STOCK TITAN

Verizon drives appx. $700 million in cost savings for Dept. of Health and Human Services over the life of the EIS contract

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary

Verizon Public Sector has secured a significant $2.5 billion task order under the Enterprise Infrastructure Solutions (EIS) program to modernize data and voice technology for the U.S. Department of Health and Human Services (HHS). This 12-year contract, initiated in August 2020, is projected to save HHS approximately $700 million over its lifespan. The EIS task order streamlines contracts, enhancing efficiency and serving as a model for future federal contracts. HHS's swift adoption of the EIS demonstrates its strong contracting capabilities and showcases a significant advancement in federal communications infrastructure.

Positive
  • Task order awarded to Verizon valued at $2.5 billion.
  • Estimated savings of $700 million for HHS over the contract's lifetime.
  • Streamlined contract model can inspire other federal agencies.
Negative
  • None.

Recent EIS task order enables HHS to consolidate network technology modernization efforts into a single award to accelerate technology implementation and save money

WASHINGTON, March 30, 2023 (GLOBE NEWSWIRE) -- Verizon Public Sector’s $2.5 billion Enterprise Infrastructure Solutions (EIS) task order to modernize data and voice technology across the U.S. Department of Health and Human Services is already paying substantial dividends for the federal agency charged with enhancing the health and well-being of all Americans.

“HHS has set the bar for agency success as one of the first agencies to issue a task order through the EIS contract vehicle, while also making the fastest transition to the program. Now, its continued efficiency with EIS is a testament to its contracting capabilities,” GSA stated.

The 12-year contract with Verizon, awarded in August 2020, covers all 10 of the agency's operating components, and its Office of the Secretary. The EIS contract vehicle combined separate awards into a single, streamlined contract. The result is a solution that will save HHS an estimated $700 million over the life of the task order, resulting from scale and interactions between data and voice, HHS officials said.

“Large federal agencies faced unprecedented challenges as they transitioned their communications infrastructure contracts to the new EIS vehicle by the September 2022 deadline, especially when they had multiple, separate awards and/or contracts,” said Maggie Hallbach, Senior Vice President, Public Sector at Verizon. “Our Verizon Public Sector team has had an extraordinary opportunity to work with HHS to architect a single, streamlined EIS contract vehicle that is accelerating their transition to advanced networking technologies and unlocking new capabilities and opportunities.”

The combining of both voice and data technologies into a single EIS task order, awarded to Verizon by HHS, has also been credited by leaders in the federal government as a model for success that can be emulated by other federal entities participating in the EIS program.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $133.6 billion in 2021. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Geoffrey Basye
geoffrey.basye@verizon.com
(202) 748-1882


FAQ

What is the value of the Verizon EIS task order awarded to HHS?

The Verizon EIS task order awarded to HHS is valued at $2.5 billion.

What savings is HHS expected to achieve through the Verizon contract?

HHS is expected to save approximately $700 million over the life of the Verizon contract.

When was the Verizon EIS task order awarded to HHS?

The Verizon EIS task order was awarded to HHS in March 2023.

What is the purpose of the Verizon EIS task order for HHS?

The purpose of the Verizon EIS task order is to modernize data and voice technology across HHS.

How long is the Verizon EIS contract with HHS?

The Verizon EIS contract with HHS spans 12 years.

Verizon Communications

NYSE:VZ

VZ Rankings

VZ Latest News

VZ Stock Data

163.19B
4.21B
0.04%
65.54%
1.48%
Telecom Services
Telephone Communications (no Radiotelephone)
Link
United States of America
NEW YORK