DHS OCIO awards $4.19M contract to AT&T for wired telecommunications, highlighting a 5-year service delivery

Contract Overview

Contract Amount: $4,191,025 ($4.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-01-01

End Date: 2026-09-27

Contract Duration: 2,095 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEPARTMENT OF HOMELAND SECURITY (DHS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) HEADQUARTERS CORE DATA REQUIREMENTS

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.2 million to AT&T ENTERPRISES, LLC for work described as: DEPARTMENT OF HOMELAND SECURITY (DHS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) HEADQUARTERS CORE DATA REQUIREMENTS Key points: 1. Contract value of $4.19M over 5 years suggests a moderate annual spend. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators appear low given the established nature of telecommunications services. 4. Performance context is within the scope of essential IT infrastructure for DHS. 5. Sector positioning is within the telecommunications services industry, supporting government operations.

Value Assessment

Rating: good

The contract value of $4.19M over approximately 5 years translates to an annual spend of roughly $838,000. This appears reasonable for comprehensive wired telecommunications services supporting a federal agency like DHS. Benchmarking against similar government-wide contracts for telecommunications services would provide a more precise value-for-money assessment, but the price seems within expected ranges for enterprise-level support.

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 offers. The presence of 4 bidders suggests a healthy level of interest and competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Homeland Security (DHS) and its various components will benefit from reliable wired telecommunications services. Essential communication infrastructure will be maintained and potentially upgraded, supporting national security and public safety missions. The geographic impact is primarily within Virginia, where the Office of Procurement Operations is located, but likely supports broader DHS operations. Workforce implications are minimal in terms of direct job creation from this contract, but it supports the existing IT workforce within DHS.

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 provider for critical communication infrastructure carries inherent risks.
Ensuring service level agreements (SLAs) are met and performance is consistently monitored is crucial.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Firm Fixed Price contract type helps control costs and provides budget certainty.
Long-term contract (5 years) allows for stable service provision and planning.

Sector Analysis

The telecommunications industry is a critical sector supporting all government functions. This contract falls under the Wired Telecommunications Carriers industry (NAICS 517110), which includes establishments primarily engaged in operating and/or providing access to telecommunications infrastructure over wired networks. Government spending in this area is substantial, covering everything from basic voice and data services to complex network infrastructure. Comparable spending benchmarks would involve analyzing other large federal contracts for similar telecommunications services across agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans for small businesses. Given the nature of the provider (AT&T), it is unlikely that small business subcontracting will be a significant component unless explicitly mandated. Further review of the contract details would be needed to assess any small business impact.

Oversight & Accountability

Oversight for this contract would typically reside within the DHS OCIO, responsible for ensuring service delivery meets contractual requirements and performance standards. Accountability measures are embedded in the contract's terms, including service level agreements and reporting requirements. Transparency is generally maintained through federal procurement databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

DHS IT Infrastructure Support Contracts
Federal Telecommunications Services
Government Wide Acquisition Contracts (GWACs) for IT Services
Network and Communications Services

Risk Flags

Potential for service disruption if not managed proactively.
Dependence on a single vendor for critical infrastructure.
Ensuring ongoing cost-effectiveness over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.2 million to AT&T ENTERPRISES, LLC. DEPARTMENT OF HOMELAND SECURITY (DHS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) HEADQUARTERS CORE DATA REQUIREMENTS

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 $4.2 million.

What is the period of performance?

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

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

Analyzing historical spending patterns for wired telecommunications services by DHS OCIO is crucial for understanding the long-term investment in this area and assessing the current contract's value. While specific historical data for this exact contract is not provided, general trends in federal IT spending show a consistent need for robust telecommunications infrastructure. Agencies like DHS rely heavily on these services for daily operations, national security, and emergency response. Examining past contracts, their values, durations, and the providers involved would reveal whether this $4.19M award represents an increase, decrease, or stable level of investment. It would also help identify any shifts in technology or service providers over time. Without specific historical figures, we infer that DHS maintains a steady expenditure on essential communication services to support its broad mission.

How does the pricing of this AT&T contract compare to similar telecommunications contracts awarded to other large providers?

Comparing the pricing of this AT&T contract to similar telecommunications contracts awarded to other large providers requires access to detailed pricing structures and service level agreements for comparable federal awards. The provided data indicates a Firm Fixed Price (FFP) contract, which offers cost certainty. However, without knowing the specific services included (e.g., bandwidth, types of lines, support levels, geographic coverage), a direct price-per-unit comparison is difficult. Generally, large telecommunications providers like AT&T, Verizon, and Lumen Technologies compete for federal contracts. Pricing can vary based on negotiated discounts, contract vehicles used (e.g., GSA schedules, agency-specific contracts), and the specific technical requirements. The fact that this contract was awarded under full and open competition with four bidders suggests that AT&T's pricing was competitive among the participants for the defined scope of work.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any telecommunications contract, ensuring the service provider meets defined performance standards. While the specific KPIs and SLAs for this DHS OCIO contract are not detailed in the provided data, typical metrics for wired telecommunications services include network uptime/availability (e.g., 99.99%), latency, jitter, packet loss, and response times for issue resolution and repair. For a contract of this nature supporting a federal agency, these SLAs would likely be stringent. Failure to meet these agreed-upon metrics often results in financial penalties or service credits for the government. The contract's duration and value suggest that robust monitoring and reporting mechanisms are in place to track AT&T's performance against these SLAs.

What is the potential impact of this contract on AT&T's market share within the federal telecommunications sector?

This contract, valued at $4.19M over approximately five years, represents a moderate but significant award for AT&T within the federal telecommunications sector. While not a massive sole-source award, it reinforces AT&T's position as a key provider of essential communication services to a major federal agency like DHS. Winning through full and open competition demonstrates AT&T's ability to remain competitive against other major players. This award can serve as a reference point for future bids and potentially lead to follow-on opportunities or expansion of services within DHS or other agencies. It contributes to AT&T's overall federal revenue and strengthens its relationship with a critical government client, thereby influencing its market share and perceived capabilities in serving the public sector.

Are there any specific security requirements or compliance mandates tied to this telecommunications contract?

Given that this contract is with the Department of Homeland Security (DHS), it is highly probable that stringent security requirements and compliance mandates are tied to the wired telecommunications services provided by AT&T. Federal agencies, especially those involved in national security and law enforcement, must adhere to strict cybersecurity standards. This would likely include compliance with NIST (National Institute of Standards and Technology) guidelines, FISMA (Federal Information Security Modernization Act) requirements, and potentially specific DHS security directives. These mandates would cover aspects such as data encryption, access controls, network segmentation, vulnerability management, and incident response. AT&T would be required to demonstrate adherence to these security protocols throughout the contract lifecycle to protect sensitive government information and infrastructure.

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: 70RTAC20R0000026

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: $32,777,917

Exercised Options: $12,121,044

Current Obligation: $4,191,025

Actual Outlays: $2,755,522

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