Commerce Dept Awards $145.6M Cellular Services Contract to Cellco Partnership
Contract Overview
Contract Amount: $145,640 ($145.6K)
Contractor: Cellco Partnership
Awarding Agency: Department of Commerce
Start Date: 2023-04-28
End Date: 2026-04-27
Contract Duration: 1,095 days
Daily Burn Rate: $133/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CELLULAR SERVICES
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96818
State: Hawaii Government Spending
Plain-Language Summary
Department of Commerce obligated $145,640.1 to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICES Key points: 1. Contract value of $145.6 million over three years. 2. Awarded under full and open competition. 3. Potential for price increases if market rates rise. 4. Services fall under Wireless Telecommunications Carriers sector.
Value Assessment
Rating: fair
The contract is a firm fixed price, which limits price escalation. However, without specific per-unit cost data, it's difficult to benchmark against similar services. The base year value is substantial, suggesting significant service volume.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best possible price for cellular services.
Public Impact
Ensures reliable cellular communication for Department of Commerce operations. Supports agency functions across various locations, including Hawaii. Provides essential connectivity for employees and data transmission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for benchmarking.
- Potential for market rate fluctuations impacting long-term value.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract structure.
Sector Analysis
This contract falls within the Wireless Telecommunications Carriers sector, which is a critical component of modern infrastructure. Spending in this sector is generally high due to the pervasive need for mobile connectivity across government agencies.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Office of the Secretary within the Department of Commerce. Standard procurement oversight processes should apply to ensure compliance and performance.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of detailed service breakdown.
- Potential for vendor lock-in.
- Reliance on a single provider for critical communication.
- Limited visibility into subcontractor utilization.
Tags
wireless-telecommunications-carriers-exc, department-of-commerce, hi, bpa-call, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $145,640.1 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 $145,640.1.
What is the period of performance?
Start: 2023-04-28. End: 2026-04-27.
What is the average per-unit cost for the cellular services provided under this contract compared to industry benchmarks?
Without specific details on the types and volumes of cellular services (e.g., voice lines, data plans, device management), a precise per-unit cost benchmark is not feasible. However, given the $145.6 million total value over three years, the average annual spend is approximately $48.5 million. This figure should be compared against government-wide or agency-specific telecommunications spending data to assess if it aligns with typical rates for similar service scopes.
What are the primary risks associated with this cellular services contract?
Key risks include potential vendor lock-in if switching providers is complex or costly, and the possibility of service disruptions impacting agency operations. Additionally, while the contract is fixed-price, unforeseen technological advancements or changes in service needs could necessitate contract modifications, potentially leading to cost increases or scope creep.
How effectively does this contract meet the Department of Commerce's wireless communication needs?
The contract appears to meet the core wireless communication needs by securing a large-scale service agreement. The full and open competition suggests a deliberate effort to find a suitable provider. However, effectiveness can only be fully assessed through ongoing performance monitoring, user satisfaction, and ensuring the services align with evolving technological requirements and agency mission objectives.
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
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: $180,042
Exercised Options: $145,640
Current Obligation: $145,640
Actual Outlays: $58,393
Parent Contract
Parent Award PIID: 1331L522A13ES0009
IDV Type: BPA
Timeline
Start Date: 2023-04-28
Current End Date: 2026-04-27
Potential End Date: 2028-04-27 00:00:00
Last Modified: 2026-04-02
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