DoD's $15.8M telecommunications contract with AT&T awarded under full and open competition

Contract Overview

Contract Amount: $15,799,967 ($15.8M)

Contractor: AT&T Technical Services Company, Inc

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2025-09-16

Contract Duration: 1,811 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 ATWS000005EBM TELECOMMUNICATION SERVICES IN SUPPORT OF TEMPORARY TELECOMMUNICATIONS SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to AT&T TECHNICAL SERVICES COMPANY, INC for work described as: EO14042 ATWS000005EBM TELECOMMUNICATION SERVICES IN SUPPORT OF TEMPORARY TELECOMMUNICATIONS SERVICES Key points: 1. Contract awarded to AT&T Technical Services Company, Inc. for telecommunication services. 2. The contract has a duration of 1811 days, spanning from October 2020 to September 2025. 3. Awarded by the Defense Information Systems Agency (DISA) under the Department of Defense. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This is a Delivery Order under a larger contract vehicle. 6. The North American Industry Classification System (NAICS) code is 517311 for Wired Telecommunications Carriers. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $15.8 million over approximately five years for telecommunication services appears reasonable given the provider and scope. Benchmarking against similar large-scale telecommunication contracts for government agencies suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the Department of Defense, mitigating risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible pricing and service terms for essential telecommunication infrastructure.

Public Impact

Provides critical telecommunication services to support the Department of Defense's operational needs. Ensures reliable connectivity for military and civilian personnel. Supports national security objectives through robust communication infrastructure. The services are likely utilized across various DoD facilities, with a primary focus on Virginia given the state code. Maintains the functioning of essential communication networks for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Potential for vendor lock-in if services are highly integrated and difficult to switch.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type offers cost predictability.
Long-term contract provides stability for service provision.

Sector Analysis

The telecommunications sector is a critical infrastructure component for government operations. This contract falls under wired telecommunications carriers, a segment focused on providing voice and data services through physical networks. The market is characterized by a few major providers, making competition dynamics important. Government spending in this area is substantial, supporting everything from basic connectivity to advanced network solutions.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless AT&T voluntarily includes small businesses in its subcontracting chain.

Oversight & Accountability

Oversight is provided by the Department of Defense and the Defense Information Systems Agency. As a delivery order under a larger contract, it likely adheres to the oversight mechanisms of the parent contract. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may be internal.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Telecommunications Services
Wired Telecommunications Carrier Services

Risk Flags

Potential for service disruption impacting critical operations.
Cybersecurity vulnerabilities inherent in telecommunication networks.
Lack of detailed competition metrics limits full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to AT&T TECHNICAL SERVICES COMPANY, INC. EO14042 ATWS000005EBM TELECOMMUNICATION SERVICES IN SUPPORT OF TEMPORARY TELECOMMUNICATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is AT&T TECHNICAL SERVICES COMPANY, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-16.

What is the track record of AT&T Technical Services Company, Inc. in providing telecommunication services to the federal government?

AT&T Technical Services Company, Inc. has a significant history of providing telecommunication services to various U.S. federal agencies. As a major telecommunications provider, they are a frequent recipient of government contracts across different departments, including defense, civilian, and intelligence agencies. Their experience typically spans a wide range of services, from basic network infrastructure and voice services to more complex data transmission, cybersecurity, and cloud-based solutions. Government contracts awarded to AT&T are often substantial in value and duration, reflecting the critical nature of telecommunications for government operations. Performance is generally evaluated based on service uptime, reliability, security compliance, and adherence to contractual terms. While specific performance data for individual contracts is often proprietary, their continued success in winning federal bids suggests a generally positive track record and capability to meet government requirements.

How does the value of this contract compare to similar telecommunication contracts awarded by the DoD?

The $15.8 million value for this five-year telecommunication services contract with AT&T is within a typical range for large federal agencies like the Department of Defense. DISA, in particular, manages extensive communication networks requiring significant investment. Comparable contracts for similar wired telecommunication services, especially those involving robust infrastructure, high bandwidth, and security requirements, can range from several million to tens or even hundreds of millions of dollars over their lifecycle. Factors influencing value include the scope of services (e.g., dedicated lines, broadband, VoIP), geographic coverage, service level agreements (SLAs), and the specific technologies deployed. Given the duration and the nature of supporting defense operations, this contract appears to represent a standard investment for such critical infrastructure.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this telecommunication services contract include potential service disruptions, cybersecurity threats, and vendor lock-in. Service disruptions could impact critical DoD operations, while cybersecurity threats could compromise sensitive data. Vendor lock-in might occur if the services are highly integrated and switching providers becomes technically complex and costly. Mitigation strategies likely include stringent Service Level Agreements (SLAs) with penalties for downtime, robust security protocols mandated by the contract and AT&T's internal security measures, and regular performance reviews. The firm fixed-price nature also mitigates financial risk for the government. Furthermore, the full and open competition award process suggests that alternative providers were considered, reducing reliance on a single vendor from the outset.

What is the expected effectiveness of these telecommunication services in supporting DoD missions?

These telecommunication services are expected to be highly effective in supporting DoD missions by providing reliable, secure, and high-capacity communication channels. Reliable connectivity is fundamental for command and control, intelligence sharing, logistical coordination, and daily administrative functions across the Department. The contract's duration and the provider's established infrastructure suggest a commitment to maintaining consistent service quality. Effective telecommunications enable seamless information flow, which is crucial for operational tempo and decision-making in both routine and contingency operations. The services likely underpin a variety of applications, from basic voice and data to more advanced systems, ensuring that personnel can communicate and access necessary resources efficiently and securely.

How has federal spending on wired telecommunications carriers evolved over the past five years, and where does this contract fit?

Federal spending on wired telecommunications carriers has remained a significant and relatively stable category, reflecting the ongoing need for robust communication infrastructure across government agencies. While specific aggregate data fluctuates based on agency needs, technology upgrades, and major initiatives, the overall trend indicates consistent investment. This $15.8 million contract for AT&T services fits within this pattern as a substantial, but not exceptionally large, award for a specific agency (DoD) and duration (approx. 5 years). It represents a typical allocation for essential connectivity services rather than a massive, transformative project. The continued reliance on wired infrastructure, even with the rise of wireless and cloud technologies, ensures that spending in this category remains a core component of federal IT and operational budgets.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC101319R0010

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22124

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,799,967

Exercised Options: $15,799,967

Current Obligation: $15,799,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101320D0002

IDV Type: IDC

Timeline