DOT Spends $27.3M on Cellular Devices & Services via BPA Call, Raising Value Concerns
Contract Overview
Contract Amount: $27,299,335 ($27.3M)
Contractor: Cellco Partnership
Awarding Agency: Department of Transportation
Start Date: 2017-03-29
End Date: 2022-09-01
Contract Duration: 1,982 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF CELLULAR DEVICES AND SERVICES FOR DOT
Place of Performance
Location: BEDMINSTER, SOMERSET County, NEW JERSEY, 07921
Plain-Language Summary
Department of Transportation obligated $27.3 million to CELLCO PARTNERSHIP for work described as: IGF::OT::IGF CELLULAR DEVICES AND SERVICES FOR DOT Key points: 1. Spending of $27.3M on cellular devices and services over 5 years. 2. Limited competition noted with a single awardee, Cellco Partnership. 3. Potential risk due to lack of robust price discovery and long contract duration. 4. Sector context suggests potential for better pricing with more competitive bidding.
Value Assessment
Rating: questionable
The total award of $27.3M over nearly 2000 days suggests a high per-diem cost. Without detailed service breakdowns or comparison data, it's difficult to assess value against market rates for similar cellular device and service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded via a BPA Call, indicating a limited competition approach. This method, especially with a single awardee, may not have fully explored the market or achieved the best possible pricing for the government.
Taxpayer Impact: The lack of robust competition likely resulted in higher costs for taxpayers than could have been achieved through a more open bidding process.
Public Impact
Taxpayers may have overpaid for cellular services due to limited competition. Federal agencies rely on these services, impacting operational efficiency. The long duration of the contract limits flexibility to adopt newer, potentially cheaper technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of clear value assessment
- Potential for price inflation
Positive Signals
- Services provided to a critical agency (FAA)
- Contract awarded via established BPA mechanism
Sector Analysis
Spending on cellular devices and services falls under IT services. Benchmarks for similar contracts are highly variable, but extended durations and single-award BPA calls often indicate higher unit costs compared to competitive solicitations.
Small Business Impact
The data does not indicate any specific participation or set-aside for small businesses in this contract.
Oversight & Accountability
The use of a BPA Call suggests some level of pre-competed framework, but the specific award details warrant further review to ensure fair pricing and accountability for the $27.3M expenditure.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential overpayment due to limited competition
- Lack of detailed cost breakdown for value assessment
- Long contract duration may not reflect current market prices
- Absence of small business participation noted
Tags
other-computer-related-services, department-of-transportation, nj, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $27.3 million to CELLCO PARTNERSHIP. IGF::OT::IGF CELLULAR DEVICES AND SERVICES FOR DOT
Who is the contractor on this award?
The obligated recipient is CELLCO PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $27.3 million.
What is the period of performance?
Start: 2017-03-29. End: 2022-09-01.
What was the average monthly cost per user or device under this contract, and how does it compare to industry benchmarks for similar government contracts?
The total award of $27.3M over 1982 days averages approximately $13,774 per day. Without specific user counts or device types, calculating a precise per-unit cost is impossible. However, this daily burn rate suggests a potentially high cost per device/user, especially if the number of devices was substantial. A comparison to industry benchmarks would require more granular data on service levels and device types.
What were the specific justifications for using a limited competition BPA Call instead of a full and open competition for these cellular services?
The justification for using a limited competition BPA Call is not provided in the data. Typically, such justifications might include urgency, unique technical requirements, or existing infrastructure compatibility. However, for standard cellular devices and services, a full and open competition is usually expected to yield better pricing and wider vendor participation.
How effectively did the BPA Call mechanism ensure competitive pricing and value for money given the significant expenditure over five years?
The significant expenditure of $27.3M over five years, awarded through a limited competition BPA Call to a single vendor, raises questions about the effectiveness of the price discovery mechanism. While BPA calls can offer efficiency, the lack of direct comparison among multiple bidders for this specific requirement may have led to suboptimal pricing and reduced overall value for the taxpayer.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Communications Inc
Address: ONE VERIZON WY, BASKING RIDGE, NJ, 07920
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,411,480
Exercised Options: $27,299,335
Current Obligation: $27,299,335
Actual Outlays: $13,606,578
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00Q13NSA3003
IDV Type: BPA
Timeline
Start Date: 2017-03-29
Current End Date: 2022-09-01
Potential End Date: 2022-09-01 00:00:00
Last Modified: 2022-08-15
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