FEMA awards AT&T $29.17M for wired telecommunications, impacting DC's critical infrastructure

Contract Overview

Contract Amount: $29,168,288 ($29.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EIS-NAWAS/WAWAS CONTRACTOR SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.2 million to AT&T ENTERPRISES, LLC for work described as: EIS-NAWAS/WAWAS CONTRACTOR SERVICES Key points: 1. Contract value represents a significant investment in essential communication services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period spans five years, indicating a long-term need for these services. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Focus on wired telecommunications highlights the foundational nature of the services provided. 6. Geographic focus on Washington D.C. underscores its importance for federal operations.

Value Assessment

Rating: good

The contract's value of $29.17 million over five years for wired telecommunications services appears reasonable given the critical nature of supporting FEMA operations. Benchmarking against similar large-scale telecommunications contracts for federal agencies suggests that pricing is likely competitive, especially under a full and open competition. The firm-fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns.

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 bids. The presence of multiple bidders, though not explicitly detailed, is implied by the nature of full and open competition. This level of competition is generally expected to drive down prices and ensure the government receives the best value for its investment.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure cost-effective telecommunications services for a critical federal agency.

Public Impact

Federal Emergency Management Agency (FEMA) operations are directly supported, enhancing disaster response and management capabilities. Critical communication infrastructure in Washington D.C. is maintained and potentially upgraded. Federal employees and contractors in the D.C. area benefit from reliable communication services. The contract supports the broader mission of national security and emergency preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized or integrated.
Dependence on a single vendor for critical infrastructure could pose risks during outages or cyber threats.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides budget predictability.
Long-term contract duration indicates a stable and ongoing need, allowing for strategic planning.

Sector Analysis

The telecommunications sector is a vital component of federal IT infrastructure, encompassing a wide range of services from basic connectivity to advanced network solutions. Spending in this sector is consistently high due to the essential nature of communication for all government operations. This contract for wired telecommunications services fits within the broader category of network infrastructure support, which is a significant area of federal IT spending. Comparable benchmarks for large federal telecommunications contracts often run into tens or hundreds of millions of dollars annually, depending on scope and scale.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb: false'. The prime contractor, AT&T, is a large corporation. While there are no direct set-asides, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The extent of small business participation would depend on AT&T's subcontracting plan, which is not detailed here. This could represent missed opportunities for small businesses to contribute to critical federal telecommunications infrastructure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. As a delivery order under a larger IDIQ, the underlying contract vehicle likely has its own oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense (DoD) telecommunications contracts
Other agency-specific network infrastructure procurements

Risk Flags

Potential for service disruption
Cybersecurity vulnerabilities
Vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.2 million to AT&T ENTERPRISES, LLC. EIS-NAWAS/WAWAS CONTRACTOR SERVICES

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the historical spending pattern for wired telecommunications services by FEMA?

Analyzing FEMA's historical spending on wired telecommunications services requires accessing detailed procurement data over several fiscal years. While this specific contract is for $29.17 million over five years, FEMA's overall telecommunications budget can fluctuate based on agency needs, technological upgrades, and the lifecycle of existing contracts. Historically, agencies like FEMA rely heavily on robust communication networks for disaster response and coordination. Spending patterns are often influenced by major events, shifts in technology (e.g., migration to cloud-based services), and the consolidation of contracts under larger vehicles. Without specific historical data for FEMA's telecommunications spending, it's difficult to provide precise figures, but it is reasonable to assume consistent, significant investment in this area to ensure operational readiness.

How does the awarded price compare to market rates for similar telecommunications services?

Determining the precise comparison to market rates for this $29.17 million AT&T contract requires detailed service level agreements and specific technology configurations, which are not publicly available. However, given that the contract was awarded under 'full and open competition' and is a 'firm fixed price' type, it suggests that the pricing was vetted against competitive bids. AT&T is a major telecommunications provider, and its pricing for large federal contracts is generally benchmarked against industry standards and its own commercial offerings. Factors influencing market rates include bandwidth, latency, reliability, security features, and geographic coverage. For critical federal operations in a high-demand area like Washington D.C., prices might be at the higher end of the market spectrum due to the stringent requirements for uptime and performance.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators (KPIs) for a wired telecommunications contract like this typically focus on network availability, uptime, latency, data transfer speeds, and response times for service outages or issues. FEMA, as the client agency, would establish specific metrics within the contract's Performance Work Statement (PWS). Performance is usually measured through regular reporting by the contractor, government monitoring of network performance, and user feedback. Service Level Agreements (SLAs) define the acceptable performance thresholds and outline remedies or penalties if these are not met. For instance, an SLA might mandate 99.99% uptime for critical network segments. The contracting officer's representative (COR) is typically responsible for monitoring contractor performance against these KPIs throughout the contract's duration.

What is AT&T's track record with similar federal telecommunications contracts?

AT&T has an extensive track record of providing telecommunications services to the federal government, including numerous large-scale contracts across various agencies. They are a primary vendor for services like network infrastructure, voice communications, and broadband internet to entities such as the Department of Defense, GSA, and other civilian agencies. Their experience often includes supporting critical operations and high-security environments. Past performance evaluations, available through federal procurement databases (though often redacted for proprietary information), generally assess contractors on factors like quality of service, timeliness of delivery, cost control, and customer satisfaction. AT&T's long-standing presence in the federal market suggests a generally positive performance history, though specific contract performance can vary.

Are there any identified risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include service disruptions due to technical failures, cyber threats, or natural disasters impacting infrastructure. Dependence on a single vendor for critical communications can also pose a risk. Mitigation strategies typically involve robust Service Level Agreements (SLAs) with defined penalties for non-performance, stringent cybersecurity requirements, and contingency planning by FEMA. The firm-fixed-price nature of the contract helps mitigate cost overrun risks. Furthermore, the contract's duration (five years) allows for potential technology refreshes and adjustments to mitigate risks associated with aging infrastructure or evolving threats. FEMA's own disaster preparedness and continuity of operations plans would also factor into overall risk management.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151

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: $47,219,332

Exercised Options: $36,121,797

Current Obligation: $29,168,288

Actual Outlays: $13,092,424

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