A $2.56B contract between the Department of Health and Human Services and Verizon (NYSE: VZ) for information technology and telecommunication services took effect Monday, according to an award notice posted on the government’s SAM website.
The agreement with Verizon’s business network services unit includes a $32.2M base value and runs through July 2032.
HHS Deputy Secretary Eric Hargan and Scott Rowell, assistant secretary for administration, wrote in a joint blog post published Friday the department unified 11 contract opportunities under the Enterprise Infrastructure Solutions procurement vehicle in a move to simplify the buying process for the Office of the Secretary and 10 operating divisions.
The General Services Administration awarded the $50B EIS contract in July 2017 and gave agencies and contractors until May 2023 to fully transition from the current Networx, WITS and LSA contracts to the new telecom acquisition program.
HHS estimates it will save as much as $700M through the department’s 12-year deal with Verizon.