GSA's $346M wireless contract with Cellco Partnership awarded under full and open competition

Contract Overview

Contract Amount: $34,615,530 ($34.6M)

Contractor: Cellco Partnership

Awarding Agency: General Services Administration

Start Date: 2010-02-01

End Date: 2015-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS CELL AND WIRELESS EMAIL SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $34.6 million to CELLCO PARTNERSHIP for work described as: WIRELESS CELL AND WIRELESS EMAIL SERVICES. Key points: 1. The contract value of $346 million over five years suggests a significant investment in wireless communication services. 2. Awarded to Cellco Partnership, the contract's performance period of 1825 days indicates a long-term need for these services. 3. The 'Other Computer Related Services' NAICS code points to a broad scope of potential IT and communication support. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. With 4 bidders, the competition level appears moderate, potentially impacting price negotiation. 6. The absence of small business set-aside flags suggests the primary contractor is likely a large entity.

Value Assessment

Rating: fair

The contract value of $346 million over five years averages to approximately $69.2 million annually. Benchmarking this against similar large-scale federal wireless contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests an attempt to control costs. The number of bidders (4) indicates some level of competition, which is generally positive for value, but a higher number could have potentially driven prices lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Four bidders participated in the competition. While four bidders indicate a degree of market interest, it is not exceptionally high for a contract of this magnitude. This level of competition suggests that while some price discovery occurred, there might have been opportunities for even more aggressive pricing with a larger pool of interested vendors.

Taxpayer Impact: The full and open competition process is generally beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better service offerings. The presence of four bidders suggests that taxpayers likely received a reasonably competitive price, though more bidders could have potentially yielded greater savings.

Public Impact

Federal agencies utilizing General Services Administration (GSA) contracts benefit from streamlined procurement of wireless communication services. Government employees across various departments can access reliable wireless cell and email services, enhancing operational efficiency. The contract supports the District of Columbia's federal presence, ensuring communication infrastructure for federal operations in the capital. The IT services sector sees continued government investment, supporting jobs and innovation within the industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized or integrated.
Risk of cost overruns if contract scope is not precisely managed.
Dependence on a single large contractor could impact service resilience.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition generally leads to better value.
Long contract duration allows for stable service provision.

Sector Analysis

The Information Technology sector, specifically focusing on telecommunications and related computer services, is a substantial area of federal spending. Contracts like this represent a significant portion of the government's investment in maintaining modern communication capabilities. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT support, including network services, which wireless communication falls under. Federal spending in this area is driven by the need for secure, reliable, and widespread connectivity for government operations.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no specific provisions for small business participation were mandated in the award. This suggests that the primary contract is likely with a large telecommunications provider. While there's no explicit subcontracting requirement noted, large prime contractors often engage small businesses for specialized services, though the extent of this contract's impact on the small business ecosystem is not detailed.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. As a large federal agency, GSA has established procurement regulations and contract management processes. Oversight would typically involve monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight may be involved if specific issues of fraud, waste, or abuse arise.

Related Government Programs

GSA Schedule IT
Telecommunications Services
Wireless Communication Contracts
Federal IT Procurement

Risk Flags

Long contract duration may not keep pace with technological advancements.
Potential for price to become uncompetitive over the contract term.
Scope creep could lead to cost issues if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.6 million to CELLCO PARTNERSHIP. WIRELESS CELL AND WIRELESS EMAIL SERVICES.

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2010-02-01. End: 2015-01-31.

What specific wireless services are included under this contract?

The provided data indicates 'WIRELESS CELL AND WIRELESS EMAIL SERVICES.' However, the exact nature and scope of these services are not detailed. This could range from basic mobile phone plans and data services to more complex solutions like mobile device management, secure email gateways, or specialized communication platforms. Understanding the granular details of the service offerings would be crucial for a comprehensive value assessment and comparison to market rates. Without this information, it's difficult to ascertain if the $346 million represents a fair price for the specific capabilities provided.

How does the per-user cost compare to industry benchmarks?

To determine a per-user cost, we would need to know the number of users or devices covered by this contract. Assuming an average federal employee count or device deployment, we could then divide the total contract value ($346,155,303) by the number of users/devices over the contract period (1825 days or approximately 5 years). However, without knowing the number of users, a direct per-user cost benchmark is impossible. Furthermore, federal contracts often include specific security requirements or service level agreements that may differ from commercial offerings, influencing the cost. A comparison would require detailed service level agreements and user counts from both this contract and comparable commercial or government contracts.

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

Cellco Partnership, operating as Verizon Wireless, is a major telecommunications provider with a significant history of serving the federal government. They have held numerous contracts across various agencies for wireless services. Analyzing their past performance on similar large-scale federal contracts would involve reviewing contract completion records, any documented performance issues or awards, and their overall compliance history. Generally, large providers like Verizon have established processes for federal contracting, but specific performance on contracts of this scale and duration is key to assessing reliability and value. A deeper dive into their federal contract portfolio would reveal their consistency and effectiveness.

How has federal spending on wireless services evolved over the past decade?

Federal spending on wireless services has generally increased over the past decade, driven by the proliferation of mobile devices, the need for enhanced communication capabilities for field operations, and the adoption of cloud-based services requiring robust mobile connectivity. Agencies are increasingly relying on wireless solutions for everything from basic voice and data to mission-critical applications. This trend reflects broader technological shifts and the government's effort to modernize its IT infrastructure. While specific figures for wireless services fluctuate, the overall trajectory indicates a growing dependence and investment in mobile and wireless technologies across federal agencies.

What are the potential risks associated with a 5-year firm-fixed-price contract for wireless services?

A 5-year firm-fixed-price contract for wireless services presents several potential risks. Firstly, technology evolves rapidly in the wireless sector; a 5-year commitment might lock the government into older technology or less competitive pricing if market advancements occur mid-contract. Secondly, if the scope of services is not meticulously defined, the fixed price could become inadequate if usage or requirements significantly increase beyond initial projections. Conversely, if usage decreases, the government might be overpaying for unused capacity. Lastly, the contractor might face challenges in maintaining service quality or adapting to new regulatory requirements over such a long period, potentially leading to performance issues.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Communications Inc (UEI: 107212169)

Address: 180 WASHINGTON VALLEY ROAD, BEDMINSTER, NJ, 07

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,815,530

Exercised Options: $41,815,530

Current Obligation: $34,615,530

Parent Contract

Parent Award PIID: GS35F0119P

IDV Type: FSS

Timeline