DoD's $621.6M AT&T Contract for Telecom Network Management Services Awarded in 1997

Contract Overview

Contract Amount: $106,935,115 ($106.9M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Defense

Start Date: 1997-04-10

End Date: 2011-05-31

Contract Duration: 5,164 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 199707!9700!1133!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!*!0001 !19970410!19980227!621599893!621599893!006980080!N!0LUL1!AT&T CORP !2020 K ST NW STE 700 !WASHINGTON !DC!20006!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !0001!+000003708261!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !4899!5!B!S!*!B!A!*!A !N!J!2!003!B!* !C!N!Z!* !* !N!C!*!Z!Z!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $106.9 million to AT&T ENTERPRISES, LLC for work described as: 199707!9700!1133!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!*!0001 !19970410!19980227!621599893!621599893!006980080!N!0LUL1!AT&T CORP !2020 K ST NW STE 700 !WASHINGTON !DC!20006!50000!001!11!WASHINGTON !DISTRI… Key points: 1. The contract, awarded in 1997, has a significant value of $621.6 million. 2. AT&T Corp. was the primary awardee, indicating a strong incumbent presence. 3. The contract type is Firm Fixed Price, which can offer cost certainty. 4. The sector is Defense Information Technology, a critical area for national security.

Value Assessment

Rating: questionable

The contract's original award in 1997 and a long duration raise questions about its initial pricing and whether it remained competitive over time. Benchmarking against similar, more recent telecommunication network management contracts would be necessary for a thorough assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and potential for follow-on work may have influenced pricing and the level of competition over its lifespan.

Taxpayer Impact: Given the contract's age and duration, taxpayers may have paid above market rates if pricing was not regularly re-evaluated or if competition waned over time.

Public Impact

Ensures critical communication infrastructure for the Department of Defense. Supports national security by maintaining vital information technology networks. Long-term nature of the contract suggests a sustained need for these services. Potential for significant taxpayer investment over the contract's extended period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (awarded 1997, end date 2011) raises concerns about potential price escalation and outdated technology.
Lack of specific performance metrics or detailed cost breakdowns makes it difficult to assess value for money.
Potential for vendor lock-in given the specialized nature of network management services.

Positive Signals

Awarded under full and open competition, indicating initial market engagement.
Firm Fixed Price contract type provides some cost predictability.
Critical service for defense operations.

Sector Analysis

This contract falls within the Defense Information Technology sector, which is crucial for military operations and national security. Spending in this sector is often high due to the complexity and sensitivity of the systems involved. Benchmarks for similar telecommunication network management services can vary widely based on scope and duration.

Small Business Impact

The provided data does not specify the extent of small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The long duration of this contract necessitates robust oversight to ensure continued value and adherence to evolving technological standards. Without detailed performance reports, assessing the effectiveness of oversight is challenging.

Related Government Programs

Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Long contract duration potentially leading to outdated services or inflated costs.
Lack of transparency regarding performance metrics and value assessment.
Potential for price creep or lack of cost savings over time.
Limited information on competition dynamics beyond the initial award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.9 million to AT&T ENTERPRISES, LLC. 199707!9700!1133!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!*!0001 !19970410!19980227!621599893!621599893!006980080!N!0LUL1!AT&T CORP !2020 K ST NW STE 700 !WASHINGTON !DC!20006!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !0001!+000003708261!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !4899!5!B!S!*!B!A!*!A !N!J!2!0

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, 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 $106.9 million.

What is the period of performance?

Start: 1997-04-10. End: 2011-05-31.

Was the firm fixed price structure consistently beneficial given the long contract duration and potential for technological shifts?

A firm fixed price contract provides cost certainty for the government. However, over a long duration (1997-2011), it could become less beneficial if technology advanced rapidly, making the contracted services or pricing outdated. Without regular reviews or adjustments, the government might overpay for services that became less valuable or technologically inferior compared to market alternatives.

How did the full and open competition in 1997 translate into sustained value and competitive pricing throughout the contract's lifespan?

Initial full and open competition suggests a competitive environment at the outset. However, the long duration raises questions about whether competition was sustained or if the incumbent, AT&T, faced limited challenges over time. Without evidence of re-competition or price adjustments based on market shifts, the initial competitive advantage may have diminished, potentially impacting long-term value for taxpayers.

What specific performance metrics were used to ensure the effectiveness of the telecommunication network management services provided by AT&T?

The provided data does not detail the specific performance metrics used to evaluate AT&T's telecommunication network management services. Effective oversight typically relies on clearly defined metrics related to network uptime, response times, security compliance, and service quality. The absence of this information makes it difficult to objectively assess the contract's effectiveness and the value delivered to the Department of Defense.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: AT&T Inc.

Address: 2020 K ST NW STE 700, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20097D0054

IDV Type: IDC

Timeline