DoD Awards $18.4M Contract to Verizon for Wired Telecommunications Services
Contract Overview
Contract Amount: $18,448,999 ($18.4M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2011-03-30
End Date: 2024-12-15
Contract Duration: 5,009 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000397EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000397EBM Key points: 1. Significant contract value of $18.4 million over its duration. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Spending falls within the IT/Telecommunications sector.
Value Assessment
Rating: good
The contract value of $18.4 million over approximately 13 years suggests a reasonable annual spend. Benchmarking against similar large-scale telecommunications contracts would be necessary for a precise assessment, but the duration and scope appear aligned with industry standards for government services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value through a transparent bidding process.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages market forces to drive down costs and improve service quality.
Public Impact
Ensures critical telecommunications infrastructure for the Department of Defense. Supports national security operations through reliable network services. Provides essential connectivity for military personnel and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Fixed-price contract type.
- Long-term service provision.
Sector Analysis
This contract falls under the Information Technology and Telecommunications sector, specifically wired telecommunications carriers. Government spending in this area is substantial, supporting agency operations and national infrastructure. Benchmarks for similar long-term telecommunications contracts with federal agencies are typically in the millions, aligning with this award.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, Verizon Business Network Services LLC, is a large corporation, suggesting that small businesses were likely not direct awardees on this specific contract, though they may be subcontractors.
Oversight & Accountability
The contract is managed by the Defense Information Systems Agency (DISA), a key component of the DoD for IT and telecommunications. DISA has established processes for contract oversight to ensure service delivery and adherence to terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration may limit flexibility.
- Potential for vendor lock-in.
- Reliance on a single provider for critical services.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000397EBM
Who is the contractor on this award?
The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2011-03-30. End: 2024-12-15.
What is the average annual cost for these telecommunications services, and how does it compare to industry benchmarks for similar government contracts?
The total award value is $18.4 million over approximately 13 years (from March 2011 to December 2024). This averages to roughly $1.4 million per year. Comparing this to industry benchmarks requires detailed analysis of service scope, bandwidth, and geographic coverage, but it appears to be within a reasonable range for large-scale federal telecommunications infrastructure.
What are the potential risks associated with a long-term contract with a single provider for critical telecommunications services?
A primary risk is vendor lock-in, potentially limiting future flexibility or access to newer technologies if the contract isn't structured for adaptation. Dependence on one provider could also pose a risk if the company experiences financial instability or service disruptions, though the government typically has contingency plans and service level agreements in place.
How effectively does this contract support the Department of Defense's mission-critical communication needs?
This contract provides essential wired telecommunications services, which are fundamental to the DoD's operations. The long duration and substantial value suggest a commitment to ensuring reliable and robust communication infrastructure, critical for command, control, and intelligence, thereby directly supporting mission effectiveness.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Maryland LLC
Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,448,999
Exercised Options: $18,448,999
Current Obligation: $18,448,999
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101909D2000
IDV Type: IDC
Timeline
Start Date: 2011-03-30
Current End Date: 2024-12-15
Potential End Date: 2024-12-15 00:00:00
Last Modified: 2024-11-14
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