Treasury's $5.78M wireless contract for first responders awarded to AT&T Mobility

Contract Overview

Contract Amount: $5,776,295 ($5.8M)

Contractor: ATT Mobility LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-03-14

End Date: 2026-03-13

Contract Duration: 1,095 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIMARY USER UNLIMITED ENHANCED FOR SMARTPHONE - UNLIMITED VOICE, UNLIMITED DATA WITH HOTSPOT/TETHERING, UNLIMITED MESSAGING FOR FIRST RESPONDER LAW ENFORCEMENT OFFICERS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.8 million to ATT MOBILITY LLC for work described as: PRIMARY USER UNLIMITED ENHANCED FOR SMARTPHONE - UNLIMITED VOICE, UNLIMITED DATA WITH HOTSPOT/TETHERING, UNLIMITED MESSAGING FOR FIRST RESPONDER LAW ENFORCEMENT OFFICERS. Key points: 1. The contract provides unlimited voice, data, and hotspot services for law enforcement officers. 2. This is a delivery order under a larger contract, indicating potential for follow-on work. 3. The firm-fixed-price structure helps manage cost certainty for the government. 4. The contract duration of 1095 days (3 years) aligns with typical service agreements. 5. Awarded through full and open competition, suggesting a competitive bidding process. 6. The service area is limited to the District of Columbia. 7. The primary user is the Internal Revenue Service, a component of the Treasury Department.

Value Assessment

Rating: good

The contract value of $5.78 million over three years for unlimited wireless services for law enforcement appears reasonable given the scope. Benchmarking against similar government-wide contracts for wireless services suggests that AT&T's pricing is competitive, especially considering the 'unlimited' nature of the data and hotspot features, which can significantly increase costs. The firm-fixed-price contract type provides cost predictability, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders (as suggested by 'no': 3) implies a healthy level of competition, which typically drives down prices and encourages innovation. The government likely received competitive proposals, allowing for a thorough evaluation of technical capabilities and pricing.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is offered at the most competitive price.

Public Impact

First responder law enforcement officers in the District of Columbia benefit from enhanced communication capabilities. Unlimited voice, data, and hotspot services ensure continuous connectivity for critical operations. The contract supports the operational needs of the Internal Revenue Service. Geographic impact is focused on the District of Columbia. Workforce implications include providing essential tools for law enforcement personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed through future competitive procurements.
Reliance on a single carrier for critical communication infrastructure.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost certainty.
Unlimited data and hotspot features offer robust capabilities for users.

Sector Analysis

The wireless telecommunications sector is a mature and highly competitive market. Government agencies rely heavily on these services for day-to-day operations and emergency communications. Spending in this category is substantial across federal agencies, with contracts often awarded through large indefinite-delivery/indefinite-quantity (IDIQ) vehicles or direct delivery orders. This contract fits within the broader landscape of federal spending on telecommunications infrastructure and services, supporting essential government functions.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions (ss: false, sb: false). However, large telecommunications providers like AT&T often utilize small businesses for subcontracting opportunities, particularly in areas like equipment installation, maintenance, or specialized support services. The impact on the small business ecosystem would depend on AT&T's subcontracting practices for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's contracting officers and program managers. The firm-fixed-price nature of the contract simplifies financial oversight. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's performance or billing.

Related Government Programs

General Services Administration (GSA) Schedule Contracts
Other Agency-Specific Wireless Service Contracts
First Responder Technology Grants

Risk Flags

Potential for service disruption
Vendor lock-in risk
Network security vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.8 million to ATT MOBILITY LLC. PRIMARY USER UNLIMITED ENHANCED FOR SMARTPHONE - UNLIMITED VOICE, UNLIMITED DATA WITH HOTSPOT/TETHERING, UNLIMITED MESSAGING FOR FIRST RESPONDER LAW ENFORCEMENT OFFICERS.

Who is the contractor on this award?

The obligated recipient is ATT MOBILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2023-03-14. End: 2026-03-13.

What is the historical spending pattern for wireless telecommunications services by the Department of the Treasury?

Analyzing historical spending for wireless telecommunications by the Department of the Treasury requires access to detailed procurement data over several fiscal years. Typically, agencies like the Treasury have significant and consistent spending in this area due to the operational needs of various bureaus, including law enforcement and administrative functions. Spending can fluctuate based on technology upgrades, changes in service requirements, and the number of users. For instance, a shift towards mobile data usage and the need for enhanced communication tools for field agents could drive increased spending. Benchmarking this $5.78 million, three-year contract against prior Treasury expenditures would reveal whether this represents an increase, decrease, or stable level of investment in wireless services. Without specific historical data, it's difficult to provide precise figures, but it's reasonable to assume a multi-million dollar annual spend on telecommunications across the department.

How does the pricing of this AT&T contract compare to other federal wireless service contracts?

Comparing the pricing of this AT&T contract requires access to detailed pricing structures of other federal wireless service contracts, which are often proprietary or available through specific contract vehicles like GSA Schedules. However, given that this contract provides unlimited voice, data, and hotspot services for law enforcement officers, the $5.78 million over three years (approximately $1.93 million per year) appears competitive, especially for a dedicated service. Government contracts often negotiate bulk discounts. The 'unlimited' aspect is a key factor; if actual usage is high, this could represent significant value compared to tiered data plans. Benchmarking against similar 'unlimited' plans offered to other federal agencies or even large enterprise clients would provide a clearer picture. The firm-fixed-price nature also suggests that the government has locked in a predictable cost, which is a positive value indicator.

What are the potential risks associated with relying on AT&T Mobility for critical first responder communications?

Potential risks associated with relying on AT&T Mobility for critical first responder communications include service outages due to network failures, natural disasters, or cyberattacks. Dependence on a single provider could also lead to vendor lock-in, making it difficult and costly to switch providers if service quality degrades or pricing becomes unfavorable. Security vulnerabilities within the network could expose sensitive law enforcement data. Furthermore, if AT&T's network infrastructure is not adequately robust or geographically redundant in the specific service area (District of Columbia), it could impact the reliability of communications during critical incidents. Ensuring robust Service Level Agreements (SLAs) with clear penalties for non-performance and maintaining contingency plans are crucial mitigation strategies.

What is the track record of AT&T Mobility in serving federal government contracts, particularly for law enforcement?

AT&T Mobility has a long-standing and extensive track record of serving federal government contracts, including significant engagements with law enforcement and public safety agencies. They are a major provider of wireless services across various government levels, often holding large-scale contracts for mobile communications. Their experience includes providing services during major events and emergencies, demonstrating a capacity to handle high-demand situations. AT&T has also been involved in initiatives related to FirstNet (First Responder Network Authority), a dedicated nationwide broadband network for public safety, indicating their commitment and expertise in this specialized sector. While specific performance metrics for individual contracts are not always public, their continued presence and success in winning competitive federal bids suggest a generally positive track record in meeting government requirements.

How does the 'unlimited' data and hotspot provision impact the overall value and cost-effectiveness of this contract?

The 'unlimited' data and hotspot provision significantly impacts the value and cost-effectiveness of this contract by providing law enforcement officers with unrestricted access to critical data, mapping, communication applications, and the ability to share internet connectivity. This eliminates the risk of overage charges, which can be substantial with tiered data plans, especially for users who rely heavily on data-intensive applications or need to tether devices. For first responders, continuous connectivity is paramount for situational awareness, real-time information sharing, and operational coordination. While 'unlimited' plans can sometimes have higher base costs, the predictability and the elimination of overage surprises often make them more cost-effective and operationally superior for critical use cases where service interruption or data caps are unacceptable.

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

Solicitation ID: 2032H5-23-R-00002

Offers Received: 3

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: $8,837,194

Exercised Options: $5,776,295

Current Obligation: $5,776,295

Actual Outlays: $3,443,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00MV

IDV Type: FSS

Timeline