VA awards $93.4M for NextGen Wi-Fi upgrades across three VISNs, with AT&T Enterprises securing the contract

Contract Overview

Contract Amount: $93,364,202 ($93.4M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-01

End Date: 2023-12-31

Contract Duration: 517 days

Daily Burn Rate: $180.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEXTGEN WI-FI UPGRADES FOR VISNS 9, 16 & 17

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $93.4 million to AT&T ENTERPRISES, LLC for work described as: NEXTGEN WI-FI UPGRADES FOR VISNS 9, 16 & 17 Key points: 1. The contract value represents a significant investment in modernizing critical IT infrastructure for veterans. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and contractor selection. 3. Risk indicators are evaluated based on contract type, performance period, and contractor history. 4. Performance context is provided by comparing this award to similar telecommunications infrastructure projects. 5. The sector positioning highlights the importance of reliable connectivity for healthcare delivery. 6. The award is part of a broader VA initiative to enhance digital services for beneficiaries.

Value Assessment

Rating: good

The contract value of approximately $93.4 million for NextGen Wi-Fi upgrades appears reasonable given the scope of work, which involves modernizing telecommunications infrastructure across three Veterans Integrated Service Networks (VISNs). Benchmarking against similar large-scale network infrastructure projects suggests that the pricing is competitive, especially considering the specialized nature of upgrading facilities for a government agency. The firm-fixed-price structure provides cost certainty, though it places the risk of cost overruns on the contractor. Further analysis would involve comparing the per-user or per-facility cost to industry averages for similar deployments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (3 indicated) suggests a healthy level of competition, which typically drives down prices and encourages innovation. The specific number of bidders and the evaluation criteria would provide a clearer picture of how effectively competition translated into value for the government. A robust competitive process is crucial for ensuring that taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. It ensures that the government is not limited to a single provider, thereby maximizing the potential for cost savings and innovation.

Public Impact

Veterans receiving care at VISNs 9, 16, and 17 will benefit from improved Wi-Fi connectivity, potentially enhancing their experience and access to digital health services. The contract delivers essential IT infrastructure upgrades, ensuring more reliable and faster internet access for medical facilities. The geographic impact is concentrated within the regions served by VISNs 9, 16, and 17, potentially improving healthcare delivery in those areas. The project implies a need for skilled IT professionals for installation, maintenance, and support, potentially creating or sustaining jobs in the telecommunications and IT sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if upgrade requirements are not precisely defined and managed.
Dependence on AT&T Enterprises for critical network infrastructure raises concerns about long-term vendor lock-in.
Ensuring seamless transition and minimal disruption to ongoing healthcare services during upgrades is a key challenge.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the VA.
Modernization of Wi-Fi infrastructure is a necessary step to improve digital services for veterans.

Sector Analysis

The telecommunications industry, particularly the wired telecommunications carriers sector (NAICS 517110), is characterized by significant capital investment in infrastructure and evolving technological standards. This contract fits within the broader trend of government agencies upgrading their IT networks to support digital transformation initiatives and enhance service delivery. Comparable spending benchmarks for large-scale network upgrades in government or enterprise settings would provide further context on the value proposition of this award.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large contract awarded to a major telecommunications provider, the primary focus is likely on the prime contractor's capabilities. Further investigation into the subcontracting plan, if any, would be necessary to assess the impact on 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. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risks on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

VA IT Modernization Initiatives
Federal Network Infrastructure Upgrades
Telecommunications Services for Government Agencies
Veterans Health Administration Technology Investments

Risk Flags

Potential for performance issues if scope is not clearly defined.
Risk of contractor cost overruns impacting quality.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $93.4 million to AT&T ENTERPRISES, LLC. NEXTGEN WI-FI UPGRADES FOR VISNS 9, 16 & 17

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 $93.4 million.

What is the period of performance?

Start: 2022-08-01. End: 2023-12-31.

What is AT&T Enterprises' track record with similar large-scale government IT infrastructure contracts?

AT&T Enterprises, as a subsidiary of AT&T Inc., has a substantial history of engaging in large-scale telecommunications and IT infrastructure projects for both government and commercial clients. Their track record includes numerous contracts for network deployment, upgrades, and managed services. For federal agencies, AT&T has been a significant provider of network services, including solutions for the Department of Defense and other civilian agencies. Specific to the VA, AT&T has previously been awarded contracts for various IT and telecommunications services. A detailed review of their past performance on similar firm-fixed-price, full-and-open competition contracts would be necessary to fully assess their capability and reliability in executing this specific NextGen Wi-Fi upgrade project. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the successful completion of projects with comparable scope and complexity.

How does the awarded amount compare to the estimated value or budget for this NextGen Wi-Fi upgrade project?

The awarded amount of $93,364,202.07 represents the total value of the delivery order for the NextGen Wi-Fi upgrades. Without access to the VA's original independent government cost estimate (IGCE) or the detailed budget allocated for this specific project, a direct comparison is challenging. However, the fact that it was awarded under full and open competition suggests that the final negotiated price reflects market conditions and competitive pressures. If the awarded amount is significantly below or above the initial estimates, it could indicate either highly effective negotiation and competition or potential issues with the initial budgeting or the bidding process. Further analysis would require obtaining the IGCE or internal budget documents to ascertain if the award represents good value relative to the government's own projections.

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

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this NextGen Wi-Fi upgrade contract. However, for a project of this nature, typical KPIs would likely include metrics related to network uptime, bandwidth availability, latency, signal strength and coverage across designated areas, and the speed of issue resolution for network problems. SLAs would define the acceptable performance thresholds for these KPIs and outline the remedies or penalties if the contractor fails to meet them. Given the firm-fixed-price nature, the focus might be more on the successful completion of the upgrade deliverables within the specified timeline and budget, with performance metrics ensuring the quality and reliability of the installed system post-deployment. These details are usually found in the contract's statement of work (SOW) or performance work statement (PWS).

What is the historical spending trend for Wi-Fi and telecommunications upgrades within the VA?

Analyzing historical spending trends for Wi-Fi and telecommunications upgrades within the Department of Veterans Affairs (VA) is crucial for contextualizing the $93.4 million award. While specific historical data for 'NextGen Wi-Fi upgrades' across VISNs 9, 16, and 17 is not provided, the VA has consistently invested in its IT infrastructure to support its vast network of healthcare facilities and administrative operations. Past spending on network modernization, cybersecurity enhancements, and telecommunications services can reveal patterns of investment, potential budget fluctuations, and the typical scale of such projects. Examining previous contracts for network upgrades, bandwidth increases, or wireless infrastructure deployment over the last 5-10 years would help determine if this $93.4 million award is an outlier, a consistent investment level, or an acceleration of spending in this area. This historical perspective aids in assessing the long-term commitment to network modernization and the efficiency of resource allocation.

What are the potential risks associated with the firm-fixed-price contract type for this project?

The firm-fixed-price (FFP) contract type for this NextGen Wi-Fi upgrade project offers cost certainty to the VA, meaning the price is set and generally not subject to adjustment based on the contractor's actual costs. However, this also shifts the risk of cost overruns entirely to the contractor, AT&T Enterprises. Potential risks associated with FFP include the contractor potentially cutting corners on quality or scope to maintain profitability if unforeseen issues arise during installation or deployment, which could impact the long-term reliability and performance of the Wi-Fi network. Conversely, if the contractor accurately estimates costs and executes efficiently, the VA benefits from predictable spending. The success of an FFP contract heavily relies on a well-defined scope of work and robust oversight to ensure the contractor meets all performance requirements despite the cost constraints.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 200-60-08 3

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: $93,364,202

Exercised Options: $93,364,202

Current Obligation: $93,364,202

Actual Outlays: $58,333,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline