DOT's $9.95M Lease Payment to Verizon Federal Inc. for District of Columbia Services
Contract Overview
Contract Amount: $9,953,577 ($10.0M)
Contractor: Verizon Federal Inc.
Awarding Agency: Department of Transportation
Start Date: 2005-06-30
End Date: 2008-04-30
Contract Duration: 1,035 days
Daily Burn Rate: $9.6K/day
Number of Offers Received: 10
Pricing Type: FIXED PRICE
Sector: IT
Official Description: LEASE PAYMENTS
Place of Performance
Location: DISTRICT OF COLUMBIA, 20000
Plain-Language Summary
Department of Transportation obligated $10.0 million to VERIZON FEDERAL INC. for work described as: LEASE PAYMENTS Key points: 1. Significant spending on lease payments by the Department of Transportation. 2. Verizon Federal Inc. is the sole contractor, raising questions about competition. 3. The contract duration of 1035 days suggests a long-term service need. 4. Fixed-price contract type may offer cost certainty but limit flexibility.
Value Assessment
Rating: fair
The total contract value is $9,953,577.40. Without specific unit details or benchmarks for similar lease agreements in the District of Columbia, a precise value assessment is difficult. However, the scale suggests substantial operational needs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This method can lead to higher prices as there is no market pressure to ensure cost-effectiveness. The absence of competition limits price discovery.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition in this sole-source award. The full impact is unclear without comparative pricing data.
Public Impact
Essential telecommunications infrastructure for the Department of Transportation's immediate office. Potential for service disruption if the lease is not renewed or recompeted effectively. Impact on federal agency's operational capacity within the District of Columbia.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potentially inflates costs.
- Lack of detailed service description makes value assessment challenging.
- Contract duration is significant, requiring careful future planning.
Positive Signals
- Contract awarded to a known federal contractor, potentially ensuring reliable service.
- Fixed-price contract provides some cost predictability.
Sector Analysis
This spending falls under telecommunications services, a critical sector for government operations. Benchmarks for similar large-scale federal telecommunications leases are often influenced by location, service level agreements, and the competitive landscape.
Small Business Impact
The contract was awarded to Verizon Federal Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
Oversight would focus on ensuring the services provided meet the terms of the fixed-price contract and that the sole-source justification remains valid. Regular performance reviews are crucial for accountability.
Related Government Programs
- Department of Transportation Contracting
- Immediate Office of the Secretary of Transportation Programs
Risk Flags
- Lack of competition may lead to overpayment.
- Absence of detailed service scope hinders value assessment.
- Sole-source justification requires scrutiny.
- Potential for vendor lock-in.
- Long contract duration without clear performance metrics.
Tags
department-of-transportation, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $10.0 million to VERIZON FEDERAL INC.. LEASE PAYMENTS
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2005-06-30. End: 2008-04-30.
What specific telecommunications services are included in this lease agreement, and how do they align with the operational needs of the Immediate Office of the Secretary of Transportation?
The provided data does not specify the exact telecommunications services covered by the lease. These could range from dedicated network lines, internet access, voice services, or a combination thereof. Understanding these specifics is crucial to assess if the $9.95 million expenditure represents good value and directly supports the agency's mission-critical functions within the District of Columbia.
What was the justification for awarding this substantial lease agreement sole-source, and what steps were taken to ensure the price was fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. For this $9.95 million contract, the Department of Transportation would need to document why competitive procedures were not feasible. Ensuring price reasonableness often involves market research, historical pricing, or comparison to similar government contracts, though this data is absent here.
How effectively has Verizon Federal Inc. performed under this contract, and what is the plan for ensuring continued service or competitive re-procurement upon its expiration?
Performance data is not included, making an effectiveness assessment impossible. Upon expiration, the agency should conduct thorough market research to determine if competition is now feasible to secure better pricing and terms. A well-planned transition or re-procurement strategy is vital to avoid service interruptions and ensure taxpayer value.
Contractor Details
Parent Company: Verizon Communications Inc
Address: 1320 N. COURTHOUSE ROAD, 8TH FLOOR, ARLINGTON, VA, 22201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $9,953,577
Exercised Options: $9,953,577
Current Obligation: $9,953,577
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T03AHD0006
IDV Type: IDC
Timeline
Start Date: 2005-06-30
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2022-04-01
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