DoD Awards AT&T $49.8M for National Security Emergency Preparedness Wireless Services Through 2027
Contract Overview
Contract Amount: $49,831,890 ($49.8M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2027-03-31
Contract Duration: 1,094 days
Daily Burn Rate: $45.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL SECURITY EMERGENCY PREPAREDNESS PRIORITY SERVICE 2 CONTRACT WIHT AT&T FY24-FY34.
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $49.8 million to AT&T ENTERPRISES, LLC for work described as: NATIONAL SECURITY EMERGENCY PREPAREDNESS PRIORITY SERVICE 2 CONTRACT WIHT AT&T FY24-FY34. Key points: 1. The contract supports critical national security communications infrastructure. 2. AT&T is the sole provider, raising concerns about competition. 3. The firm-fixed-price structure aims to control costs. 4. This spending falls within the telecommunications sector.
Value Assessment
Rating: good
The contract value of $49.8 million over three years appears reasonable for dedicated emergency preparedness wireless services. Benchmarking against similar large-scale telecommunications contracts for government agencies suggests this is within expected ranges, though specific service level agreements are not detailed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competition. While AT&T may possess unique capabilities for this specific national security requirement, the absence of competition limits price discovery and potentially higher value for taxpayers.
Taxpayer Impact: The sole-source nature means taxpayers may not benefit from competitive pricing, though the critical nature of the service justifies the expenditure.
Public Impact
Ensures continuity of essential government communications during national emergencies. Supports critical infrastructure vital for national security operations. Provides reliable wireless connectivity for defense agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for higher costs due to lack of competition
Positive Signals
- Supports critical national security functions
- Firm-fixed-price contract for cost certainty
Sector Analysis
This contract falls under the telecommunications sector, specifically wireless services. Government spending on telecommunications is substantial, with significant portions allocated to ensuring secure and reliable communication networks for defense and emergency response.
Small Business Impact
There is no indication of small business participation in this sole-source contract with AT&T. Future solicitations for similar services could explore opportunities for small businesses to participate as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Information Systems Agency, is responsible for overseeing this contract. Standard oversight mechanisms for critical infrastructure contracts should be in place to ensure performance and accountability.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for vendor lock-in
- Critical infrastructure dependency
Tags
wireless-telecommunications-carriers-exc, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.8 million to AT&T ENTERPRISES, LLC. NATIONAL SECURITY EMERGENCY PREPAREDNESS PRIORITY SERVICE 2 CONTRACT WIHT AT&T FY24-FY34.
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 $49.8 million.
What is the period of performance?
Start: 2024-04-01. End: 2027-03-31.
What specific capabilities does AT&T possess that necessitate a sole-source award for this national security requirement?
The justification for a sole-source award typically rests on unique capabilities, existing infrastructure integration, or specific security clearances that only one vendor can provide. For national security emergency preparedness, this could involve specialized network resilience, guaranteed bandwidth during crises, or integration with existing classified communication systems that AT&T uniquely offers.
How will the effectiveness of these emergency preparedness services be measured and validated?
Effectiveness is likely measured through performance metrics tied to service availability, uptime during simulated or actual emergencies, response times for network issues, and successful transmission of critical data. Regular testing, drills, and post-incident reviews by DISA would validate the service's readiness and reliability for national security needs.
Are there plans to re-evaluate competitive sourcing for these services in the future?
Given the sole-source nature, it is prudent for the agency to periodically reassess the market to determine if competitive conditions have changed or if alternative solutions have emerged. Future contract actions should include market research to identify potential competitors and explore opportunities for competition to ensure best value.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wireless Telecommunications Carriers (except Satellite)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101323R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tyto Athene, LLC
Address: 7125 COLUMBIA GATEWAY DR, 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: $169,638,955
Exercised Options: $56,090,442
Current Obligation: $49,831,890
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2027-03-31
Potential End Date: 2034-03-31 00:00:00
Last Modified: 2026-03-18
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