DoD's $15M wireless contract with Cellco Partnership shows strong competition and fair pricing
Contract Overview
Contract Amount: $15,041,738 ($15.0M)
Contractor: Cellco Partnership
Awarding Agency: Department of Defense
Start Date: 2018-08-29
End Date: 2025-03-31
Contract Duration: 2,406 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF WIRELESS SERVICES
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to CELLCO PARTNERSHIP for work described as: IGF::OT::IGF WIRELESS SERVICES Key points: 1. Value for money appears favorable given the firm-fixed-price structure and competitive bidding. 2. Strong competition was present, with multiple bidders vying for this contract. 3. Risk indicators are low due to the established contractor and clear service scope. 4. Performance context suggests a need for reliable wireless services within the Navy. 5. Sector positioning is within telecommunications, a critical support function for defense operations.
Value Assessment
Rating: good
The contract's firm-fixed-price nature suggests predictable costs. While specific benchmarking data for this exact service is limited, the presence of multiple bidders indicates a competitive environment that likely drove pricing towards market rates. The total award value of approximately $15 million over its duration appears reasonable for comprehensive wireless telecommunications services supporting a major military branch.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bidders participated, suggesting a healthy level of competition for this requirement. This competitive process is expected to yield better pricing and service options for the government.
Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best terms.
Public Impact
The Department of the Navy benefits from reliable wireless telecommunications services. This contract supports essential communication infrastructure for naval operations. The primary geographic impact is within Maryland, where the contract is managed. Workforce implications are likely related to the deployment and maintenance of wireless infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future requirements are not re-competed.
- Dependence on a single provider for critical communication services could pose a risk.
Positive Signals
- Firm-fixed-price contract limits cost overruns.
- Full and open competition suggests a fair market price was achieved.
- Long-term contract provides stability for service delivery.
Sector Analysis
The wireless telecommunications carriers sector is a vital component of the broader IT and communications industry. This contract falls under NAICS code 517312, encompassing wireless carriers. The market is characterized by significant infrastructure investment and evolving technologies. Government spending in this area is crucial for maintaining operational readiness and supporting diverse mission requirements.
Small Business Impact
There is no indication that this contract included specific small business set-asides. However, the prime contractor, Cellco Partnership, may engage small businesses as subcontractors for various support services. The level of subcontracting to small businesses would depend on the specific needs and the prime contractor's procurement practices.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm-fixed-price structure provides a degree of cost control. Transparency is maintained through contract award databases. The Department of the Navy's contracting officers are responsible for oversight, and the Inspector General's office may conduct audits or investigations if warranted.
Related Government Programs
- General Services Administration (GSA) Schedule Contracts
- Other Department of Defense Telecommunications Contracts
- Federal Communications Commission (FCC) Spectrum Management
Risk Flags
- Potential for vendor lock-in
- Dependence on a single provider for critical communications
Tags
telecommunications, wireless-services, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, maryland, large-contract, it-services, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to CELLCO PARTNERSHIP. IGF::OT::IGF WIRELESS SERVICES
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.0 million.
What is the period of performance?
Start: 2018-08-29. End: 2025-03-31.
What is the historical spending trend for wireless services by the Department of the Navy?
Analyzing historical spending for wireless services by the Department of the Navy reveals a consistent and significant investment in telecommunications infrastructure. While specific figures fluctuate year-to-year based on evolving needs and technological advancements, the overall trend indicates a sustained requirement for robust wireless capabilities. This particular contract, awarded in 2018 with an end date in 2025, represents a substantial portion of the Navy's spending in this category during its performance period. Prior to this award, the Navy likely utilized a mix of other contract vehicles, including potentially older GSA schedules or other agency-specific contracts, to procure similar services. Understanding these historical patterns is crucial for assessing the current contract's value and forecasting future budgetary needs for wireless communications.
How does the per-unit cost of this contract compare to similar wireless service contracts awarded by other federal agencies?
Benchmarking the per-unit cost for this contract against similar wireless service agreements across federal agencies is challenging without access to detailed service level agreements and specific usage metrics for each contract. However, the fact that this contract was awarded under full and open competition with three bidders suggests that the pricing achieved is likely competitive within the market. Generally, large-scale wireless service contracts for government entities aim for economies of scale. If this contract provides a broad range of services across numerous users, its per-unit cost, when normalized for service type and volume, might be comparable to or even better than contracts with less competitive solicitations or smaller scopes. Further analysis would require detailed comparison of service plans, data allowances, and geographic coverage.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
The primary risks associated with this wireless services contract include potential service disruptions, technological obsolescence, and over-reliance on a single vendor. Service disruptions could impact critical Navy operations, while rapid technological advancements might render the contracted services outdated before the contract's end. Over-reliance on Cellco Partnership could also limit flexibility in adopting newer, potentially more cost-effective solutions. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with penalties for non-performance, regular reviews of technological advancements to ensure the services remain relevant, and contingency planning for service continuity. The firm-fixed-price nature also mitigates financial risk for the government, ensuring costs are predictable.
What is the track record of Cellco Partnership (Verizon) in fulfilling large federal telecommunications contracts?
Cellco Partnership, operating as Verizon, has a substantial and generally positive track record in fulfilling large federal telecommunications contracts. As one of the major wireless carriers in the United States, Verizon consistently secures significant government awards across various agencies, including the Department of Defense, Department of Homeland Security, and civilian agencies. Their experience typically encompasses providing a wide array of services, from mobile voice and data to complex network solutions. While specific performance metrics for every contract are not publicly detailed, Verizon's continued success in winning competitive bids suggests a demonstrated ability to meet government requirements regarding service quality, reliability, and security. Any past performance issues would typically be documented in federal contract databases and considered during future solicitations.
How does the duration and value of this contract align with typical federal procurements for similar wireless services?
The duration of this contract, approximately 2.5 years (from August 2018 to March 2025), and its total value of around $15 million are generally aligned with typical federal procurements for large-scale wireless telecommunications services. Federal agencies often opt for multi-year contracts, sometimes with option periods, to ensure service continuity and leverage volume discounts. The firm-fixed-price structure is common for services where the scope is well-defined. The value reflects the extensive network coverage, data capacity, and support required by a major entity like the Department of the Navy. Shorter durations might lead to frequent re-procurement costs and potential service interruptions, while excessively long contracts could risk locking the government into outdated technology or unfavorable pricing.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wireless Telecommunications Carriers (except Satellite)
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 Maryland LLC
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: $21,183,583
Exercised Options: $21,183,583
Current Obligation: $15,041,738
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0024418D0003
IDV Type: IDC
Timeline
Start Date: 2018-08-29
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-09-26
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