In the last 14 months, the U.S. Department of Health and Human Services has awarded Verizon Business a string of network deals that will bring in more than $600 million to the carrier over the next seven years.
Social Security to award massive network deal
Verizon's latest windfall from HHS came Tuesday with the award of a $169 million managed network and security services deal.
Under the terms of the new award, which was made through the U.S. General Services Administration's Networx Universal program, Verizon will provide HHS with managed firewalls, intrusion detection and VPN services, including secure remote access for voice, Web and video conferencing applications. According to the GSA, this deal also includes Ethernet, frame relay, hosting, co-location, storage and engineering services.
Verizon already provides HHS with voice, audio conferencing, toll-free and call center services under a $187 million contract announced in April. The call center services deal also was made through Networx Universal.
In July 2009, Verizon made a splash with a $245 million award to provide HHS with voice and data services, dedicated voice mail, audio, video and Web conferencing services. This contract was awarded to Verizon through the Washington Interagency Telecommunications System (WITS) 3 program, which provides local telecommunications services in the National Capital Region, including Washington D.C., Maryland and Virginia.
Verizon has a long-standing relationship with HHS, but the recent wins seem to cement its role as the agency's primary telecommunications carrier.
HHS is one of the largest U.S. government agencies, accounting for nearly a quarter of all federal outlays. With responsibility for operating federal healthcare programs such as Medicare and Medicaid, HHS has nearly 65,000 employees nationwide and a $700 billion budget.
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