VA awards $45.5M T-Mobile contract for enterprise-wide wireless telecommunications services

Contract Overview

Contract Amount: $45,484,604 ($45.5M)

Contractor: T-Mobile USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-07

End Date: 2026-09-30

Contract Duration: 1,303 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Place of Performance

Location: BELLEVUE, KING County, WASHINGTON, 98006

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45.5 million to T-MOBILE USA, INC. for work described as: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE Key points: 1. Contract aims to provide comprehensive wireless services including data, voice, and internet for the VA. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of over three years indicates a significant, long-term need for these services. 4. The fixed-price nature of the contract helps to control costs and provides budget certainty. 5. This spending falls within the broader telecommunications services sector, supporting federal IT infrastructure.

Value Assessment

Rating: good

The contract value of $45.5 million over approximately 3.5 years represents a significant investment in wireless services for the VA. Benchmarking this against similar large-scale federal telecommunications contracts is challenging without more specific service level agreements and geographic coverage details. However, the fixed-price structure suggests an effort to achieve predictable costs. The number of bids received (3) indicates some level of competition, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received, indicating a moderate level of competition for this significant telecommunications requirement. While three bidders suggest some market interest, a higher number could potentially drive prices down further. The contracting process appears to have followed standard procedures for competitive solicitations.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it allows for a wider pool of potential providers to compete, theoretically leading to more competitive pricing and better service offerings.

Public Impact

Veterans Affairs employees across the enterprise will benefit from enhanced and reliable wireless communication services. Services include data (email), voice (telephony/voicemail), and wireless internet, crucial for daily operations. The contract supports the VA's mission to provide healthcare and benefits to veterans. Improved communication infrastructure can lead to more efficient service delivery and better internal coordination within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are not adequately addressed in contract scope.
Reliance on a single provider for critical communication services could pose a risk if service disruptions occur.

Positive Signals

Award to a major, established telecommunications provider suggests a high likelihood of reliable service delivery.
Fixed-price contract provides cost certainty and predictability for the VA's budget.
Full and open competition process indicates a structured and fair procurement approach.

Sector Analysis

The wireless telecommunications services sector is a critical component of federal IT infrastructure, enabling communication and data transfer across agencies. This contract falls under the broader category of telecommunications carriers, supporting the government's need for mobile connectivity. Spending in this area is substantial across federal agencies, with contracts often awarded for voice, data, and internet services. The market is dominated by a few large providers, making competition dynamics important for price discovery.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the nature of large-scale telecommunications services, it is likely that the prime contractor, T-Mobile USA, Inc., will manage the majority of the service delivery. Subcontracting opportunities for small businesses may exist for specific components or support services, but this is not detailed in the provided data. The overall impact on the small business ecosystem for this specific award appears limited unless significant subcontracting plans are in place.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to performance metrics and service level agreements outlined in the contract. The Inspector General's office within the VA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Government Wide Area Network (WAN) Services
Other Wireless Telecommunications Services
IT Infrastructure Modernization Programs
Department of Veterans Affairs IT Spending

Risk Flags

Potential for service disruption impacting a large user base.
Risk of vendor lock-in with a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45.5 million to T-MOBILE USA, INC.. WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Who is the contractor on this award?

The obligated recipient is T-MOBILE USA, INC..

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 $45.5 million.

What is the period of performance?

Start: 2023-03-07. End: 2026-09-30.

What is the historical spending trend for wireless telecommunications services within the Department of Veterans Affairs?

Analyzing historical spending trends for wireless telecommunications services within the VA is crucial for understanding the context of this $45.5 million award. While specific historical data is not provided, federal agencies typically have ongoing needs for such services, often renewing or consolidating contracts. Past spending patterns would reveal if this award represents an increase, decrease, or stable level of investment in wireless capabilities. Factors such as enterprise-wide adoption of mobile devices, expansion of services, and changes in technology pricing would influence these trends. A review of previous VA contracts for similar services would indicate if T-Mobile has been a consistent provider or if there has been a shift in vendor relationships. Understanding this history helps assess if the current award is a strategic continuation or a new direction in the VA's telecommunications procurement.

How does the per-user cost of these wireless services compare to industry benchmarks or other federal agencies?

Determining the per-user cost requires knowing the total number of users or devices covered by this contract, which is not explicitly stated in the provided data. However, if we assume a large enterprise deployment, the $45.5 million contract over its duration would need to be divided by the estimated user base to derive a per-user metric. Comparing this to industry benchmarks for similar enterprise wireless plans (e.g., corporate mobile plans) and to per-user costs in other federal agencies' telecommunications contracts would be necessary. Factors like included data allowances, voice minutes, international roaming, and specific service level agreements significantly influence per-user pricing. Without these details, a precise comparison is difficult, but the fixed-price nature suggests the VA aimed for predictable per-unit costs during the bidding process.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this wireless telecommunications contract. Typically, such contracts would include clauses related to network uptime, data speeds, call quality, response times for technical support, and penalties for failing to meet these standards. These SLAs are critical for ensuring the VA receives the quality of service it expects and pays for. The fixed-price nature of the contract implies that the provider, T-Mobile USA, Inc., is obligated to meet these predefined performance standards. A thorough review of the full contract document would be necessary to understand the exact metrics, targets, and remedies in place to govern the service delivery and ensure accountability.

What is the track record of T-Mobile USA, Inc. in fulfilling large federal government contracts for telecommunications services?

T-Mobile USA, Inc. has a significant track record in the commercial telecommunications market and has increasingly been awarded federal government contracts. Their experience includes providing wireless services to various entities, including potentially other government agencies. For federal contracts, agencies typically evaluate a bidder's past performance, financial stability, and technical capabilities. The VA's decision to award this contract suggests that T-Mobile met the required criteria, including demonstrating a capacity to handle large-scale deployments and meet government security and operational standards. Further investigation into T-Mobile's specific performance on similar government contracts, including any past issues or commendations, would provide a more complete picture of their reliability in this context.

Are there any potential risks associated with consolidating wireless services under a single provider like T-Mobile for the entire VA enterprise?

Consolidating wireless services under a single provider like T-Mobile for the entire VA enterprise presents both potential benefits and risks. A primary risk is vendor lock-in, which could make it difficult and costly to switch providers if service quality degrades or pricing becomes unfavorable in the future. Another significant risk is service disruption; if T-Mobile experiences a major network outage or technical issue, it could impact a vast number of VA operations simultaneously, potentially affecting critical healthcare and administrative functions. Redundancy and contingency planning are therefore crucial. While consolidation can offer administrative efficiencies and potentially better volume discounts, the agency must ensure robust contract management and contingency plans are in place to mitigate these inherent risks.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B22R0118

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12920 SE 38TH ST, BELLEVUE, WA, 98006

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

Financial Breakdown

Contract Ceiling: $222,252,634

Exercised Options: $45,484,604

Current Obligation: $45,484,604

Actual Outlays: $34,223,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline