State Dept. Awards $9.65M for Computer Systems Design to AT&T, Not Competed
Contract Overview
Contract Amount: $9,650,412 ($9.7M)
Contractor: AT&T Technical Services Company, Inc
Awarding Agency: Department of State
Start Date: 2026-01-19
End Date: 2030-01-18
Contract Duration: 1,460 days
Daily Burn Rate: $6.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JANUS TRANSITION IDIQ - JANUS III AND IV JANUS TRANSITION IDIQ - FUNDED PROJECT COMPLETION
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $9.7 million to AT&T TECHNICAL SERVICES COMPANY, INC for work described as: JANUS TRANSITION IDIQ - JANUS III AND IV JANUS TRANSITION IDIQ - FUNDED PROJECT COMPLETION Key points: 1. Significant award to AT&T for IT services. 2. Lack of competition raises questions about price discovery. 3. Long-term contract (2026-2030) with firm fixed price. 4. NAICS code 541512 indicates a focus on computer systems design.
Value Assessment
Rating: questionable
The contract is firm fixed price, which can offer cost certainty. However, without competition, it's difficult to assess if the $9.65M price represents a fair market value or if it's inflated due to the lack of competitive bidding.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these computer systems design services, as the government did not explore potentially lower-cost options.
Public Impact
Citizens may question the fairness of awarding large contracts without exploring competitive options. Taxpayers are directly funding this IT service contract through federal appropriations. The long duration of the contract impacts budget planning and potential for future cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration without re-evaluation
Positive Signals
- Firm fixed price contract type
- Clear service description (Computer Systems Design)
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Federal spending in this area is substantial, and competitive bidding is typically encouraged to ensure value for money.
Small Business Impact
The data indicates this contract was awarded to AT&T Technical Services Company, Inc. There is no information provided to suggest any specific set-aside for small businesses or participation by them in this contract.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in robust oversight regarding competitive sourcing. Further review would be needed to understand the justification for not competing this significant award.
Related Government Programs
- Computer Systems Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited vendor options for future needs
- Lack of transparency in award justification
Tags
computer-systems-design-services, department-of-state, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $9.7 million to AT&T TECHNICAL SERVICES COMPANY, INC. JANUS TRANSITION IDIQ - JANUS III AND IV JANUS TRANSITION IDIQ - FUNDED PROJECT COMPLETION
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 $9.7 million.
What is the period of performance?
Start: 2026-01-19. End: 2030-01-18.
What was the specific justification for not competing this $9.65M contract, and were any sole-source exceptions properly applied?
The provided data explicitly states 'NOT COMPETED' but does not offer the justification. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the contract file would be necessary to ascertain if such criteria were met and if the award process adhered to all applicable regulations.
How does the firm fixed price compare to market benchmarks for similar computer systems design services, given the lack of competition?
Without competitive bids, establishing a precise market benchmark is challenging. However, the absence of competition raises concerns that the firm fixed price of $9.65 million might be higher than what could have been achieved through a competitive process. Agencies often use historical data, commercial price lists, and independent government cost estimates to validate pricing, but the true market value remains uncertain here.
What is the potential impact on the Department of State's IT infrastructure and service delivery given this long-term, sole-source award?
A long-term, sole-source award can provide stability and continuity for critical IT services, ensuring AT&T has the resources and commitment to deliver. However, it also carries risks, including potential vendor lock-in, reduced incentive for innovation, and the possibility that the government may not benefit from emerging technologies or more cost-effective solutions that could arise from a competitive market over the contract's lifespan.
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: $9,650,412
Exercised Options: $9,650,412
Current Obligation: $9,650,412
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
Start Date: 2026-01-19
Current End Date: 2030-01-18
Potential End Date: 2030-01-18 00:00:00
Last Modified: 2026-04-09
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