State Department's $27.9M telecommunications contract awarded to New Cingular Wireless Services, Inc

Contract Overview

Contract Amount: $27,899,928 ($27.9M)

Contractor: NEW Cingular Wireless Services, Inc.

Awarding Agency: Department of State

Start Date: 2011-02-08

End Date: 2013-12-14

Contract Duration: 1,040 days

Daily Burn Rate: $26.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING OF TELECOMMUNICATION SERVICES

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

Department of State obligated $27.9 million to NEW CINGULAR WIRELESS SERVICES, INC. for work described as: FUNDING OF TELECOMMUNICATION SERVICES Key points: 1. Contract awarded via BPA, indicating a pre-negotiated agreement for recurring services. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Duration of 1040 days (approx. 2.8 years) provides a stable service period. 4. The contract falls under Telecommunications Resellers NAICS code. 5. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 6. No small business set-aside, indicating it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

The total award amount of $27.9 million over approximately 2.8 years for telecommunication services appears to be within a reasonable range for a federal agency of this size. Benchmarking against similar large-scale telecommunication contracts for federal agencies would be necessary for a definitive value assessment. The firm fixed price structure helps in cost predictability, but the absence of detailed cost breakdowns makes it difficult to assess the underlying value-for-money proposition without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for broader competition than sole-source or limited competition. While the specific number of bidders is not provided, SAP is designed to encourage competition for procurements below certain thresholds. This method aims to ensure fair pricing and access to a range of vendors.

Taxpayer Impact: Competing under SAP generally leads to better price discovery and potentially lower costs for taxpayers compared to non-competitive awards.

Public Impact

Provides essential telecommunication services to the Department of State. Supports the operational needs of government personnel, likely including domestic and international communications. The services are geographically focused on Washington D.C. (WA). Ensures continuity of communication for diplomatic and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality.
Potential for vendor lock-in if contract terms are not carefully managed.
Reliance on a single vendor for critical communication infrastructure carries inherent risks.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded through a competitive process under SAP, suggesting potential for good value.
Longer contract duration offers stability for service provision.

Sector Analysis

The telecommunications sector is a critical infrastructure component for all government agencies. This contract falls under the Telecommunications Resellers (NAICS 517911) category, which involves providing telecommunications services to others. The market is characterized by large established players and a dynamic technological landscape. Federal spending in this area is substantial, supporting everything from basic voice and data to complex network solutions.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless New Cingular Wireless Services, Inc. utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and potentially its Inspector General's office. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the firm fixed price contract type, with penalties or remedies for non-performance.

Related Government Programs

Federal Telecommunications Services
Government Wide Acquisition Contracts (GWACs)
Information Technology Services

Risk Flags

Potential for cost savings through competitive bidding under SAP.
Contract duration provides service stability.
Lack of detailed performance metrics hinders quality assessment.
Reliance on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.9 million to NEW CINGULAR WIRELESS SERVICES, INC.. FUNDING OF TELECOMMUNICATION SERVICES

Who is the contractor on this award?

The obligated recipient is NEW CINGULAR WIRELESS SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2011-02-08. End: 2013-12-14.

What is the historical spending pattern for telecommunication services by the Department of State?

Analyzing historical spending patterns for telecommunication services by the Department of State is crucial for understanding the context of this $27.9 million award. While specific historical data for this agency is not provided in the prompt, federal agencies typically have recurring needs for telecommunications, including voice, data, and internet services. Spending can fluctuate based on global events, technological upgrades, and changes in operational requirements. A review of past contracts would reveal trends in vendor selection, pricing, and the types of services procured. For instance, a significant increase in spending might indicate expansion of services or a shift to more advanced technologies, while consistent spending could suggest stable operational needs. Understanding these patterns helps in assessing whether the current award represents a typical investment or a deviation, and whether the pricing is competitive over time.

How does the pricing of this contract compare to similar telecommunication services procured by other federal agencies?

Comparing the pricing of this $27.9 million telecommunication services contract to similar procurements by other federal agencies is essential for evaluating value for money. Without specific per-unit cost data or detailed service level agreements, a direct comparison is challenging. However, benchmarks can be established by examining contracts with similar scope, duration, and service types (e.g., voice, data, internet) awarded to comparable vendors or through similar procurement methods (like BPA). Factors such as geographic coverage, bandwidth, security requirements, and included support services significantly influence pricing. If this contract's overall cost or estimated per-user cost is substantially higher than comparable agency contracts, it could indicate less favorable pricing. Conversely, if it aligns with or is lower than benchmarks, it suggests competitive pricing.

What are the specific telecommunication services being provided under this contract?

The provided data indicates the contract is for 'FUNDING OF TELECOMMUNICATION SERVICES' awarded to NEW CINGULAR WIRELESS SERVICES, INC. (likely AT&T Mobility, which acquired Cingular). The NAICS code 517911 (Telecommunications Resellers) suggests the services involve reselling telecommunications capacity or services. This could encompass a range of offerings such as mobile voice and data services, dedicated internet access, private line services, or VoIP solutions. Given the Department of State's global operations, these services might include international calling, secure communication lines, and mobile device connectivity for personnel. The firm fixed price contract type implies a defined set of services with a set cost, rather than a cost-plus model where costs could vary.

What is the track record of New Cingular Wireless Services, Inc. in fulfilling federal government contracts?

New Cingular Wireless Services, Inc., now operating primarily as AT&T Mobility, has a significant history of providing telecommunications services to the U.S. federal government. Assessing their track record involves reviewing past performance evaluations, any documented contract disputes or terminations, and the overall volume and complexity of contracts they have held. Agencies often rely on past performance information (PPI) during the source selection process. A history of successful contract completions, positive performance reviews, and adherence to delivery schedules and quality standards would indicate reliability. Conversely, a record marred by significant issues could raise concerns about future performance. Specific data on their performance with the Department of State or other agencies would provide a clearer picture of their capabilities and reliability.

What are the potential risks associated with a firm fixed price contract for telecommunication services?

While Firm Fixed Price (FFP) contracts offer cost certainty, they also present potential risks. For the government, a primary risk is that the contractor may cut corners on quality or service levels to maximize profit if the initial price was set too high or if unforeseen cost increases occur for the contractor. If the scope of work is not clearly defined, the contractor might resist necessary changes or charge premiums for modifications. Conversely, if the contractor significantly underestimates costs, they might face financial distress, potentially impacting service delivery. For telecommunication services, which are constantly evolving, an FFP contract might also limit the government's ability to easily adopt new technologies or features that emerge during the contract period unless change orders are efficiently managed.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 7277 164TH AVE NE, REDMOND, WA, 01

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,899,928

Exercised Options: $27,899,928

Current Obligation: $27,899,928

Parent Contract

Parent Award PIID: SAQMMA11A0099

IDV Type: BPA

Timeline