DOE's $10.2M Verizon Contract for Telecommunications Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $10,232,496 ($10.2M)
Contractor: Verizon Federal Inc.
Awarding Agency: Department of Energy
Start Date: 2001-01-15
End Date: 2009-09-30
Contract Duration: 3,180 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $10.2 million to VERIZON FEDERAL INC. for work described as: Key points: 1. Significant contract value of over $10 million highlights substantial investment in telecommunications. 2. Awarded to Verizon Federal Inc., indicating a competitive landscape with major industry players. 3. The contract duration spans nearly 9 years, suggesting a long-term need for these services. 4. Fixed-price contract type potentially offers cost predictability for the Department of Energy.
Value Assessment
Rating: good
The $10.2 million contract value over nearly 9 years suggests a reasonable annual spend. Without specific service details or benchmarks for similar telecommunications contracts, a precise pricing assessment is difficult, but the fixed-price nature provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs.
Public Impact
Ensures reliable telecommunications infrastructure for the Department of Energy's operations. Supports critical government functions through consistent communication services. Provides a stable platform for data transmission and connectivity across DOE facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific service details makes it hard to assess true value for money.
- Long contract duration could lead to vendor lock-in or missed opportunities for newer technologies.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed-price contract offers cost certainty.
- Long-term award indicates a stable and reliable service provider.
Sector Analysis
Telecommunications spending is crucial for government operations, enabling communication and data transfer. Benchmarks vary widely based on service type (voice, data, internet) and scale, but this contract represents a significant investment in essential infrastructure.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on contract performance, adherence to terms, and delivery of services as specified.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of detailed service description.
- Long contract duration may not reflect current technology.
- No explicit mention of small business participation.
- Potential for vendor lock-in over the contract's lifespan.
Tags
department-of-energy, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.2 million to VERIZON FEDERAL INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $10.2 million.
What is the period of performance?
Start: 2001-01-15. End: 2009-09-30.
What specific telecommunications services were procured under this contract, and how do their costs compare to industry standards for similar government contracts?
The provided data does not specify the exact telecommunications services. To assess value, a detailed breakdown of services (e.g., bandwidth, voice lines, data circuits) and their associated costs would be needed. Comparing these unit costs against government-wide acquisition contracts (GWACs) or other agency procurements for similar services would reveal if the pricing was competitive.
Given the nearly 9-year duration, what mechanisms were in place to ensure the Department of Energy could adapt to evolving telecommunications technologies and avoid obsolescence?
Long-term contracts require careful consideration of technological advancements. Mechanisms could include contract clauses allowing for service upgrades, periodic reviews of technology, or options for incorporating new services. Without specific contract details, it's unclear if such provisions were included to mitigate the risk of technological obsolescence over the contract's lifespan.
How effectively did the full and open competition process ensure the best possible value and performance for these essential telecommunications services?
Full and open competition is designed to maximize value by encouraging broad market participation. Its effectiveness hinges on clear requirements, a robust evaluation process, and competitive bidding. Assuming these elements were present, the process likely yielded competitive pricing and a suitable service provider, though ongoing performance monitoring is crucial to confirm sustained value.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Verizon Communications Inc
Address: 1320 N. COURTHOUSE ROAD, ARLINGTON, VA, 22201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,231,713
Exercised Options: $10,231,713
Current Obligation: $10,232,496
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS11K00BJD0005
IDV Type: IDC
Timeline
Start Date: 2001-01-15
Current End Date: 2009-09-30
Potential End Date: 2011-04-01 00:00:00
Last Modified: 2022-04-01
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