VA's $27.4M AT&T contract for wired telecommunications services awarded under full and open competition

Contract Overview

Contract Amount: $27,403,667 ($27.4M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-10-01

End Date: 2016-09-30

Contract Duration: 365 days

Daily Burn Rate: $75.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NETWORX; IGF::OT::IGF

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20165

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.4 million to AT&T ENTERPRISES, LLC for work described as: NETWORX; IGF::OT::IGF Key points: 1. Contract awarded to AT&T Enterprises, LLC for wired telecommunications services. 2. The contract was awarded under a full and open competition. 3. This contract represents a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The contract period spans one year, from October 1, 2015, to September 30, 2016. 5. The primary service category is Wired Telecommunications Carriers. 6. The contract was awarded by the Department of Veterans Affairs. 7. The total award amount is approximately $27.4 million.

Value Assessment

Rating: fair

This contract's value is difficult to assess in isolation without knowing the specific services rendered under this delivery order. However, the total award of $27.4 million for a one-year period for wired telecommunications services suggests a significant investment. Benchmarking against similar large-scale telecommunications contracts would be necessary to determine if the pricing is competitive. The firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, potentially leading to better pricing and service offerings for the government. The specific number of bidders is not provided, but the designation implies a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best value through a wide range of offers.

Public Impact

Veterans Affairs (VA) benefits from enhanced wired telecommunications infrastructure. The services delivered support the VA's mission to provide healthcare and benefits to veterans. The geographic impact is likely nationwide, supporting VA facilities across the country. The contract supports the telecommunications workforce, including technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge service quality.
The total award amount is substantial, requiring careful monitoring of expenditures.
Dependence on a single large vendor (AT&T) could pose long-term risks if not managed.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides budget certainty.
Supports critical infrastructure for the Department of Veterans Affairs.

Sector Analysis

The Wired Telecommunications Carriers industry encompasses companies that provide telecommunications services through the use of the wired public switched telephone network. This includes local and long-distance voice and data services. The federal government is a significant consumer of these services, relying on them for internal communications and to support agency missions. The market is characterized by large, established players like AT&T, Verizon, and Lumen Technologies, with significant infrastructure investments.

Small Business Impact

This contract does not appear to have a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into the specific terms of the delivery order and AT&T's subcontracting plan. Without this information, the direct impact on the small business ecosystem is unclear, though large prime contracts often include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency regarding the specific services and performance metrics would be enhanced through public reporting mechanisms and potential Inspector General reviews.

Related Government Programs

NETWORX IDIQ Contract
Telecommunications Services Contracts
Federal Network Infrastructure

Risk Flags

Potential for vendor lock-in
Dependence on a single large provider
Need for detailed performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.4 million to AT&T ENTERPRISES, LLC. NETWORX; IGF::OT::IGF

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 $27.4 million.

What is the period of performance?

Start: 2015-10-01. End: 2016-09-30.

What specific wired telecommunications services were procured under this delivery order?

The provided data indicates the contract falls under the 'Wired Telecommunications Carriers' North American Industry Classification System (NAICS) code (517110). This generally includes services such as local and long-distance voice transmission, data transmission, and internet access provided over wired infrastructure. However, the precise breakdown of services (e.g., dedicated circuits, MPLS, POTS lines, broadband internet) and their respective quantities or service levels are not detailed in the summary data. Further examination of the delivery order's statement of work would be required to ascertain the exact services procured and their intended use within the Department of Veterans Affairs.

How does the $27.4 million award compare to historical VA spending on similar telecommunications services?

To compare this $27.4 million award to historical VA spending, one would need to analyze past VA contracts for wired telecommunications services, ideally under similar IDIQ vehicles like NETWORX. This would involve looking at the total spending on telecommunications over several fiscal years, identifying contracts with similar scope and duration, and calculating average annual spending or per-user costs. Without access to a comprehensive database of historical VA telecommunications spending, a direct comparison is challenging. However, $27.4 million for a single year suggests a significant commitment, potentially indicating a need for robust network infrastructure to support VA operations nationwide.

What are the key performance indicators (KPIs) associated with this contract, and how was AT&T's performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how AT&T's performance was measured under this contract. Typically, telecommunications contracts include metrics related to network uptime, latency, bandwidth availability, service restoration times, and customer support response. The Department of Veterans Affairs would have established these KPIs in the contract's Service Level Agreement (SLA). Performance against these metrics would likely influence future contract awards or task order assignments. A thorough review of the delivery order's documentation is necessary to identify the specific performance standards and evaluation criteria.

What is the track record of AT&T Enterprises, LLC in fulfilling federal telecommunications contracts, particularly with the VA?

AT&T Enterprises, LLC, as a major telecommunications provider, has a long and extensive history of fulfilling federal contracts across various agencies, including the Department of Veterans Affairs. They are a primary awardee of large IDIQ vehicles like NETWORX, which suggests a proven capability to handle complex federal requirements. Their track record generally involves providing a wide range of services, from basic connectivity to advanced network solutions. While specific performance details for this particular delivery order are not provided, AT&T's consistent presence in federal contracting indicates a substantial level of experience and established infrastructure to support government needs.

What are the potential risks associated with relying on AT&T for such a significant portion of the VA's wired telecommunications needs?

Potential risks associated with relying on AT&T for a significant portion of the VA's wired telecommunications needs include vendor lock-in, which could limit future flexibility and potentially lead to higher costs if competition diminishes. There's also the risk of service disruptions, although major providers like AT&T have robust redundancy measures. Dependence on a single vendor could also create vulnerabilities if the vendor experiences financial difficulties or significant changes in their business strategy. Furthermore, ensuring continuous innovation and adoption of the latest technologies might be slower if the contract terms do not incentivize such advancements.

How does the firm fixed-price contract type influence the risk allocation between the government and AT&T?

The firm fixed-price (FFP) contract type allocates the majority of the risk to the contractor, AT&T. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This means that if AT&T's costs for providing the wired telecommunications services exceed their initial estimates, their profit margin will decrease. Conversely, if their costs are lower than anticipated, their profit will increase. This structure provides the government with cost certainty and protects it from cost overruns, placing the burden of efficient performance and cost management squarely on the contractor.

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: 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: $27,403,667

Exercised Options: $27,403,667

Current Obligation: $27,403,667

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0007

IDV Type: IDC

Timeline