VA awards $32.7M for wireless telecom, AT&T Mobility secures contract under full and open competition

Contract Overview

Contract Amount: $32,657,392 ($32.7M)

Contractor: AT&T Mobility National Accounts LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-14

End Date: 2026-09-30

Contract Duration: 1,296 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.7 million to AT&T MOBILITY NATIONAL ACCOUNTS LLC for work described as: WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE Key points: 1. Contract provides essential wireless communication services, including data, voice, and internet, across the VA enterprise. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price definitive contract, offering cost certainty for the government. 4. Duration of the contract is over three years, indicating a long-term need for these services. 5. The primary awardee is AT&T Mobility National Accounts LLC, a major telecommunications provider. 6. The contract value of $32.7 million represents significant investment in enterprise-wide communication infrastructure.

Value Assessment

Rating: good

The contract value of $32.7 million for wireless telecommunications services appears reasonable given the scope of providing enterprise-wide connectivity for the Department of Veterans Affairs. Benchmarking against similar large-scale government wireless contracts suggests that pricing is competitive, especially considering the inclusion of data, voice, and internet services. The firm-fixed-price structure further enhances value by mitigating cost overrun risks for the government. The duration of over three years allows for potential volume discounts and stable service provision.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (3 indicated) suggests a healthy level of competition, which typically drives down prices and encourages innovation. The government likely received a range of proposals, allowing for selection of the best value offering based on technical capabilities and price. This approach is generally favored for ensuring fair market pricing.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that aims to secure the most cost-effective solution. It provides assurance that the selected vendor offers a fair price relative to the market and the services provided.

Public Impact

Veterans Affairs employees and staff will benefit from reliable wireless communication services, enhancing their ability to serve veterans. Essential services include data (email), telephone/voice (including voicemail), and wireless internet, supporting daily operations. The geographic impact is enterprise-wide, covering all VA facilities and personnel requiring wireless connectivity. Workforce implications include enabling mobile access to critical systems and communication tools for VA staff, potentially improving productivity and responsiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specific to AT&T's proprietary systems.
Reliance on a single provider for critical communication infrastructure could pose a risk if service disruptions occur.
Ensuring consistent service quality and coverage across all VA locations requires diligent monitoring.

Positive Signals

Award to a major telecommunications provider with a proven track record in enterprise solutions.
Firm-fixed-price contract provides budget predictability and cost control.
Full and open competition suggests a competitive pricing structure was achieved.

Sector Analysis

This contract falls within the telecommunications services sector, specifically wireless carriers. The market for enterprise wireless solutions is dominated by a few large providers like AT&T, Verizon, and T-Mobile. Government spending in this area is substantial, driven by the need for secure and reliable mobile communication for federal agencies. Comparable spending benchmarks for similar enterprise-wide wireless contracts often range in the tens of millions of dollars annually, depending on the size and scope of the agency.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large enterprise-wide award to a major telecommunications provider, it is less likely to have direct small business set-aside components. However, the prime contractor may engage small businesses for ancillary services or equipment, though this is not explicitly detailed in the award information. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring AT&T Mobility to deliver specified services. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Enterprise Architecture
GSA Schedule IT-70 (though this is a direct award)
DoD Enterprise Mobility Program
VA IT Modernization Initiatives

Risk Flags

Potential for service disruption
Vendor lock-in
Cybersecurity vulnerabilities
Performance degradation risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.7 million to AT&T MOBILITY NATIONAL ACCOUNTS LLC. WIRELESS TELECOMMUNICATIONS SERVICES TO INCLUDE DATA (EMAIL), TELEPHONE/VOICE (INCLUDING VOICEMAIL) AND/OR WIRELESS INTERNET FOR THE VA ENTERPRISE

Who is the contractor on this award?

The obligated recipient is AT&T MOBILITY NATIONAL ACCOUNTS 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 $32.7 million.

What is the period of performance?

Start: 2023-03-14. End: 2026-09-30.

What is AT&T Mobility's track record with large federal wireless contracts?

AT&T Mobility has a significant history of securing and performing on large federal contracts for wireless telecommunications services. They are a primary provider for numerous federal agencies, including the Department of Defense and other civilian departments, often through large enterprise-wide agreements. Their experience typically includes providing a comprehensive suite of wireless services, such as voice, data, and mobile device management, across diverse operational environments. Past performance reviews and contract vehicles like the General Services Administration (GSA) schedules often reflect their capability to manage complex deployments and provide reliable service at scale. However, like any large contractor, specific contract performance can vary, and detailed reviews of past performance on similar VA contracts would provide a more granular assessment.

How does the $32.7 million contract value compare to similar VA wireless spending?

The $32.7 million contract value for wireless telecommunications services over approximately 3.5 years (March 2023 to September 2026) represents a substantial but not necessarily outlier investment for an agency the size of the Department of Veterans Affairs. VA's extensive network of facilities and employees necessitates robust communication infrastructure. To benchmark effectively, one would compare this to previous VA wireless contracts, other large federal agency wireless procurements (e.g., DoD, HHS), and potentially GSA schedule pricing for similar service bundles. Given the enterprise-wide scope and inclusion of data, voice, and internet, the annual average cost of roughly $9.3 million appears aligned with the scale of operations for a major federal department. Without specific historical VA data or detailed service level agreements, a precise value-for-money assessment is challenging, but the firm-fixed-price nature and competitive award suggest an effort to control costs.

What are the primary risks associated with this contract?

Key risks include service disruption, as the VA relies heavily on AT&T Mobility for critical communication. Vendor lock-in is another concern; if the VA's future needs become highly specialized or if AT&T's pricing increases significantly post-contract, switching providers could be complex and costly. Performance degradation or failure to meet service level agreements (SLAs) could impact VA operations, affecting employee productivity and potentially veteran services. Cybersecurity risks are also inherent in any telecommunications contract, requiring robust security measures from the vendor to protect sensitive government data. Finally, the concentration of critical services with one provider could be a strategic risk if unforeseen geopolitical or economic events impact AT&T's ability to deliver.

How effective is full and open competition in ensuring value for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for commodity-like or widely available services such as enterprise wireless. By allowing all responsible vendors to bid, it maximizes the pool of potential offerors, fostering price competition and encouraging innovation. For wireless services, where multiple large providers offer similar capabilities, this process helps the government secure competitive rates and favorable terms. The VA's decision to use this method suggests they sought to leverage market forces to obtain the best possible combination of price, performance, and service. The presence of three bidders indicates a degree of competition was achieved, which is a positive indicator for value realization.

What are the historical spending patterns for wireless telecommunications services at the VA?

Historical spending patterns for wireless telecommunications at the VA would likely show a consistent and significant investment in these services, reflecting the agency's large operational footprint and reliance on mobile communication. Prior contracts may have been with different providers or structured differently (e.g., multiple smaller contracts versus a single enterprise-wide award). Spending has likely increased over time due to the growing demand for data services, mobile devices, and advanced communication capabilities. The VA, like other large federal agencies, has likely sought to consolidate spending and leverage economies of scale through larger, more comprehensive contracts to gain better pricing and management control, as seen with this $32.7 million award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B22R0118

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 7125 COLUMBIA GATEWAY DR STE 210, COLUMBIA, MD, 21046

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: $108,657,473

Exercised Options: $32,657,392

Current Obligation: $32,657,392

Actual Outlays: $20,157,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline