State Department awards $4.2M contract for foreign post telecommunication services to AT&T Technical Services

Contract Overview

Contract Amount: $4,183,084 ($4.2M)

Contractor: AT&T Technical Services Company, Inc

Awarding Agency: Department of State

Start Date: 2026-01-19

End Date: 2027-01-18

Contract Duration: 364 days

Daily Burn Rate: $11.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOREIGN POST TELECOMMUNICATION SERVICES - KEY PERSONNEL SUPPORT

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $4.2 million to AT&T TECHNICAL SERVICES COMPANY, INC for work described as: FOREIGN POST TELECOMMUNICATION SERVICES - KEY PERSONNEL SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of one year suggests a need for ongoing, specialized support. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. The award is for Computer Systems Design Services, indicating a focus on IT infrastructure. 5. The contractor, AT&T Technical Services Company, Inc., is a known entity in telecommunications. 6. The contract value of $4.2M is moderate for IT services, but requires benchmarking. 7. No small business set-aside was utilized, suggesting larger prime contractor involvement.

Value Assessment

Rating: fair

The contract value of $4.2 million for a one-year period for telecommunication services appears within a reasonable range for specialized IT support. However, without specific details on the scope of services and personnel required, a definitive value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for key personnel support at foreign posts would be necessary to determine if the pricing is competitive. The firm fixed-price structure offers predictability, but the lack of competition limits the government's ability to leverage market forces for potential cost reductions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary qualifications, capabilities, or when urgency dictates. The lack of competition means that the Department of State did not benefit from a bidding process that could have potentially driven down prices or offered innovative solutions from a wider pool of contractors. The rationale for the sole-source award needs to be clearly documented to ensure it was justified.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the government secured the best possible price and value for these critical telecommunication services.

Public Impact

Diplomatic missions abroad benefit from reliable and secure telecommunication infrastructure, essential for operations. Key personnel supporting these telecommunication systems ensure continuity of government communication. The services provided are critical for maintaining secure and efficient communication channels for U.S. foreign policy objectives. The contract supports the operational readiness of the Department of State's global presence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of competition may reduce incentive for contractor to offer best value.
Dependence on a single contractor for critical infrastructure poses a risk.
Scope of 'key personnel support' needs clear definition to ensure accountability.

Positive Signals

Firm Fixed Price contract provides cost certainty.
AT&T is a well-established provider with extensive experience in telecommunications.
Contract supports critical government functions abroad.
Defined period of performance allows for future re-evaluation of needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and telecommunication services. The market for such services is large and competitive, with numerous providers capable of supporting government needs. However, the niche requirement for supporting telecommunication services at foreign posts, potentially involving specialized security clearances and infrastructure knowledge, may limit the pool of qualified contractors. Comparable spending benchmarks for IT support at diplomatic facilities would provide further context.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This suggests that the prime contractor, AT&T Technical Services Company, Inc., will likely perform the majority of the work. There is no indication of subcontracting requirements for small businesses within this award, which could limit opportunities for smaller firms to contribute to this specific contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides some cost control. Transparency regarding the justification for the sole-source award and performance metrics would enhance accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State IT Services
Global Telecommunications Support
Foreign Affairs Information Technology
Computer Systems Design Services

Risk Flags

Sole-source award
Potential for uncompetitive pricing
Dependence on single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.2 million to AT&T TECHNICAL SERVICES COMPANY, INC. FOREIGN POST TELECOMMUNICATION SERVICES - KEY PERSONNEL SUPPORT

Who is the contractor on this award?

The obligated recipient is AT&T TECHNICAL SERVICES COMPANY, INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2026-01-19. End: 2027-01-18.

What is the specific justification for awarding this contract on a sole-source basis to AT&T Technical Services Company, Inc.?

The provided data indicates the contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED), which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. For a contract of this nature, it could relate to unique technical expertise, existing infrastructure integration, or specific security requirements at foreign posts that only AT&T can meet. A thorough review of the Department of State's acquisition records would be necessary to ascertain the precise justification, such as a Justification and Approval (J&A) document.

How does the $4.2 million contract value compare to similar telecommunication support contracts for foreign posts?

Benchmarking the $4.2 million contract value requires comparing it to similar contracts for telecommunication services and key personnel support at U.S. diplomatic missions or other government facilities abroad. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for a one-year duration, this value suggests a significant scope of work, likely involving specialized technical expertise, maintenance, and potentially the management of complex communication systems. The firm fixed-price nature provides cost certainty, but the sole-source award means this price was not tested against market competition, making it harder to definitively assess if it represents optimal value for money.

What are the potential risks associated with a sole-source award for critical telecommunication services?

A primary risk of a sole-source award is the lack of competitive pressure, which can lead to higher prices than might be achieved through open competition. It also reduces the incentive for the contractor to innovate or provide exceptional service, as there is no immediate threat of losing the business to a competitor. Furthermore, reliance on a single vendor for critical infrastructure can create vulnerabilities if the vendor experiences financial difficulties, operational issues, or decides to discontinue services. This dependence can also limit the government's flexibility in adapting to new technologies or changing requirements.

What is the expected performance standard for 'key personnel support' in this contract?

The term 'key personnel support' in this contract refers to the essential individuals whose expertise and services are critical to the successful operation and maintenance of the foreign post's telecommunication systems. While the specific roles and qualifications are not detailed in the provided data, these individuals are expected to possess specialized knowledge in areas such as network management, cybersecurity, telecommunications hardware and software, and potentially specific government communication protocols. Performance standards would typically be defined in the contract's Statement of Work (SOW) and could include metrics related to system uptime, response times for technical issues, successful implementation of upgrades, and adherence to security protocols. The Department of State would monitor these personnel to ensure they meet the required technical and professional standards.

What is the historical spending pattern for foreign post telecommunication services by the Department of State?

The provided data focuses on a single contract award and does not offer historical spending patterns for foreign post telecommunication services by the Department of State. To analyze historical spending, one would need to examine contract awards over multiple fiscal years for similar services, potentially across different vendors and contract types. This would involve querying federal procurement databases (like FPDS or USASpending.gov) for relevant contract actions, filtering by agency, service category (e.g., telecommunications, IT support, computer systems design), and geographic scope (foreign posts). Such an analysis would reveal trends in contract values, duration, competition levels, and the primary contractors utilized, providing context for the current award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM26R0006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,183,084

Exercised Options: $4,183,084

Current Obligation: $4,183,084

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM26D0111

IDV Type: IDC

Timeline