AT&T awarded $50.3M for HUD cybersecurity, highlighting wired telecom services in Virginia

Contract Overview

Contract Amount: $50,326,109 ($50.3M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: General Services Administration

Start Date: 2019-08-07

End Date: 2021-08-06

Contract Duration: 730 days

Daily Burn Rate: $68.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HUD OCIO CYBER SECURITY OPERATION AND SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $50.3 million to AT&T ENTERPRISES, LLC for work described as: HUD OCIO CYBER SECURITY OPERATION AND SERVICES Key points: 1. Contract value of $50.3M over two years for essential cybersecurity operations. 2. Sole awardee AT&T Enterprises, LLC, suggests a strong existing relationship or specialized capability. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period spans from August 2019 to August 2021. 5. Services fall under wired telecommunications carriers, a critical infrastructure sector. 6. Awarded by GSA's Federal Acquisition Service, indicating a centralized procurement approach.

Value Assessment

Rating: good

The contract value of $50.3 million for two years of cybersecurity operations appears reasonable given the critical nature of the services. Benchmarking against similar large-scale cybersecurity contracts is challenging without more specific service details. However, the firm fixed-price structure suggests a degree of cost certainty for the government, which is a positive indicator of value.

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 fact that AT&T Enterprises, LLC was the sole awardee suggests they offered the most advantageous proposal based on the evaluation criteria. The level of competition, while open, resulted in a single selected provider.

Taxpayer Impact: Full and open competition generally promotes price discovery and can lead to better pricing for taxpayers. However, the single award outcome warrants further examination to ensure the competitive process yielded the best possible value.

Public Impact

The Department of Housing and Urban Development (HUD) benefits from enhanced cybersecurity to protect sensitive data and maintain operational integrity. Essential cybersecurity operations and services are delivered to safeguard HUD's digital infrastructure. The geographic impact is primarily within Virginia, where the services are likely managed or delivered. The contract supports a workforce skilled in telecommunications and cybersecurity, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the cybersecurity services.
The specific nature of 'cybersecurity operation and services' is broad and could encompass a wide range of activities, impacting value assessment.
Reliance on a single vendor for critical cybersecurity functions could present a single point of failure risk if not managed proactively.

Positive Signals

Firm fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
Awarded through GSA's Federal Acquisition Service, suggesting adherence to established procurement best practices.
The contract duration of two years allows for consistent service delivery and planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cybersecurity services, which are increasingly critical for government agencies. The wired telecommunications carriers industry (NAICS 517110) is a foundational element supporting these services. The contract value of approximately $50 million over two years is substantial, reflecting the high demand and complexity of securing federal IT infrastructure against evolving cyber threats.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to AT&T, a major telecommunications provider, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus is on a large-scale service provider rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the HUD OCIO. As a delivery order under a larger GSA schedule, it likely adheres to GSA's established oversight mechanisms. Transparency is generally provided through contract award databases like FPDS. Accountability would be tied to performance metrics and adherence to the firm fixed-price terms, with potential for Inspector General review if performance issues or fraud were suspected.

Related Government Programs

GSA Federal Supply Schedule Contracts
Cybersecurity Services Contracts
IT Operations and Maintenance Contracts
Telecommunications Services Contracts

Risk Flags

Potential for vendor lock-in due to sole award.
Limited transparency on specific service deliverables and performance metrics.
Cybersecurity is a high-risk area requiring continuous vigilance and adaptation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.3 million to AT&T ENTERPRISES, LLC. HUD OCIO CYBER SECURITY OPERATION AND SERVICES

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $50.3 million.

What is the period of performance?

Start: 2019-08-07. End: 2021-08-06.

What specific cybersecurity services were included under this contract?

The provided data abbreviates the service as 'CYBER SECURITY OPERATION AND SERVICES' under HUD OCIO. While the NAICS code 517110 points to Wired Telecommunications Carriers, the specific cybersecurity operations are not detailed. This could encompass a range of services such as network monitoring, intrusion detection and prevention, vulnerability management, security incident response, and potentially managed security services. Without a more granular description of the Statement of Work (SOW), it's difficult to ascertain the precise scope and depth of the cybersecurity measures implemented.

How does the $50.3 million contract value compare to similar cybersecurity contracts for federal agencies of HUD's size?

Direct comparison of the $50.3 million value is challenging without knowing the specific scope and duration of comparable contracts. However, for a two-year period, this figure suggests a significant investment in cybersecurity operations. Federal agencies, particularly those handling sensitive data like HUD, often allocate substantial budgets to cybersecurity. Larger agencies might spend hundreds of millions annually on comprehensive cybersecurity solutions, including hardware, software, and managed services. This contract appears to be a substantial, but not necessarily outlier, investment for the specified period and services.

What are the primary risks associated with this contract, given it's a sole award to AT&T?

The primary risks associated with a sole award, even under full and open competition, include potential vendor lock-in, reduced leverage for future negotiations, and the risk that the government might not be receiving the most innovative or cost-effective solutions available in the market. If AT&T's performance falters or if their pricing becomes uncompetitive in the future, transitioning to a new provider could be complex and costly. Additionally, over-reliance on a single vendor for critical cybersecurity functions can create a single point of failure if not managed with robust contingency planning and oversight.

What is the track record of AT&T Enterprises, LLC in providing cybersecurity services to the federal government?

AT&T Enterprises, LLC has a significant track record of providing telecommunications and IT services to the federal government, including cybersecurity solutions. As a major telecommunications provider, they possess extensive infrastructure and expertise relevant to network security. Their past performance with various federal agencies, often through GSA schedules or other large contract vehicles, indicates substantial experience. However, the specific success and effectiveness of their cybersecurity operations under this particular HUD contract would be detailed in performance reports, which are not publicly available in this data summary.

How does the firm fixed-price contract type benefit the government in this scenario?

The firm fixed-price (FFP) contract type is highly beneficial for the government in this scenario as it shifts the majority of the risk to the contractor, AT&T Enterprises, LLC. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage its costs efficiently to maintain profitability. For cybersecurity services, where scope can sometimes be difficult to precisely define upfront, an FFP contract encourages the contractor to deliver the agreed-upon services within the fixed price, minimizing the risk of cost overruns for the government.

What is the historical spending pattern for HUD's cybersecurity operations prior to or after this contract?

The provided data only details this specific $50.3 million contract awarded in August 2019 and ending in August 2021. It does not offer historical spending patterns for HUD's cybersecurity operations. To understand historical spending, one would need to analyze procurement data for HUD's Office of the Chief Information Officer (OCIO) over several preceding and subsequent fiscal years, looking for contracts related to cybersecurity, network operations, and IT infrastructure support. This would reveal trends in investment, changes in service providers, and fluctuations in contract values.

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: ID11190028

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: $53,504,207

Exercised Options: $52,974,526

Current Obligation: $50,326,109

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline