DOI awards $99.6M wireless contract to Cellco Partnership for 4 years

Contract Overview

Contract Amount: $99,563 ($99.6K)

Contractor: Cellco Partnership

Awarding Agency: Department of the Interior

Start Date: 2023-04-10

End Date: 2027-04-10

Contract Duration: 1,461 days

Daily Burn Rate: $68/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOI OWF WIRELESS SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $99,563.21 to CELLCO PARTNERSHIP for work described as: DOI OWF WIRELESS SERVICES Key points: 1. Contract value appears reasonable given the 4-year duration and the nature of wireless telecommunications services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger contract, indicating potential for further tasking. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. Services are for wireless telecommunications carriers, a critical infrastructure component. 6. The contract is awarded to a single vendor, Cellco Partnership. 7. The contract is for a significant duration, spanning over 1400 days.

Value Assessment

Rating: good

The contract value of approximately $99.6 million over four years averages to about $24.9 million annually. This figure seems within a reasonable range for large-scale wireless telecommunications services supporting a federal agency like the Department of the Interior. Benchmarking against similar large federal wireless contracts would provide a more precise value-for-money assessment, but the scale and duration suggest a competitive outcome was likely achieved.

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 does not specify the number of bidders, but the designation suggests a robust competitive environment. This approach is generally expected to yield the best prices and terms for the government by encouraging multiple vendors to offer their most competitive proposals.

Taxpayer Impact: Full and open competition maximizes the potential for taxpayer savings by ensuring that multiple companies vie for the contract, driving down costs through market forces.

Public Impact

The Department of the Interior benefits from reliable wireless telecommunications services, essential for its operations across various bureaus and functions. The contract supports the delivery of wireless telecommunications services, likely encompassing mobile voice, data, and potentially specialized communication needs. Services are primarily located in Virginia, indicating a significant operational footprint or headquarters presence in that state. The contract supports the telecommunications sector workforce, including engineers, technicians, and support staff employed by Cellco Partnership.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully due to the long-term nature of the contract.
Reliance on a single provider for critical communication infrastructure could pose a risk if service disruptions occur.
The fixed-price nature might disincentivize innovation or upgrades unless explicitly included in the scope.
The specific details of service level agreements (SLAs) are not provided, which are crucial for performance monitoring.
The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which can sometimes obscure true total spending.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to price increases.
The contract duration of four years allows for stable service provision and planning.
Cellco Partnership is a known entity in the telecommunications market, suggesting a level of established capability.
The contract supports essential government operations through critical wireless infrastructure.

Sector Analysis

The wireless telecommunications carriers (except satellite) sector is a vital part of the modern economy, providing essential connectivity for businesses, government, and individuals. This contract falls within the broader telecommunications services market, which is characterized by significant infrastructure investment, rapid technological advancement, and intense competition among major providers. Federal spending in this area supports agency operations, national security, and public services. Comparable spending benchmarks would typically involve analyzing other large federal contracts for wireless services, often awarded under IDIQ vehicles to major carriers.

Small Business Impact

The provided data indicates that small business participation is not a primary focus of this specific contract, as it is not designated as a small business set-aside (sb: false) and the primary awardee is Cellco Partnership, a large telecommunications provider. There is no explicit information on subcontracting plans for small businesses within this delivery order. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities are mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of the Interior. Performance monitoring would likely involve tracking service level agreements (SLAs), ensuring timely delivery of services, and verifying compliance with contract terms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for telecommunications.
Other agency-specific wireless service procurements.
Network infrastructure and telecommunications equipment procurement.
Information Technology services contracts.

Risk Flags

Contract Duration
Single Award
Reliance on Prime Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $99,563.21 to CELLCO PARTNERSHIP. DOI OWF WIRELESS SERVICES

Who is the contractor on this award?

The obligated recipient is CELLCO PARTNERSHIP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $99,563.21.

What is the period of performance?

Start: 2023-04-10. End: 2027-04-10.

What is the track record of Cellco Partnership in fulfilling large federal wireless contracts?

Cellco Partnership, operating as Verizon Wireless, has a substantial history of securing and fulfilling large federal contracts for wireless telecommunications services. They are a major player in the commercial market and frequently awarded government contracts due to their extensive network infrastructure and service offerings. Federal agencies often rely on established providers like Cellco for mission-critical communications. While specific performance metrics for past federal contracts are not detailed here, their continued success in winning significant awards suggests a generally positive track record in meeting government requirements. However, a deeper dive into past contract performance reports, such as Contractor Performance Assessment Reporting System (CPARS) data, would be necessary for a comprehensive assessment.

How does the annual cost of this contract compare to similar federal wireless service contracts?

The annual cost of this contract, approximately $24.9 million ($99.6M / 4 years), appears to be in line with large-scale federal wireless service procurements. Major federal agencies often require extensive wireless capabilities across numerous locations and users, leading to multi-million dollar annual expenditures. Contracts awarded through full and open competition, like this one, are generally expected to yield competitive pricing. Benchmarking against contracts from agencies like the Department of Defense or other large civilian departments for similar services (e.g., mobile device plans, data services, specialized wireless networks) would provide a more precise comparison. Without access to specific comparable contract data, it's difficult to definitively state if this represents exceptional value, but it does not appear to be an outlier for a contract of this scope and duration.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential service disruptions, vendor lock-in due to the long-term commitment, and the possibility of the technology becoming outdated over the four-year period. Mitigation strategies are embedded within the contract structure. The firm fixed-price (FFP) nature helps control costs and limits the government's financial exposure to price fluctuations. Service Level Agreements (SLAs), though not detailed here, are crucial for defining performance standards and remedies for non-performance, addressing service disruption risks. The use of a delivery order under a potentially larger IDIQ contract might allow for some flexibility in adapting to new technologies if the parent contract permits. However, proactive technology refresh planning by the agency would be essential.

How effective is the 'full and open competition' approach in ensuring value for this specific wireless contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in federal procurements, including wireless services. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages vendors to offer their best terms and services. For a contract of this magnitude ($99.6 million), competition is crucial for achieving cost savings for taxpayers. While the number of bidders isn't specified, the process itself increases the likelihood of a competitive outcome compared to sole-source or limited competition awards. The effectiveness is further realized if the solicitation includes clear performance requirements and evaluation criteria that prioritize both cost and technical merit.

What is the historical spending pattern for wireless services within the Department of the Interior?

Historical spending patterns for wireless services within the Department of the Interior (DOI) would likely show a consistent need for mobile communication solutions to support its widespread operations across various bureaus (e.g., National Park Service, Bureau of Land Management). Spending would fluctuate based on agency-wide technology upgrades, changes in user demand, and the expiration/re-competition of existing contracts. Large, multi-year contracts like this one represent significant portions of the annual wireless budget. Analyzing past DOI spending data would reveal trends in contract values, durations, and the primary vendors utilized. This specific $99.6 million contract suggests a substantial and ongoing investment in wireless capabilities for the department.

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

Solicitation ID: 140D0423Q0408

Offers Received: 1

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: $163,474

Exercised Options: $99,563

Current Obligation: $99,563

Actual Outlays: $61,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D00B5

IDV Type: FSS

Timeline