DoD Awards $35.5M for CSVS Basic ISDN BRI to Verizon Business
Contract Overview
Contract Amount: $35,484,897 ($35.5M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-27
End Date: 2026-10-26
Contract Duration: 1,825 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: CSVS BASIC ISDN BRI
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $35.5 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: CSVS BASIC ISDN BRI Key points: 1. Significant contract value for telecommunications services. 2. Verizon Business is a major player in the network services sector. 3. Potential for price fluctuations due to economic price adjustment. 4. Services support critical defense information infrastructure.
Value Assessment
Rating: good
The contract value of $35.5M over 5 years appears reasonable for comprehensive wired telecommunications services. Benchmarking against similar large-scale government network contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential telecommunications infrastructure.
Public Impact
Ensures reliable communication for Department of Defense operations. Supports critical data transmission needs for national security. Provides essential connectivity for military personnel and systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides budget stability.
- Supports vital defense communication needs.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is crucial for government operations. Spending in this sector is often substantial due to the need for secure and reliable networks.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are likely involved in fulfilling the service requirements.
Oversight & Accountability
The award process through full and open competition implies a degree of oversight. However, ongoing monitoring of performance and adherence to the economic price adjustment terms is crucial.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) clause.
- Potential for vendor lock-in.
- Legacy technology (ISDN BRI).
- Cybersecurity risks associated with telecommunications infrastructure.
Tags
wired-telecommunications-carriers, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.5 million to VERIZON BUSINESS NETWORK SERVICES LLC. CSVS BASIC ISDN BRI
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 $35.5 million.
What is the period of performance?
Start: 2021-10-27. End: 2026-10-26.
What is the specific impact of the economic price adjustment on the final cost?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in economic factors, such as inflation or material costs. Without specific indices or caps defined in the contract, the ultimate impact on the final cost is uncertain and could potentially increase the total expenditure beyond the initial $35.5M estimate if economic conditions are unfavorable.
What are the risks associated with relying on Verizon for this critical infrastructure?
Reliance on a single provider like Verizon for critical defense communication infrastructure carries inherent risks. These include potential service disruptions due to vendor-specific issues, lack of leverage for renegotiation if prices rise significantly, and national security concerns related to foreign ownership or influence if the vendor's supply chain is compromised.
How effectively does this contract meet the evolving telecommunications needs of the DoD?
The contract is for ISDN BRI, which is a legacy technology. While it may meet current basic needs, its effectiveness in supporting the evolving, high-bandwidth, and advanced communication requirements of the modern DoD is questionable. Future contracts may need to address more contemporary solutions.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $2,081,311,533
Exercised Options: $351,761,610
Current Obligation: $35,484,897
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17NSD3009
IDV Type: IDC
Timeline
Start Date: 2021-10-27
Current End Date: 2026-10-26
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2025-12-02
More Contracts from Verizon Business Network Services LLC
- Centralized HHS EIS Requirement — $398.5M (Department of Health and Human Services)
- Enterprise Infrastructure Solutions (EIS) Program - SSA Data Network Services (ssanet) — $283.5M (Social Security Administration)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Department of the Treasury)
- National Security and Emergency Preparedness (ns/Ep) Priority Service (PS) With Verizon Business Services — $205.1M (Department of Defense)
- Toll Free Contact Center (tfcc)-Verizon-Exercise Option Period 1 YR 3 — $192.8M (Department of the Treasury)
View all Verizon Business Network Services LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)