USDA awards AT&T over $155M for data and voice services through 2026
Contract Overview
Contract Amount: $155,297,859 ($155.3M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Agriculture
Start Date: 2023-09-11
End Date: 2026-09-30
Sector: Other
Official Description: USDA DATA AND VOICE SERVICES
Plain-Language Summary
Department of Agriculture obligated $155.3 million to AT&T ENTERPRISES, LLC for work described as: USDA DATA AND VOICE SERVICES Key points: 1. Significant contract value awarded to a single large provider. 2. Competition landscape appears limited, with AT&T as the sole awardee. 3. Potential risk of vendor lock-in and limited negotiation leverage. 4. Ensures essential communication infrastructure for USDA operations.
Value Assessment
Rating: good
The contract value of approximately $155.3 million over its term is substantial, indicating a significant investment in essential communication services. The award to AT&T suggests a reliance on established infrastructure and services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, as only AT&T is listed as the contractor. Further details would be needed to confirm if a competitive process was bypassed or if this is a renewal of an existing sole-source agreement.
Taxpayer Impact: Taxpayers are funding essential communication services for a major federal agency.
Public Impact
Ensures continued connectivity for USDA employees and operations. Supports critical agricultural data and voice communication needs. Potential for service disruptions if contract terms are not met.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs over time.
- Dependence on a single provider could create service vulnerabilities.
Positive Signals
- Secures vital communication infrastructure for a key agency.
- Long-term contract provides budget predictability for USDA.
Sector Analysis
This contract falls within the telecommunications and IT services sector, crucial for the operational efficiency of government agencies. Reliable data and voice services are foundational for modern administrative functions.
Small Business Impact
The contract was not set-aside for small businesses, and the awardee is a large telecommunications corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight will be managed by the USDA's Office of the Chief Financial Officer. The definitive contract nature suggests established terms and conditions are in place, subject to standard federal procurement oversight.
Related Government Programs
- Data Services
- Voice Services
- Telecommunications
Risk Flags
- Sole-source award
- Lack of competition
Tags
usda, at&t, data-services, voice-services, telecommunications, federal-contract, sole-source, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $155.3 million to AT&T ENTERPRISES, LLC. USDA DATA AND VOICE SERVICES
Who is the contractor on this award?
The obligated recipient is AT&T ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).
What is the total obligated amount?
The obligated amount is $155.3 million.
What is the period of performance?
Start: 2023-09-11. End: 2026-09-30.
Analysis insight 1
The contract duration extends to September 2026, providing a stable period for service delivery.
Analysis insight 2
The total award amount suggests comprehensive coverage for the agency's communication needs.
Analysis insight 3
Further analysis could explore the specific types of data and voice services included.