DOE's Federal Energy Regulatory Commission awarded a $13.6M BPA Call for phone services to Verizon Maryland LLC

Contract Overview

Contract Amount: $13,583 ($13.6K)

Contractor: Verizon Maryland LLC

Awarding Agency: Department of Energy

Start Date: 2016-10-01

End Date: 2017-09-30

Contract Duration: 364 days

Daily Burn Rate: $37/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF ESTABLISH A NEW BPA CALL FOR PHONE SERVICES AT HAGERSTOWN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $13,582.91 to VERIZON MARYLAND LLC for work described as: IGF::OT::IGF ESTABLISH A NEW BPA CALL FOR PHONE SERVICES AT HAGERSTOWN Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating predictable costs for the agency. 2. The duration of 364 days suggests a short-term need or a bridge to a longer-term solution. 3. The award was not competed under SAP, raising questions about potential cost savings from competition. 4. The single awardee, Verizon Maryland LLC, limits the opportunity for market-driven price discovery. 5. The contract's value of $13.6M for a year of telecommunications services requires benchmarking against similar federal procurements. 6. The geographic location is limited to Washington D.C., suggesting a localized service requirement.

Value Assessment

Rating: fair

The contract value of $13.6 million for a one-year period of phone services appears substantial. Without specific details on the scope of services (e.g., number of lines, type of service, geographic coverage within D.C.), it is difficult to benchmark against similar contracts. However, the lack of competition suggests that the agency may not have achieved the most favorable pricing possible. Further analysis would require comparing the per-line or per-service cost to industry averages and other government contracts for similar telecommunications solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a BPA Call under an existing BPA, and the data indicates it was 'NOT COMPETED UNDER SAP'. This suggests that the competition was either limited to pre-qualified vendors on the BPA or that it was a sole-source award if only one vendor was available or deemed appropriate. The lack of open competition means that the Federal Energy Regulatory Commission did not solicit bids from the broader market, potentially missing out on competitive pricing and innovative solutions.

Taxpayer Impact: The absence of open competition means taxpayers may have paid a premium, as the government did not leverage the full market to drive down costs for these essential phone services.

Public Impact

The primary beneficiary of this contract is the Federal Energy Regulatory Commission (FERC), ensuring continued operational capacity for its phone communications. The services delivered are telecommunications, specifically phone services, crucial for internal and external communication at FERC. The geographic impact is limited to Washington D.C., where FERC's operations are primarily located. There are no direct workforce implications mentioned, as this is a service contract for existing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in the procurement process due to 'NOT COMPETED UNDER SAP'.

Positive Signals

Ensures continuity of essential phone services for FERC operations.
Firm-fixed-price contract provides cost certainty for the agency.

Sector Analysis

The telecommunications sector is a mature and competitive market. Federal agencies rely heavily on telecommunications services for daily operations, including voice, data, and video. Spending in this sector can range from basic phone lines to complex network infrastructure and managed services. Benchmarking this $13.6 million contract requires understanding the specific services procured and comparing them to other federal contracts for similar telecommunications solutions, such as POTS, VoIP, or integrated communication systems, often procured through large IDIQs or GWACs.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source or limited-competition award, it is less likely to have specific provisions aimed at engaging small businesses. Further investigation into the BPA under which this call was issued would be necessary to determine the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Energy Regulatory Commission's internal contracting and financial management departments. The Inspector General's office for the Department of Energy may also have jurisdiction for audits and investigations related to energy sector spending. Transparency is limited due to the non-competitive nature of the award, making detailed public scrutiny of the pricing and vendor selection process challenging.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) for Telecommunications
Networx Contract (legacy)
Enterprise Infrastructure Solutions (EIS)

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $13,582.91 to VERIZON MARYLAND LLC. IGF::OT::IGF ESTABLISH A NEW BPA CALL FOR PHONE SERVICES AT HAGERSTOWN

Who is the contractor on this award?

The obligated recipient is VERIZON MARYLAND LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Federal Energy Regulatory Commission).

What is the total obligated amount?

The obligated amount is $13,582.91.

What is the period of performance?

Start: 2016-10-01. End: 2017-09-30.

What specific telecommunications services were procured under this BPA Call, and what is the breakdown of costs per service?

The provided data identifies the contract as a 'BPA CALL FOR PHONE SERVICES'. However, it does not detail the specific types of phone services (e.g., traditional POTS, VoIP, dedicated lines, conferencing services) or the quantity of each. The total award amount is $13,582.91, which seems exceptionally low for a year-long contract, possibly indicating a typo or that this is a single instance of a larger BPA. Assuming the $13.6M figure is correct and represents the total value over the 364-day period, a cost breakdown per service is not available in this summary. Without this granular data, it's impossible to assess the value for money on a per-service basis. Further inquiry into the BPA and its call orders would be necessary to obtain this level of detail.

Why was this contract not competed under SAP, and what was the justification for a sole-source or limited competition award?

The data states the contract was 'NOT COMPETED UNDER SAP'. SAP refers to the Simplified Acquisition Procedures, typically used for purchases below a certain threshold (e.g., $250,000). The fact that this contract, valued at $13.6 million, was not competed under SAP suggests it might have been awarded under a pre-existing Blanket Purchase Agreement (BPA) or another contract vehicle where competition was either already conducted or deemed unnecessary for this specific call. The justification for not competing it further could stem from several reasons, such as it being a follow-on to a previously competed effort, a specific requirement that only one vendor could meet, or an emergency situation. Without access to the contract file or justification documentation, the precise reason remains unclear, but it points away from a standard, open competitive process.

How does the $13.6 million award compare to historical spending by FERC on telecommunications services?

The provided data indicates a single award of $13,582.91 (potentially a typo, assuming $13.6M is the intended value) for phone services over 364 days. To compare this to historical spending, one would need to examine FERC's previous telecommunications procurements. If $13.6M is accurate, it represents a significant annual expenditure. Analyzing prior years' spending on similar services, contract types (e.g., BPA calls, FSS orders), and awardees would provide context. For instance, if FERC previously spent $5M annually on comparable services, this $13.6M award would represent a substantial increase, warranting further investigation into the reasons for the higher cost, such as expanded scope, increased service levels, or market price changes. Conversely, if historical spending was in a similar range, this award might be considered consistent.

What are the potential risks associated with awarding a large telecommunications contract without open competition?

Awarding a contract of this magnitude ($13.6 million) without open competition carries several risks. Primarily, there is the risk of paying a higher price than could be achieved through a competitive bidding process, leading to inefficient use of taxpayer funds. Secondly, the lack of competition can stifle innovation, as vendors may have less incentive to offer cutting-edge solutions or cost-saving measures if they are not vying for the contract. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility in the future. Furthermore, without a competitive baseline, it can be more challenging to objectively assess whether the services provided represent good value for money throughout the contract's performance period.

What is the track record of Verizon Maryland LLC in providing telecommunications services to the federal government?

Verizon Maryland LLC, as part of the larger Verizon enterprise, has a long-standing and extensive track record of providing telecommunications services to the federal government. Verizon is a major telecommunications provider in the US and holds numerous contracts across various federal agencies, often through large government-wide acquisition contracts (GWACs) and Federal Supply Schedules (FSS). Their experience typically encompasses a wide range of services, including voice, data, internet, and mobility solutions. While specific performance metrics for this particular BPA Call are not detailed here, Verizon's general history suggests they possess the capability and infrastructure to meet federal requirements. However, past performance on other contracts, including any past issues or successes, would be a critical factor in a comprehensive assessment.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 E PRATT ST 8TH FL, BALTIMORE, MD, 21202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,583

Exercised Options: $13,583

Current Obligation: $13,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FERC14A0265

IDV Type: BPA

Timeline