VA Awards $49.8M for Network Equipment to AT&T, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $49,858,176 ($49.9M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-06-14

End Date: 2017-07-31

Contract Duration: 412 days

Daily Burn Rate: $121.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORX EQUIPMENT

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49.9 million to AT&T ENTERPRISES, LLC for work described as: NETWORX EQUIPMENT Key points: 1. Significant award for network equipment, totaling nearly $50 million. 2. AT&T Enterprises, LLC secured the contract, indicating strong incumbent presence or competitive bidding. 3. The contract falls under Wired Telecommunications Carriers, a critical sector for government operations. 4. Full and open competition was utilized, suggesting a robust price discovery process.

Value Assessment

Rating: good

The award amount of $49.8M for network equipment appears reasonable given the contract duration and the nature of telecommunications services. Benchmarking against similar large-scale network infrastructure contracts would provide further clarity on its value.

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, allowing multiple vendors to bid and potentially driving down costs. This method ensures the government receives competitive pricing for its telecommunications needs.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that can result in lower prices and higher quality services.

Public Impact

Ensures critical network infrastructure for the Department of Veterans Affairs is maintained and potentially upgraded. Supports the operational capabilities of VA facilities nationwide through reliable telecommunications. The award to a major provider like AT&T suggests a focus on established service and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future procurements do not maintain open competition.
Reliance on a single large vendor for critical infrastructure could pose risks.

Positive Signals

Utilized full and open competition, maximizing potential for competitive pricing.
Awarded to a well-established telecommunications provider with a track record.
Contract duration aligns with the need for stable network services.

Sector Analysis

The Department of Veterans Affairs relies heavily on robust telecommunications infrastructure to serve veterans. Spending in the Wired Telecommunications Carriers sector is essential for maintaining connectivity, data transfer, and communication services across the agency's numerous facilities.

Small Business Impact

While this specific award went to AT&T Enterprises, LLC, the contracting agency should ensure that subcontracting opportunities are made available to small businesses within the telecommunications supply chain to foster broader economic participation.

Oversight & Accountability

The use of a delivery order under a larger contract vehicle implies that oversight mechanisms are already in place. However, continuous monitoring of performance and adherence to contract terms is crucial for accountability.

Related Government Programs

Wired Telecommunications Carriers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single large vendor.
Lack of specific equipment details.
Limited insight into the competitive bid process beyond the label 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49.9 million to AT&T ENTERPRISES, LLC. NETWORX EQUIPMENT

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $49.9 million.

What is the period of performance?

Start: 2016-06-14. End: 2017-07-31.

What specific network equipment was procured under this award, and how does it align with the VA's current and future technological needs?

The data indicates 'NETWORX EQUIPMENT' was procured. This is a broad category. Further analysis would require details on the specific types of routers, switches, and other hardware. Understanding the VA's technology roadmap is essential to assess if this equipment supports modernization efforts or merely maintains existing infrastructure, impacting long-term value and operational effectiveness.

What was the competitive landscape like for this 'full and open competition,' and were there any significant price differences compared to previous or similar procurements?

While 'full and open competition' was stated, the number of bids received and the resulting price spread are not provided. A deeper dive into the bid data would reveal the true level of competition and whether the winning bid represented a significant cost saving or was merely the best offer among limited viable options. Benchmarking against industry standards for similar equipment is also key.

How does the $49.8M award, spread over approximately 13 months, compare to the VA's average annual spending on network equipment and services?

The award represents a substantial investment over a relatively short period. Understanding the VA's typical annual budget for network infrastructure is crucial. If this award is significantly higher than average, it might indicate a major upgrade or expansion. Conversely, if it's in line with historical spending, it suggests ongoing operational needs rather than a transformative project, impacting the assessment of its strategic effectiveness.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $49,858,176

Exercised Options: $49,858,176

Current Obligation: $49,858,176

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline