DHS Secret Service awarded $28M for cellular wireless services, with 3 bidders competing
Contract Overview
Contract Amount: $28,085,420 ($28.1M)
Contractor: Cellco Partnership
Awarding Agency: Department of Homeland Security
Start Date: 2017-04-07
End Date: 2021-07-23
Contract Duration: 1,568 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF CELLULAR WIRELESS SERVICE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223
Plain-Language Summary
Department of Homeland Security obligated $28.1 million to CELLCO PARTNERSHIP for work described as: IGF::OT::IGF CELLULAR WIRELESS SERVICE Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. The contract was awarded under full and open competition, indicating a competitive market. 3. Risk indicators are low, with a firm fixed-price contract type. 4. Performance context shows a multi-year service delivery for critical infrastructure. 5. This contract falls within the 'Other Computer Related Services' sector.
Value Assessment
Rating: good
The total award amount of $28,085,420.40 over approximately four years suggests a monthly cost of around $585,000. Benchmarking this against similar large-scale cellular service contracts for government agencies is challenging without more granular data on service levels and data volumes. However, the firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' with three bidders participating. This level of competition suggests that multiple vendors were interested and capable of providing the required cellular wireless services. The presence of three bidders likely contributed to price discovery and ensured the government received competitive pricing.
Taxpayer Impact: A competitive bidding process for essential services like cellular wireless helps ensure taxpayer dollars are used efficiently by driving down costs.
Public Impact
The U.S. Secret Service benefits from reliable cellular wireless communication services. Services delivered are critical for operational support and communication. The contract has a geographic impact primarily in Washington D.C. Workforce implications include support for agents and staff reliant on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Firm Fixed Price contract type mitigates cost overrun risks.
- Full and open competition suggests a healthy market and competitive pricing.
- The contract duration of over four years indicates a stable service provision.
Sector Analysis
This contract for cellular wireless services falls under the broader IT and telecommunications sector. The market for government telecommunications is substantial, with agencies relying heavily on robust and secure wireless solutions. Comparable spending benchmarks would involve analyzing other large federal contracts for enterprise-level mobile communication solutions, which often involve significant investment in network infrastructure and service plans.
Small Business Impact
There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. The primary contractor, Cellco Partnership (likely Verizon), is a large telecommunications provider. The impact on the small business ecosystem is likely minimal for this specific award, as it appears to be a direct award to a major carrier.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details.
Related Government Programs
- Federal Telecommunications Services
- Wireless Communication Services
- IT Services for Law Enforcement
Tags
it, defense, homeland-security, u-s-secret-service, delivery-order, full-and-open-competition, firm-fixed-price, cellular-wireless-service, district-of-columbia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $28.1 million to CELLCO PARTNERSHIP. IGF::OT::IGF CELLULAR WIRELESS SERVICE
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Secret Service).
What is the total obligated amount?
The obligated amount is $28.1 million.
What is the period of performance?
Start: 2017-04-07. End: 2021-07-23.
What specific cellular wireless services were provided under this contract?
The contract data indicates 'CELLULAR WIRELESS SERVICE' as the service description. While specific details are not provided in the summary data, this typically encompasses mobile voice and data services, potentially including mobile hotspots, cellular data plans for devices like laptops and tablets, and possibly specialized communication solutions for law enforcement operations. The U.S. Secret Service, as the recipient agency, would leverage these services for secure and reliable communication across various operational environments, including field investigations, protective details, and administrative functions.
How does the $28 million award compare to historical spending on similar services by the Secret Service or DHS?
Without access to historical spending data for the U.S. Secret Service or the Department of Homeland Security specifically for cellular wireless services, a direct comparison is difficult. However, $28 million over approximately four years represents a significant investment, averaging around $7 million annually. This figure suggests a substantial requirement for mobile communication capabilities, likely supporting a large number of personnel and diverse operational needs. Agencies of this size and mission often have substantial telecommunications budgets, and this award appears to be in line with expectations for comprehensive cellular services.
What are the potential risks associated with a firm fixed-price contract for cellular services?
Firm fixed-price (FFP) contracts are generally preferred for their cost certainty. For cellular services, the primary risk for the government under an FFP contract is paying for capacity or services that are not fully utilized, especially if usage patterns change significantly. Conversely, the risk for the contractor is underestimating the actual costs of providing the service over the contract period, potentially leading to reduced profit margins or even losses if usage or service demands exceed projections. However, for standardized services like cellular plans, the risks are generally manageable.
What is the significance of the 'Other Computer Related Services' NAICS code (541519)?
The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not classified elsewhere. For this contract, it suggests that the cellular wireless service provision might be integrated with other IT support functions or that the procurement vehicle used falls under this classification. It indicates the service is considered an IT-related support function rather than purely a telecommunications service, potentially including aspects of network management, integration, or support beyond basic connectivity.
What does the contract duration of 1568 days imply about the service's criticality and stability?
A contract duration of 1568 days, which is approximately 4 years and 3 months, implies a significant level of criticality and a need for stable, long-term service provision. For an agency like the U.S. Secret Service, reliable and consistent cellular communication is essential for its core missions, including protection of national leaders and critical events. A longer contract duration suggests that the agency has established a trusted relationship with the provider and that the services are integral to ongoing operations, reducing the need for frequent re-procurement and ensuring continuity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Communications Inc (UEI: 107212169)
Address: ONE VERIZON WAY, BASKING RIDGE, NJ, 07920
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,439,879
Exercised Options: $34,503,509
Current Obligation: $28,085,420
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0119P
IDV Type: FSS
Timeline
Start Date: 2017-04-07
Current End Date: 2021-07-23
Potential End Date: 2021-07-23 00:00:00
Last Modified: 2021-04-22
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