SSA's $54.9M Next Generation Telephony Project contract awarded to Verizon Business Network Services LLC

Contract Overview

Contract Amount: $54,880,649 ($54.9M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Social Security Administration

Start Date: 2022-03-24

End Date: 2023-09-30

Contract Duration: 555 days

Daily Burn Rate: $98.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO THE SECOND-YEAR REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT. THE NGTP CONTRACT MODERNIZES THE AGENCYS CURRENT TELEPHONE NETWORKS BY PROVIDING A SINGLE UNIFIED COMMUNICATIONS (UC) PL

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $54.9 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO THE SECOND-YEAR REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT. THE NGTP CONTRACT MODERNIZES THE AGENCYS CURRENT TELEPHONE NETWORKS BY PROVIDING A SINGLE UNIFIED COMMUNICATIONS (UC) PL Key points: 1. Contract value: $54.9 million over 555 days. 2. Awarded to Verizon Business Network Services LLC. 3. Modernizes agency telephone networks with unified communications. 4. Classified under 'All Other Telecommunications' sector.

Value Assessment

Rating: good

The contract value of $54.9 million for a 555-day period appears reasonable for a large-scale telecommunications modernization project. Benchmarking against similar government-wide unified communications contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The specific details of the competition are not provided.

Taxpayer Impact: The modernization of telecommunications infrastructure is essential for agency operations, and a competitive award process aims to ensure taxpayer funds are used efficiently.

Public Impact

Improved communication capabilities for SSA employees. Potential for cost savings through network consolidation. Enhanced security and reliability of the agency's phone systems. Supports the agency's digital transformation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in provided data.
Potential for vendor lock-in with a single provider.

Positive Signals

Modernization of critical infrastructure.
Awarded through full and open competition.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on unified communications. Spending in this area is crucial for government modernization efforts, with benchmarks varying widely based on project scope and technology.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved as subcontractors.

Oversight & Accountability

Oversight of this task order would typically involve contract management by the Social Security Administration to ensure deliverables are met and performance standards are achieved. The provided data does not detail specific oversight mechanisms.

Related Government Programs

All Other Telecommunications
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Contract duration is relatively short (555 days), potentially leading to follow-on contracts.
No indication of small business subcontracting.
Reliance on a single vendor for critical infrastructure.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $54.9 million to VERIZON BUSINESS NETWORK SERVICES LLC. THE PURPOSE OF THIS TASK ORDER IS TO THE SECOND-YEAR REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT. THE NGTP CONTRACT MODERNIZES THE AGENCYS CURRENT TELEPHONE NETWORKS BY PROVIDING A SINGLE UNIFIED COMMUNICATIONS (UC) PL

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 $54.9 million.

What is the period of performance?

Start: 2022-03-24. End: 2023-09-30.

What specific metrics are used to measure the success of the Next Generation Telephony Project in modernizing the SSA's communication infrastructure?

The provided data does not specify the success metrics for the Next Generation Telephony Project. Typically, such projects would track metrics like network uptime, call quality, user adoption rates, reduction in maintenance costs, and successful integration of new unified communication features. A thorough review of the contract's Statement of Work and performance reports would be necessary to identify these specific measures.

What are the potential risks associated with relying on a single vendor, Verizon Business Network Services LLC, for the agency's core telephony needs?

Relying on a single vendor like Verizon for core telephony needs presents risks such as potential price increases upon contract renewal, limited flexibility to adopt new technologies from other providers, and increased dependency on the vendor's service continuity. Vendor lock-in can also reduce bargaining power. Mitigation strategies include robust contract terms, clear performance expectations, and contingency planning for service disruptions.

How does the modernization of the SSA's telephone networks contribute to overall agency effectiveness and service delivery to the public?

Modernizing the SSA's telephone networks through unified communications enhances agency effectiveness by improving internal collaboration, enabling remote work capabilities, and potentially reducing communication costs. This can lead to more efficient processing of public inquiries and services. Reliable and advanced communication systems are foundational for maintaining operational continuity and delivering timely support to beneficiaries.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verizon Communications Inc

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: $54,880,649

Exercised Options: $54,880,649

Current Obligation: $54,880,649

Actual Outlays: $70,503,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321320D00060007

IDV Type: IDC

Timeline