Verizon Federal Inc. awarded $28.8M for telecom services, raising questions on value and competition
Contract Overview
Contract Amount: $28,804,116 ($28.8M)
Contractor: Verizon Federal Inc.
Awarding Agency: Government Accountability Office
Start Date: 2013-09-30
End Date: 2020-09-30
Contract Duration: 2,557 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: WITS-3 TELECOMMUNICATION SERVICES FOR FY 2014-2015. IGF::OT::IGF
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Government Accountability Office obligated $28.8 million to VERIZON FEDERAL INC. for work described as: WITS-3 TELECOMMUNICATION SERVICES FOR FY 2014-2015. IGF::OT::IGF Key points: 1. High contract value for telecommunication services over two fiscal years. 2. Sole incumbent provider, Verizon Federal Inc., raises competition concerns. 3. Potential for taxpayer savings through better price discovery. 4. IT sector spending benchmark analysis needed for context.
Value Assessment
Rating: fair
The contract value of $28.8M for FY14-15 appears substantial. Without detailed cost breakdowns or benchmarks for similar telecommunication services, assessing the value for money is difficult. Further analysis of unit costs and service levels is required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the data indicates a single award, suggesting potential for limited competition in practice or a dominant incumbent. The impact on price discovery needs further investigation.
Taxpayer Impact: The impact on taxpayers is uncertain. While full and open competition aims for best value, the specifics of this award require scrutiny to ensure optimal pricing and prevent potential overspending.
Public Impact
Citizens rely on reliable telecommunication services for government operations. Taxpayer funds are allocated to support essential government infrastructure. Transparency in contract awards ensures public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for value assessment.
- Potential for limited competition despite 'full and open' status.
- Long contract duration (2013-2020) may not reflect current market prices.
Positive Signals
- Awarded under full and open competition.
- Services are essential for government operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically telecommunications services. Benchmarking against similar government or commercial contracts for comparable services is crucial to assess if the $28.8M expenditure represents a fair market price.
Small Business Impact
The provided data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The Government Accountability Office (GAO) is listed as an agency involved, suggesting a level of oversight. However, the specific oversight mechanisms and accountability measures for this contract are not detailed in the provided data.
Related Government Programs
- All Other Telecommunications
- Government Accountability Office Contracting
- GAO, Except Comptroller General Programs
Risk Flags
- Potential for limited competition despite 'full and open' award.
- Lack of detailed cost data hinders value assessment.
- Long contract duration may not reflect current market pricing.
- No clear indication of small business participation.
Tags
all-other-telecommunications, government-accountability-office, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Government Accountability Office awarded $28.8 million to VERIZON FEDERAL INC.. WITS-3 TELECOMMUNICATION SERVICES FOR FY 2014-2015. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Government Accountability Office (GAO, Except Comptroller General).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2013-09-30. End: 2020-09-30.
What specific telecommunication services were procured, and how do their unit costs compare to industry benchmarks?
The data identifies the contract as 'All Other Telecommunications' (NAICS 517919). Without a detailed breakdown of the specific services (e.g., data circuits, voice lines, managed services) and their associated unit costs, a direct comparison to industry benchmarks is not possible. Further investigation into the contract's line-item details and service level agreements is necessary to assess value for money.
Given Verizon's incumbency, what steps were taken to ensure genuine competition and prevent potential price inflation?
While categorized as 'full and open competition,' the data does not specify the number of bids received or the evaluation process. To ensure genuine competition and prevent price inflation, agencies typically use techniques like market research, soliciting multiple bids, and robust cost realism analyses. The absence of this detail warrants further inquiry into the procurement process.
How effectively did this contract meet the government's telecommunication needs throughout its duration, and were there opportunities for cost savings?
The effectiveness of the contract in meeting needs is not detailed. However, a contract duration from 2013 to 2020 suggests a long-term commitment. Opportunities for cost savings could have arisen from renegotiating terms based on evolving technology, market price reductions, or exploring alternative providers if competition was indeed robust.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: GAO-14-N-0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Maryland LLC
Address: 22001 LOUDOUN COUNTY PKWY STE C 2 1, 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: $32,252,365
Exercised Options: $32,252,365
Current Obligation: $28,804,116
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS11T08BJD6001
IDV Type: IDC
Timeline
Start Date: 2013-09-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-02-04
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