GSA awards $29.6M for Telephone Maintenance & Repair to Verizon Federal Inc
Contract Overview
Contract Amount: $29,567,226 ($29.6M)
Contractor: Verizon Federal Inc.
Awarding Agency: General Services Administration
Start Date: 2006-09-28
End Date: 2011-09-28
Contract Duration: 1,826 days
Daily Burn Rate: $16.2K/day
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TELEPHONE MAINTENANCE AND REPAIR SERVICE
Place of Performance
Location: GRANGEVILLE, IDAHO County, IDAHO, 83530
State: Idaho Government Spending
Plain-Language Summary
General Services Administration obligated $29.6 million to VERIZON FEDERAL INC. for work described as: TELEPHONE MAINTENANCE AND REPAIR SERVICE Key points: 1. Significant contract value of $29.6 million over 5 years. 2. Sole-source award to Verizon Federal Inc. raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Long-term contract duration may limit flexibility and innovation.
Value Assessment
Rating: questionable
The contract value of $29.6 million over five years for telephone maintenance and repair services is substantial. Without competitive benchmarks, it's difficult to assess if this pricing is optimal compared to similar government or commercial contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Verizon Federal Inc., was considered. This significantly limits price discovery and competition, potentially leading to less favorable terms for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these services compared to what could have been achieved through a competitive bidding process.
Public Impact
Government agencies rely on consistent telephone services for essential operations. The long duration of the contract could impact the adoption of newer, more cost-effective communication technologies. Verizon Federal Inc. is a major telecommunications provider, suggesting a significant market presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Established vendor with known capabilities
Sector Analysis
This contract falls within the telecommunications sector, which is critical for government operations. Spending benchmarks for similar maintenance and repair services can vary widely based on the scope and technology involved.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which could represent a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for sole-sourcing was robust.
Related Government Programs
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Sole-source award lacks competition
- Potential for overpayment due to lack of price discovery
- Risk of outdated technology adoption
- Limited opportunity for small business participation
- Long contract duration may reduce flexibility
Tags
general-services-administration, id, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $29.6 million to VERIZON FEDERAL INC.. TELEPHONE MAINTENANCE AND REPAIR SERVICE
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2006-09-28. End: 2011-09-28.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one vendor possesses the necessary capabilities, proprietary technology, or unique qualifications to meet the government's requirements. Without specific documentation, it's presumed that GSA determined Verizon Federal Inc. was the only viable option, potentially due to existing infrastructure or specialized service needs that could not be met by other providers within the required timeframe or scope.
How does the pricing compare to industry standards for similar services, considering the lack of competition?
Without competitive bids, it is challenging to establish a precise comparison to industry standards. However, sole-source contracts often carry a risk of inflated pricing because the vendor faces no direct competition. A thorough review of the contract's pricing structure against publicly available telecommunications service rates and government-wide purchasing agreements would be necessary to assess potential overpayment.
What is the potential impact on technological modernization and cost savings over the contract's lifespan?
The five-year duration of this contract, coupled with its sole-source nature, could hinder technological modernization. The government might be locked into older technologies or service plans, missing out on advancements that could offer better performance or lower costs. This lack of competitive pressure may also disincentivize the vendor from offering more cost-effective solutions or upgrades during the contract period.
Contractor Details
Parent Company: Verizon Communications Inc
Address: 1320 N. COURTHOUSE ROAD, 8TH FLOOR, ARLINGTON, VA, 22201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,567,226
Exercised Options: $29,567,226
Current Obligation: $29,567,226
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T03AHD0006
IDV Type: IDC
Timeline
Start Date: 2006-09-28
Current End Date: 2011-09-28
Potential End Date: 2011-09-28 00:00:00
Last Modified: 2022-04-01
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