DoD's AT&T Contract for Wired Telecommunications Reached $39.6M Over 5 Years
Contract Overview
Contract Amount: $39,576,717 ($39.6M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2006-10-01
End Date: 2012-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $19.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IQO CSAS AFTER ESTIMATED POP FOR PDC AXVVBA FOR FY07
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.6 million to AT&T ENTERPRISES, LLC for work described as: IQO CSAS AFTER ESTIMATED POP FOR PDC AXVVBA FOR FY07 Key points: 1. Spending Analysis: A total of $39.6 million was spent on wired telecommunications services. 2. Competition: The contract was not competed, raising questions about price discovery. 3. Risk: The lack of competition presents a potential risk for overpayment. 4. Sector: This spending falls within the IT and Defense sectors, supporting critical infrastructure.
Value Assessment
Rating: questionable
The contract's value of $39.6 million over five years for wired telecommunications services needs further benchmarking against similar DoD contracts. Without competitive bidding, it's difficult to ascertain if the pricing was optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may have resulted in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The contract supported essential wired telecommunications infrastructure for the Department of Defense. Long contract duration (5 years) could mask inefficiencies or price increases over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpayment
- Long Contract Duration
Positive Signals
- Supported critical DoD infrastructure
- Firm Fixed Price contract type limits cost overruns
Sector Analysis
This contract for wired telecommunications carriers falls under the IT sector, specifically supporting the Defense Information Systems Agency. Spending benchmarks for similar telecommunications services within the DoD can vary significantly based on scope and duration.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a large, established telecommunications provider.
Oversight & Accountability
Further oversight is needed to understand the justification for the sole-source award and to ensure the pricing was fair and reasonable, especially given the significant expenditure.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for taxpayer overpayment.
- Long contract duration may obscure cost efficiencies.
- Lack of small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, va, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 million to AT&T ENTERPRISES, LLC. IQO CSAS AFTER ESTIMATED POP FOR PDC AXVVBA FOR FY07
Who is the contractor on this award?
The obligated recipient is AT&T ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $39.6 million.
What is the period of performance?
Start: 2006-10-01. End: 2012-03-31.
What was the specific justification for awarding this contract as sole-source instead of competing it?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review of the contract file would be necessary to determine the exact rationale.
How does the per-unit cost of these wired telecommunications services compare to industry benchmarks for similar government contracts?
Without specific details on the services rendered and their quantities, a direct per-unit cost comparison is not feasible. However, given the sole-source nature of the award, there is a heightened risk that the pricing may not be as competitive as it would be in a fully competed environment. Benchmarking would require detailed service descriptions and pricing breakdowns.
What was the impact of the firm fixed price contract type on overall cost control for this sole-source award?
A firm fixed price (FFP) contract type is generally beneficial for cost control as it shifts the risk of cost overruns to the contractor. For this sole-source award, FFP ensures that the government pays a set price regardless of the contractor's actual costs. However, it does not guarantee the initial price was the most economical due to the lack of competition.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc. (UEI: 108024050)
Address: 1900 GALLOWS ROAD, VIENNA, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,576,717
Exercised Options: $39,576,717
Current Obligation: $39,576,717
Timeline
Start Date: 2006-10-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2012-11-20
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