Treasury's $30.6M wired telecom contract with AT&T awarded under full and open competition

Contract Overview

Contract Amount: $30,660,660 ($30.7M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of the Treasury

Start Date: 2013-09-17

End Date: 2015-09-30

Contract Duration: 743 days

Daily Burn Rate: $41.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $30.7 million to AT&T ENTERPRISES, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTION Key points: 1. Contract awarded to AT&T Enterprises, LLC for wired telecommunications services. 2. The contract was competed using full and open competition, indicating a broad market solicitation. 3. Awarded as Firm Fixed Price, suggesting predictable costs for the government. 4. The contract duration was 743 days, spanning from September 2013 to September 2015. 5. The contract was awarded under the "Other" category, likely encompassing general administrative or operational support. 6. The North American Industry Classification System (NAICS) code 517110 points to wired telecommunications carriers. 7. The contract was awarded to AT&T, a major telecommunications provider with significant government contracting experience.

Value Assessment

Rating: fair

The total award amount was $30.6 million over approximately two years. Benchmarking this against similar contracts for wired telecommunications services is challenging without more specific service details. However, given the duration and the nature of telecommunications infrastructure, the pricing appears to be within a reasonable range for a large federal agency like the Treasury. The firm fixed-price nature provides cost certainty, which is a positive value indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders (indicated by 'no': 5) suggests a healthy level of competition for this telecommunications service requirement. This broad competition is generally expected to drive more competitive pricing and ensure the government receives a fair market value for the services procured.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings, maximizing the value of federal spending.

Public Impact

Federal employees within the Department of the Treasury likely benefited from reliable wired telecommunications services. The services provided supported the operational needs of the Internal Revenue Service (IRS). The contract's geographic impact is primarily within Virginia (VA), where the contract was stated to be. The contract supported the telecommunications workforce of AT&T.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality of services delivered.
The contract was awarded in 2013, and current telecommunications market conditions may have evolved significantly since then.
Limited detail on the specific services procured within 'Wired Telecommunications Carriers' category.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost predictability.
Awarded to a well-established telecommunications provider with a track record in government contracting.

Sector Analysis

Wired telecommunications services represent a critical infrastructure component for government operations. The market is dominated by large providers like AT&T, Verizon, and Lumen Technologies. Federal spending in this sector is substantial, supporting everything from basic voice and data transmission to complex network solutions. This contract fits within the broader category of telecommunications services, essential for agency communication and data management. Comparable spending benchmarks would depend heavily on the specific bandwidth, services, and geographic coverage required.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of large-scale telecommunications infrastructure, it is common for prime contracts to be awarded to major providers. Subcontracting opportunities for small businesses may exist but are not detailed in this award data. The impact on the small business ecosystem is likely minimal for this specific prime contract.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Treasury's contracting officers and program managers. Transparency is generally provided through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price structure and the potential for contract termination or non-renewal if performance issues arise. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedule contracts for telecommunications.
Other agency-specific telecommunications procurements.
Network infrastructure and IT services contracts.

Risk Flags

Lack of detailed performance metrics.
Limited scope definition for services provided.
Potential for technology obsolescence over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.7 million to AT&T ENTERPRISES, LLC. IGF::CT::IGF CRITICAL FUNCTION

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2013-09-17. End: 2015-09-30.

What specific wired telecommunications services were procured under this contract?

The provided data identifies the NAICS code as 517110 (Wired Telecommunications Carriers), but does not specify the exact services. This could include services such as dedicated internet access, private line services, voice over IP (VoIP) infrastructure, or other managed network services. Without a detailed contract statement of work, it is difficult to ascertain the precise nature of the telecommunications solutions provided to the Treasury.

How does the $30.6 million award compare to similar federal telecommunications contracts?

Comparing this $30.6 million award requires a detailed analysis of contract scope, duration, and specific services. However, for a two-year period supporting a major federal agency like the Treasury, this amount is not unusual for comprehensive wired telecommunications services. Large agencies often require significant bandwidth and robust network infrastructure, leading to substantial contract values. Benchmarking against similar contracts would necessitate examining awards with comparable NAICS codes, agencies, and service levels.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how AT&T's performance was measured. Typically, telecommunications contracts include metrics related to network uptime, latency, bandwidth availability, and response times for service disruptions. The effectiveness of the contract hinges on whether these unstated KPIs were met and if the services reliably supported the Treasury's mission.

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

AT&T is a long-standing and major telecommunications provider with an extensive history of contracting with the U.S. federal government. They hold numerous contracts across various agencies, providing a wide array of telecommunications and IT services. Their track record generally includes experience with large-scale network deployments, managed services, and secure communication solutions, making them a common choice for significant federal requirements.

Were there any identified risks or challenges associated with this contract during its performance period?

The provided data does not explicitly list risks or challenges encountered during the contract's performance. Potential risks in such contracts often include service disruptions, cybersecurity threats, integration issues with existing agency systems, and changes in technology rendering services obsolete. The firm fixed-price nature could also pose a risk if unforeseen cost increases occurred for the contractor, potentially impacting service quality if not managed effectively.

How has federal spending on wired telecommunications evolved since this contract was awarded in 2013?

Federal spending on wired telecommunications has continued to be substantial, but the landscape has evolved significantly since 2013. There's been a greater emphasis on cybersecurity, cloud integration, and more flexible, software-defined networking solutions. While traditional wired services remain crucial, agencies are increasingly looking towards integrated solutions that encompass wireless, fiber optics, and advanced data center connectivity, often procured through consolidated vehicles like GSA schedules.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1900 GALLOWS ROAD, VIENNA, VA, 22182

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,660,660

Exercised Options: $30,660,660

Current Obligation: $30,660,660

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline