DoD Awards $70.5M Contract to AT&T for Wired Telecommunications, Lacking Competition
Contract Overview
Contract Amount: $70,531,720 ($70.5M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2016-05-01
End Date: 2021-06-30
Contract Duration: 1,886 days
Daily Burn Rate: $37.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF NORTHSTAR AWARD
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $70.5 million to AT&T ENTERPRISES, LLC for work described as: IGF::OT::IGF NORTHSTAR AWARD Key points: 1. Significant contract value of $70.5M awarded to AT&T. 2. Lack of competition raises concerns about price discovery and value for money. 3. The contract falls within the Wired Telecommunications Carriers sector. 4. Potential risks include overpayment due to limited competition and long duration.
Value Assessment
Rating: questionable
The contract value of $70.5M over 5 years for wired telecommunications services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar government or commercial contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as 'NOT COMPETED' under a sole-source basis. This significantly limits price discovery and suggests potential for higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be overpaying for these telecommunications services due to the absence of a competitive bidding process.
Public Impact
Essential telecommunications infrastructure for the Department of Defense. Long-term commitment to a single provider impacts future technology adoption. Potential for reduced service innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Established provider
- FIRM FIXED PRICE contract type
Sector Analysis
This contract is within the Wired Telecommunications Carriers sector, which includes services like broadband, voice, and data transmission. Government spending in this area is critical for operational continuity, but competitive pricing is essential to ensure efficiency.
Small Business Impact
The contract was awarded to AT&T Enterprises, LLC, a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source procurement was adequate and that the pricing is reasonable.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Long contract duration limits flexibility and potential for cost savings through new technologies.
- Sole-source awards require strong justification to ensure taxpayer value.
- Absence of small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.5 million to AT&T ENTERPRISES, LLC. IGF::OT::IGF NORTHSTAR AWARD
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 $70.5 million.
What is the period of performance?
Start: 2016-05-01. End: 2021-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly vetted?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough vetting process would involve documenting why competition was not feasible or advantageous, such as unique capabilities or urgent needs. Without this documentation, it's difficult to confirm the validity of the sole-source determination and its impact on achieving the best value for the government.
How does the $70.5M contract value compare to industry benchmarks for similar telecommunications services over an 1886-day period?
Benchmarking this $70.5M contract requires detailed analysis of the specific services rendered, service level agreements, and geographic coverage. However, given the lack of competition and the long duration, there's a risk that the price may exceed market rates. Independent cost analysis or comparison with similar competitively awarded contracts would be necessary to determine fair pricing.
What mechanisms are in place to ensure service quality and cost-effectiveness throughout the contract's lifespan, given the sole-source nature?
With a sole-source contract, robust performance monitoring and contract management are crucial. The government should have clear metrics for service quality, uptime, and responsiveness. Regular reviews of performance against the FIRM FIXED PRICE terms and potential renegotiation clauses, if applicable, are vital to ensure continued cost-effectiveness and value, despite the absence of competitive pressure.
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
Solicitation ID: HC101314R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc. (UEI: 108024050)
Address: 7125 COLUMBIA GATEWAY, COLUMBIA, MD, 21046
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,531,720
Exercised Options: $70,531,720
Current Obligation: $70,531,720
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $546,042
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2021-05-17
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