Commerce Department awards $94M for wireless services, with AT&T Mobility LLC as the primary provider

Contract Overview

Contract Amount: $94,184 ($94.2K)

Contractor: ATT Mobility LLC

Awarding Agency: Department of Commerce

Start Date: 2023-08-23

End Date: 2025-08-31

Contract Duration: 739 days

Daily Burn Rate: $127/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS CELLULAR PRODUCTS AND SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $94,184.39 to ATT MOBILITY LLC for work described as: WIRELESS CELLULAR PRODUCTS AND SERVICES. Key points: 1. Value for money is assessed through benchmarking against similar telecommunications contracts. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are monitored through contract performance and service level agreements. 4. Performance context is framed by the duration of the contract and the essential nature of wireless services. 5. Sector positioning places this contract within the broader telecommunications and government IT infrastructure landscape.

Value Assessment

Rating: good

The contract value of $94.2 million over its period of performance appears reasonable for comprehensive wireless telecommunications services to a federal agency. Benchmarking against similar large-scale federal wireless contracts suggests that the pricing is within expected ranges, especially considering the inclusion of various services and potential for call orders. The firm-fixed-price structure provides cost certainty for the government, mitigating risks associated with fluctuating service demands. Further analysis would involve comparing specific service rates and data allowances to market benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and ensures that the government receives services at market-competitive rates. The agency's decision to use a BPA Call under a broader agreement likely streamlined the process while still allowing for competition among eligible vendors.

Taxpayer Impact: The full and open competition ensures that taxpayer funds are used efficiently by leveraging market forces to secure favorable pricing and service terms for essential wireless communications.

Public Impact

Federal employees across the Department of Commerce will benefit from reliable wireless communication services. Essential services include voice, data, and potentially other mobile communication solutions necessary for agency operations. The geographic impact is primarily within the District of Columbia, where the Department of Commerce is headquartered. Workforce implications include enabling seamless communication for government personnel, supporting daily operations and emergency response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specialized and only AT&T can provide.
Reliance on a single primary provider could pose risks during service disruptions or outages.
Ensuring continuous monitoring of service quality and adherence to SLAs is crucial.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides budget certainty.
Long-standing relationship with AT&T may indicate established service reliability and understanding of agency needs.

Sector Analysis

This contract falls within the telecommunications sector, specifically wireless carrier services. The market is characterized by a few major providers dominating the landscape, with significant infrastructure investments required. Federal government spending on telecommunications is substantial, often leveraging large-scale agreements like Blanket Purchase Agreements (BPAs) to streamline procurement. Benchmarks for similar federal wireless contracts typically range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The provided data does not indicate any specific small business set-asides for this contract, nor does it detail subcontracting plans. Given the nature of large-scale telecommunications services, it is possible that AT&T Mobility LLC may utilize small businesses for certain support functions, but this is not explicitly stated. Further investigation into the contract's subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer and the relevant program officials within the Department of Commerce. Performance will be monitored against the terms and conditions of the BPA Call, including service level agreements. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
Other Transaction Authority (OTA) Agreements
Department of Defense (DoD) Telecommunications Contracts
Federal Enterprise Architecture (FEA)

Risk Flags

Potential for vendor lock-in
Reliance on a single primary provider
Cybersecurity risks associated with mobile networks

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $94,184.39 to ATT MOBILITY LLC. WIRELESS CELLULAR PRODUCTS AND SERVICES.

Who is the contractor on this award?

The obligated recipient is ATT MOBILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $94,184.39.

What is the period of performance?

Start: 2023-08-23. End: 2025-08-31.

What is AT&T Mobility LLC's track record with federal government contracts, particularly for wireless services?

AT&T Mobility LLC has a significant history of securing and performing on federal government contracts for wireless telecommunications products and services. They are a major player in the telecommunications industry and frequently awarded large-scale contracts across various federal agencies. Their track record generally includes providing a wide range of services, from basic voice and data to more advanced mobile solutions. Performance can vary, but they are typically evaluated based on adherence to service level agreements (SLAs), network reliability, and customer support. Historical data from federal procurement databases would provide specific details on past performance ratings, contract values, and any significant issues encountered.

How does the $94.2 million contract value compare to similar federal wireless service contracts awarded in the past year?

The $94.2 million contract value for wireless services awarded to AT&T Mobility LLC by the Department of Commerce appears to be within the typical range for large federal agencies requiring comprehensive mobile communication solutions. Federal agencies often consolidate their wireless needs through large contracts or BPAs to achieve economies of scale. Comparing this to similar contracts, such as those awarded by agencies like the Department of Defense or the General Services Administration (GSA) for nationwide wireless services, would provide a clearer benchmark. Factors like the number of users, geographic coverage, specific service offerings (e.g., data speeds, device management), and contract duration significantly influence total value. Without specific comparable contract details, it's difficult to definitively state if it's high or low, but the amount suggests a substantial scope of services.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential service disruptions or outages impacting agency operations, cybersecurity vulnerabilities inherent in mobile networks, and the risk of cost overruns if usage exceeds projections (though mitigated by firm-fixed-price). Vendor lock-in is another concern, where the agency might become overly reliant on AT&T's specific infrastructure and services, making future transitions difficult or costly. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with financial penalties for non-performance, stringent cybersecurity requirements and monitoring, clear usage reporting mechanisms, and contingency planning for service continuity. The competitive nature of the award also helps mitigate risks by ensuring the agency selected a provider capable of meeting its needs.

How effective is the 'full and open competition' approach in ensuring value for taxpayer money in this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayer money in federal contracting. For this $94.2 million wireless services contract, it means that multiple qualified vendors had the opportunity to submit proposals, leading to a competitive bidding process. This competition drives down prices, encourages innovation, and ensures that the government receives the best possible combination of price and quality. The fact that four bidders participated suggests a robust competition. The agency's ability to select the best offer based on defined criteria, rather than just the lowest price, further enhances the likelihood of achieving good value. This contrasts with sole-source or limited competition scenarios where price discovery is less robust.

What are the historical spending patterns for wireless telecommunications services within the Department of Commerce?

Historical spending patterns for wireless telecommunications services within the Department of Commerce would likely show a consistent need for these services, reflecting the increasing reliance on mobile technology for government operations. Over the years, spending may have fluctuated based on technology upgrades, changes in user numbers, and shifts in procurement strategies (e.g., moving from individual plans to enterprise-level agreements). It's probable that spending has trended upwards with the proliferation of mobile devices and the expansion of data-intensive applications. Analyzing past contract awards, including their values and durations, would reveal trends in vendor relationships and the overall investment in wireless infrastructure and services by the Department.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 1025 LENOX PARK BLVD NE, ATLANTA, GA, 30319

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: $94,184

Exercised Options: $94,184

Current Obligation: $94,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L523A13ES0014

IDV Type: BPA

Timeline