DHS FEMA awards $18.4M for wireline telecom services to Verizon Federal Inc
Contract Overview
Contract Amount: $18,380,189 ($18.4M)
Contractor: Verizon Federal Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2009-12-01
End Date: 2011-12-15
Contract Duration: 744 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TELECOM SERVICES-WIRELINE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472
Plain-Language Summary
Department of Homeland Security obligated $18.4 million to VERIZON FEDERAL INC. for work described as: TELECOM SERVICES-WIRELINE Key points: 1. Significant contract value of $18.4 million for wireline telecommunications. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration of 744 days (2 years) with a firm fixed price. 4. Spending is within the IT sector, specifically telecommunications services.
Value Assessment
Rating: good
The contract value of $18.4 million for wireline services appears reasonable given the 2-year duration and the nature of telecom services. Benchmarking against similar large-scale government telecom contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a delivery order under a larger contract structure implies a structured procurement process.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.
Public Impact
Ensures critical communication infrastructure for FEMA operations. Supports disaster response and recovery efforts through reliable telecom. Provides essential services to a key federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for price increases if contract terms are not tightly managed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type can offer cost certainty.
- Supports a critical agency (FEMA).
Sector Analysis
This contract falls under the Information Technology sector, specifically telecommunications services. Government spending on telecom services is substantial, supporting agency operations, data transmission, and communication networks nationwide. Benchmarks vary widely based on service type and volume.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in the bidding process.
Oversight & Accountability
The contract was awarded as a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this delivery order and adherence to the terms of the parent contract.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of detailed service description.
- No explicit mention of small business participation.
- Potential for price increases upon contract renewal if not managed.
- Reliance on a single vendor for a critical service.
Tags
wireless-telecommunications-carriers-exc, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $18.4 million to VERIZON FEDERAL INC.. TELECOM SERVICES-WIRELINE
Who is the contractor on this award?
The obligated recipient is VERIZON FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2009-12-01. End: 2011-12-15.
What specific wireline services were procured, and how do their costs compare to market rates for similar enterprise-level services?
The provided data specifies 'TELECOM SERVICES-WIRELINE' but lacks granular detail on the exact services (e.g., dedicated lines, VoIP, data circuits). A comprehensive market analysis comparing the unit costs and service levels against industry benchmarks for comparable enterprise solutions would be necessary to fully assess value for money.
Given the 2-year duration, what mechanisms are in place to mitigate the risk of vendor lock-in or price escalation beyond the initial term?
As the contract was awarded under full and open competition with a firm fixed price, initial price escalation risk is somewhat mitigated. However, the contract's structure and any renewal options should be reviewed to ensure FEMA can transition services or renegotiate terms effectively at the end of the period to avoid vendor lock-in.
How effectively did the full and open competition process ensure the best possible outcome for FEMA in terms of service quality and cost?
The full and open competition is a positive indicator for achieving a competitive price. However, effectiveness also depends on the clarity of the solicitation's requirements, the evaluation criteria used, and the number and quality of bids received. Without this detail, it's difficult to definitively assess the effectiveness beyond the procedural aspect.
Industry Classification
NAICS: Information › Wireless Telecommunications Carriers (except Satellite) › Wireless Telecommunications Carriers (except Satellite)
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Communications Inc
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: $83,266,323
Exercised Options: $18,982,571
Current Obligation: $18,380,189
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: HSFEHQ09D0118
IDV Type: IDC
Timeline
Start Date: 2009-12-01
Current End Date: 2011-12-15
Potential End Date: 2011-12-15 00:00:00
Last Modified: 2022-04-01
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