AT&T awarded $22.7M for USSS data and voice services under full and open competition

Contract Overview

Contract Amount: $22,722,425 ($22.7M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-22

End Date: 2026-09-29

Contract Duration: 1,012 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USSS EIS TO1 DATA & VOICE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.7 million to AT&T ENTERPRISES, LLC for work described as: USSS EIS TO1 DATA & VOICE SERVICES Key points: 1. Contract awarded to AT&T for essential data and voice services to the U.S. Secret Service. 2. The contract duration spans nearly three years, indicating a need for sustained service provision. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The fixed-price nature of the contract helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 517110 points to significant spending in the wired telecommunications sector. 6. The contract's value is substantial, reflecting the critical nature of communication infrastructure for a protective agency.

Value Assessment

Rating: good

The contract value of $22.7 million over approximately 3 years for wired telecommunications services appears reasonable given the scope and duration. Benchmarking against similar large-scale telecommunications contracts for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the service levels are met.

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 a bid. The presence of 5 bids suggests a healthy level of competition for this requirement. This competitive environment is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where multiple vendors vie for the contract, leading to potentially lower prices and better service quality.

Public Impact

The U.S. Secret Service benefits from reliable and secure data and voice communication services, crucial for its protective missions. Essential communication infrastructure is maintained, supporting daily operations and emergency response. The contract's impact is primarily within the District of Columbia, where the Secret Service's headquarters and key operations are located. The contract supports jobs within the telecommunications sector, particularly for AT&T employees involved in service delivery and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical communication infrastructure could pose a risk if service disruptions occur.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type provides cost certainty.
Long-term contract duration suggests a stable and reliable service provider.
The vendor, AT&T, is a major telecommunications provider with extensive experience.

Sector Analysis

This contract falls within the wired telecommunications carriers sector, a critical component of the broader information technology and communications industry. This sector is characterized by significant infrastructure investment and ongoing technological advancements. Federal spending in this area supports the backbone of government operations, ensuring connectivity for agencies across various missions. Comparable spending benchmarks for large federal telecommunications contracts often range in the tens to hundreds of millions of dollars annually, depending on the scope and scale of services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any 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 AT&T's subcontracting plan. The absence of a direct set-aside means the primary focus was on securing the best overall value from the most capable bidder, rather than specifically targeting small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Secret Service contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Performance metrics and service level agreements (SLAs) outlined in the contract would be key to monitoring performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may remain sensitive.

Related Government Programs

General Services Administration (GSA) Schedule contracts for telecommunications.
Department of Defense (DoD) telecommunications and IT services.
Other agency-specific network and communication infrastructure contracts.

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.7 million to AT&T ENTERPRISES, LLC. USSS EIS TO1 DATA & 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. Secret Service).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2023-12-22. End: 2026-09-29.

What is the historical spending trend for data and voice services by the U.S. Secret Service?

Analyzing historical spending for data and voice services by the U.S. Secret Service (USSS) is crucial for understanding the context of the current $22.7 million AT&T contract. While specific historical data for this exact service category is not provided in the current data, federal agencies typically have recurring needs for telecommunications. Spending in this area often fluctuates based on technology upgrades, expansion of services, and changes in operational requirements. For instance, a transition from older copper-based systems to fiber optics or the adoption of cloud-based communication solutions can significantly impact contract values. Agencies often consolidate services to leverage economies of scale, which can lead to larger, longer-term contracts like this one. Without prior contract details, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending. However, the duration and value suggest a significant and ongoing requirement for robust communication infrastructure to support the USSS's critical protective missions.

How does the per-unit cost of this contract compare to similar federal telecommunications contracts?

Determining the precise per-unit cost for this contract is challenging without detailed breakdowns of services (e.g., cost per line, cost per gigabyte of data, cost per user). However, we can infer value by considering the total contract value ($22.7 million) against its duration (approximately 1012 days, or about 2.77 years) and the number of bids received (5). A rough annual cost is around $8.2 million ($22.7M / 2.77 years). When compared to other large federal telecommunications contracts, such as those managed by the General Services Administration (GSA) for enterprise-wide solutions, this figure appears to be within a reasonable range, especially considering the specialized needs of an agency like the U.S. Secret Service. The fact that it was awarded under full and open competition with multiple bidders suggests that the pricing was competitive. However, a definitive benchmark would require access to detailed service level agreements and pricing structures of comparable contracts, which are often not publicly available in granular detail.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature, supporting critical functions of the U.S. Secret Service, SLAs would typically focus on network uptime and availability (e.g., 99.99% uptime), latency, data throughput, and response times for technical support and issue resolution. KPIs would likely measure adherence to these SLAs, such as the percentage of time the network was operational, the average time to resolve reported issues, and the successful delivery of data and voice services according to agreed-upon quality standards. The firm fixed-price nature suggests that AT&T is obligated to meet these performance standards to receive full payment, and penalties might be associated with failing to meet critical SLAs. The U.S. Secret Service contracting officers would be responsible for monitoring these KPIs and SLAs throughout the contract's duration.

What is AT&T's track record in providing similar telecommunications services to federal agencies?

AT&T has a long and extensive track record of providing telecommunications and IT services to federal government agencies, including the Department of Homeland Security (DHS), of which the U.S. Secret Service is a part. As one of the largest telecommunications providers globally, AT&T possesses significant infrastructure, technical expertise, and experience in managing large-scale, complex networks. They are a frequent awardee of federal contracts across various agencies, often through competitive bidding processes. Their experience likely includes providing secure voice and data services, network management, and cybersecurity solutions. While specific performance details for every contract are not always public, AT&T's continued success in securing major federal contracts suggests a generally positive performance history and capability to meet the demanding requirements of government operations, including those of high-security agencies like the USSS.

What are the potential risks associated with relying on AT&T for these critical communication services?

Potential risks associated with relying on AT&T for these critical communication services include service disruptions due to technical failures, natural disasters, or cyberattacks, which could impact the U.S. Secret Service's operations. Vendor lock-in is another risk; transitioning to a different provider for complex, integrated telecommunications systems can be costly and time-consuming. Dependence on a single provider also concentrates risk, meaning a widespread issue with AT&T's infrastructure or services could have a significant impact. Furthermore, while the contract is firm fixed-price, there's always a risk of scope creep or unforeseen technical challenges that could strain the relationship or lead to disputes if not managed carefully. Ensuring robust contingency plans and maintaining strong oversight are key to mitigating these risks.

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: 70US0921R70090054

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: $42,213,420

Exercised Options: $22,722,425

Current Obligation: $22,722,425

Actual Outlays: $5,369,618

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