Commerce Awards $105.7M for Cellular Services to Cellco Partnership Over 5 Years
Contract Overview
Contract Amount: $105,707 ($105.7K)
Contractor: Cellco Partnership
Awarding Agency: Department of Commerce
Start Date: 2024-03-30
End Date: 2029-03-29
Contract Duration: 1,825 days
Daily Burn Rate: $58/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CELLULAR SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $105,706.92 to CELLCO PARTNERSHIP for work described as: CELLULAR SERVICES Key points: 1. Significant contract value of $105.7 million for cellular services. 2. Cellco Partnership is the sole awardee under a BPA Call. 3. Potential risk associated with a single vendor for critical communication services. 4. Spending falls within the broad 'Wireless Telecommunications Carriers' sector.
Value Assessment
Rating: fair
The contract value of $105.7 million over five years suggests a substantial commitment. Benchmarking against similar large-scale cellular service contracts would be necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call. This method generally promotes price discovery, but the specific awardee is Cellco Partnership.
Taxpayer Impact: Taxpayer funds are being utilized for essential cellular communication services, with the cost effectiveness dependent on ongoing price monitoring and service quality.
Public Impact
Ensures continued cellular connectivity for Department of Commerce operations. Supports federal agency communication needs across various locations. Potential for service disruptions if the sole provider faces issues.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Reliance on a single provider for critical services.
- Long-term contract duration (5 years) may limit flexibility.
- Lack of explicit small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- BPA Call mechanism can streamline future task orders.
Sector Analysis
This contract falls under the Wireless Telecommunications Carriers sector, which is a critical component of modern infrastructure. Spending benchmarks for similar federal cellular service contracts are highly variable based on scope and user base.
Small Business Impact
The data indicates that small business participation was not a specific consideration or requirement for this contract award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight will be crucial to ensure Cellco Partnership meets service level agreements and provides value for money throughout the contract's duration. The BPA Call structure allows for monitoring of individual task orders.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Single point of failure risk
- Potential for price increases upon renewal
- Limited flexibility due to long-term commitment
- Lack of explicit small business utilization
Tags
wireless-telecommunications-carriers-exc, department-of-commerce, dc, bpa-call, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $105,706.92 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 $105,706.92.
What is the period of performance?
Start: 2024-03-30. End: 2029-03-29.
What is the average per-unit cost for cellular services under this contract compared to market rates?
Without detailed service plans (data allowances, voice minutes, device types), a precise per-unit cost comparison is difficult. However, the total contract value of $105.7 million over five years suggests an average annual spend of over $21 million. Benchmarking this against typical enterprise cellular plans would reveal if the government is achieving competitive rates or if specific features drive up costs.
What are the risks associated with relying on a single provider, Cellco Partnership, for critical cellular services?
Relying on a single provider introduces risks such as potential service disruptions due to network outages, vendor financial instability, or lack of competitive pressure on pricing and innovation. If Cellco Partnership experiences issues, the Department of Commerce's operations could be significantly impacted. Contingency planning and robust Service Level Agreements (SLAs) are essential mitigation strategies.
How effectively does this contract ensure the Department of Commerce receives optimal value and performance for its cellular service needs?
The contract's effectiveness hinges on the initial competitive pricing achieved and ongoing performance management. The Firm Fixed Price structure provides cost predictability. However, continuous monitoring of service quality, uptime, and alignment with evolving technological needs is vital to ensure long-term value and prevent vendor lock-in or service degradation.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wireless Telecommunications Carriers (except Satellite)
Product/Service Code: 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: $222,841
Exercised Options: $140,905
Current Obligation: $105,707
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L523A13ES0021
IDV Type: BPA
Timeline
Start Date: 2024-03-30
Current End Date: 2029-03-29
Potential End Date: 2029-03-29 00:00:00
Last Modified: 2026-04-01
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