SSA Awards $28M for NGTP Operations & Maintenance to Verizon Business

Contract Overview

Contract Amount: $28,093,621 ($28.1M)

Contractor: Verizon Business Network Services LLC

Awarding Agency: Social Security Administration

Start Date: 2023-09-27

End Date: 2024-09-27

Contract Duration: 366 days

Daily Burn Rate: $76.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE THE THIRD CONTRACT YEAR TASK ORDER FOR OPERATIONS AND MAINTENANCE REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT (28321320D00060007). IT IS AN INDEFINITE DELIVERY/INDEFINITE QUANTIT

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $28.1 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE THE THIRD CONTRACT YEAR TASK ORDER FOR OPERATIONS AND MAINTENANCE REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT (28321320D00060007). IT IS AN INDEFINITE DELIVERY/INDEFINITE QUANTIT Key points: 1. Contract value of $28.1M for one year of operations and maintenance. 2. Awarded to Verizon Business Network Services LLC, a major telecommunications provider. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is telecommunications, supporting critical government IT infrastructure.

Value Assessment

Rating: good

The contract value of $28.1M for a single year of operations and maintenance appears reasonable given the scope of Next Generation Telephony Project (NGTP) support. Benchmarking against similar large-scale telecommunications service contracts for government agencies would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing taxpayer value for essential telecommunications services.

Public Impact

Ensures continued operation of critical telephony services for the Social Security Administration. Supports the Next Generation Telephony Project (NGTP), a modernization effort. Maintains vital communication infrastructure for public service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years if not re-competed.
Dependence on a single vendor for critical infrastructure.

Positive Signals

Awarded through full and open competition.
Supports a vital government IT project.
Clear contract period with defined deliverables.

Sector Analysis

This contract falls within the telecommunications sector, specifically supporting IT infrastructure for the Social Security Administration. Spending in this area is crucial for maintaining government operations and citizen services, with benchmarks varying widely based on project scale and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large, established provider. There is no direct indication of small business participation in this specific task order.

Oversight & Accountability

The award was made under a task order for an existing contract, suggesting prior oversight. Continued monitoring of performance and adherence to contract terms by the Social Security Administration is essential for accountability.

Related Government Programs

All Other Telecommunications
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Potential vendor lock-in for critical infrastructure.
Reliance on a single provider for essential services.
Lack of detailed performance metrics in the provided data.
Need for ongoing cost-effectiveness analysis.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $28.1 million to VERIZON BUSINESS NETWORK SERVICES LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE THE THIRD CONTRACT YEAR TASK ORDER FOR OPERATIONS AND MAINTENANCE REQUIREMENTS FOR THE NEXT GENERATION TELEPHONY PROJECT (NGTP) CONTRACT (28321320D00060007). IT IS AN INDEFINITE DELIVERY/INDEFINITE QUANTIT

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 $28.1 million.

What is the period of performance?

Start: 2023-09-27. End: 2024-09-27.

What is the total value of the base contract (28321320D00060007) and how does this task order compare to previous years?

The provided data only details the current task order's value ($28.1M) and duration (one year). To assess the overall value and trends, information on the base contract's total ceiling, awarded value, and spending in prior years would be necessary. This would help determine if current spending aligns with historical patterns or represents a significant increase or decrease.

What are the specific performance metrics and service level agreements (SLAs) associated with this operations and maintenance contract?

The data does not specify the performance metrics or SLAs for this task order. Understanding these details is crucial for evaluating the effectiveness of Verizon Business Network Services LLC in maintaining the NGTP. Key metrics would likely include uptime, response times for issues, and resolution times for service disruptions.

How does the pricing structure of this contract compare to industry benchmarks for similar telecommunications operations and maintenance services?

While the contract was awarded through full and open competition, specific pricing details and comparisons to industry benchmarks are not provided. A thorough analysis would require examining the unit costs for services rendered and comparing them against established rates for comparable government or commercial contracts to ensure cost-effectiveness.

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: $28,093,621

Exercised Options: $28,093,621

Current Obligation: $28,093,621

Actual Outlays: $10,557,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321320D00060007

IDV Type: IDC

Timeline