DOJ's $65.6M AT&T Mobility contract for wireless services awarded via full and open competition

Contract Overview

Contract Amount: $65,588 ($65.6K)

Contractor: ATT Mobility LLC

Awarding Agency: Department of Justice

Start Date: 2023-02-01

End Date: 2026-07-31

Contract Duration: 1,276 days

Daily Burn Rate: $51/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCAG-FY23-FY26 AT&T MOBILITY SERVICES

Place of Performance

Location: CHEVERLY, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $65,588.1 to ATT MOBILITY LLC for work described as: OCAG-FY23-FY26 AT&T MOBILITY SERVICES Key points: 1. Contract awarded through a competitive process, suggesting potential for favorable pricing. 2. Firm Fixed Price contract type helps mitigate cost overrun risks. 3. Long-term duration (over 3 years) provides service continuity but requires ongoing performance monitoring. 4. Services are critical for operational needs of the U.S. Marshals Service. 5. Contractor is a major player in the telecommunications sector. 6. No small business set-aside, indicating potential for larger prime contractors to benefit.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive indicator for cost control. Benchmarking against similar large-scale wireless telecommunications contracts is necessary for a definitive value assessment. Given the scale and duration, the price appears reasonable, assuming service levels and coverage meet expectations. However, without detailed service level agreements and usage data, a precise value-for-money calculation is challenging.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service options for the government. The breadth of competition is a positive sign for price discovery.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive rates for essential services.

Public Impact

The U.S. Marshals Service benefits from reliable wireless communication services, crucial for law enforcement operations. Federal law enforcement personnel across various locations will have access to mobile communication. The contract supports the operational efficiency and effectiveness of a key federal agency. Workforce implications are minimal, as this contract provides a service rather than direct employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service migration is complex or costly.
Reliance on a single provider for critical communication infrastructure.
Need for robust performance monitoring to ensure service quality meets contract terms.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type limits cost uncertainty.
Long-term contract provides stability for essential services.
Contractor is a well-established provider in the telecommunications industry.

Sector Analysis

This contract falls within the telecommunications sector, specifically wireless carrier services. The market is dominated by a few large providers, and AT&T Mobility LLC is a significant player. Government spending on telecommunications services is substantial, with agencies relying heavily on mobile connectivity for operations. This contract represents a portion of that broader spending, ensuring critical communication infrastructure for a federal law enforcement agency.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contract is likely held by a large business, and opportunities for small businesses would primarily be through subcontracting if AT&T Mobility LLC chooses to engage them. The absence of a set-aside may limit direct opportunities for small businesses to compete for the prime contract.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Marshals Service contracting officer and program managers. Performance monitoring, invoice review, and adherence to service level agreements are key oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Wireless Services Contracts
Department of Defense (DoD) Telecommunications Contracts
Other Federal Agency Wireless Communication Services

Risk Flags

Long contract duration may not align with rapid technological advancements.
Potential for vendor lock-in.
Requires diligent performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $65,588.1 to ATT MOBILITY LLC. OCAG-FY23-FY26 AT&T MOBILITY SERVICES

Who is the contractor on this award?

The obligated recipient is ATT MOBILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $65,588.1.

What is the period of performance?

Start: 2023-02-01. End: 2026-07-31.

What is the historical spending pattern for wireless telecommunications services by the U.S. Marshals Service?

Analyzing historical spending for wireless services by the U.S. Marshals Service is crucial for understanding trends and the context of the current $65.6 million AT&T Mobility contract. While specific historical data for the Marshals Service alone is not provided, federal agencies collectively spend billions annually on telecommunications. The General Services Administration (GSA) often facilitates such procurements through master contracts like the Networx or Enterprise Infrastructure Solutions (EIS) programs, which aggregate demand and leverage competition. Examining past contract awards, durations, and total spending for similar services by the Marshals Service would reveal if this current award represents an increase, decrease, or stable level of investment. It would also help identify if there have been shifts in providers or service types over time, potentially indicating changes in technology adoption or strategic sourcing.

How does the per-user cost of this AT&T Mobility contract compare to industry benchmarks?

Determining the per-user cost requires knowing the number of users or devices covered by the $65.6 million AT&T Mobility contract. If, for example, the contract supports 10,000 users over its 3.5-year duration, the average annual cost per user would be approximately $1,874 ($65.6M / 10,000 users / 3.5 years). This figure can then be benchmarked against typical enterprise mobile plans, which can range widely from $50 to $150 per user per month, depending on data allowances, features, and support levels. A monthly cost of around $156 ($1,874 / 12) would be at the higher end of typical enterprise rates, suggesting the need for closer examination of the services included. However, government contracts often include specific security features, dedicated support, and broader coverage requirements that can justify higher per-unit costs compared to standard commercial plans.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key performance indicators (KPIs) and service level agreements (SLAs) are critical for ensuring the U.S. Marshals Service receives the expected quality and reliability of wireless telecommunications services from AT&T Mobility LLC. While not detailed in the provided data, typical SLAs for such contracts include metrics related to network availability (e.g., 99.9% uptime), data speeds, call completion rates, latency, and customer support response times. KPIs would likely track adherence to these SLAs, device provisioning times, and potentially user satisfaction. Failure to meet these SLAs often triggers financial penalties or service credits for the government, serving as a crucial accountability mechanism. The firm fixed price nature of the contract means AT&T is incentivized to meet these performance standards to maximize profitability.

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

AT&T Mobility LLC, as a major telecommunications provider, has an extensive track record of serving federal government clients. They are a frequent awardee of large-scale wireless contracts across various agencies, including defense, law enforcement, and civilian departments. Their experience often includes providing services under complex frameworks like GSA's Enterprise Infrastructure Solutions (EIS) program. Government contract databases and performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) would offer detailed insights into AT&T's past performance, including timeliness, quality of service, and responsiveness on previous federal engagements. Generally, large providers like AT&T are accustomed to the rigorous requirements and oversight inherent in government contracting, though specific contract performance can vary.

Are there any potential risks associated with the long duration (over 3 years) of this contract?

The contract's duration of over three years (February 1, 2023, to July 31, 2026) presents several potential risks. Firstly, technology in the telecommunications sector evolves rapidly; a three-year commitment might mean the government is locked into services or devices that become outdated before the contract ends, potentially missing out on newer, more efficient, or cost-effective solutions. Secondly, long-term contracts can reduce flexibility. If the U.S. Marshals Service's needs change significantly due to evolving mission requirements or budget shifts, modifying or exiting a long-term contract can be complex and costly. Lastly, there's the risk of service degradation or complacency from the provider over an extended period, underscoring the importance of robust performance monitoring and contract management throughout its life.

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

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: $66,901

Exercised Options: $65,817

Current Obligation: $65,588

Actual Outlays: $39,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15F06720A0001516

IDV Type: BPA

Timeline