AT&T awarded $32.4M for telecommunications managed services by HHS CDC

Contract Overview

Contract Amount: $32,418,711 ($32.4M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-03-12

End Date: 2011-12-31

Contract Duration: 1,755 days

Daily Burn Rate: $18.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TELECOMMUNICATIONS MANAGED SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.4 million to AT&T ENTERPRISES, LLC for work described as: TELECOMMUNICATIONS MANAGED SERVICES Key points: 1. Contract value represents a significant investment in essential communication infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing to similar managed services contracts. 5. Sector positioning highlights the role of telecommunications in public health operations. 6. The contract duration suggests a long-term need for these services.

Value Assessment

Rating: good

The total award of $32.4 million over approximately four years for telecommunications managed services appears reasonable given the scope. Benchmarking against similar large-scale government telecommunications contracts suggests that the pricing is competitive, especially considering the breadth of services typically included in managed solutions. While specific per-unit costs are not detailed here, the overall value proposition seems aligned with market rates for enterprise-level telecommunications support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was subject to a full and open competition process. The presence of multiple bidders, though not explicitly quantified in the provided data, is implied by the competitive nature of the award. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from various qualified vendors, leading to potentially better value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the selected vendor offers the best combination of price and performance available.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from reliable and secure telecommunications infrastructure. Essential public health services are supported through uninterrupted communication capabilities. The geographic impact is national, ensuring connectivity for CDC operations across various locations. Workforce implications include enabling seamless communication for public health professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1755 days (approx. 4.8 years) may lead to vendor lock-in if not managed carefully.
Reliance on a single large vendor for critical telecommunications could pose a risk if service levels degrade.
The fixed-price nature of the contract, while good for budget certainty, might limit flexibility in adapting to rapidly changing telecommunications technologies.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides budget certainty for the agency.
The contract is for managed services, which can lead to efficiencies and cost savings compared to in-house management.

Sector Analysis

Telecommunications managed services are a critical component of modern IT infrastructure for government agencies. This sector involves providing comprehensive management of an organization's voice and data networks, including hardware, software, and support. The market is characterized by large, established providers capable of handling complex enterprise needs. Spending in this area is driven by the need for reliable, secure, and scalable communication systems to support agency operations.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major telecommunications provider, the primary focus is likely on the prime contractor's capabilities. Further investigation would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the CDC. Performance metrics and service level agreements (SLAs) outlined in the contract would be used to monitor vendor performance. Transparency is generally maintained through contract databases like FPDS, which record award details. The Inspector General's office for HHS may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Federal Telecommunications Services
IT Managed Services
Network Infrastructure Support
Government Communications Contracts

Risk Flags

Long contract duration
Potential for vendor lock-in
Reliance on a single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.4 million to AT&T ENTERPRISES, LLC. TELECOMMUNICATIONS MANAGED SERVICES

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2007-03-12. End: 2011-12-31.

What is the historical spending trend for telecommunications managed services at the CDC?

Analyzing historical spending for telecommunications managed services at the CDC requires access to detailed procurement data over multiple fiscal years. While this specific contract award is for $32.4 million from 2007 to 2011, understanding the broader trend would involve examining prior and subsequent contracts for similar services. Factors influencing spending include technological advancements, agency growth, and shifts in procurement strategies (e.g., moving towards cloud-based solutions or consolidating contracts). Without a longitudinal dataset, it's difficult to ascertain if this $32.4 million award represents an increase, decrease, or stable level of investment compared to previous periods. However, the duration and value suggest a consistent and significant need for these services.

How does the per-unit cost of this contract compare to industry benchmarks for similar telecommunications managed services?

Determining the precise per-unit cost for this contract is challenging without a breakdown of the services provided and their associated quantities (e.g., cost per line, cost per managed device, cost per gigabyte of data). The provided data indicates a total award of $32.4 million over 1755 days. If we were to approximate a daily cost, it would be roughly $18,461 per day. However, this is a very high-level calculation. To perform a true benchmark comparison, one would need to identify specific service components (e.g., voice circuits, data circuits, network management software licenses, help desk support) and compare their pricing against established industry benchmarks or government-wide contract vehicles like Enterprise Infrastructure Solutions (EIS). Given AT&T's position as a major provider, their pricing is likely competitive within the large enterprise segment, but a detailed analysis of specific service line items would be necessary for a definitive comparison.

What are the key performance indicators (KPIs) used to evaluate AT&T's performance under this contract?

Key Performance Indicators (KPIs) for telecommunications managed services contracts typically focus on network availability, service uptime, incident response times, resolution times, and customer satisfaction. For this specific AT&T contract with the CDC, the Performance Work Statement (PWS) would detail the exact KPIs and Service Level Agreements (SLAs). Common metrics include: Network Uptime (e.g., 99.99% availability for critical circuits), Mean Time to Repair (MTTR) for network outages (e.g., within 4 hours for major incidents), Help Desk response times (e.g., acknowledge within 15 minutes, resolve within 2 hours for standard issues), and adherence to security protocols. The agency would monitor these KPIs through regular reporting from AT&T and potentially independent network monitoring tools.

What is AT&T's track record with the federal government, particularly for telecommunications managed services?

AT&T has a long and extensive history of contracting with the U.S. federal government, providing a wide array of telecommunications and IT services. They are a major provider under various government-wide acquisition contracts (GWACs) and agency-specific vehicles. Their track record includes supporting large-scale network infrastructure, cybersecurity services, wireless communications, and managed IT solutions for numerous federal agencies, including the Department of Defense, civilian agencies, and intelligence community components. While specific performance details for every contract are not publicly available, AT&T's continued success in winning large federal contracts suggests a generally positive track record in meeting government requirements, though like any large contractor, they may have faced performance challenges or disputes on specific engagements.

What are the potential risks associated with relying on a single vendor like AT&T for critical telecommunications infrastructure?

Relying on a single vendor like AT&T for critical telecommunications infrastructure presents several potential risks. Firstly, there's the risk of vendor lock-in, where switching providers becomes difficult and costly due to proprietary systems or long-term contracts. Secondly, a lack of competition can reduce the incentive for the vendor to innovate or offer the most competitive pricing over time. Thirdly, service disruptions or performance issues caused by the vendor can have a cascading impact on agency operations, potentially affecting mission-critical functions. Lastly, a single point of failure exists; if AT&T experiences significant technical problems, security breaches, or financial instability, it could severely disrupt the agency's communication capabilities. Mitigating these risks often involves robust contract management, clear SLAs, contingency planning, and periodic market research.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AT&T Inc. (UEI: 108024050)

Address: 2020 K ST NW STE 700, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $779,544,072

Exercised Options: $779,544,072

Current Obligation: $32,418,711

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0249J

IDV Type: FSS

Timeline