DHS's $53.5M AT&T contract for data network services saw a 4-month extension, impacting service delivery timelines

Contract Overview

Contract Amount: $53,527,637 ($53.5M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-01

End Date: 2026-05-31

Contract Duration: 1,277 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DATA NETWORK AND VOICE SERVICES P00002 RESCINDED THE STOP WORK ORDER AND CHANGED THE POP FROM 8/1/22 TO 1/31/23 TO 12/1/22 TO 5/31/23.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53.5 million to AT&T ENTERPRISES, LLC for work described as: DATA NETWORK AND VOICE SERVICES P00002 RESCINDED THE STOP WORK ORDER AND CHANGED THE POP FROM 8/1/22 TO 1/31/23 TO 12/1/22 TO 5/31/23. Key points: 1. The contract's extension suggests potential adjustments to project scope or resource allocation, impacting overall value. 2. Competition was full and open, indicating a potentially competitive pricing environment. 3. The contract's duration and value present moderate financial risk. 4. Performance context is limited due to the rescinded stop-work order and schedule adjustments. 5. This contract falls within the telecommunications services sector, supporting critical infrastructure. 6. The shift in performance period may indicate unforeseen challenges or evolving operational needs.

Value Assessment

Rating: fair

The contract value of $53.5M for data network and voice services appears substantial. Benchmarking against similar contracts for telecommunications infrastructure is necessary to assess value for money. The extension of the performance period without a clear justification raises questions about initial planning and potential cost implications. Without more granular data on services provided and performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of four bidders indicates a degree of market interest and potential for competitive pricing. However, the specific details of the bidding process and the relative strengths of the proposals are not provided, limiting a deeper analysis of how effectively competition drove down costs.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower prices and better service offerings, although the ultimate savings are not quantifiable without bid details.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential data network and voice services. These services are critical for the operational continuity and security functions of the TSA. The contract's impact is primarily concentrated within the agency's operational infrastructure, with potential ripple effects on air travel security. Workforce implications are indirect, relating to the personnel required to manage and utilize these network services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extension of contract performance period without clear justification may indicate scope creep or planning issues.
Rescinded stop-work order suggests potential initial contract execution problems.
Lack of detailed performance metrics makes it difficult to assess contractor effectiveness.
The significant contract value warrants close monitoring for cost overruns or inefficiencies.

Positive Signals

Awarded through full and open competition, suggesting a robust market selection process.
Contractor AT&T is a major telecommunications provider with extensive experience.
The contract supports critical infrastructure for a key federal agency (TSA).

Sector Analysis

This contract falls within the Wired Telecommunications Carriers industry (NAICS 517110), a sector characterized by significant infrastructure investment and ongoing technological evolution. The market is dominated by a few large providers, including AT&T. Federal spending in this area supports the backbone of government communications. Comparable spending benchmarks would involve analyzing other large-scale telecommunications contracts awarded by federal agencies for similar network and voice services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal unless AT&T voluntarily engages small businesses in its subcontracting chain. Further analysis of AT&T's subcontracting plan would be needed to determine any indirect benefits.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with potential involvement from the TSA's own oversight bodies. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected. Transparency is moderate, with basic award details available, but deeper insights into performance and cost management require further data.

Related Government Programs

Federal Telecommunications Services
Network Infrastructure Contracts
Department of Homeland Security IT Spending
Transportation Security Administration Operations

Risk Flags

Contract Modification
Performance Period Extension
Stop-Work Order Rescinded

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53.5 million to AT&T ENTERPRISES, LLC. DATA NETWORK AND VOICE SERVICES P00002 RESCINDED THE STOP WORK ORDER AND CHANGED THE POP FROM 8/1/22 TO 1/31/23 TO 12/1/22 TO 5/31/23.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $53.5 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-05-31.

What was the specific reason for rescinding the stop-work order and extending the contract's performance period?

The provided data indicates a rescinded stop-work order and a change in the period of performance (POP) from 8/1/22 to 1/31/23 to 12/1/22 to 5/31/23. The specific reasons for these actions are not detailed in the provided data. Typically, such changes can stem from various factors including delays in equipment delivery, unforeseen technical challenges, adjustments in agency requirements, or contractor-related issues that necessitated a pause and subsequent restart. Without further documentation or agency açıklama, the precise cause remains speculative. This extension effectively added four months to the contract's operational timeline, potentially impacting budget allocation and resource planning for the Transportation Security Administration.

How does the awarded value of $53.5M compare to similar data network and voice service contracts for federal agencies?

Comparing the $53.5 million value requires context regarding the scope, duration, and specific services included. This contract is with the Department of Homeland Security (DHS) for data network and voice services, awarded to AT&T. Federal agencies often procure similar services through large, multi-year contracts. For instance, other agencies might have similar contracts valued in the tens to hundreds of millions of dollars, depending on the scale of operations and geographic reach. However, without knowing the exact deliverables (e.g., bandwidth, number of users, specific technologies, geographic coverage) and the contract's total duration (initial period plus options), a direct comparison is difficult. The fact that it was awarded under full and open competition suggests market rates were considered, but specific benchmarking requires access to detailed contract databases and analysis of comparable service level agreements.

What are the key performance indicators (KPIs) for this contract, and how has AT&T performed against them?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract, nor does it offer details on AT&T's performance against any established metrics. Typically, contracts for network and voice services would include KPIs related to network uptime, latency, data transfer speeds, service availability, incident response times, and customer satisfaction. The rescinded stop-work order and the extension of the performance period might suggest potential challenges in meeting initial performance expectations or adapting to evolving requirements. A thorough assessment would require access to the contract's Statement of Work (SOW), performance reports, and any associated Service Level Agreements (SLAs) to evaluate AT&T's adherence to contractual obligations and the quality of services delivered.

What is the historical spending pattern for data network and voice services by the Transportation Security Administration (TSA)?

The provided data focuses on a single contract award and its modifications. To understand the historical spending pattern for data network and voice services by the TSA, one would need to analyze spending data over multiple fiscal years. This would involve examining previous contracts awarded for similar services, including their values, durations, and awarded contractors. Trends in spending could reveal whether the TSA is increasing or decreasing its investment in these services, whether it is consolidating contracts, or shifting towards different technologies. Analyzing historical data would also help contextualize the $53.5 million value of this current contract within the agency's broader procurement history for telecommunications infrastructure.

Are there any identified risks associated with AT&T's performance or the contract's execution, beyond the stop-work order issue?

Beyond the initial issue with the stop-work order and the subsequent extension, the provided data does not explicitly detail other risks associated with AT&T's performance or the contract's execution. However, general risks inherent in large telecommunications contracts include potential for cost overruns if requirements change or are poorly defined, technical obsolescence of the provided technology, cybersecurity vulnerabilities within the network, and dependence on a single large provider. Given AT&T's established presence in the market, risks related to contractor viability are likely low. Nonetheless, ongoing monitoring of service quality, security compliance, and adherence to budget would be crucial for risk mitigation throughout the contract's life.

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: 70T03021R7667N003

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: $385,160,070

Exercised Options: $53,527,637

Current Obligation: $53,527,637

Actual Outlays: $19,015,804

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