DOJ's Bureau of Prisons awards $82.5M for long-distance phone services to Citizens Telecommunications

Contract Overview

Contract Amount: $82,533 ($82.5K)

Contractor: Citizens Telecommunications Company of West Virginia

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $227/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY26 FRONTIER LONG DISTANCE SERVICES

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25396

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $82,532.71 to CITIZENS TELECOMMUNICATIONS COMPANY OF WEST VIRGINIA for work described as: FY26 FRONTIER LONG DISTANCE SERVICES Key points: 1. Spending on wired telecommunications carriers is essential for correctional facility operations. 2. The award to a single provider suggests limited market options or specific service needs. 3. Potential risks include vendor lock-in and lack of competitive pricing pressure. 4. This contract falls within the IT and Communications sector.

Value Assessment

Rating: fair

The contract value of $82.5M for one year of service appears high for basic telecommunications. Benchmarking against similar government contracts for large-scale voice services is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may lead to higher prices due to the absence of a competitive bidding process.

Taxpayer Impact: Taxpayers may be overpaying for these services due to the lack of robust competition.

Public Impact

Ensures communication capabilities for federal inmates and staff. Supports essential operational functions within the Federal Prison System. Potential for service disruptions if the sole provider faces issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Vendor dependency

Positive Signals

Essential service provision
Long-term vendor relationship

Sector Analysis

The Federal Prison System relies heavily on telecommunications for inmate communication and facility management. Spending benchmarks for similar services in government are typically in the tens of millions annually, depending on scale.

Small Business Impact

The award went to Citizens Telecommunications Company of West Virginia, a specific regional provider. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Bureau of Prisons is responsible for managing this contract. Oversight should focus on service delivery, pricing, and exploring future competitive opportunities.

Related Government Programs

Wired Telecommunications Carriers
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Dependency on a single provider
Limited transparency in contract award

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $82,532.71 to CITIZENS TELECOMMUNICATIONS COMPANY OF WEST VIRGINIA. FY26 FRONTIER LONG DISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is CITIZENS TELECOMMUNICATIONS COMPANY OF WEST VIRGINIA.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $82,532.71.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the justification for limiting competition for these critical long-distance services?

The justification for limited competition needs to be thoroughly reviewed. While specific network requirements or existing infrastructure integration might necessitate a particular provider, agencies must demonstrate that full and open competition was not feasible or would not provide best value. This often involves detailed market research and technical assessments.

How does the pricing compare to industry benchmarks for similar large-scale telecommunication services?

A detailed cost analysis comparing the per-minute rates, line charges, and bundled service costs against industry benchmarks for similar government or enterprise-level contracts is crucial. Without this, it's difficult to ascertain if the $82.5M is a fair price or if taxpayers are incurring additional costs due to the limited competition.

What are the contingency plans if the sole provider experiences service outages or fails to meet performance standards?

Contingency planning is vital when relying on a single provider for essential services. The Bureau of Prisons should have clear protocols, including service level agreements (SLAs) with penalties, and potentially pre-identified alternative providers or backup communication systems to ensure continuity of operations during any disruptions.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Maryland LLC

Address: 1500 MACCORKLE AVE SE, CHARLESTON, WV, 25396

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,533

Exercised Options: $82,533

Current Obligation: $82,533

Actual Outlays: $27,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline