HHS Spends $30.5M on Verizon Communications Services, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $30,537,591 ($30.5M)
Contractor: Verizon Federal Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2003-11-19
End Date: 2004-09-30
Contract Duration: 316 days
Daily Burn Rate: $96.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: TELEPHONE AND-OR COMMUNICATIONS SER
Place of Performance
Location: MARYLAND
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.5 million to VERIZON FEDERAL INC. for work described as: TELEPHONE AND-OR COMMUNICATIONS SER Key points: 1. Significant spending on essential communications infrastructure. 2. Verizon Federal Inc. is the sole awardee for this delivery order. 3. Contract duration was 316 days, indicating a short-term need. 4. Fixed-price contract type suggests cost certainty for the government.
Value Assessment
Rating: fair
The $30.5M award for communications services appears substantial for a single delivery order. Benchmarking against similar, shorter-term contracts would be necessary to assess value.
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 specific award to Verizon Federal Inc. for this delivery order warrants further examination of the bidding landscape.
Taxpayer Impact: Taxpayers benefit from competitive bidding, but the overall value for money needs further assessment given the amount spent.
Public Impact
Ensures critical communication lines for HHS operations. Supports the functioning of the Office of the Assistant Secretary for Administration. Potential for service disruption if not managed effectively. Impact on federal agency's ability to communicate internally and externally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service descriptions.
- Limited contract duration may indicate recurring needs.
- No information on performance metrics or quality assurance.
Positive Signals
- Awarded through full and open competition.
- Fixed-price contract provides cost predictability.
Sector Analysis
Telecommunications services are critical for federal agency operations, enabling communication and data transfer. Spending benchmarks vary widely based on agency size, scope of services, and contract duration.
Small Business Impact
No information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight of this delivery order would involve monitoring service delivery, adherence to contract terms, and financial accountability. The limited duration suggests a focus on immediate operational needs.
Related Government Programs
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of detailed service scope.
- Short contract duration for significant spend.
- No information on performance metrics.
- Potential for uncaptured cost savings.
- Limited insight into competitive bidding details.
Tags
department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.5 million to VERIZON FEDERAL INC.. TELEPHONE AND-OR COMMUNICATIONS SER
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $30.5 million.
What is the period of performance?
Start: 2003-11-19. End: 2004-09-30.
What specific communication services were procured under this $30.5M delivery order, and how do they align with HHS's strategic objectives?
The data indicates 'TELEPHONE AND-OR COMMUNICATIONS SER' but lacks specificity. Understanding the exact services (e.g., voice, data, internet, specialized networks) is crucial to assess their alignment with HHS's mission and operational requirements. Without this detail, it's difficult to determine if the significant expenditure directly supports key agency goals or represents a general operational cost.
Given the fixed-price nature and full and open competition, what was the competitive landscape like, and were there opportunities for cost savings?
While awarded under full and open competition, the data doesn't reveal the number of bids received or the price spread. A competitive landscape with multiple strong bids typically drives down prices. Further investigation into the bidding process could reveal if the government secured the best possible price or if there were opportunities for negotiation or alternative solutions that might have yielded greater savings.
What is the rationale behind the short contract duration (316 days) for such a substantial amount, and does this indicate a recurring need or a gap-filling measure?
The short duration for a $30.5M delivery order suggests it was either a short-term solution to an immediate need or a placeholder for a larger, ongoing requirement. If it's a recurring need, the government may have missed opportunities for longer-term, potentially more cost-effective contracts. Understanding the context behind this short-term, high-value award is essential for assessing its effectiveness and future spending strategies.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Contractor Details
Parent Company: Verizon Communications Inc
Address: 1320 N. COURTHOUSE ROAD, ARLINGTON, VA, 22201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,537,591
Exercised Options: $30,537,591
Current Obligation: $30,537,591
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS11K00BJD0005
IDV Type: IDC
Timeline
Start Date: 2003-11-19
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2022-04-01
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