VA awards $120M telecommunications contract to AT&T, highlighting wired carrier services in Arkansas

Contract Overview

Contract Amount: $120,204,179 ($120.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-11-14

End Date: 2020-12-31

Contract Duration: 413 days

Daily Burn Rate: $291.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM AT&T.

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $120.2 million to AT&T ENTERPRISES, LLC for work described as: TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM AT&T. Key points: 1. Contract value of $120.2M for telecommunications services represents a significant investment in network infrastructure. 2. Award to AT&T suggests a focus on established providers for critical communication needs. 3. The contract's duration and scope indicate a need for reliable, long-term connectivity solutions. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Arkansas points to specific regional infrastructure development or support.

Value Assessment

Rating: good

The contract value of $120.2 million for telecommunications services is substantial. Benchmarking against similar large-scale telecommunications contracts, this award appears to be within a reasonable range for comprehensive network services. The firm fixed-price structure suggests an effort to manage costs effectively. Without specific per-unit data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the scale implies a significant operational requirement.

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 3 bidders suggests a competitive process, though the specific details of the bidding and evaluation are not provided. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving service quality through market forces.

Public Impact

Veterans in Arkansas will benefit from improved telecommunications infrastructure supporting VA facilities. Essential communication services for healthcare delivery and administrative operations will be sustained. The contract supports the operational continuity of VA services within the specified geographic region. Workforce implications may include support roles for network maintenance and management within AT&T.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized or integrated.
Dependence on a single large provider for critical infrastructure could pose risks.
Ensuring ongoing cost-effectiveness beyond the initial contract term requires careful monitoring.

Positive Signals

Award through full and open competition suggests a competitive process.
Firm fixed-price contract provides cost certainty for the duration of the award.
Long-term contract indicates a stable and predictable need for services.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. The market for such services is mature, with large incumbent providers like AT&T playing a significant role. Government spending in this area is crucial for maintaining secure and reliable communication networks, supporting everything from administrative functions to critical service delivery. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar network infrastructure and services across different agencies and regions.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the awardee is a large corporation. Subcontracting opportunities for small businesses are not explicitly detailed but are possible depending on AT&T's strategy. The primary impact is on the large telecommunications market rather than the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services (FTS) contracts
Network Infrastructure Modernization Programs
Department of Veterans Affairs IT Modernization

Risk Flags

Potential for vendor lock-in
Single point of failure risk
Dependence on large incumbent provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $120.2 million to AT&T ENTERPRISES, LLC. TELECOMMUNICATIONS ENGINEERING&DESIGN TPO FROM AT&T.

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $120.2 million.

What is the period of performance?

Start: 2019-11-14. End: 2020-12-31.

What is the historical spending pattern of the VA on telecommunications services, particularly with AT&T?

Analyzing the VA's historical spending on telecommunications services reveals a consistent need for robust network infrastructure. Prior to this $120.2 million award, the VA has engaged in numerous contracts for various telecommunication needs, including voice, data, and internet services. Spending with major carriers like AT&T has been significant, reflecting their market position and extensive network coverage. For instance, examining contract databases shows recurring awards for regional support and specific technology upgrades. This $120.2 million contract appears to be a substantial, consolidated award for wired telecommunications, possibly encompassing a broader scope than previous individual awards, suggesting a strategic shift towards centralized management of these critical services within Arkansas.

How does the per-unit cost of this contract compare to similar telecommunications contracts awarded by other federal agencies?

Determining a precise per-unit cost comparison for this $120.2 million contract is challenging without detailed service breakdowns (e.g., cost per circuit, per Mbps, per user). However, the overall contract value for wired telecommunications services in Arkansas suggests a significant investment. When benchmarking against similar large-scale federal telecommunications awards, the price appears to be within a typical range for comprehensive network solutions provided by major carriers. Factors influencing cost include the specific technologies deployed, bandwidth requirements, service level agreements, and the competitive landscape within the awarded region. The firm fixed-price nature aims to cap these costs, but a true value assessment requires granular data on the services rendered and their market equivalents.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

While the specific KPIs and SLAs are not detailed in the provided data, contracts of this magnitude for telecommunications services typically include stringent performance metrics. These often focus on network uptime (e.g., 99.99% availability), latency (e.g., maximum acceptable delay for data transmission), jitter, packet loss, and response times for service restoration after an outage. Service Level Agreements would outline the remedies or credits available to the VA if AT&T fails to meet these performance standards. The firm fixed-price nature of the contract implies that AT&T is responsible for meeting these defined service levels to earn the full contract value, with potential penalties for non-performance.

What is AT&T's track record with the Department of Veterans Affairs and other federal agencies for similar services?

AT&T has a long-standing and extensive track record of providing telecommunications and IT services to the Department of Veterans Affairs (VA) and numerous other federal agencies. They are a primary vendor for government-wide telecommunications contracts, including large-scale network infrastructure, managed services, and secure communication solutions. Historically, AT&T has been awarded billions of dollars in federal contracts across various departments. While specific performance details for every contract are not always public, their continued success in winning competitive bids and securing large awards indicates a generally positive track record and perceived capability to meet federal requirements. The VA, in particular, relies on providers like AT&T for its vast network supporting healthcare and administrative functions nationwide.

What are the potential risks associated with relying on a single provider like AT&T for critical telecommunications infrastructure in Arkansas?

Relying on a single provider like AT&T for critical telecommunications infrastructure in Arkansas presents several potential risks. Firstly, there's the risk of vendor lock-in, where switching providers in the future could be costly and complex due to proprietary systems or deep integration. Secondly, a single point of failure could arise; while AT&T has robust infrastructure, major outages or security breaches affecting their network could disrupt VA operations significantly. Thirdly, reduced competitive pressure over time might lead to less favorable pricing or innovation compared to a multi-vendor environment. Finally, dependence on one vendor could limit the VA's flexibility in adopting new technologies or tailoring solutions to highly specific needs that might be better met by specialized providers.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AT&T Inc.

Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22185

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

Financial Breakdown

Contract Ceiling: $120,204,179

Exercised Options: $120,204,179

Current Obligation: $120,204,179

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline