AT&T awarded $53M for managed network services, highlighting robust competition and long-term infrastructure needs

Contract Overview

Contract Amount: $52,990,502 ($53.0M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Education

Start Date: 2020-08-12

End Date: 2026-05-31

Contract Duration: 2,118 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GSA EIS MANAGED NETWORK SERVICES, MTIPS, WAN CIRCUITS, TELECOMMUNICATIONS, MULTIMEDIA AND WIRELESS CONNECTIVITY THROUGHOUT THE PIVOT INFRASTRUCTURE TO FACILITATE ALL PIVOT IT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $53.0 million to AT&T ENTERPRISES, LLC for work described as: GSA EIS MANAGED NETWORK SERVICES, MTIPS, WAN CIRCUITS, TELECOMMUNICATIONS, MULTIMEDIA AND WIRELESS CONNECTIVITY THROUGHOUT THE PIVOT INFRASTRUCTURE TO FACILITATE ALL PIVOT IT SERVICES Key points: 1. The contract leverages a competitive procurement vehicle, suggesting potential for cost efficiencies. 2. Long-term duration indicates a strategic investment in foundational IT infrastructure. 3. Focus on telecommunications and connectivity underscores the critical role of network services for agency operations. 4. The award to a major telecommunications provider positions the agency within a mature market. 5. Performance period extends through mid-2026, requiring ongoing monitoring of service delivery.

Value Assessment

Rating: good

The contract value of $53 million over its period of performance appears reasonable for comprehensive managed network services. Benchmarking against similar large-scale telecommunications contracts awarded by agencies like GSA or DoD for enterprise-wide network solutions would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the total value is contingent on actual service utilization and potential modifications.

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 had the opportunity to bid. The presence of three bidders suggests a healthy level of competition for this type of service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing for its telecommunications needs.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging vendors to offer their most competitive rates to win the contract.

Public Impact

The Department of Education benefits from enhanced and reliable telecommunications infrastructure. Services include managed network, MTIPS, WAN circuits, and wireless connectivity, supporting all IT services. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications are indirect, focusing on enabling IT staff through robust connectivity rather than direct employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition costs are high at contract end.
Reliance on a single provider for critical network infrastructure could pose a risk if service levels degrade.
Scope creep could increase costs beyond the initial $53 million if not managed tightly.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm-fixed-price contract type helps manage cost certainty.
Long performance period suggests a stable, long-term partnership for essential services.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers industry, a mature sector dominated by large providers. The market is characterized by significant infrastructure investment and ongoing technological evolution. The Department of Education's spending aligns with broader government trends of consolidating and modernizing telecommunications services through large, comprehensive contracts to achieve economies of scale and improve service delivery.

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 the specific service requirements and AT&T's subcontracting plans. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. The firm-fixed-price nature provides some cost control, but performance monitoring is crucial to ensure service level agreements are met. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

GSA EIS (Enterprise Infrastructure Solutions)
Federal Telecommunications Services
WAN Services Contracts
Managed Network Services

Risk Flags

Potential for vendor lock-in
Reliance on single provider for critical infrastructure
Service disruption risk
Need for strong performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $53.0 million to AT&T ENTERPRISES, LLC. GSA EIS MANAGED NETWORK SERVICES, MTIPS, WAN CIRCUITS, TELECOMMUNICATIONS, MULTIMEDIA AND WIRELESS CONNECTIVITY THROUGHOUT THE PIVOT INFRASTRUCTURE TO FACILITATE ALL PIVOT IT 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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $53.0 million.

What is the period of performance?

Start: 2020-08-12. End: 2026-05-31.

What is the historical spending pattern for managed network services at the Department of Education?

Analyzing historical spending on telecommunications and network services at the Department of Education prior to this $53 million award would provide crucial context. Understanding if this represents an increase, decrease, or stable level of investment is key. For instance, if previous contracts were smaller or fragmented, this award might signify a consolidation strategy. Conversely, if prior spending was higher, it could indicate cost-saving measures or a shift in service delivery models. Data on contract durations, number of vendors used, and specific service categories in past procurements would illuminate trends and inform whether the current award aligns with or deviates from established patterns, impacting the assessment of its financial prudence and strategic alignment.

How does the pricing structure of this AT&T contract compare to similar GSA EIS contracts?

Comparing the pricing structure and rates within this AT&T contract to similar managed network services procured through the GSA Enterprise Infrastructure Solutions (EIS) program is essential for a value-for-money assessment. GSA EIS aims to provide competitive, pre-negotiated rates for telecommunications services across federal agencies. If this contract's per-unit costs for services like WAN circuits or managed bandwidth are significantly higher than comparable EIS rates, it could indicate a less favorable deal for the Department of Education. Conversely, if rates are competitive or lower, it suggests effective negotiation or a different service scope. Analyzing the specific service components and their associated costs against the GSA EIS catalog provides a benchmark for evaluating the financial efficiency and taxpayer value of this specific award.

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

The key performance indicators (KPIs) and service level agreements (SLAs) are critical for evaluating the operational effectiveness and value delivered by this $53 million managed network services contract. While the award data doesn't detail these, typical SLAs for such contracts include network uptime percentages, latency thresholds, mean time to repair (MTTR), and bandwidth availability. Robust KPIs and stringent SLAs ensure that AT&T delivers reliable and high-performing network services essential for the Department of Education's operations. The effectiveness of oversight mechanisms in monitoring adherence to these SLAs directly impacts the realization of value and the mitigation of risks associated with network disruptions or performance degradation.

What is AT&T's track record with similar large-scale federal telecommunications contracts?

AT&T has a substantial track record of providing telecommunications and network services to various federal agencies, including significant contracts under programs like GSA EIS. Their experience encompasses large-scale network deployments, managed services, and cybersecurity solutions for entities such as the Department of Defense, NASA, and other civilian agencies. Evaluating AT&T's past performance on similar contracts, including their history of meeting SLAs, managing project timelines, and handling service disruptions, is crucial. Positive performance indicators would include consistent delivery, successful large-scale implementations, and strong customer satisfaction ratings, while negative indicators might involve repeated SLA breaches or significant project overruns. This historical context helps assess the reliability and capability of AT&T to fulfill the Department of Education's requirements.

What are the potential risks associated with relying on a single provider for critical network infrastructure?

Relying on a single provider like AT&T for critical network infrastructure presents several potential risks. Foremost is the risk of vendor lock-in, where transitioning to another provider at contract expiration could be costly and complex due to proprietary systems or deep integration. Service disruptions, whether due to technical failures, cyberattacks, or even labor disputes at AT&T, could have a cascading impact on the Department of Education's operations, potentially halting essential functions. Furthermore, a lack of ongoing competition during the contract term might reduce the incentive for the incumbent to offer proactive service improvements or the most cost-effective solutions. Mitigating these risks requires robust contract management, clear SLAs, contingency planning, and regular market analysis.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $115,273,399

Exercised Options: $52,990,502

Current Obligation: $52,990,502

Actual Outlays: $44,271,813

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