DHS FEMA awards $18.4M for wireline telecom services to Verizon Federal Inc

Contract Overview

Contract Amount: $18,380,189 ($18.4M)

Contractor: Verizon Federal Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-12-01

End Date: 2011-12-15

Contract Duration: 744 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TELECOM SERVICES-WIRELINE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.4 million to VERIZON FEDERAL INC. for work described as: TELECOM SERVICES-WIRELINE Key points: 1. Significant contract value of $18.4 million for wireline telecommunications. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration of 744 days (2 years) with a firm fixed price. 4. Spending is within the IT sector, specifically telecommunications services.

Value Assessment

Rating: good

The contract value of $18.4 million for wireline services appears reasonable given the 2-year duration and the nature of telecom services. Benchmarking against similar large-scale government telecom contracts would provide a more precise assessment.

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 can lead to more competitive pricing. The use of a delivery order under a larger contract structure implies a structured procurement process.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Ensures critical communication infrastructure for FEMA operations. Supports disaster response and recovery efforts through reliable telecom. Provides essential services to a key federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Information Technology sector, specifically telecommunications services. Government spending on telecom services is substantial, supporting agency operations, data transmission, and communication networks nationwide. Benchmarks vary widely based on service type and volume.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in the bidding process.

Oversight & Accountability

The contract was awarded as a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this delivery order and adherence to the terms of the parent contract.

Related Government Programs

Risk Flags

Tags

wireless-telecommunications-carriers-exc, department-of-homeland-security, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.4 million to VERIZON FEDERAL INC.. TELECOM SERVICES-WIRELINE

Who is the contractor on this award?

The obligated recipient is VERIZON FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2009-12-01. End: 2011-12-15.

What specific wireline services were procured, and how do their costs compare to market rates for similar enterprise-level services?

The provided data specifies 'TELECOM SERVICES-WIRELINE' but lacks granular detail on the exact services (e.g., dedicated lines, VoIP, data circuits). A comprehensive market analysis comparing the unit costs and service levels against industry benchmarks for comparable enterprise solutions would be necessary to fully assess value for money.

Given the 2-year duration, what mechanisms are in place to mitigate the risk of vendor lock-in or price escalation beyond the initial term?

As the contract was awarded under full and open competition with a firm fixed price, initial price escalation risk is somewhat mitigated. However, the contract's structure and any renewal options should be reviewed to ensure FEMA can transition services or renegotiate terms effectively at the end of the period to avoid vendor lock-in.

How effectively did the full and open competition process ensure the best possible outcome for FEMA in terms of service quality and cost?

The full and open competition is a positive indicator for achieving a competitive price. However, effectiveness also depends on the clarity of the solicitation's requirements, the evaluation criteria used, and the number and quality of bids received. Without this detail, it's difficult to definitively assess the effectiveness beyond the procedural aspect.

Industry Classification

NAICS: InformationWireless Telecommunications Carriers (except Satellite)Wireless Telecommunications Carriers (except Satellite)

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Communications Inc

Address: 22001 LOUDOUN COUNTY PKWY STE C 2 1, 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: $83,266,323

Exercised Options: $18,982,571

Current Obligation: $18,380,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSFEHQ09D0118

IDV Type: IDC

Timeline

Start Date: 2009-12-01

Current End Date: 2011-12-15

Potential End Date: 2011-12-15 00:00:00

Last Modified: 2022-04-01

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