DOJ's $5.28B AT&T Mobility contract for wireless services awarded under full and open competition

Contract Overview

Contract Amount: $5,277 ($5.3K)

Contractor: ATT Mobility LLC

Awarding Agency: Department of Justice

Start Date: 2023-06-01

End Date: 2026-07-31

Contract Duration: 1,156 days

Daily Burn Rate: $5/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAR -TOG-- FY23-26 AT&T MOBILITY SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22152

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $5,276.59 to ATT MOBILITY LLC for work described as: MAR -TOG-- FY23-26 AT&T MOBILITY SERVICES Key points: 1. Significant investment in essential wireless telecommunications infrastructure for the U.S. Marshals Service. 2. Long-term contract duration (FY23-26) suggests a need for stable, ongoing service provision. 3. Awarded via a Blanket Purchase Agreement (BPA) Call, indicating a streamlined procurement process for established agreements. 4. Contract type is Firm Fixed Price, providing cost certainty for the government. 5. No small business set-aside, suggesting the primary contractor, AT&T Mobility LLC, was deemed the best value. 6. High contract value warrants scrutiny of ongoing performance and cost-effectiveness over its lifespan.

Value Assessment

Rating: good

The contract value of $5.28 billion over approximately three years represents a substantial commitment to wireless telecommunications. Benchmarking this against similar large-scale government wireless contracts is challenging due to the unique nature of agency-wide mobility services. However, the firm fixed-price structure suggests an attempt to control costs. The value is consistent with the scale of operations for a federal law enforcement agency like the U.S. Marshals Service, implying a need for extensive and reliable mobile communication capabilities.

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 mechanism used was a BPA Call, which suggests that AT&T Mobility LLC was likely pre-qualified or had an existing master agreement. While the number of bidders is not specified, full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby ensuring better value for public funds.

Public Impact

Federal law enforcement operations across the U.S. Marshals Service will benefit from reliable and extensive wireless communication. Essential services include mobile voice, data, and potentially specialized communication solutions for agents and support staff. Geographic impact is nationwide, supporting the dispersed operational footprint of the U.S. Marshals Service. Workforce implications include ensuring that all personnel have the necessary communication tools to perform their duties effectively and safely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The sheer magnitude of the contract value necessitates ongoing monitoring to ensure funds are utilized efficiently and effectively.
Potential for vendor lock-in given the long-term nature and critical infrastructure reliance.
Dependence on a single provider for essential communication services could pose a risk if service levels degrade or unforeseen issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
Firm Fixed Price contract type provides budget certainty and protects against cost overruns.
Long-term duration (FY23-26) indicates a stable and reliable service provision for a critical function.
The U.S. Marshals Service is a critical component of national security and law enforcement, underscoring the importance of this service.

Sector Analysis

This contract falls within the telecommunications sector, specifically wireless carrier services. The U.S. government is a significant consumer of such services, with numerous agencies relying on mobile communication for daily operations. The market for wireless telecommunications is mature and competitive, dominated by a few large providers. AT&T Mobility LLC is a major player in this market. The contract value of $5.28 billion is substantial, reflecting the scale of the U.S. Marshals Service's nationwide needs.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as it was not set aside for small businesses and the primary awardee is a large corporation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the focus was on securing the best overall value from a large, established provider rather than specifically promoting small business engagement through this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service's contracting and program management offices. As a large federal contract, it is likely subject to regular performance reviews, financial audits, and potentially oversight from the Department of Justice's Office of the Inspector General, especially if performance issues or significant cost variances arise. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

General Services Administration (GSA) Schedule contracts for telecommunications.
Department of Defense (DoD) wireless communication contracts.
FBI wireless services procurement.
Other federal agency mobile device and service contracts.

Risk Flags

High Contract Value
Long-Term Duration
Single Provider Dependence

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,276.59 to ATT MOBILITY LLC. MAR -TOG-- FY23-26 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 $5,276.59.

What is the period of performance?

Start: 2023-06-01. End: 2026-07-31.

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

Analyzing historical spending patterns for wireless services by the U.S. Marshals Service is crucial for contextualizing the current $5.28 billion award. While specific historical data is not provided here, large federal agencies typically award multi-year contracts for mobility services. Spending often increases over time due to technological advancements, expanded user bases, and evolving service needs. Previous contracts might have been smaller in scope, awarded to different providers, or utilized different procurement vehicles. Understanding the trend in spending—whether it has been steadily increasing, fluctuating, or remaining relatively stable—can indicate the agency's growing reliance on mobile technology and the effectiveness of its procurement strategies in managing these costs over time. A significant jump in this award compared to previous periods could signal new initiatives or a change in service requirements.

How does the per-user cost of this contract compare to industry benchmarks for similar government services?

Determining the per-user cost requires knowing the total number of users covered by the contract, which is not explicitly provided in the data. However, if we assume a hypothetical number of users (e.g., 50,000), the annual cost per user would be approximately $35,177 ($5.28 billion / 3 years / 50,000 users). This figure would need to be compared against industry benchmarks for government wireless services. Government contracts often include premium features, enhanced security, and dedicated support, which can drive up per-user costs compared to commercial plans. Benchmarking would involve comparing this rate against per-user costs for similar large-scale enterprise mobility solutions procured by other federal agencies or large state/local governments. Factors like data allowances, device management, and included services (e.g., international roaming, hotspot capabilities) are critical for a fair comparison. Without the exact user count, a precise benchmark is impossible, but the overall contract value suggests a significant per-user investment.

What are the key performance indicators (KPIs) used to measure the success of this AT&T Mobility contract?

Key Performance Indicators (KPIs) for a contract of this magnitude typically focus on service availability, network performance, customer support responsiveness, and adherence to service level agreements (SLAs). For wireless telecommunications, common KPIs include network uptime (e.g., 99.99% availability), call completion rates, data throughput speeds, latency, and mean time to repair (MTTR) for any service disruptions. Customer support KPIs might involve first-call resolution rates and average wait times. The U.S. Marshals Service would likely have defined specific targets for these metrics within the contract's Statement of Work (SOW) or SLAs. Performance against these KPIs would be regularly reviewed, potentially through monthly or quarterly performance reviews with AT&T Mobility. Failure to meet critical KPIs could result in financial penalties or other contractual remedies, ensuring accountability.

What is AT&T Mobility LLC's track record with large federal government wireless contracts?

AT&T Mobility LLC has a long and extensive track record of providing wireless telecommunications services to the U.S. federal government. As one of the largest telecommunications providers in the United States, AT&T holds numerous contracts across various federal agencies, including the Department of Defense, Department of Homeland Security, and other civilian agencies. Their experience typically encompasses providing mobile voice and data services, specialized communication solutions, and device management for large workforces. Past performance is often a significant factor in contract awards. Agencies evaluate a contractor's history of meeting delivery schedules, quality standards, and contractual obligations. AT&T's continued success in securing large federal contracts suggests a generally positive track record, although like any large provider, specific contract performance can vary and may be subject to reviews and audits.

What are the potential risks associated with relying on a single provider for critical wireless communications?

Relying on a single provider like AT&T Mobility for critical wireless communications presents several potential risks. Firstly, there's the risk of service disruption; if AT&T experiences a major network outage due to technical failure, natural disaster, or cyberattack, the U.S. Marshals Service could face significant communication blackouts, impacting operations, officer safety, and national security. Secondly, a lack of competition post-award can lead to reduced leverage for negotiating future services or price adjustments, potentially resulting in higher costs over time if the agency becomes locked into the provider. Thirdly, dependence on a single vendor's technology roadmap might limit the agency's access to newer, more advanced communication technologies if the vendor is slow to adopt them. Finally, security vulnerabilities within the provider's network could pose a risk to sensitive government data transmitted wirelessly.

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: $5,890

Exercised Options: $5,286

Current Obligation: $5,277

Actual Outlays: $1,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15F06720A0001516

IDV Type: BPA

Timeline