HHS awarded AT&T $99.3M for telecommunication services to CDC over 5 years
Contract Overview
Contract Amount: $99,295,380 ($99.3M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-04-01
End Date: 2016-10-31
Contract Duration: 2,040 days
Daily Burn Rate: $48.7K/day
Sector: Other
Official Description: TELECOMMUNICATION MANAGED SERVICES FOR CDC
Place of Performance
Location: Georgia, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $99.3 million to AT&T ENTERPRISES, LLC for work described as: TELECOMMUNICATION MANAGED SERVICES FOR CDC Key points: 1. Contract value represents a significant investment in essential communication infrastructure for a key public health agency. 2. The duration of the contract suggests a need for stable, long-term telecommunication support. 3. Analysis of AT&T's performance and pricing against benchmarks is crucial for assessing value. 4. The 'GA' (General Services Administration) service type indicates a broad category of telecommunication services. 5. Understanding the specific services provided is key to evaluating their impact and necessity.
Value Assessment
Rating: fair
The total contract value of $99.3 million over approximately five years averages to about $19.86 million annually. Without specific service details or comparable contract data for the CDC's telecommunication needs, it's challenging to definitively benchmark this against similar procurements. However, the scale suggests a substantial commitment. Further analysis would require comparing the unit costs of specific services (e.g., data lines, voice services) to market rates and other government contracts for similar agencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. If this was a full and open competition, the number of bidders and the evaluation process would be critical to understanding the pricing and service quality achieved. If it was a sole-source or limited competition, it raises questions about whether the government received the best possible value and if alternative providers were adequately considered.
Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better services for less money. Limited competition may result in higher costs.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from reliable and robust telecommunication services, essential for its public health mission. Services likely include voice, data, and potentially specialized network solutions to support the CDC's operations, research, and emergency response. The geographic impact is national, supporting CDC facilities and personnel across various locations. Workforce implications include ensuring CDC staff have the necessary communication tools to perform their duties effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency on competition level hinders assessment of potential overpayment.
- Absence of detailed service breakdowns makes it difficult to evaluate specific value for money.
- Contract duration without clear performance metrics could mask inefficiencies.
Positive Signals
- Award to a major telecommunications provider like AT&T suggests access to a wide range of services and infrastructure.
- Long-term contract indicates a strategic decision to ensure continuity of essential services for the CDC.
- The significant investment implies a commitment to supporting critical public health functions.
Sector Analysis
This contract falls within the broader telecommunications services sector, which is a critical component of government IT infrastructure. The market is dominated by a few large providers, and government contracts often involve complex service level agreements and security requirements. Benchmarking spending in this area requires comparing the scope of services, network capabilities, and geographic coverage against other large federal telecommunication procurements.
Small Business Impact
The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Analysis of small business participation would require further investigation into the contract's terms and the awardee's subcontracting plan. Without this information, it's difficult to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting agency (HHS/CDC) and potentially the General Services Administration (GSA), given the 'GA' service type. Accountability measures would be defined in the contract's performance work statement and service level agreements. Transparency is often limited for individual delivery orders, but overall spending patterns are usually publicly available.
Related Government Programs
- Federal Telecommunications Services
- IT Infrastructure Services
- Agency-Specific Communication Networks
- Managed Network Services
Risk Flags
- Lack of competition details
- Unspecified service scope
- No performance metrics provided
Tags
telecommunication-services, managed-services, health-and-human-services, centers-for-disease-control-and-prevention, at-and-t-enterprises-llc, delivery-order, gsa-schedule, large-contract, it-infrastructure, national-impact
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $99.3 million to AT&T ENTERPRISES, LLC. TELECOMMUNICATION MANAGED SERVICES FOR CDC
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 $99.3 million.
What is the period of performance?
Start: 2011-04-01. End: 2016-10-31.
What specific telecommunication services were included under this $99.3 million contract?
The provided data identifies the contract as 'TELECOMMUNICATION MANAGED SERVICES FOR CDC' awarded to AT&T ENTERPRISES, LLC. However, it does not detail the specific services rendered. Typically, telecommunication managed services can encompass a wide array of offerings, including voice services (VoIP, traditional lines), data services (internet access, dedicated circuits, MPLS), wireless services, video conferencing, network management, security services, and unified communications platforms. For the CDC, these services are critical for enabling internal operations, facilitating data sharing, supporting research collaborations, and managing public health communications, especially during emergencies. A detailed breakdown of services would be necessary to fully assess the value and necessity of the contract.
How does the $99.3 million award compare to historical telecommunication spending for the CDC?
To compare this $99.3 million award to historical CDC telecommunication spending, one would need access to historical contract data for the CDC's telecommunication needs. This contract spanned from April 1, 2011, to October 31, 2016, totaling approximately $99.3 million over 66 months (about 5.5 years). This averages to roughly $18 million per year. Without knowing if this represented an increase or decrease in spending, or if it covered a broader or narrower scope of services compared to previous contracts, a definitive historical comparison is not possible. Analyzing annual spending trends for similar services over a longer period would provide better context.
What is AT&T's track record with federal telecommunication contracts, particularly with health agencies?
AT&T is a major telecommunications provider with a long history of serving the federal government across various agencies, including those in the health sector. They are a frequent awardee of large-scale telecommunication contracts due to their extensive infrastructure and service offerings. Assessing their track record specifically for this CDC contract would involve reviewing performance evaluations, any reported issues or disputes, and adherence to service level agreements during the contract period (2011-2016). Generally, large providers like AT&T have a substantial portfolio of federal work, and their performance can vary depending on the specific contract, agency, and management oversight.
What are the potential risks associated with a long-term, high-value telecommunication contract like this?
Long-term, high-value telecommunication contracts carry several potential risks. One primary risk is vendor lock-in, where the agency becomes heavily reliant on a single provider, making it difficult and costly to switch even if better options emerge. There's also the risk of cost escalation if contract terms are not structured to account for market price fluctuations or if scope creep occurs without corresponding price adjustments. Performance risk is another concern; if the provider fails to deliver services as agreed, it can disrupt critical operations. Finally, security risks are inherent in telecommunication services, requiring robust measures to protect sensitive data, especially within a health agency like the CDC.
How does the 'GA' (General Services Administration) service type influence the contract's oversight and pricing?
The 'GA' service type typically indicates that the contract was awarded through the General Services Administration (GSA), likely utilizing a GSA schedule or contract vehicle. GSA schedules are pre-negotiated contracts that offer a streamlined procurement process and often include pre-determined pricing or pricing ceilings. This can lead to faster acquisition and potentially better pricing due to GSA's bulk purchasing power and established relationships. Oversight is often managed jointly, with GSA providing the contract vehicle and the end-user agency (HHS/CDC) managing the day-to-day performance and task orders. The 'GA' designation suggests a degree of established oversight and potentially competitive pricing compared to a fully custom-negotiated contract.
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