NASA's $13.5M Verizon Contract for GSFC Telephone Service Awarded Sole-Source
Contract Overview
Contract Amount: $13,521,223 ($13.5M)
Contractor: Verizon Washington, DC Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-11-15
End Date: 2010-06-30
Contract Duration: 3,880 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVIDE TELEPHONE SERVICE TO GSFC
Place of Performance
Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $13.5 million to VERIZON WASHINGTON, DC INC. for work described as: PROVIDE TELEPHONE SERVICE TO GSFC Key points: 1. Significant long-term contract awarded to a single vendor. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source nature. 4. IT services sector, specifically telecommunications infrastructure.
Value Assessment
Rating: questionable
The contract value of $13.5M over its duration is difficult to assess without comparable benchmarks. The sole-source award limits the ability to validate pricing against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to less favorable pricing for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for telephone services.
Public Impact
Government reliance on a single provider for essential communication services. Potential for service disruptions if the sole provider faces issues. Long contract duration suggests a critical and ongoing need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically telecommunications services. Benchmarks for similar large-scale government telephone service contracts are often influenced by competition and contract structure.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Oversight would typically focus on contract modifications and performance monitoring.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Long contract duration increases risk exposure.
- Lack of transparency in vendor selection.
Tags
national-aeronautics-and-space-administr, md, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $13.5 million to VERIZON WASHINGTON, DC INC.. PROVIDE TELEPHONE SERVICE TO GSFC
Who is the contractor on this award?
The obligated recipient is VERIZON WASHINGTON, DC INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 1999-11-15. End: 2010-06-30.
What was the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award is typically based on specific criteria, such as the unique capabilities of the vendor or the unavailability of other sources. Without further documentation, it's unclear if alternatives were thoroughly explored or if the justification was robust enough to warrant bypassing competition.
How does the per-unit cost of this service compare to industry standards for similar government contracts?
Benchmarking the per-unit cost is challenging due to the sole-source nature and lack of detailed pricing information. A thorough analysis would require access to the contract's pricing structure and comparison with publicly available data for similar telecommunication services procured competitively.
What is the long-term risk associated with relying on a single provider for critical communication infrastructure?
The primary long-term risk is vendor lock-in and potential price escalation upon contract renewal. Dependence on a single provider can also limit access to technological advancements and create vulnerabilities if the provider experiences financial distress or service disruptions.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Verizon Communications Inc (UEI: 107212169)
Address: 1710 H ST NW, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,829,257
Exercised Options: $16,829,257
Current Obligation: $13,521,223
Timeline
Start Date: 1999-11-15
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2010-11-02
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