DoD's $28.4M VPN Contract with AT&T: A 4-Year Delivery Order Under Full and Open Competition
Contract Overview
Contract Amount: $28,440,344 ($28.4M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2019-07-30
End Date: 2023-04-30
Contract Duration: 1,370 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NXEA004227EBM--NBIP-VPN
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.4 million to AT&T ENTERPRISES, LLC for work described as: NXEA004227EBM--NBIP-VPN Key points: 1. The contract awarded to AT&T Enterprises, LLC for VPN services represents a significant investment by the Department of Defense. 2. Full and open competition was utilized, suggesting a robust process for selecting the vendor. 3. The fixed-price contract structure aims to control costs, but the duration and total value warrant scrutiny. 4. The telecommunications sector is critical for defense operations, making reliable VPN services essential.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar large-scale VPN contracts would be beneficial to fully assess value, but the $28.4M over four years appears within a reasonable range for enterprise-level secure telecommunications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This competitive process is expected to drive favorable pricing and ensure the government receives the best value for its VPN services.
Taxpayer Impact: The competitive award process likely resulted in a fair price, minimizing potential overspending and maximizing taxpayer value for essential defense communication infrastructure.
Public Impact
Ensures secure communication for Department of Defense personnel, vital for national security operations. Supports remote access for military and civilian staff, enabling operational flexibility. The contract's duration and value highlight the ongoing need for robust cybersecurity and network infrastructure. Potential impact on AT&T's market position within the government contracting space.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1370 days may lead to technology obsolescence if not managed proactively.
- Reliance on a single vendor for critical VPN services could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost predictability.
- Essential service for national security and operational continuity.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, a critical component of the IT and defense infrastructure. Spending in this area is consistently high due to the essential nature of secure and reliable network connectivity for government operations.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large telecommunications providers like AT&T typically dominate these types of large-scale infrastructure contracts.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance, service levels, and cost-effectiveness throughout the contract's life is crucial for accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for technology obsolescence due to contract length.
- Vendor lock-in and reliance on a single provider.
- Need for continuous monitoring of performance and security updates.
- Ensuring competitive pricing over the full contract term.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to AT&T ENTERPRISES, LLC. NXEA004227EBM--NBIP-VPN
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 $28.4 million.
What is the period of performance?
Start: 2019-07-30. End: 2023-04-30.
What specific VPN technologies and security protocols are employed under this contract, and how do they align with current and future cybersecurity threats?
The provided data does not specify the VPN technologies or security protocols used. A thorough review would be needed to confirm alignment with current threats. Given the contract's end date, it's crucial to ensure the deployed solutions are up-to-date and can be scaled or upgraded to meet evolving cybersecurity challenges faced by the Department of Defense.
How does the per-user cost of this VPN service compare to industry benchmarks for similar government or enterprise contracts, considering the scale and security requirements?
Without specific per-user data or detailed service level agreements, a precise per-user cost benchmark is not feasible. However, the total contract value of $28.4 million over approximately 4 years suggests a substantial investment. Comparing this to other large-scale government VPN procurements would be necessary to determine if the pricing is competitive and reflects the specialized security needs of the DoD.
What mechanisms are in place to ensure the ongoing performance and reliability of AT&T's VPN services throughout the contract duration, and what are the remedies for service failures?
The contract specifies a firm fixed price, implying AT&T is responsible for delivering reliable service. Performance metrics and service level agreements (SLAs) are typically included in such contracts to define acceptable performance and outline remedies for failures. The Department of Defense's contracting officers would be responsible for monitoring adherence to these SLAs and enforcing penalties or seeking corrective actions if necessary.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc.
Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22185
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,440,344
Exercised Options: $28,440,344
Current Obligation: $28,440,344
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T07NSD0041
IDV Type: IDC
Timeline
Start Date: 2019-07-30
Current End Date: 2023-04-30
Potential End Date: 2023-04-30 00:00:00
Last Modified: 2023-04-05
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