DOT Awards $51.4M for Telecom Services via GSA EIS GWAC, with AT&T as Prime

Contract Overview

Contract Amount: $51,413,286 ($51.4M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-09-27

End Date: 2026-06-30

Contract Duration: 2,102 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: TELECOMMUNICATION SERVICES FOR THE DOT SCOPE OF WORK FROM THE GSA GWAC ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $51.4 million to AT&T ENTERPRISES, LLC for work described as: TELECOMMUNICATION SERVICES FOR THE DOT SCOPE OF WORK FROM THE GSA GWAC ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM. Key points: 1. Significant contract value ($51.4M) for essential telecommunication services. 2. AT&T Enterprises, LLC secured the award under a competitive GSA GWAC. 3. Risk is moderate, given the fixed-price with economic adjustment structure. 4. The IT sector, specifically telecommunications, is a critical area of government spending.

Value Assessment

Rating: good

The contract value of $51.4M for telecommunication services appears reasonable given the 6-year duration and the scope of work under the GSA EIS GWAC. Benchmarking against similar large-scale telecommunication contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition through the GSA EIS GWAC, indicating a robust price discovery process. This competitive environment is expected to yield favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through the GSA's established GWAC vehicle, ensuring value for the $51.4M expenditure.

Public Impact

Ensures critical communication infrastructure for the Department of Transportation. Supports the Federal Highway Administration's operations. Leverages a government-wide contract vehicle (GSA EIS) for efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases.
Reliance on a single vendor (AT&T) for a critical service.

Positive Signals

Awarded through a competitive GSA GWAC.
Long-term contract provides service stability.
Supports a key agency (DOT).

Sector Analysis

This contract falls within the IT and Telecommunications sector, a significant area of federal spending. Benchmarks for similar large-scale telecommunication service contracts under GWACs can vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was awarded to AT&T Enterprises, LLC, a large business. There is no explicit information on small business participation in this specific delivery order, which is common for large GWAC awards.

Oversight & Accountability

The use of the GSA EIS GWAC implies adherence to established procurement regulations and oversight. The Federal Highway Administration's oversight of this delivery order is crucial for ensuring performance and value.

Related Government Programs

Wired Telecommunications Carriers
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost overruns due to economic price adjustment.
Dependence on a single large vendor for critical services.
Lack of explicit small business participation noted.
Scope of work details are not fully provided in the summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $51.4 million to AT&T ENTERPRISES, LLC. TELECOMMUNICATION SERVICES FOR THE DOT SCOPE OF WORK FROM THE GSA GWAC ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM.

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $51.4 million.

What is the period of performance?

Start: 2020-09-27. End: 2026-06-30.

What specific telecommunication services are included in the scope of work, and how do they align with the DOT's strategic objectives?

The scope of work encompasses wired telecommunications carriers, likely including services such as voice, data, and network connectivity essential for the Department of Transportation's operations. These services are fundamental to supporting the agency's mission, including the Federal Highway Administration's functions, and ensuring seamless communication across its various components and field offices.

What are the potential risks associated with the economic price adjustment clause in this fixed-price contract?

The economic price adjustment clause allows for modifications to the contract price based on fluctuations in economic factors, such as inflation or changes in labor and material costs. This introduces a risk of increased spending beyond the initial $51.4M estimate if these economic factors rise significantly over the contract's duration, potentially impacting the overall value for taxpayers.

How effectively does the GSA EIS GWAC facilitate competition and ensure cost-effectiveness for telecommunication services compared to other procurement methods?

The GSA EIS GWAC is designed to foster competition by providing a pre-competed, flexible contract vehicle for agencies to procure IT services. By leveraging this established framework, agencies can benefit from pre-negotiated terms and conditions, potentially reducing acquisition lead times and administrative burden. The full and open competition under this GWAC aims to ensure cost-effectiveness through market-driven pricing.

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: 693KA8-19-R-00004

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22124

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

Financial Breakdown

Contract Ceiling: $171,011,189

Exercised Options: $65,944,158

Current Obligation: $51,413,286

Actual Outlays: $40,163,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3000

IDV Type: IDC

Timeline