DHS awards $6M for O&M support of ECC system to AT&T, a sole-source contract

Contract Overview

Contract Amount: $5,990,280 ($6.0M)

Contractor: AT&T Technical Services Company, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-05

End Date: 2026-11-04

Contract Duration: 974 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M SUPPORT SERVICES ON ECC SYSTEM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.0 million to AT&T TECHNICAL SERVICES COMPANY, INC for work described as: O&M SUPPORT SERVICES ON ECC SYSTEM Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is over two years, indicating a need for sustained support. 3. The fixed-price contract type aims to control costs for the government. 4. The service falls under Wired Telecommunications Carriers, a mature industry. 5. The contract is for Operations & Maintenance (O&M) support, crucial for system continuity. 6. The award is for a single definitive contract, suggesting a specific, defined need.

Value Assessment

Rating: fair

The contract value of approximately $6 million over 974 days (roughly $6,150 per day) for O&M support of an ECC system needs benchmarking against similar services. Given the sole-source nature, it's difficult to assess if this represents excellent value without comparative data. However, the firm-fixed-price structure provides cost certainty. The benchmarked daily rate of $6,150 suggests a potentially high cost for telecommunications support services, warranting further investigation into the scope and complexity of the ECC system.

Cost Per Unit: $6,150 per day (estimated)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning AT&T Technical Services Company, Inc. was the only vendor considered. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate and that no other vendors could meet the requirement.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from competitive pricing. This limits the government's ability to secure the best possible value for its investment.

Public Impact

The Department of Homeland Security (DHS) benefits from continued operational support of its Emergency Communications Center (ECC) system. This contract ensures the reliable functioning of critical communication infrastructure. The services delivered are essential for maintaining national security and emergency response capabilities. The primary impact is on DHS personnel who rely on the ECC system for their duties. The contract is geographically focused on the District of Columbia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in due to specialized O&M services.
The daily rate of $6,150 appears high and requires further justification.
Contract duration of over two years may not align with evolving technology needs.

Positive Signals

Firm-fixed-price contract provides cost certainty.
AT&T is an established provider with existing knowledge of DHS systems.
O&M support ensures continuity of critical communication services.
Contract award date is recent, indicating current operational needs.

Sector Analysis

The Wired Telecommunications Carriers industry (NAICS 517111) encompasses establishments primarily engaged in operating and/or providing access to telecommunications infrastructure over wired networks. This includes services like local and long-distance voice and data communications, internet access, and cable and satellite television distribution. The market is characterized by significant infrastructure investment, technological evolution, and a mix of large established players and specialized service providers. Federal spending in this sector often supports critical infrastructure, command and control systems, and general IT connectivity. This contract for O&M support of an ECC system fits within the broader telecommunications infrastructure and services segment, where reliability and continuous operation are paramount.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, AT&T, the direct impact on the small business ecosystem is likely minimal unless AT&T voluntarily includes small businesses in its subcontracting efforts. Further review of the contract's subcontracting plan would be necessary to determine any indirect benefits or requirements for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. The Office of Procurement Operations is listed as the servicing agency. Transparency regarding the sole-source justification and the specific performance metrics for AT&T's O&M support would be key to effective oversight. An Inspector General review could be initiated if concerns arise regarding the procurement process, cost, or performance. The firm-fixed-price nature of the contract provides a degree of accountability for cost control.

Related Government Programs

Department of Homeland Security IT Services
Telecommunications Infrastructure Support
Emergency Communications Systems
Federal Network Operations and Maintenance
Sole-Source IT Contracts

Risk Flags

Sole-source award
Potential for high cost
Lack of competitive bidding
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.0 million to AT&T TECHNICAL SERVICES COMPANY, INC. O&M SUPPORT SERVICES ON ECC SYSTEM

Who is the contractor on this award?

The obligated recipient is AT&T TECHNICAL SERVICES COMPANY, INC.

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 $6.0 million.

What is the period of performance?

Start: 2024-03-05. End: 2026-11-04.

What is the specific Emergency Communications Center (ECC) system being supported, and what are its critical functions?

The provided data does not specify the exact ECC system or its functions. However, Emergency Communications Centers are typically vital hubs responsible for receiving and processing emergency calls (like 911), dispatching emergency services (police, fire, ambulance), and coordinating responses during crises. The 'ECC System' likely refers to the hardware, software, and network infrastructure that enables these operations. Its critical functions would include ensuring uninterrupted service, rapid information processing, reliable communication links between dispatchers and field units, and potentially integration with other public safety systems. The O&M support ensures the system's availability, performance, and security, which are paramount for public safety.

What was the justification for awarding this contract on a sole-source basis to AT&T Technical Services Company, Inc.?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this is not detailed in the data. Typically, sole-source awards are justified under circumstances such as: only one responsible source exists to satisfy the agency's needs (e.g., proprietary technology or unique expertise), the agency's need is so urgent that competition is impractical, or for small business set-asides where only one qualified small business is available. For a contract of this value and duration, a formal justification and approval (J&A) document would normally be required by federal acquisition regulations, outlining the rationale and demonstrating that competitive procedures were not feasible or would not be advantageous.

How does the daily cost of $6,150 for O&M support compare to industry benchmarks for similar telecommunications systems?

The estimated daily cost of $6,150 for O&M support of the ECC system is substantial and requires careful benchmarking. Without specific details on the ECC system's complexity, scale, and the exact services included (e.g., hardware maintenance, software updates, network monitoring, incident response, staffing levels), a precise comparison is difficult. However, general industry benchmarks for managed IT services or telecommunications infrastructure maintenance can vary widely. For highly critical, 24/7 operational systems like an ECC, costs can be higher due to the need for specialized personnel, rapid response capabilities, and stringent uptime requirements. Nonetheless, a daily rate of over $6,000 warrants a thorough review against comparable government contracts (e.g., other DHS or agency ECC systems) and private sector service level agreements to ensure fair and reasonable pricing.

What is AT&T Technical Services Company, Inc.'s track record with the Department of Homeland Security and similar government contracts?

AT&T Technical Services Company, Inc. is a subsidiary of AT&T, a major telecommunications provider with extensive experience serving government agencies, including the Department of Homeland Security (DHS). AT&T holds numerous federal contracts across various agencies for telecommunications services, network infrastructure, IT support, and cybersecurity. Their track record generally includes providing large-scale, mission-critical services. However, the specific performance history of AT&T Technical Services Company, Inc. on DHS contracts, particularly related to O&M support for complex systems like ECC, would need to be reviewed through contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) to fully assess their reliability, quality of service, and adherence to contract terms for this specific type of work.

What are the potential risks associated with a sole-source contract for critical communication system maintenance?

Sole-source contracts for critical systems like the ECC present several risks. Firstly, the lack of competition can lead to inflated prices and reduced value for money, as the government does not benefit from market pressures driving down costs. Secondly, it can foster vendor lock-in, making it difficult and costly to switch providers in the future, even if performance issues arise or better alternatives become available. Thirdly, there's a potential for complacency from the contractor, as they face no direct competitive threat. Finally, the justification for a sole-source award itself can be scrutinized; if the justification is weak or based on inaccurate assumptions, it raises concerns about the procurement process and potentially exposes the agency to protests or audits. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations.

What is the historical spending pattern for O&M support of the ECC system or similar communication systems within DHS?

The provided data only includes details for this specific contract award. To understand historical spending patterns for O&M support of the ECC system or similar communication systems within DHS, one would need to access historical contract databases (like FPDS or USASpending.gov) and search for previous awards related to 'ECC system O&M,' 'emergency communications support,' or similar keywords, potentially filtering by DHS and relevant fiscal years. Analyzing past contract values, durations, awardees, and competition levels would reveal trends. For instance, was this system previously supported under competitive contracts? Has spending increased or decreased over time? Are there recurring sole-source awards for this type of service? This historical context is crucial for evaluating the current contract's value and necessity.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RFP324REH000002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $6,023,530

Exercised Options: $6,023,530

Current Obligation: $5,990,280

Actual Outlays: $3,041,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline