DHS Coast Guard Awards AT&T $6.37M for Satellite Communications Services
Contract Overview
Contract Amount: $6,369,073 ($6.4M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-30
End Date: 2030-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AT&T ONEWEB KITS AND SATELLITE COMMUNICATION (SATCOM) SERVICES
Place of Performance
Location: ALEXANDRIA, LOUDOUN County, DISTRICT OF COLUMBIA, 20598
Plain-Language Summary
Department of Homeland Security obligated $6.4 million to AT&T ENTERPRISES, LLC for work described as: AT&T ONEWEB KITS AND SATELLITE COMMUNICATION (SATCOM) SERVICES Key points: 1. Contract awarded to AT&T for satellite communications. 2. Limited competition due to specific service requirements. 3. Potential risk in long-term reliance on a single provider. 4. Spending falls within IT and telecommunications sector benchmarks.
Value Assessment
Rating: fair
The contract value of $6.37M over five years appears reasonable for specialized satellite communication services. Benchmarking against similar government contracts for SATCOM is difficult without more detailed service specifications, but the price per year is approximately $1.27M.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. The lack of open competition may limit price discovery and potentially lead to higher costs than if multiple vendors were considered.
Taxpayer Impact: Taxpayer funds are being used for essential communication infrastructure. The lack of competition warrants scrutiny to ensure value for money.
Public Impact
Ensures critical communication capabilities for the U.S. Coast Guard. Supports maritime operations and national security. Provides a vital link for remote or disaster-stricken areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential vendor lock-in
- Long contract duration
Positive Signals
- Essential service provision
- Supports critical mission
Sector Analysis
This contract falls under the Information Technology and Telecommunications sector, specifically satellite services. Government spending on SATCOM can vary widely based on technological advancements and operational needs, but this amount is moderate for a five-year period.
Small Business Impact
The contract was awarded to AT&T Enterprises, LLC, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
Oversight will be crucial to ensure AT&T meets all service level agreements and performance metrics. The Department of Homeland Security's contracting office is responsible for monitoring this contract's execution.
Related Government Programs
- Satellite Telecommunications
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Lack of competitive bidding
- Potential for price escalation in future
- Dependence on a single provider
- Limited transparency in cost justification
Tags
satellite-telecommunications, department-of-homeland-security, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $6.4 million to AT&T ENTERPRISES, LLC. AT&T ONEWEB KITS AND SATELLITE COMMUNICATION (SATCOM) 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. Coast Guard).
What is the total obligated amount?
The obligated amount is $6.4 million.
What is the period of performance?
Start: 2025-09-30. End: 2030-09-29.
What is the specific technical capability that necessitates a sole-source or limited competition award for these AT&T SATCOM services?
The specific technical capability driving the limited competition likely relates to unique network integration, existing infrastructure compatibility, or specialized satellite coverage required by the U.S. Coast Guard's operational environment. Without this specific information, it's difficult to definitively assess if alternative solutions could meet the mission needs, impacting the overall value proposition.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to mitigate the risks associated with a non-competed contract?
Key performance indicators and service level agreements are critical for managing risks in non-competed contracts. These should include metrics for uptime, latency, data throughput, and response times for technical support. Robust SLAs with clear penalties for non-performance and regular performance reviews by the contracting officer are essential to ensure the government receives the contracted services effectively and at a fair price.
How does the pricing structure compare to industry benchmarks for similar satellite communication services, considering the limited competition?
Assessing the pricing against industry benchmarks is challenging without detailed service specifications. However, the annual cost of approximately $1.27M for specialized SATCOM services warrants careful review. The government should leverage available market research and potentially engage independent cost estimators to validate the reasonableness of the firm fixed price, especially given the absence of competitive pressure.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70Z07925QISD30003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tyto Athene, LLC
Address: 400 WEST AVE, ROCHESTER, NY, 14611
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: $13,534,624
Exercised Options: $13,534,624
Current Obligation: $6,369,073
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-30
Current End Date: 2030-09-29
Potential End Date: 2030-09-29 11:59:59
Last Modified: 2026-02-12
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