Commerce Department's $113.8M cellular services contract awarded to Cellco Partnership for wireless telecommunications

Contract Overview

Contract Amount: $113,795 ($113.8K)

Contractor: Cellco Partnership

Awarding Agency: Department of Commerce

Start Date: 2023-03-07

End Date: 2027-01-23

Contract Duration: 1,418 days

Daily Burn Rate: $80/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CELLULAR SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98112

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $113,794.67 to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICES Key points: 1. The contract value represents a significant investment in essential communication infrastructure for the agency. 2. Competition dynamics appear robust, with a full and open competition process. 3. The firm-fixed-price structure suggests predictable costs, mitigating some financial risk. 4. Performance context is tied to ongoing wireless telecommunications needs. 5. This contract positions the agency to leverage current cellular technologies. 6. The duration of the contract indicates a long-term strategic need for these services.

Value Assessment

Rating: good

Benchmarking the value of this $113.8 million contract requires detailed analysis of the specific services procured and the prevailing market rates for cellular services at the time of award. Without granular data on the scope of services (e.g., number of lines, data allowances, international roaming), direct comparison is challenging. However, the firm-fixed-price nature suggests an attempt to lock in costs, which can be advantageous if rates are competitive. The award to Cellco Partnership, a major provider, implies access to a wide network and potentially competitive pricing structures, though the absence of specific per-unit cost data prevents a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bids (as suggested by 'no': 4) implies a healthy level of competition for this requirement. This competitive process is generally expected to drive prices down and encourage innovation, leading to better value for the government. The agency likely evaluated proposals based on a combination of technical merit and price to ensure the best overall value was obtained.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive prices, preventing potential overspending associated with less competitive procurement methods.

Public Impact

The Department of Commerce and its various offices will benefit from reliable and potentially advanced cellular communication services. Essential wireless telecommunications services will be delivered, supporting daily operations, data transmission, and communication needs across the agency. The geographic impact is likely national, given the nature of cellular services, supporting personnel in various locations within Washington D.C. and potentially beyond. Workforce implications include ensuring employees have the necessary tools for communication and mobile data access, enhancing productivity and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if market conditions shift unfavorably.
Dependence on a single provider for critical communication infrastructure could pose a risk if service disruptions occur.
Ensuring the contract terms adequately cover evolving technological needs and security requirements.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and value.
Firm-fixed-price contract type provides cost certainty for the duration of the award.
The contract duration of over three years indicates a stable and predictable service provision.
Cellco Partnership is a major telecommunications provider, suggesting a high likelihood of reliable service delivery.

Sector Analysis

The wireless telecommunications sector is a mature and highly competitive market dominated by a few large providers. Government spending in this area supports the operational needs of federal agencies, ensuring connectivity for personnel and data services. This contract fits within the broader category of telecommunications services, which are critical for modern government functions. Comparable spending benchmarks would involve analyzing other large federal contracts for cellular services, considering factors like the number of users, data requirements, and geographic coverage.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale telecommunications service contract likely awarded to a major provider, the primary focus is on the core service delivery. There is no explicit information on subcontracting plans with small businesses, which could be a missed opportunity for small business participation depending on the specific service components and the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officer and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Information Technology, Infrastructure, and Services
Agency-Specific Communication Systems
Wireless Network Services
Telecommunications Procurement

Risk Flags

Potential for vendor lock-in if competition is not re-established at contract renewal.
Reliance on a single provider for critical communication infrastructure.
Ensuring compliance with evolving data privacy and security regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $113,794.67 to CELLCO PARTNERSHIP. CELLULAR SERVICES

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $113,794.67.

What is the period of performance?

Start: 2023-03-07. End: 2027-01-23.

What is the historical spending pattern for cellular services within the Department of Commerce?

Analyzing historical spending for cellular services within the Department of Commerce is crucial for understanding trends and identifying potential efficiencies. Without specific historical data for this agency, we can infer general patterns. Federal agencies consistently require robust cellular services to support mobile workforces and data-intensive operations. Spending typically fluctuates based on agency size, mission requirements, and the adoption of new technologies. Historically, agencies have sought to consolidate contracts and leverage bulk purchasing power to achieve cost savings. The transition from older technologies to 5G and the increasing demand for data services have likely driven up overall spending in recent years. Benchmarking against similar-sized agencies or those with comparable operational footprints can provide further context on whether the current $113.8 million award is in line with historical norms or represents a significant shift.

How does the per-line cost of this contract compare to other federal agencies or commercial rates?

Determining the precise per-line cost for this $113.8 million contract is challenging without knowing the exact number of lines or users covered. However, federal agencies often negotiate rates through large purchasing vehicles or direct contracts that aim to be competitive with or better than commercial rates, especially for large volumes. The General Services Administration (GSA) offers various telecommunications schedules that provide pre-negotiated rates. If this contract was awarded under such a schedule or through a similar competitive process, the per-line cost is likely benchmarked against established government rates. Commercial rates can vary widely based on the plan, provider, and volume discounts. Agencies typically aim for rates that are at or below the average commercial rate for comparable services to ensure value for taxpayer money. A detailed analysis would require comparing the specific service plan details and negotiated rates against GSA schedules and market research data.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The specific performance metrics and Service Level Agreements (SLAs) for this $113.8 million cellular services contract are not detailed in the provided summary data. However, for a contract of this magnitude and importance, it is standard practice to include robust SLAs. These typically cover aspects such as network uptime (e.g., 99.9% availability), call completion rates, data throughput speeds, and response times for technical support. Penalties for failing to meet these SLAs are usually stipulated, which could include service credits or financial deductions from payments. The firm-fixed-price nature of the contract implies that the contractor is obligated to meet these performance standards to receive full payment. The Department of Commerce's contracting officer and technical monitors would be responsible for overseeing adherence to these SLAs throughout the contract's duration.

What is Cellco Partnership's track record with large federal telecommunications contracts?

Cellco Partnership, operating under the brand Verizon, has a significant and established track record of serving large federal telecommunications contracts. As one of the major wireless carriers in the United States, they have historically secured numerous awards from various federal agencies for a wide range of wireless services, including voice, data, and mobile broadband. Their experience typically involves managing large user bases, ensuring network reliability and security across diverse geographic locations, and complying with stringent federal procurement regulations. Past performance evaluations and contract administration data from sources like the Federal Procurement Data System (FPDS) would provide more granular insights into their performance on specific contracts, including any challenges or successes encountered. Generally, their continued success in winning large federal contracts suggests a strong capability to meet government requirements.

Are there any identified risks related to the cybersecurity of the cellular services provided under this contract?

Cybersecurity risks are inherent in any telecommunications contract, and this $113.8 million award to Cellco Partnership is no exception. The primary risks revolve around the security of the network infrastructure, data transmission, and the devices used by federal employees. Potential threats include unauthorized access, data breaches, denial-of-service attacks, and the exploitation of vulnerabilities in the cellular network or associated devices. Federal agencies typically mitigate these risks by imposing strict cybersecurity requirements on contractors, often aligned with NIST (National Institute of Standards and Technology) guidelines and agency-specific security policies. This includes requirements for encryption, secure device management, regular security audits, and incident response protocols. The contract likely includes clauses addressing cybersecurity responsibilities and reporting requirements for any security incidents.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Wireless Telecommunications Carriers (except Satellite)

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 1 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: $144,507

Exercised Options: $113,795

Current Obligation: $113,795

Actual Outlays: $58,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L523A13ES0021

IDV Type: BPA

Timeline