DHS awards AT&T $68.2M for USCIS data and voice services over 4 years

Contract Overview

Contract Amount: $68,249,555 ($68.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-06-01

End Date: 2026-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCIS DATA AND VOICE SERVICES

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $68.2 million to AT&T ENTERPRISES, LLC for work described as: USCIS DATA AND VOICE SERVICES Key points: 1. Contract value represents a significant investment in essential communication infrastructure for USCIS. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 4 years allows for stable service provision. 5. The award falls within the Wired Telecommunications Carriers industry, a mature sector. 6. Performance is concentrated in Maryland, indicating a specific geographic focus.

Value Assessment

Rating: good

The contract value of $68.2 million over four years for data and voice services appears reasonable given the scope and duration. Benchmarking against similar large-scale telecommunications contracts for federal agencies suggests this pricing is competitive, especially considering the full and open competition. The firm fixed-price structure provides cost certainty for USCIS, although it requires careful monitoring of service delivery to ensure value.

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 invited to bid. The presence of 5 bids suggests a healthy level of interest and competition within the telecommunications sector for federal contracts. This competitive process is expected to drive more favorable pricing and service terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors vied to offer the best value. This process helps prevent overpayment and encourages innovation in service delivery.

Public Impact

USCIS benefits from reliable and secure data and voice communication services, crucial for its immigration processing operations. The contract supports the delivery of essential telecommunications infrastructure across USCIS facilities. Services are primarily delivered within Maryland, impacting federal operations in that region. The contract supports jobs within the telecommunications industry, particularly at AT&T.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service integration becomes highly specialized.
Ensuring consistent service quality across all USCIS locations covered by the contract.
Monitoring AT&T's performance against Service Level Agreements (SLAs) to ensure value for money.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost predictability for the government.
Long-term contract (4 years) allows for stable service provision and potential for economies of scale.
AT&T is a well-established telecommunications provider with extensive infrastructure.

Sector Analysis

The Wired Telecommunications Carriers industry (NAICS 517110) is a mature sector characterized by significant infrastructure investment and competition. Federal agencies are major consumers of these services, requiring reliable data and voice networks for operations. This contract fits within the broader trend of government agencies outsourcing complex telecommunications needs to established providers like AT&T, leveraging their existing networks and expertise. Comparable spending benchmarks for similar federal telecommunications contracts vary widely based on scope, but a $68.2 million award over four years for a national agency like USCIS is substantial.

Small Business Impact

This contract does not appear to have a specific small business set-aside. While AT&T is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific service requirements and AT&T's subcontracting strategy. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within USCIS and DHS. Performance will be monitored against the terms of the firm fixed-price contract and associated Service Level Agreements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Telecommunications Services
USCIS IT Infrastructure
Department of Homeland Security Communications

Risk Flags

Potential for vendor lock-in
Service performance and reliability
Cybersecurity vulnerabilities
Contractor performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $68.2 million to AT&T ENTERPRISES, LLC. USCIS DATA AND VOICE 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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $68.2 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-05-31.

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, including data and voice solutions, network infrastructure, and mobility services. They are a primary vendor under the General Services Administration's (GSA) Networx and Enterprise Infrastructure Solutions (EIS) contracts, which are major vehicles for federal agencies to procure telecommunications. Their track record generally includes large-scale deployments and ongoing support for various agencies. However, like any large contractor, specific performance can vary by contract, and past performance reviews and contract data would provide a more granular understanding of their success with contracts of similar size and scope to this USCIS award.

How does the per-unit cost of these services compare to market rates or similar federal contracts?

Determining a precise per-unit cost benchmark is challenging without detailed service breakdowns (e.g., cost per line, cost per gigabyte of data). However, the contract's firm fixed-price nature and the fact that it was awarded under full and open competition with five bidders suggest that the pricing is likely competitive. Federal telecommunications contracts, especially those under large vehicles like GSA EIS, are generally negotiated to achieve favorable rates compared to commercial off-the-shelf pricing for equivalent services. The total award of $68.2 million over 1460 days averages to approximately $46,746 per day, or roughly $1.17 million per month. This figure needs to be contextualized against the number of users, bandwidth, and services provided.

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

The primary risks for USCIS revolve around service performance and potential vendor lock-in. While the firm fixed-price contract shifts financial risk to AT&T, USCIS still faces the risk of inadequate service delivery, network outages, or failure to meet Service Level Agreements (SLAs). If the integrated services become highly customized or dependent on AT&T's proprietary systems, switching providers in the future could be complex and costly, leading to a form of vendor lock-in. Additionally, cybersecurity risks inherent in any telecommunications network must be continuously managed and mitigated through robust security protocols and monitoring.

How effective is the firm fixed-price contract type in ensuring value for money in this scenario?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and performance requirements are clear, as is typical for telecommunications services. It provides cost certainty for USCIS, as the price is fixed regardless of AT&T's actual costs. This incentivizes AT&T to manage its own costs efficiently to maximize profit. The effectiveness hinges on USCIS having robust mechanisms to monitor AT&T's performance against the contract's technical specifications and Service Level Agreements (SLAs). If performance issues arise, the FFP structure can make it harder for the government to seek additional compensation or adjustments compared to cost-reimbursement contracts, although remedies for non-performance are still available.

What is the historical spending trend for USCIS data and voice services?

Analyzing historical spending trends for USCIS data and voice services prior to this $68.2 million award would require access to detailed historical contract data. However, it's reasonable to assume that USCIS, as a large and critical agency within DHS, has consistently required significant investment in telecommunications infrastructure. Spending in this area typically grows over time due to increasing data demands, technological upgrades, and expansion of services. Comparing this award to previous contracts would reveal whether spending has increased, decreased, or remained stable, and whether this represents a new baseline or a continuation of existing investment levels.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR22R00000002

Offers Received: 5

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: $500,000,000

Exercised Options: $102,088,258

Current Obligation: $68,249,555

Actual Outlays: $22,459,687

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