DHS awards AT&T $17.6M for wired telecom services, highlighting a competitive landscape

Contract Overview

Contract Amount: $17,661,192 ($17.7M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-01-05

End Date: 2026-09-27

Contract Duration: 2,091 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW: EIS - DATA TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.7 million to AT&T ENTERPRISES, LLC for work described as: NEW: EIS - DATA TASK ORDER Key points: 1. The contract value represents a significant investment in essential telecommunications infrastructure. 2. Full and open competition suggests a robust market for these services. 3. The fixed-price contract structure aims to control costs and provide predictability. 4. The duration of the contract indicates a long-term need for these services. 5. The geographic focus on Washington D.C. points to critical federal operations support. 6. The North American Industry Classification System (NAICS) code 517110 confirms the focus on wired telecommunications.

Value Assessment

Rating: good

The contract value of $17.6 million over its period of performance appears reasonable for comprehensive wired telecommunications services supporting a major federal agency like DHS. Benchmarking against similar large-scale federal telecom contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the award suggests that the contractor, AT&T, has assumed the primary risk for cost overruns, which is a positive indicator for the government.

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 were likely solicited and had the opportunity to bid. The presence of four bidders (implied by 'no': 4) suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving services at a price reflecting market dynamics.

Public Impact

Federal agencies within the Department of Homeland Security benefit from reliable wired telecommunications. Essential communication services are delivered to support national security and public safety operations. The primary geographic impact is within the District of Columbia, supporting critical federal functions. The contract supports jobs within the telecommunications sector, particularly for AT&T employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specialized and tied to AT&T's infrastructure.
Reliance on a single provider for critical infrastructure could pose a risk during major outages or cyber events.

Positive Signals

Awarded through full and open competition, indicating competitive pricing and vendor selection.
Firm fixed-price contract structure shifts cost risk to the contractor.
Long contract duration suggests a stable and predictable service provision.
AT&T is a well-established telecommunications provider with extensive infrastructure.

Sector Analysis

The wired telecommunications carriers sector is a mature industry dominated by large providers like AT&T. Federal spending in this area is crucial for maintaining the operational backbone of government agencies. This contract fits within the broader category of federal IT and communications infrastructure spending, which consistently represents a significant portion of the federal budget. Comparable spending benchmarks would involve analyzing other large federal contracts for similar telecommunications services across various agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of large-scale telecommunications infrastructure, it is unlikely that significant subcontracting opportunities for small businesses would be mandated, though AT&T may engage them for specific services. The primary impact is on large telecommunications providers rather than the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring AT&T to deliver services as specified. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Federal Telecommunications Services (FTS) contracts
General Services Administration (GSA) schedules for telecommunications
Department of Defense (DoD) telecommunications spending

Risk Flags

Potential for service disruption
Vendor lock-in risk
Dependence on single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.7 million to AT&T ENTERPRISES, LLC. NEW: EIS - DATA TASK ORDER

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2021-01-05. End: 2026-09-27.

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

AT&T has a long and extensive history of providing telecommunications services to the federal government across numerous agencies. They are a primary vendor for many large-scale federal contracts, including network infrastructure, voice services, and data transport. Their track record generally includes successful delivery on complex, high-value contracts, though like any large provider, they have also faced scrutiny on specific contract performance or pricing in the past. Analyzing their past performance on contracts with similar scope and value, particularly within DHS or other national security-focused agencies, would provide a more detailed understanding of their reliability and efficiency in fulfilling federal requirements.

How does the $17.6 million value compare to similar federal wired telecommunications contracts?

The $17.6 million value for this contract, spanning approximately five years (January 2021 to September 2026), translates to an average annual spend of roughly $3.5 million. This figure is within the expected range for large federal agencies requiring robust wired telecommunications infrastructure, especially in a high-demand area like Washington D.C. For context, other federal agencies often award multi-million dollar contracts for similar services, with values potentially reaching tens or even hundreds of millions of dollars depending on the scope, duration, and specific technologies involved. A direct comparison would require identifying contracts with identical service descriptions, geographic coverage, and user base size, which can be challenging due to the proprietary nature of detailed contract terms.

What are the primary risks associated with this contract for the government?

The primary risks for the government revolve around service reliability and potential vendor lock-in. While AT&T is a major provider, any single point of failure in critical infrastructure can have significant consequences. Dependence on AT&T's network for essential DHS operations means that widespread outages, cyberattacks targeting their infrastructure, or even internal service degradations could disrupt government functions. Furthermore, the long-term nature of the contract and the specialized infrastructure involved could make it difficult and costly to switch providers if performance issues arise or if market alternatives offer significantly better value in the future. Ensuring robust Service Level Agreements (SLAs) and contingency plans within the contract is crucial to mitigate these risks.

How effective is full and open competition in ensuring value for this type of service?

Full and open competition is generally considered the most effective method for ensuring value in the procurement of standardized services like wired telecommunications. By allowing all responsible sources to submit bids, the government maximizes the pool of potential providers, fostering a competitive environment that drives down prices and encourages innovation. In this case, with four bidders, the competition likely pressured AT&T to offer competitive terms. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately define its needs. For complex or rapidly evolving technologies, ensuring that bidders can truly compete on a level playing field requires careful specification and evaluation.

What are the historical spending patterns for wired telecommunications by DHS?

The Department of Homeland Security, as a large and complex agency with significant operational needs across various components (e.g., FEMA, TSA, ICE, CBP), historically spends substantial amounts on telecommunications services. This includes wired and wireless communications, data networking, and voice services. Annual spending can fluctuate based on infrastructure upgrades, new technology deployments, and evolving security requirements. Analyzing DHS's aggregated spending on NAICS code 517110 and related telecommunications categories over the past 5-10 years would reveal trends, identify major contract vehicles, and highlight periods of increased investment or consolidation. This specific $17.6 million award represents one component of their broader telecommunications budget.

Industry Classification

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

Solicitation ID: 70RTAC20R00000026

Offers Received: 4

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: $37,276,479

Exercised Options: $19,710,869

Current Obligation: $17,661,192

Actual Outlays: $8,428,312

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