VA awards $34.1M contract to AT&T for wired telecommunications, highlighting full and open competition

Contract Overview

Contract Amount: $34,111,132 ($34.1M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2026-05-31

Contract Duration: 1,704 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NLEC-NG TASK ORDER 7

Place of Performance

Location: HOFFMAN ESTATES, COOK County, ILLINOIS, 60192

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.1 million to AT&T ENTERPRISES, LLC for work described as: NLEC-NG TASK ORDER 7 Key points: 1. Significant contract value of $34.1 million for telecommunications services. 2. AT&T Enterprises, LLC, a major player, secured the award. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract spans nearly five years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar wired telecommunications contracts is recommended to ensure optimal value, though the full and open competition suggests competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid. This method typically leads to more competitive pricing compared to limited or sole-source awards.

Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely receiving fair market value for the telecommunications services provided.

Public Impact

Ensures reliable wired telecommunications infrastructure for the Department of Veterans Affairs. Supports critical VA operations and services for veterans. Potential for future task orders to expand or modify services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial (over 4 years).

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls under the Wired Telecommunications Carriers sector (NAICS 517311). Spending in this sector is crucial for government operations, supporting communication networks. Benchmarks for similar contracts would typically consider factors like bandwidth, service level agreements, and geographic coverage.

Small Business Impact

While the awardee is a large corporation (AT&T), the contract was awarded under full and open competition. There is no specific indication of small business participation in this particular task order, but the competitive process itself could have involved smaller subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract type and the use of full and open competition provide a degree of accountability. Monitoring performance against the contract's terms and conditions will be key.

Related Government Programs

Wired Telecommunications Carriers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration.
Potential for vendor lock-in.
Reliance on a single large provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.1 million to AT&T ENTERPRISES, LLC. NLEC-NG TASK ORDER 7

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 $34.1 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-05-31.

What specific telecommunications services are included in this task order, and how do they align with the VA's current and future needs?

This task order likely covers a range of wired telecommunications services such as broadband internet, dedicated lines, and potentially voice services. Understanding the specific service level agreements (SLAs) and technical specifications is crucial to assess alignment with the VA's operational requirements and any future technology roadmaps. The duration suggests a need for stable, long-term connectivity.

Are there any potential risks associated with relying on a single large provider like AT&T for such a critical service over an extended period?

Potential risks include vendor lock-in, reduced flexibility in adopting new technologies, and the possibility of price increases upon contract renewal if competition is less robust in the future. However, the initial full and open competition mitigates some of these concerns by ensuring a competitive starting price. Ongoing performance monitoring is essential.

How will the effectiveness of these telecommunications services be measured to ensure they meet the VA's performance expectations?

Effectiveness will likely be measured through adherence to Service Level Agreements (SLAs) outlined in the contract, such as uptime guarantees, latency, and bandwidth availability. Regular performance reviews between the VA and AT&T, along with user feedback mechanisms, will be critical to ensure the services are meeting the agency's operational needs and supporting veteran services effectively.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 400 WEST AVE, ROCHESTER, NY, 14611

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

Financial Breakdown

Contract Ceiling: $34,111,132

Exercised Options: $34,111,132

Current Obligation: $34,111,132

Actual Outlays: $23,265,497

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B20D0029

IDV Type: IDC

Timeline