FCC awards AT&T $12.16M for wired telecom services, with 2 bids received

Contract Overview

Contract Amount: $12,161,177 ($12.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Federal Communications Commission

Start Date: 2020-12-30

End Date: 2026-06-20

Contract Duration: 1,998 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EIS TASK ORDER 1

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $12.2 million to AT&T ENTERPRISES, LLC for work described as: EIS TASK ORDER 1 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and duration. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are low due to the established nature of the services and contractor. 4. Performance context suggests a need for reliable telecommunications infrastructure for agency operations. 5. Sector positioning places this contract within the broader telecommunications services market.

Value Assessment

Rating: good

The contract value of $12.16 million over approximately two years (1998 days) for wired telecommunications services appears to be within a reasonable range for federal agency needs. Benchmarking against similar large-scale telecommunications contracts for federal entities suggests that the pricing is competitive, especially considering the firm-fixed-price nature which shifts risk to the contractor. The specific services procured are essential for agency operations, implying a baseline value that is difficult to quantify precisely without detailed service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While two bidders indicate some level of competition, it is on the lower end for a full and open process. This suggests that while the process was inclusive, the market for this specific type of comprehensive wired telecommunications service might be concentrated among a few large providers, potentially limiting the price discovery achieved compared to a scenario with more numerous competitive offers.

Taxpayer Impact: For taxpayers, a moderate level of competition means that while savings were likely achieved compared to a sole-source award, there may be room for further cost efficiencies if a broader range of providers could be engaged in future procurements.

Public Impact

The Federal Communications Commission (FCC) is the primary beneficiary, receiving essential wired telecommunications services. Services delivered include the maintenance and provision of wired telecommunications infrastructure critical for agency operations. The geographic impact is primarily focused on the FCC's operational locations, likely within the Washington D.C. metropolitan area. Workforce implications are minimal for the public, as this contract supports existing agency functions rather than creating new public-facing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specialized and tied to AT&T's infrastructure.
Reliance on a single provider for critical infrastructure could pose a risk if service disruptions occur.
Limited competition in future bidding rounds could lead to less favorable pricing if market dynamics do not change.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Award to a well-established telecommunications provider like AT&T suggests a lower risk of performance issues.
Long-term contract duration allows for stable service provision and reduces administrative burden of frequent re-competition.

Sector Analysis

This contract falls within the telecommunications services sector, specifically wired telecommunications carriers. This sector is characterized by significant infrastructure investment and is dominated by a few large national providers. Federal spending in this area supports the backbone of government communication networks. Comparable spending benchmarks would involve analyzing other large federal contracts for similar network infrastructure and managed telecommunications services, which often run into millions of dollars annually for agencies with substantial operational footprints.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, AT&T Enterprises, LLC, is a large corporation, making it unlikely to be a small business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though AT&T may engage small businesses as subcontractors in ways not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Communications Commission's contracting officers and program managers responsible for telecommunications services. Accountability measures are embedded in the firm-fixed-price contract terms, requiring AT&T to deliver specified services. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's execution.

Related Government Programs

Wired Telecommunications Carriers
Telecommunications Services
Network Infrastructure
Information Technology Services

Risk Flags

Moderate competition level
Potential for vendor lock-in
Reliance on single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $12.2 million to AT&T ENTERPRISES, LLC. EIS TASK ORDER 1

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2020-12-30. End: 2026-06-20.

What is the historical spending pattern for wired telecommunications services at the FCC?

Analyzing historical spending for wired telecommunications services at the FCC requires access to detailed procurement data over multiple fiscal years. Without specific historical data, it's challenging to establish a precise pattern. However, federal agencies typically maintain ongoing contracts for essential telecommunications infrastructure. Spending in this area is often influenced by factors such as agency size, number of locations, technology upgrades, and the overall federal telecommunications strategy. It is reasonable to assume that the FCC has had continuous or recurring needs for such services, with spending levels potentially fluctuating based on contract renewals, scope changes, and market price adjustments. The current $12.16 million award over approximately two years suggests a significant, but not necessarily unprecedented, level of investment for critical network services.

How does the number of bidders (2) compare to similar federal contracts for wired telecommunications?

A competition with two bidders under a 'full and open' solicitation is on the lower end of what is typically observed for large federal telecommunications contracts. While some highly specialized or geographically constrained procurements might naturally attract fewer bidders, the market for wired telecommunications services is generally served by several large, national providers. Contracts of this magnitude often see three to five or more bids, especially if the scope is clearly defined and the requirements are not overly restrictive. The limited number of bidders here could suggest a more concentrated market for the specific services required, or perhaps that only a few companies possessed the necessary qualifications and capacity to respond effectively. This could potentially impact price competitiveness compared to scenarios with broader participation.

What are the potential risks associated with AT&T as the sole awardee for this duration?

The primary risks associated with AT&T being the sole awardee for this contract's duration (approximately two years) revolve around service continuity, potential price escalation in future renewals, and limited leverage for the FCC if performance issues arise. While AT&T is a reputable provider, any disruption in their service could significantly impact FCC operations. Furthermore, if the FCC becomes heavily reliant on AT&T's specific infrastructure or service offerings, it could face challenges in negotiating favorable terms for future contracts, especially if the competitive landscape doesn't evolve. However, the firm-fixed-price nature of the current award mitigates immediate cost overrun risks. The FCC's ability to manage these risks depends on robust contract management, clear performance metrics, and proactive engagement with the vendor.

What specific telecommunications services are covered under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code 517110, which corresponds to 'Wired Telecommunications Carriers.' This classification typically encompasses services such as the provision and maintenance of local and long-distance telephone services, internet access, and private line services delivered over wired infrastructure (e.g., fiber optic, copper lines). For the FCC, these services would likely support their internal communication networks, data transmission, voice services, and potentially connectivity for various offices and facilities. The exact scope would be detailed in the contract's statement of work, but it generally covers the essential wired network backbone required for an agency's operations.

How does the contract value compare to the agency's overall IT or telecommunications budget?

To accurately compare the $12.16 million contract value to the FCC's overall IT or telecommunications budget, specific budget data for the relevant fiscal years would be required. Federal agencies' IT and telecommunications budgets can vary significantly based on their size, mission complexity, and ongoing modernization efforts. For an agency like the FCC, which regulates communications, maintaining robust internal telecommunications infrastructure is critical. This $12.16 million award, spread over approximately two years, represents a substantial investment. If the FCC's total annual IT budget is in the tens or hundreds of millions, this contract might represent a significant but manageable portion. Conversely, if their budget is smaller, this award could constitute a major expenditure within that category, highlighting its importance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Parent Company: Tyto Athene, LLC

Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $13,512,224

Exercised Options: $13,512,224

Current Obligation: $12,161,177

Actual Outlays: $11,166,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3000

IDV Type: IDC

Timeline