Verizon awarded $283.5M for SSA Data Network Services under EIS, with 3 delivery orders
Contract Overview
Contract Amount: $283,532,560 ($283.5M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Social Security Administration
Start Date: 2019-09-30
End Date: 2026-09-29
Contract Duration: 2,556 days
Daily Burn Rate: $110.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET)
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $283.5 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET) Key points: 1. The contract is for essential data network services supporting the Social Security Administration's operations. 2. Verizon Business Network Services LLC is the incumbent contractor. 3. The contract was awarded under full and open competition. 4. The contract duration is 2556 days, ending in September 2026.
Value Assessment
Rating: good
The total award amount of $283.5 million over approximately 7 years suggests a competitive pricing strategy. Benchmarking against similar large-scale telecommunications contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically drives competitive pricing and ensures the government receives the best value. The use of delivery orders allows for flexibility in service scope and cost.
Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring efficient use of federal funds for critical network infrastructure.
Public Impact
Ensures continued operation of vital SSA data networks. Supports critical government functions reliant on secure and reliable data transmission. Provides telecommunications services across multiple locations. Potential for service disruptions if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long, potentially leading to price increases if market conditions change significantly.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Clear contract end date provides a future opportunity for re-competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, a critical component of federal IT infrastructure. Spending in this sector is substantial, with agencies relying heavily on robust network services for daily operations.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no information on small business subcontracting participation.
Oversight & Accountability
The Social Security Administration is responsible for oversight of this contract. The use of delivery orders requires careful management to ensure scope and cost align with the original contract.
Related Government Programs
- Wired Telecommunications Carriers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long contract duration may lead to price inflexibility.
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single provider for critical infrastructure.
- Lack of specific performance metrics in the provided data.
Tags
wired-telecommunications-carriers, social-security-administration, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $283.5 million to VERIZON BUSINESS NETWORK SERVICES LLC. ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET)
Who is the contractor on this award?
The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $283.5 million.
What is the period of performance?
Start: 2019-09-30. End: 2026-09-29.
What is the average annual cost per user or per site for these network services, and how does it compare to industry benchmarks?
Without specific user or site counts, calculating a precise per-unit cost is challenging. However, the total award of $283.5 million over roughly 7 years averages to about $40.5 million annually. This figure needs to be compared against the scale of SSA's network infrastructure and industry averages for similar enterprise-level telecommunications services to assess value.
What are the key performance indicators (KPIs) for this contract, and what are the penalties for non-performance?
The provided data does not detail specific Key Performance Indicators (KPIs) or associated penalties for non-performance. Effective oversight would require clearly defined SLAs, performance metrics, and remedies for service failures to mitigate risks to SSA operations and ensure accountability.
How will the agency ensure continued innovation and competitive pricing in future contract renewals, given the long duration of the current award?
The agency can ensure future innovation and competitive pricing by actively monitoring technological advancements and market trends throughout the contract's life. Proactive engagement with industry and planning for a robust re-competition process upon expiration will be crucial to avoid vendor lock-in and secure better terms.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SSA-RFTOP-18-1001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Maryland LLC
Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $560,685,733
Exercised Options: $312,076,197
Current Obligation: $283,532,560
Actual Outlays: $248,562,363
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17NSD3009
IDV Type: IDC
Timeline
Start Date: 2019-09-30
Current End Date: 2026-09-29
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2026-03-11
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