VA awards $105.6M for wired telecom services to AT&T, with full and open competition
Contract Overview
Contract Amount: $105,585,290 ($105.6M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-10-01
End Date: 2023-01-31
Contract Duration: 852 days
Daily Burn Rate: $123.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TPO CIRCUITS 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 $105.6 million to AT&T ENTERPRISES, LLC for work described as: TPO CIRCUITS AT&T Key points: 1. Significant contract value for telecommunications infrastructure. 2. AT&T identified as the sole awardee, raising questions about competition breadth. 3. Risk of overpayment exists due to limited competition and fixed-price structure. 4. Spending falls within the IT sector, specifically wired telecommunications.
Value Assessment
Rating: fair
The contract's price of $105.6M over three years for wired telecommunications services appears high without detailed cost breakdowns. Benchmarking against similar government contracts for comparable services is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single awardee, AT&T, implies that only one bidder met all requirements or was the most advantageous.
Taxpayer Impact: Taxpayer funds are utilized for essential telecommunications services. The final price reflects the outcome of the competitive process, but the specific impact on taxpayer burden requires further analysis of cost-effectiveness.
Public Impact
Ensures critical communication infrastructure for the Department of Veterans Affairs. Supports ongoing operations and potential expansion of VA services. Potential for cost savings if competitive bidding truly drove down prices. Impact on smaller telecommunications providers' ability to compete for VA contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for price justification.
- Potential for price creep despite fixed-price contract.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and delivery period.
- Fixed-price contract provides some cost certainty.
Sector Analysis
This contract falls under the Information Technology sector, specifically wired telecommunications carriers. Spending benchmarks for similar government-wide telecommunications contracts would provide context for the $105.6M award over three years.
Small Business Impact
The contract was awarded to AT&T, a large telecommunications provider. There is no explicit indication of small business participation or subcontracting in the provided data, suggesting limited direct benefit to small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The contract's duration and fixed-price nature suggest a degree of accountability, but ongoing monitoring for service delivery and cost adherence is crucial.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in.
- Limited visibility into detailed cost components.
- Risk of service disruptions if AT&T's infrastructure faces issues.
- Adequacy of cybersecurity measures for sensitive VA data.
Tags
wired-telecommunications-carriers, department-of-veterans-affairs, ar, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $105.6 million to AT&T ENTERPRISES, LLC. TPO CIRCUITS 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 $105.6 million.
What is the period of performance?
Start: 2020-10-01. End: 2023-01-31.
What specific telecommunications services are included in this $105.6M contract, and how do they align with VA's current and future needs?
The contract covers wired telecommunications services, likely encompassing voice, data, and internet connectivity essential for VA operations. A detailed service catalog would clarify the scope, ensuring it meets the agency's evolving technological requirements and supports its mission-critical functions for veterans.
Given the award to AT&T, what mechanisms are in place to ensure competitive pricing and prevent potential overcharges over the contract's duration?
Although awarded under full and open competition, the single awardee warrants scrutiny. Mechanisms like regular price reviews, benchmarking against market rates, and performance-based incentives could mitigate overcharging risks. The VA should actively monitor service utilization and costs to ensure value.
How effectively does this contract support the VA's overall IT infrastructure modernization and cybersecurity goals?
The contract's effectiveness hinges on the quality and security of the wired telecommunications services provided. Modern infrastructure and robust cybersecurity measures are paramount for protecting sensitive veteran data and ensuring reliable service delivery. The VA must ensure the services align with its strategic IT modernization roadmap.
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
Solicitation ID: TQC-JTB-05-0001 -D
Offers Received: 1
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: $124,484,225
Exercised Options: $105,605,290
Current Obligation: $105,585,290
Actual Outlays: $46,811
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T07NSD0007
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2024-09-11
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