DOJ's FBI spent $18.5M on wireless services, with Cellco Partnership awarded a firm fixed-price contract

Contract Overview

Contract Amount: $18,473,418 ($18.5M)

Contractor: Cellco Partnership

Awarding Agency: Department of Justice

Start Date: 2008-12-15

End Date: 2009-12-14

Contract Duration: 364 days

Daily Burn Rate: $50.8K/day

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS VOICE/DATA SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $18.5 million to CELLCO PARTNERSHIP for work described as: WIRELESS VOICE/DATA SERVICES Key points: 1. The contract value of $18.5 million represents a significant investment in essential communication infrastructure. 2. Competition dynamics for this contract are not immediately clear, potentially impacting price discovery. 3. The firm fixed-price structure suggests a defined scope and budget, offering cost certainty. 4. Performance context is limited without specific delivery metrics or service level agreements. 5. This contract falls within the telecommunications sector, supporting critical federal operations.

Value Assessment

Rating: fair

The contract value of $18.5 million for wireless services needs benchmarking against similar federal procurements for voice and data. Without specific details on the scope of services (e.g., number of users, data allowances, geographic coverage), a precise value-for-money assessment is challenging. However, the firm fixed-price nature indicates a pre-determined cost, which can be advantageous if the scope is well-defined and met. Further analysis would require comparing the per-unit costs or service bundles to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. Typically, federal contracts are competed through various methods, including full and open competition, sole-source awards, or limited competition. The number of bidders and the procurement method significantly influence price discovery and the potential for obtaining the best value for the government. Without this information, it's difficult to assess if the government received competitive pricing.

Taxpayer Impact: An unknown competition level means taxpayers may not have benefited from the most cost-effective pricing achievable through robust bidding processes.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from enhanced wireless communication capabilities. Essential law enforcement and investigative operations are supported by reliable voice and data services. The contract's geographic impact is likely nationwide, given the FBI's operational scope. Workforce implications include enabling field agents and support staff with necessary communication tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method raises concerns about potential overspending.
Absence of detailed performance metrics makes it difficult to assess service quality and value.
The firm fixed-price contract, while offering cost certainty, could lead to inflexibility if requirements change.

Positive Signals

The firm fixed-price contract provides budget predictability for the FBI.
Awarding to Cellco Partnership suggests a provider capable of meeting federal telecommunication needs.
The contract duration of one year allows for periodic re-evaluation of needs and market conditions.

Sector Analysis

This contract falls within the telecommunications sector, specifically wireless carriers. The market for wireless voice and data services is highly competitive, with major providers offering a range of plans and solutions. Federal agencies often procure these services through large contracts or individual plans. The $18.5 million expenditure is a component of the broader federal spending on communication technologies, which is essential for agency operations and national security. Benchmarking this spending would require comparing it to similar contracts awarded to other carriers or for comparable service levels.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Analysis of small business participation would require further investigation into the contract's specific terms and the awardee's subcontracting plan. Without this information, the impact on the small business ecosystem remains undetermined.

Oversight & Accountability

Oversight for this contract would typically reside within the FBI's procurement and program management offices. Accountability measures would be tied to the contract's terms and conditions, including service delivery and invoicing. Transparency is dependent on the public availability of contract details, which can vary. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Information Technology, Communications, and Services Contracts
Law Enforcement Communications
Wireless Telecommunications Services

Risk Flags

Lack of competition details
Limited performance metrics
Potential for service inflexibility under FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.5 million to CELLCO PARTNERSHIP. WIRELESS VOICE/DATA SERVICES

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2008-12-15. End: 2009-12-14.

What specific wireless services were included in this $18.5 million contract?

The provided data indicates 'WIRELESS VOICE/DATA SERVICES' but lacks granular detail on the specific services procured. This could encompass a range of offerings such as mobile phone plans, data cards, mobile hotspots, satellite phones, or specialized communication devices. The exact nature of the services is crucial for a comprehensive value assessment, as different service types carry varying costs and performance expectations. Without a detailed service catalog or statement of work, it is difficult to ascertain the precise technological capabilities and support provided to the Federal Bureau of Investigation (FBI) under this contract.

How does the $18.5 million contract value compare to similar federal procurements for wireless services?

Benchmarking the $18.5 million contract value requires comparison with similar federal procurements for wireless voice and data services. Factors such as the number of users, geographic coverage, data allowances, and contract duration significantly influence pricing. For instance, a contract supporting thousands of users nationwide would naturally be higher than one for a smaller, localized group. Without access to a database of comparable federal contracts, including their scope and pricing, it is challenging to definitively state whether $18.5 million represents a competitive price. However, for a one-year contract, this amount suggests a substantial service requirement, potentially for a large agency component like the FBI.

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

Cellco Partnership, operating as Verizon, is a major telecommunications provider with a significant history of serving federal government clients. They have been awarded numerous contracts across various agencies for wireless and network services. Their track record generally includes providing reliable infrastructure and a wide range of communication solutions. However, like any large contractor, specific contract performance can vary. A thorough assessment would involve reviewing past performance evaluations, any reported disputes or contract modifications, and customer satisfaction feedback related to their federal engagements to understand their reliability and responsiveness in meeting government requirements.

What are the potential risks associated with this firm fixed-price contract for wireless services?

The primary risk associated with a firm fixed-price (FFP) contract is inflexibility. If the FBI's requirements for wireless services change significantly during the contract period (e.g., need for more data, additional lines, or different service types), modifying the FFP contract can be complex and may lead to price adjustments or the need for a new contract. Conversely, if the contractor, Cellco Partnership, underestimates the costs or resources required to fulfill the contract, they bear the risk of reduced profit or even a loss. For the government, the risk lies in potentially not having the most up-to-date or flexible services if needs evolve rapidly, and in the possibility that the fixed price might not reflect the most current market rates if the contract is long-term or if market conditions shift dramatically.

What is the historical spending pattern for wireless services by the Federal Bureau of Investigation?

Analyzing the historical spending patterns of the Federal Bureau of Investigation (FBI) for wireless services is crucial for understanding the context of this $18.5 million contract. Without specific historical data, it's difficult to determine if this amount represents an increase, decrease, or stable level of expenditure compared to previous years. Factors such as agency growth, evolving technological needs, changes in service providers, and shifts in procurement strategies can all influence historical spending. A comprehensive review would involve examining annual spending reports, contract databases, and agency budget allocations related to telecommunications over several fiscal years to identify trends and justify current expenditure levels.

How does the North American Industry Classification System (NAICS) code 517210 inform the analysis of this contract?

The NAICS code 517210, 'Wireless Telecommunications Carriers (except Satellite),' precisely categorizes the industry sector for this contract. It signifies that the procurement is for services provided by companies primarily engaged in operating and providing access to wireless telecommunications infrastructure, such as cellular networks. This classification helps in understanding the market landscape, identifying potential competitors, and benchmarking costs against industry standards for wireless carriers. It confirms that the contract is for core mobile communication services, distinguishing it from satellite communications or wired telecommunications.

Industry Classification

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

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

Contractor Details

Parent Company: Verizon Communications Inc (UEI: 107212169)

Address: 1 VERIZON PLACE, ALPHARETTA, GA, 07

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $18,473,418

Exercised Options: $18,473,418

Current Obligation: $18,473,418

Parent Contract

Parent Award PIID: DJFJFBI07141

IDV Type: IDC

Timeline