DoD's $29.7M Verizon contract for Telecommunications Resellers awarded via full and open competition
Contract Overview
Contract Amount: $29,776,786 ($29.8M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2021-05-26
End Date: 2027-05-19
Contract Duration: 2,184 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VBNS000001EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VBNS000001EBM Key points: 1. Significant contract value of $29.7 million. 2. Awarded to a major telecommunications provider, Verizon Business Network Services LLC. 3. Full and open competition suggests potential for competitive pricing. 4. Contract duration extends to May 2027, indicating long-term need.
Value Assessment
Rating: good
The contract value of $29.7 million appears reasonable given the duration and the nature of telecommunications services. Benchmarking against similar large-scale government telecommunications contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and fosters price discovery. This method is generally expected to yield competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures critical telecommunications infrastructure for the Department of Defense. Supports national security operations through reliable network services. Impacts users within the Department of Defense relying on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases over the contract term.
- Dependence on a single vendor for critical services.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides service stability.
Sector Analysis
This contract falls within the Information Technology sector, specifically telecommunications services. Government spending on IT and telecommunications is substantial, with contracts often running into millions or billions of dollars for large agencies like the DoD.
Small Business Impact
While this contract was awarded under full and open competition, there is no specific indication of small business participation or set-asides. Large telecommunications contracts often involve prime contractors who may then subcontract to smaller businesses.
Oversight & Accountability
The contract is managed by the Defense Information Systems Agency (DISA), which is responsible for providing IT and communication services to the DoD. Oversight would involve monitoring service delivery, performance, and adherence to contract terms.
Related Government Programs
- Telecommunications Resellers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration may limit flexibility.
- Potential for price escalation over time.
- Dependence on a single provider for critical infrastructure.
- Lack of explicit small business participation noted.
Tags
telecommunications-resellers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to VERIZON BUSINESS NETWORK SERVICES LLC. VBNS000001EBM
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 Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2021-05-26. End: 2027-05-19.
What specific telecommunications services are included in this contract?
The data indicates 'Telecommunications Resellers' under the NAICS code 517911. This typically encompasses services like voice, data, and internet connectivity, potentially including managed network services, circuit provisioning, and related support. Specific details would be found in the contract's statement of work.
What is the potential risk of vendor lock-in with this contract?
While awarded competitively, the long duration (until 2027) and the nature of specialized telecommunications infrastructure can lead to a degree of vendor lock-in. Transitioning to a new provider could be complex and costly, necessitating careful performance monitoring and planning for future procurements.
How does this contract contribute to the DoD's overall IT modernization efforts?
This contract likely provides essential network backbone services that support various DoD IT systems and applications. Its effectiveness hinges on ensuring these services are reliable, secure, and scalable to meet evolving operational requirements and potentially integrate with broader modernization initiatives.
Industry Classification
NAICS: Information › Other Telecommunications › Telecommunications Resellers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC101319R0006
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: $53,620,664
Exercised Options: $29,776,786
Current Obligation: $29,776,786
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101321D0002
IDV Type: IDC
Timeline
Start Date: 2021-05-26
Current End Date: 2027-05-19
Potential End Date: 2031-05-19 00:00:00
Last Modified: 2025-04-09
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