Treasury's IRS awards $94.4M for contact center infrastructure, with AT&T Technical Services winning a large delivery order

Contract Overview

Contract Amount: $94,367,988 ($94.4M)

Contractor: AT&T Technical Services Company, Inc

Awarding Agency: Department of the Treasury

Start Date: 2020-08-13

End Date: 2026-07-31

Contract Duration: 2,178 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTACT CENTER INFRASTRUCTURE SUPPORT SERVICES (CCISS) COVID-19

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $94.4 million to AT&T TECHNICAL SERVICES COMPANY, INC for work described as: CONTACT CENTER INFRASTRUCTURE SUPPORT SERVICES (CCISS) COVID-19 Key points: 1. The contract value represents a significant investment in essential communication infrastructure for the IRS. 2. Competition dynamics for this contract are crucial for ensuring taxpayer value. 3. Performance metrics and service level agreements will be key indicators of success. 4. The duration of the contract suggests a long-term need for these services. 5. This award falls within the telecommunications services sector, supporting critical government operations.

Value Assessment

Rating: good

Benchmarking AT&T's pricing against similar large-scale telecommunications infrastructure contracts is challenging without specific service details. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. The total award amount of $94.4 million over its period of performance indicates a substantial investment, and its value will ultimately be determined by the reliability and efficiency of the contact center services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive process, though the exact number of proposals received is not detailed. A competitive award generally fosters better pricing and service offerings as vendors vie for the contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs and encourages innovation, ensuring the government receives the best possible value for its spending.

Public Impact

Taxpayers will benefit from improved and reliable contact center services, facilitating easier communication with the IRS. The contract supports the operational continuity and efficiency of the Internal Revenue Service's communication channels. Services delivered are critical for handling taxpayer inquiries, processing information, and providing essential support. The primary geographic impact is within the United States, supporting federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service integration becomes highly specialized.
Ensuring AT&T meets all performance benchmarks and service level agreements throughout the contract term.
Monitoring the long-term cost-effectiveness of the chosen infrastructure solution.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides cost predictability.
Long contract duration allows for stable service provision and potential for economies of scale.

Sector Analysis

This contract falls within the telecommunications services sector, specifically supporting wired telecommunications carriers. The market for such services is large and competitive, with major players like AT&T providing critical infrastructure for government agencies. The IRS's need for robust contact center infrastructure is a common requirement across many federal agencies, often involving significant investments in network capacity, call routing, and customer relationship management technologies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While AT&T is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific service requirements and AT&T's subcontracting strategy. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the IRS contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of the Treasury may also have jurisdiction for audits and investigations related to this spending.

Related Government Programs

IRS Taxpayer Services
Federal Contact Center Modernization Initiatives
Telecommunications Infrastructure Procurement
IT Services for Government Agencies

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities
Performance metric adherence
Long-term cost-effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $94.4 million to AT&T TECHNICAL SERVICES COMPANY, INC. CONTACT CENTER INFRASTRUCTURE SUPPORT SERVICES (CCISS) COVID-19

Who is the contractor on this award?

The obligated recipient is AT&T TECHNICAL SERVICES COMPANY, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $94.4 million.

What is the period of performance?

Start: 2020-08-13. End: 2026-07-31.

What is the historical spending pattern for contact center infrastructure support services at the IRS?

Analyzing historical spending for IRS contact center infrastructure requires access to detailed procurement data over multiple fiscal years. However, the award of a $94.4 million contract to AT&T Technical Services Company, Inc. for Contact Center Infrastructure Support Services (CCISS) during the COVID-19 pandemic period suggests a significant and potentially increased investment in these capabilities. This could indicate a trend towards modernizing or expanding the IRS's ability to handle taxpayer communications, especially given the surge in demand for services during the pandemic. Without specific historical figures, it's difficult to establish a precise trend, but the scale of this award points to a substantial and ongoing commitment to this area.

How does the pricing of this AT&T contract compare to similar government telecommunications infrastructure awards?

Directly comparing the pricing of this $94.4 million AT&T contract to similar government telecommunications infrastructure awards is complex without granular details on the specific services, Service Level Agreements (SLAs), and performance metrics included. However, the contract's firm-fixed-price (FFP) structure is generally favorable for the government, as it caps the total cost. AT&T is a major telecommunications provider, and its pricing for large-scale government contracts is typically competitive within the market. Benchmarking would involve analyzing the per-unit costs for specific services (e.g., per circuit, per call minute, per user) against industry standards and other government contracts of similar scope and duration. The fact that it was awarded under full and open competition suggests that the pricing was deemed acceptable within the competitive landscape.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for the AT&T Technical Services Company, Inc. contract for Contact Center Infrastructure Support Services (CCISS) are not publicly detailed in the provided award abstract. However, for a contract of this nature supporting IRS contact centers, typical KPIs and SLAs would likely focus on network uptime and availability, call completion rates, call handling times, data transmission speeds, system latency, and security compliance. The IRS would expect AT&T to meet stringent performance standards to ensure taxpayer inquiries are handled efficiently and effectively. Failure to meet these SLAs would likely result in financial penalties or other contractual remedies for the government, underscoring the importance of these metrics for contract oversight and value assessment.

What is the track record of AT&T Technical Services Company, Inc. in delivering similar large-scale telecommunications infrastructure contracts to the federal government?

AT&T Technical Services Company, Inc. has a long and extensive track record of delivering large-scale telecommunications infrastructure and IT services to the federal government. As a major telecommunications provider, AT&T has been a significant contractor across numerous agencies, including the Department of Defense, civilian agencies, and intelligence community. Their experience spans a wide range of services, including network infrastructure, managed services, cybersecurity, and cloud solutions. For contact center infrastructure specifically, AT&T has supported various government entities in modernizing their communication systems. The scale and duration of this IRS contract ($94.4 million over several years) are consistent with the types of large, complex projects AT&T typically undertakes for federal clients, suggesting a high degree of confidence in their capabilities.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks associated with this $94.4 million contract for contact center infrastructure support services include technological obsolescence, cybersecurity threats, vendor performance issues, and cost overruns if not managed tightly. Technological obsolescence is a risk given the rapid pace of change in telecommunications; mitigation involves ensuring the contract includes provisions for upgrades and modernizations. Cybersecurity is paramount, and mitigation would involve strict adherence to federal security standards (e.g., NIST, CMMC) and regular audits. Vendor performance risks are managed through defined SLAs and performance monitoring, with potential penalties for non-compliance. Cost overruns are mitigated by the firm-fixed-price contract type, which caps the government's liability, though scope creep could still be a concern if not carefully controlled. The IRS's contracting and program management teams are responsible for ongoing risk mitigation.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 DULLES CORNER BLVD # 100, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $99,190,692

Exercised Options: $96,783,285

Current Obligation: $94,367,988

Actual Outlays: $89,148,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q12NSD0004

IDV Type: IDC

Timeline