Commerce's NOAA Awards $18.3M Wired Telecom Contract to AT&T for 10 Years
Contract Overview
Contract Amount: $18,338,673 ($18.3M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Commerce
Start Date: 2020-09-29
End Date: 2030-09-28
Contract Duration: 3,651 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EIS
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $18.3 million to AT&T ENTERPRISES, LLC for work described as: EIS Key points: 1. The contract value of $18.3M over 10 years represents a significant investment in telecommunications infrastructure. 2. AT&T ENTERPRISES, LLC secured this award, indicating strong competition or a strategic choice for this provider. 3. Potential risks include vendor lock-in and the need for ongoing performance monitoring to ensure service quality. 4. The sector is Wired Telecommunications Carriers, crucial for government operations and data transmission.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar large-scale telecommunications contracts is necessary to fully assess value, but the 10-year duration suggests a strategic, long-term commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential telecommunications services.
Public Impact
Ensures reliable wired telecommunications for NOAA's critical scientific and operational missions. Supports data collection, analysis, and dissemination for weather, climate, and oceanic research. Provides essential connectivity for federal employees and operations across various NOAA facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration may limit flexibility for future technology adoption.
- Dependence on a single provider for critical infrastructure.
- Potential for price increases upon renewal if market conditions change significantly.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides budget predictability.
- Long-term commitment allows for strategic infrastructure planning and investment.
Sector Analysis
The Wired Telecommunications Carriers sector is vital for government operations, providing the backbone for data transmission and communication. Spending in this area is generally stable, driven by the need for reliable and secure networks.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Future opportunities may exist for small businesses in subcontracting roles or through separate, smaller procurements.
Oversight & Accountability
The award process under 'full and open competition' suggests adherence to standard procurement regulations. Ongoing oversight will be crucial to monitor AT&T's performance and ensure compliance with contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long-term commitment may lead to technology obsolescence.
- Potential for vendor lock-in.
- Reliance on a single provider for critical infrastructure.
- Need for continuous performance monitoring.
- Market price fluctuations over the contract term.
Tags
wired-telecommunications-carriers, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $18.3 million to AT&T ENTERPRISES, LLC. EIS
Who is the contractor on this award?
The obligated recipient is AT&T ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2020-09-29. End: 2030-09-28.
What is the projected cost per year, and how does it compare to industry benchmarks for similar services?
The total contract value is $18,338,672.96 over 3651 days (approximately 10 years). This averages to roughly $1.99 million per year. Comparing this to industry benchmarks requires detailed analysis of the specific services included (e.g., bandwidth, type of lines, geographic coverage) and prevailing market rates for similar government contracts.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to mitigate performance risks?
The provided data does not detail specific KPIs or SLAs. However, for a contract of this magnitude and duration, robust SLAs covering uptime, latency, repair times, and security are expected. NOAA's contracting officers would typically monitor these closely and enforce penalties for non-compliance.
How does this contract align with NOAA's long-term technology modernization strategy and potential future needs?
A 10-year contract suggests alignment with a long-term strategy, providing stability. However, it also poses a risk if technology evolves rapidly. NOAA likely has provisions for technology refreshes or contract modifications to adapt, but the extent of this flexibility needs further review.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1305L418RNAAA0017
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tyto Athene, LLC
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $173,702,183
Exercised Options: $88,973,305
Current Obligation: $18,338,673
Actual Outlays: $146,928
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17NSD3000
IDV Type: IDC
Timeline
Start Date: 2020-09-29
Current End Date: 2030-09-28
Potential End Date: 2030-09-28 00:00:00
Last Modified: 2026-04-09
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