Commerce Dept. Spends $6.5M on Telecom Services with AT&T, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $6,482,665 ($6.5M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Commerce

Start Date: 2022-02-01

End Date: 2026-05-31

Contract Duration: 1,580 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TELECOMMUNICATION SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $6.5 million to AT&T ENTERPRISES, LLC for work described as: TELECOMMUNICATION SERVICES Key points: 1. Significant contract value of $6.5 million for telecommunication services. 2. AT&T Enterprises, LLC is the primary contractor. 3. Awarded under full and open competition, suggesting market-driven pricing. 4. Contract duration extends to May 2026, indicating long-term service needs.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar large-scale telecommunication service contracts would be beneficial to confirm optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives fair market value. This method allows multiple vendors to bid, driving down costs.

Taxpayer Impact: The competitive award process likely ensures taxpayer funds are used efficiently for these essential telecommunication services.

Public Impact

Ensures reliable communication infrastructure for the Department of Commerce. Supports federal operations and data transmission needs. Potential for service disruptions if contractor performance falters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends over multiple years.
Reliance on a single vendor for critical services.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.

Sector Analysis

Telecommunication services are critical for government operations, enabling communication and data transfer. Spending in this sector is generally stable, driven by the need for reliable connectivity and bandwidth.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The award through full and open competition suggests a structured procurement process. Oversight would focus on contract performance, service level agreements, and adherence to the firm fixed price.

Related Government Programs

Wired Telecommunications Carriers
Department of Commerce Contracting
Department of Commerce Programs

Risk Flags

Long contract duration (over 3 years).
Potential for vendor lock-in.
Reliance on a single vendor for critical infrastructure.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.5 million to AT&T ENTERPRISES, LLC. TELECOMMUNICATION SERVICES

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 (Department of Commerce).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2022-02-01. End: 2026-05-31.

What specific telecommunication services are included in this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 517110, 'Wired Telecommunications Carriers.' This typically encompasses services like broadband internet, dedicated data lines, and voice communication over wired networks. Specific details would be found in the contract's statement of work.

What is the potential risk associated with a multi-year contract for telecommunication services?

A multi-year contract, like this one ending in 2026, carries risks such as technological obsolescence if newer, more efficient technologies emerge. There's also the risk of vendor lock-in, making it difficult to switch providers if better terms or services become available elsewhere. Performance issues from the sole awardee can also impact operations.

How does the firm fixed price impact the government's value for money?

A firm fixed price (FFP) contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. For FFP to ensure value, the initial price must be competitive, which is supported by the full and open competition method used here.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

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: $6,482,665

Exercised Options: $6,482,665

Current Obligation: $6,482,665

Actual Outlays: $6,021,638

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