DHS Coast Guard awards $20.3M Verizon contract for wired telecommunications services in DC

Contract Overview

Contract Amount: $20,307,633 ($20.3M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-30

End Date: 2026-08-29

Contract Duration: 729 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GSA - EIS LOCAL TELECOMMUNICATION SERVICES

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.3 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: GSA - EIS LOCAL TELECOMMUNICATION SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is 729 days, indicating a medium-term service requirement. 3. The fixed-price contract type aims to control costs for the government. 4. Verizon Business Network Services LLC is the selected contractor. 5. The contract falls under the Wired Telecommunications Carriers industry. 6. The award is a delivery order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $20.3 million over approximately two years for telecommunications services appears reasonable given the scope. Benchmarking against similar GSA EIS contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government. Without specific service details or performance metrics, a definitive value assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

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. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While not a large number, it implies that multiple providers were interested and capable of meeting the government's requirements, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by ensuring that the government receives competitive pricing and that the chosen contractor is qualified to perform the services.

Public Impact

The U.S. Coast Guard will benefit from reliable wired telecommunications services. These services are essential for operational communication and data transmission. The geographic impact is focused on the District of Columbia. The contract supports the Coast Guard's mission readiness and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single provider for critical telecommunications infrastructure.
Need for ongoing monitoring to ensure service level agreements are met.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps control costs.
Contractor has a significant presence and experience in telecommunications services.
Delivery order under a larger contract vehicle (GSA EIS) may indicate pre-negotiated favorable terms.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, a mature industry dominated by large providers. The GSA's Enterprise Infrastructure Solutions (EIS) program, under which this delivery order was likely placed, aims to modernize federal telecommunications and network services. Spending in this sector for government is substantial, with agencies relying heavily on robust network infrastructure for daily operations. Comparable spending benchmarks would typically be found within GSA's EIS program data or similar large-scale government network procurements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a large contract vehicle, it is unlikely to have specific small business subcontracting requirements unless stipulated in the parent contract. The primary contractor, Verizon, is a large business, suggesting that the direct economic impact on the small business ecosystem from this specific award will be minimal, though larger prime contractors often have broader subcontracting programs.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices, with potential review by the Department of Homeland Security's Office of Inspector General. The GSA EIS program itself has oversight mechanisms to ensure program integrity and contractor performance. Transparency is facilitated through contract award databases like FPDS. The firm-fixed-price nature of the contract provides a degree of accountability regarding cost.

Related Government Programs

GSA Enterprise Infrastructure Solutions (EIS)
Wired Telecommunications Services
Department of Homeland Security Telecommunications
U.S. Coast Guard IT and Communications

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical infrastructure
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.3 million to VERIZON BUSINESS NETWORK SERVICES LLC. GSA - EIS LOCAL TELECOMMUNICATION SERVICES

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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2024-08-30. End: 2026-08-29.

What is Verizon Business Network Services LLC's track record with similar government telecommunications contracts, particularly under the GSA EIS program?

Verizon Business Network Services LLC is a major telecommunications provider with extensive experience serving government agencies. As a prime contractor on the GSA EIS program, they have a significant portfolio of awarded contracts for various telecommunications and network services across federal agencies. Their track record generally includes providing a wide range of services such as voice, data, and video transport, managed network services, and cybersecurity solutions. Performance data for specific contracts, including on-time delivery, service quality, and customer satisfaction, would be available through government performance management systems and potentially within agency-specific contract files. Historically, large telecommunications providers like Verizon are accustomed to the rigorous requirements and oversight associated with federal contracts.

How does the awarded price of $20.3 million compare to similar wired telecommunications service contracts awarded by the GSA or other agencies for the District of Columbia?

Benchmarking the $20.3 million award requires comparing it against similar GSA EIS contracts or other federal procurements for wired telecommunications services within the District of Columbia. Given the contract duration of approximately 729 days (2 years), the annual value is roughly $10.15 million. This figure needs to be assessed against the scope of services (e.g., bandwidth, number of circuits, types of services) and the number of locations supported. Without detailed service level agreements and quantity breakdowns, a precise comparison is difficult. However, the fact that it was awarded under full and open competition with three bidders suggests the pricing is likely competitive within the market for such services. GSA's own data and reports on the EIS program can provide aggregated spending and pricing trends that would aid in this comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential service disruptions, cybersecurity threats, and the possibility of cost increases if the firm-fixed-price contract doesn't adequately cover all potential future needs or if scope creep occurs. Mitigation strategies typically involve robust Service Level Agreements (SLAs) with defined penalties for non-performance, stringent cybersecurity requirements and monitoring, and proactive contract management by the U.S. Coast Guard to prevent scope creep. The firm-fixed-price structure itself is a risk mitigation tool against cost overruns. Regular performance reviews and communication channels with Verizon are also crucial for identifying and addressing issues early.

How effective is the GSA EIS program in delivering value for money for telecommunications services like this one?

The GSA EIS program was designed to consolidate and modernize federal telecommunications contracts, aiming for greater efficiency and cost savings compared to legacy contracts. Its effectiveness in delivering value for money is generally considered positive, driven by large-scale purchasing power, standardized service offerings, and competitive bidding processes. However, the actual value realized can vary depending on the specific agency, the services procured, and the negotiation of individual delivery orders. The program's success is often measured by its ability to provide agencies with flexible, secure, and cost-effective solutions while fostering competition among major telecommunications providers. Continuous evaluation and adaptation of the program are necessary to ensure ongoing value.

What has been the historical spending trend for wired telecommunications services by the Department of Homeland Security and the U.S. Coast Guard?

Historical spending on wired telecommunications services by the Department of Homeland Security (DHS) and its components, like the U.S. Coast Guard, has been substantial, reflecting the critical need for reliable communication infrastructure. Prior to the widespread adoption of programs like GSA EIS, agencies often managed numerous individual contracts, leading to fragmented spending and potentially higher costs. With the transition to EIS, spending patterns are increasingly consolidated under this umbrella contract vehicle. Analyzing historical data would show a trend towards modernization and consolidation, with agencies seeking more integrated and secure network solutions. Specific dollar amounts would require detailed analysis of past contract awards databases, but the overall trend indicates a consistent and significant investment in maintaining and upgrading telecommunications capabilities.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,219,516

Exercised Options: $20,307,633

Current Obligation: $20,307,633

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