State Dept. Awards $7.1M IT Services Task Order to AT&T Under GSA EIS Contract
Contract Overview
Contract Amount: $7,084,855 ($7.1M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of State
Start Date: 2020-09-14
End Date: 2026-09-13
Contract Duration: 2,190 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TASK ORDER THREE FOR THE DEPARTMENT OF STATE UNDER GSA'S EIS CONTRACT FOR IRM IT DOMESTIC SERVICES.
Place of Performance
Location: OAKTON, FAIRFAX County, VIRGINIA, 22124
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $7.1 million to AT&T ENTERPRISES, LLC for work described as: TASK ORDER THREE FOR THE DEPARTMENT OF STATE UNDER GSA'S EIS CONTRACT FOR IRM IT DOMESTIC SERVICES. Key points: 1. AT&T secured a $7.1M task order for IT domestic services. 2. The contract was awarded under GSA's EIS contract, indicating a competitive framework. 3. The primary risk lies in the Time and Materials pricing structure, which can lead to cost overruns. 4. The sector is Information Technology, specifically Wired Telecommunications Carriers.
Value Assessment
Rating: fair
The Time and Materials (T&M) contract type presents a risk for cost control. Without fixed pricing or clear deliverables, the final cost could exceed initial estimates. Benchmarking against similar T&M contracts for IT services is crucial.
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. However, the T&M nature of the award may limit the effectiveness of this competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are utilized for IT services. The T&M pricing model necessitates close monitoring to ensure value for money and prevent unnecessary expenditure.
Public Impact
Ensures continued IT infrastructure support for the Department of State. Leverages existing GSA EIS contract, potentially streamlining procurement. Potential for cost escalation due to Time and Materials pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific performance metrics in provided data
Positive Signals
- Awarded under full and open competition
- Utilizes established GSA contract vehicle
Sector Analysis
This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is critical for government operations, but often subject to rapid technological change and evolving service needs.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this task order. Further analysis would be needed to determine if small businesses were involved in the subcontracting.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials contract effectively. The Department of State and GSA should ensure rigorous monitoring of hours and expenses to prevent cost creep and ensure accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Lack of specific performance metrics in provided data
- Limited visibility into small business participation
Tags
wired-telecommunications-carriers, department-of-state, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $7.1 million to AT&T ENTERPRISES, LLC. TASK ORDER THREE FOR THE DEPARTMENT OF STATE UNDER GSA'S EIS CONTRACT FOR IRM IT DOMESTIC 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 State (Department of State).
What is the total obligated amount?
The obligated amount is $7.1 million.
What is the period of performance?
Start: 2020-09-14. End: 2026-09-13.
What are the specific IT domestic services being provided under this task order, and how do they align with the Department of State's mission objectives?
The provided data identifies the North American Industry Classification System (NAICS) code as 517110 (Wired Telecommunications Carriers), suggesting services related to network infrastructure, telecommunications, and potentially related IT support. However, the exact nature of the services is not detailed. Alignment with the Department of State's mission would require a deeper dive into the Statement of Work (SOW) to understand how these services contribute to diplomatic operations, information security, and internal communication systems.
How does the Time and Materials pricing structure mitigate or exacerbate the risk of cost overruns compared to fixed-price or cost-plus-award-fee contracts for similar IT services?
Time and Materials (T&M) contracts carry a higher inherent risk of cost overruns because payment is based on direct labor hours at specified hourly rates and actual costs of materials. Unlike fixed-price contracts, there's no ceiling on the total cost unless a contract cap is established. While T&M can offer flexibility for evolving requirements, it places a significant burden on the government to meticulously track and validate all hours and expenses, making robust oversight paramount to prevent uncontrolled spending.
What mechanisms are in place to ensure the effectiveness and efficiency of the IT services delivered by AT&T under this task order, given the T&M contract type?
Effectiveness and efficiency under a T&M contract are primarily driven by stringent government oversight and performance management. This includes detailed tracking of labor hours, validation of material costs, and regular performance reviews against defined objectives, even if not contractually mandated as specific metrics. The Department of State should implement clear communication channels with AT&T, establish internal controls for approving work, and conduct periodic assessments to ensure the services provided are meeting operational needs and delivering value for the taxpayer.
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
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $120,351,487
Exercised Options: $34,573,077
Current Obligation: $7,084,855
Actual Outlays: $1,996,990
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: 2020-09-14
Current End Date: 2026-09-13
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2026-03-25
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