DoD Awards AT&T $34.6M for Network Services, Ending 2026 Amidst Competition
Contract Overview
Contract Amount: $34,651,715 ($34.7M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2022-07-01
End Date: 2026-06-30
Contract Duration: 1,460 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: HC101322F0107-MNCC NETWORK SERVICES EIS TRANSITION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $34.7 million to AT&T ENTERPRISES, LLC for work described as: HC101322F0107-MNCC NETWORK SERVICES EIS TRANSITION Key points: 1. Significant contract value of $34.6 million for essential network services. 2. AT&T Enterprises, LLC is the sole awardee, raising questions about competition. 3. Potential risks include vendor lock-in and limited price negotiation leverage. 4. Spending falls within the IT/Telecommunications sector, crucial for defense operations.
Value Assessment
Rating: fair
The contract value of $34.6 million for a 4-year period appears reasonable for large-scale telecommunications services. However, without specific performance metrics or comparable contract data, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, AT&T is listed as the sole awardee, which warrants further investigation into the bidding outcomes and potential reasons for limited participation.
Taxpayer Impact: Taxpayer funds are being utilized for critical network infrastructure. The competitive award process aims to ensure fair pricing, but the final outcome needs scrutiny to confirm optimal value.
Public Impact
Ensures continued operation of vital defense communication networks. Supports telecommunications infrastructure in California. Impacts users relying on the Defense Information Systems Agency's network services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite full and open competition
- Fixed Price with Economic Price Adjustment (EPA) can lead to cost overruns
- Long contract duration (4 years) may limit agility
Positive Signals
- Awarded under full and open competition
- Essential service for national defense
- Clear end date for service delivery
Sector Analysis
This contract falls under the Wired Telecommunications Carriers industry, a critical component of the IT sector. Spending benchmarks for similar large-scale network services contracts can vary widely based on scope and duration, but $34.6M over four years suggests a substantial, complex deployment.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large telecommunications contracts are often dominated by major providers, potentially limiting opportunities for smaller firms.
Oversight & Accountability
Oversight will be managed by the Defense Information Systems Agency (DISA). The contract's fixed-price with EPA structure necessitates careful monitoring of price adjustments to ensure fiscal responsibility and prevent unwarranted cost increases.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost escalation due to EPA
- Lack of transparency on competitive outcomes
- Long-term commitment may reduce flexibility
- No explicit small business participation noted
Tags
wired-telecommunications-carriers, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.7 million to AT&T ENTERPRISES, LLC. HC101322F0107-MNCC NETWORK SERVICES EIS TRANSITION
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 $34.7 million.
What is the period of performance?
Start: 2022-07-01. End: 2026-06-30.
What was the competitive landscape during the bidding process, and why was AT&T the sole awardee?
While the contract was awarded under 'full and open competition,' the fact that AT&T is the sole awardee raises questions. Further analysis of the bidding process, including the number of proposals received and the evaluation criteria, is needed to understand if other qualified bidders were present and why they were not selected, or if the market truly yielded only one viable offer.
How will the Economic Price Adjustment (EPA) clause be managed to mitigate potential cost increases?
The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in economic factors. Effective management requires clear, pre-defined indices for price changes and rigorous monitoring by DISA to ensure that any adjustments are justified, transparent, and do not lead to excessive costs for taxpayers.
What are the key performance indicators (KPIs) for this network service contract, and how will performance be measured?
The provided data does not detail specific Key Performance Indicators (KPIs) or performance measurement protocols. It is crucial for DISA to establish and track metrics related to network uptime, speed, latency, security, and customer support to ensure the effectiveness of the services provided by AT&T and the value for money.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tyto Athene, LLC
Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22124
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: $275,140,223
Exercised Options: $38,063,697
Current Obligation: $34,651,715
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
Start Date: 2022-07-01
Current End Date: 2026-06-30
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2025-09-25
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