's continued success in securing federal contracts suggests a generally positive performance history and capability to meet government requirements. Agencies often consider a contractor's past performance when making award decisions.

Are there any identified risks or potential challenges associated with this contract, and how are they being mitigated?

Potential risks associated with this contract include technological obsolescence, service disruptions, and vendor lock-in, given the long duration. Technological obsolescence is a risk as wireless technology evolves rapidly; mitigation might involve contract clauses allowing for upgrades or periodic reviews. Service disruptions, though unlikely with a major provider like Verizon, could be mitigated through robust SLAs and contingency plans. Vendor lock-in is managed by the initial competitive procurement process and potential future re-competition. The firm-fixed-price structure mitigates financial risks for the government related to cost overruns. The agency's oversight and the contractor's established reputation also serve as risk mitigation factors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 1 VERIZON WAY, BASKING RIDGE, NJ, 07920

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,717,790

Exercised Options: $16,717,790

Current Obligation: $16,717,790

Actual Outlays: $9,187,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B04C20A00000016

IDV Type: BPA

Timeline