DoD's $621.6M telecommunication network management contract with AT&T shows fair value and strong competition
Contract Overview
Contract Amount: $17,227,772 ($17.2M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2003-06-06
End Date: 2010-11-30
Contract Duration: 2,734 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200309!001763!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!N! !N!001904 !20030606!20050430!621599893!621599893!006980080!N!AT&T CORP !1900 GALLOWS ROAD, 6TH FLO!VIENNA !DC!22182!81072!059!51!VIENNA !FAIRFAX !VIRGINIA !+000000750000!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !517110!E! !5!B!S!C! ! !99990909!B!F!Y!A! !A!N!J!2!003!C! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! !HC1046!0001! !
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to AT&T ENTERPRISES, LLC for work described as: 200309!001763!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!N! !N!001904 !20030606!20050430!621599893!621599893!006980080!N!AT&T CORP !1900 GALLOWS ROAD, 6TH FLO!VIENNA !DC!22182!81072!059!51!VIENNA !FAIRF… Key points: 1. Contract awarded at a price point suggesting good value for network management services. 2. Full and open competition indicates a healthy market with multiple bidders. 3. No immediate risk indicators identified in the contract structure or award. 4. Services provided are critical for maintaining defense communication infrastructure. 5. Positioned within the IT and telecommunications sector, a key area for government operations.
Value Assessment
Rating: good
The total value of $621.6 million for telecommunication network management services appears reasonable given the duration and scope. Benchmarking against similar large-scale network management contracts within the Department of Defense would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that costs were well-defined at the outset, potentially leading to cost savings for the government if performance was efficient.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (3 noted) suggests a competitive environment that likely drove down prices and encouraged innovation. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and service quality.
Public Impact
The Department of Defense benefits from reliable and managed telecommunication networks. Essential services include network management, ensuring operational continuity for defense communications. The contract's impact is national, supporting defense operations across various locations. Workforce implications include employment opportunities within AT&T and potentially its subcontractors in the telecommunications field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type can lead to cost certainty.
- Long-term duration suggests a stable and ongoing need for these services.
- Contractor has a significant presence and capability in telecommunications.
Sector Analysis
This contract falls within the Information Technology (IT) and Telecommunications sector, a critical area for modern government operations. The market for telecommunication network management services is large and competitive, with numerous providers capable of supporting federal agencies. This specific contract represents a significant investment in maintaining robust communication infrastructure for national defense, aligning with broader government spending trends in IT modernization and secure network operations.
Small Business Impact
While this contract was awarded to a large prime contractor (AT&T), there is no explicit indication of a small business set-aside. However, large federal contracts often include subcontracting opportunities for small businesses. The extent to which AT&T utilized small business subcontractors would determine the direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring AT&T to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance details might be sensitive.
Related Government Programs
- Defense Information Technology Contracts
- Telecommunication Services Contracts
- Network Management Services
- Department of Defense IT Spending
Tags
department-of-defense, defense-information-systems-agency, information-technology, telecommunications, network-management, firm-fixed-price, full-and-open-competition, virginia, large-contract, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to AT&T ENTERPRISES, LLC. 200309!001763!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20097D0054 !A!N! !N!001904 !20030606!20050430!621599893!621599893!006980080!N!AT&T CORP !1900 GALLOWS ROAD, 6TH FLO!VIENNA !DC!22182!81072!059!51!VIENNA !FAIRFAX !VIRGINIA !+000000750000!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !517110!E! !5!B!S!C! ! !99990909!B
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 $17.2 million.
What is the period of performance?
Start: 2003-06-06. End: 2010-11-30.
What was the specific breakdown of services provided under this telecommunication network management contract?
The data indicates the contract was for 'TELECOMMUNICATION NETWORK MANAGEMENT SERVICES'. While a detailed service breakdown isn't provided in the abbreviated data, such contracts typically encompass a range of activities including network monitoring, maintenance, configuration management, performance optimization, security management, and technical support for voice, data, and video communication systems. For a contract of this magnitude ($621.6 million over its life), it likely covered the management of complex, wide-area networks supporting critical defense operations, potentially including infrastructure like routers, switches, servers, and transmission lines across various secure government facilities.
How does the total contract value of $621.6 million compare to similar telecommunication network management contracts within the DoD?
The total value of $621.6 million for telecommunication network management services over its period of performance (from June 2003 to November 2010, approximately 7.5 years) represents a significant but not necessarily outlier expenditure for the Department of Defense. Large-scale network management contracts for major agencies like DISA often run into hundreds of millions of dollars due to the complexity and criticality of the infrastructure. For context, other major telecommunication contracts within DoD for similar durations could range from tens of millions to over a billion dollars, depending on the scope, technology involved, and number of users supported. This contract's value appears consistent with the scale of managing a large, complex defense network.
What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for telecommunication network management services, typical SLAs would focus on network availability (uptime), response times for issue resolution, performance metrics (e.g., latency, bandwidth utilization), and security compliance. The firm fixed-price nature suggests that meeting these predefined performance standards was crucial for the contractor, AT&T, to achieve full payment and avoid penalties. DISA would have established these metrics to ensure the reliability and effectiveness of the defense communication networks.
Were there any performance issues or contract modifications noted during the contract's lifecycle?
The abbreviated data does not contain specific details regarding performance issues or contract modifications. However, the contract duration of over 7 years (from June 2003 to November 2010) and the significant value suggest a stable, ongoing requirement. While not explicitly stated, it is common for large, long-term contracts to undergo modifications for various reasons, such as changes in technology, scope adjustments, or economic price adjustments. Without access to the full contract file or modification history, it's impossible to definitively state whether performance issues arose or how they were addressed.
What is the historical spending trend for telecommunication network management services by the Defense Information Systems Agency (DISA)?
The provided data focuses on a single contract awarded in 2003. To understand DISA's historical spending trends for telecommunication network management, a broader analysis of contracts over multiple fiscal years would be necessary. DISA, as the primary IT provider for the DoD, consistently invests heavily in network infrastructure and management. Spending in this area is influenced by factors such as technological advancements (e.g., transition to cloud, cybersecurity needs), evolving military requirements, and budget allocations. Analyzing annual reports, contract databases, and budget documents would reveal trends in DISA's procurement of these critical services over time.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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
Start Date: 2003-06-06
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2023-09-29
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