DoD awards $12.9M for ETS E-LINE ACCESS, PORT, and EVC services to Verizon Business Network Services LLC
Contract Overview
Contract Amount: $12,947,468 ($12.9M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-28
End Date: 2026-10-27
Contract Duration: 1,825 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: ETS E-LINE ACCESS, PORT AND EVC SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $12.9 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: ETS E-LINE ACCESS, PORT AND EVC SERVICES Key points: 1. Contract awarded to a single, large provider, indicating potential market concentration. 2. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces inflation risk. 3. The contract duration of 5 years (1825 days) suggests a long-term need for these services. 4. Spending in the Wired Telecommunications Carriers sector is substantial, with this contract representing a portion of that.
Value Assessment
Rating: fair
The contract value of $12.9M over 5 years averages $2.59M annually. Benchmarking against similar telecommunications service contracts is difficult without more specific service details, but the annual spend appears moderate for a large federal agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity, Verizon, may indicate limited qualified bidders or a strategic choice for a consolidated provider.
Taxpayer Impact: Taxpayers are impacted by the $12.9M expenditure, with potential for increased costs due to economic price adjustments over the contract's life.
Public Impact
Ensures critical communication infrastructure for the Department of Defense. Supports essential services like E-LINE ACCESS, PORT, and EVC, vital for military operations and administration. Potential for price increases due to economic adjustments could impact future budgets. The reliance on a single vendor for these services raises questions about long-term vendor lock-in and flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Economic price adjustment clause may lead to cost overruns.
- Long contract duration could limit adoption of newer technologies.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Awarded under full and open competition.
- Supports essential defense communication needs.
- Established vendor with a track record.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is crucial for government operations. Spending in this sector is consistently high due to the essential nature of connectivity and communication services for federal agencies.
Small Business Impact
The contract was awarded to Verizon Business Network Services LLC, a large corporation. There is no indication of specific set-asides or subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, the long-term nature and economic price adjustment warrant ongoing monitoring for cost-effectiveness and performance.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) clause introduces cost uncertainty.
- Long contract duration (5 years) may not leverage future technological advancements.
- Potential for vendor lock-in with a single provider for critical services.
- Lack of specific service details makes comprehensive value assessment challenging.
Tags
wired-telecommunications-carriers, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to VERIZON BUSINESS NETWORK SERVICES LLC. ETS E-LINE ACCESS, PORT AND EVC SERVICES
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 $12.9 million.
What is the period of performance?
Start: 2021-10-28. End: 2026-10-27.
What specific services are included under 'ETS E-LINE ACCESS, PORT AND EVC SERVICES' and how do they align with current technological standards?
The provided data lacks specific details on the technical specifications of ETS E-LINE ACCESS, PORT, and EVC services. Understanding the exact nature of these services is crucial to assess their alignment with current technological standards and to determine if the chosen solution represents the most efficient and modern approach for the Department of Defense's communication needs.
How will the economic price adjustment clause be managed to mitigate potential cost increases for taxpayers?
The economic price adjustment (EPA) clause allows for price changes based on economic factors, such as inflation. To mitigate taxpayer impact, the Department of Defense should have clear mechanisms for monitoring and negotiating EPA adjustments, ensuring they are tied to verifiable economic indices and do not exceed reasonable market fluctuations. Regular reviews of the necessity and impact of the EPA are essential.
What is the strategy for ensuring competitive pricing and service quality from Verizon over the 5-year contract duration?
Given the full and open competition award, the initial pricing was deemed competitive. However, over a 5-year period, the agency should implement performance metrics and regular market comparisons to ensure continued value. Proactive contract management, including periodic reviews of service levels and pricing against evolving market rates, is key to maintaining competitive pricing and service quality.
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: 2
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: $591,919,349
Exercised Options: $113,050,967
Current Obligation: $12,947,468
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: 2021-10-28
Current End Date: 2026-10-27
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2025-12-22
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