Treasury's IRS Spends $36.3M on Wired Telecom Services from AT&T

Contract Overview

Contract Amount: $36,316,731 ($36.3M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of the Treasury

Start Date: 2014-10-01

End Date: 2016-09-30

Contract Duration: 730 days

Daily Burn Rate: $49.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

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

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $36.3 million to AT&T ENTERPRISES, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTION Key points: 1. Significant contract value of $36.3 million over two years. 2. AT&T Enterprises, LLC secured the award. 3. Full and open competition was utilized. 4. The contract falls under the Wired Telecommunications Carriers sector.

Value Assessment

Rating: good

The contract value of $36.3 million for two years suggests a substantial but potentially reasonable price for comprehensive wired telecommunications services. Benchmarking against similar large-scale government telecom contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing for the services provided.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for the essential telecommunications infrastructure.

Public Impact

Ensures critical communication infrastructure for the IRS. Supports tax administration and taxpayer services. Provides essential connectivity for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract type

Sector Analysis

This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is crucial for government operations, but can be subject to rapid technological changes and price fluctuations.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. This contract was awarded to AT&T Enterprises, LLC, a large telecommunications provider, suggesting limited direct participation by small businesses in this specific award.

Oversight & Accountability

The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve monitoring service delivery, performance, and adherence to contract terms by the IRS contracting officers.

Related Government Programs

Wired Telecommunications Carriers
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $36.3 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 $36.3 million.

What is the period of performance?

Start: 2014-10-01. End: 2016-09-30.

What was the specific scope of services included in this $36.3 million contract for wired telecommunications?

The contract, awarded to AT&T Enterprises, LLC, likely encompassed a broad range of wired telecommunications services essential for the IRS's operations. This could include dedicated internet access, private lines, voice services, and potentially network infrastructure management across various IRS facilities nationwide. The firm fixed price suggests a defined scope of work for the two-year period.

How did the full and open competition process ensure the best value was achieved for these telecom services?

Full and open competition allows multiple qualified vendors to submit bids, fostering a competitive environment. This process enables the IRS to compare technical capabilities and pricing from various providers, driving down costs and ensuring the selected offer represents the best overall value. The agency would have evaluated proposals based on predefined criteria to make the award.

What are the potential risks associated with a long-term reliance on a single provider for critical wired telecommunications?

Reliance on a single provider, even with initial competition, can pose risks such as vendor lock-in, reduced negotiation leverage in future renewals, and potential service disruptions if the vendor faces financial or operational issues. It also limits opportunities for adopting newer, potentially more cost-effective technologies from competing firms.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22185

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

Financial Breakdown

Contract Ceiling: $36,316,731

Exercised Options: $36,316,731

Current Obligation: $36,316,731

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline