DOT's FAA awards AT&T $77M for telecom transition, impacting national airspace operations

Contract Overview

Contract Amount: $77,095,411 ($77.1M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-02-16

End Date: 2026-07-31

Contract Duration: 1,991 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EIS TASK ORDER 693KA8-21-F-000083 - MASTER CONTRACT # GS00Q17NSD3000. VENDOR IS AT&T. FOR THE TRANSITION OF TELECOMMUNICATION SERVICES (PRIMARILY) FROM THE GSA NETWORX PROGRAM TO THE NEW EIS PROGRAM. THE FAA SCOPE OF WORK.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $77.1 million to AT&T ENTERPRISES, LLC for work described as: EIS TASK ORDER 693KA8-21-F-000083 - MASTER CONTRACT # GS00Q17NSD3000. VENDOR IS AT&T. FOR THE TRANSITION OF TELECOMMUNICATION SERVICES (PRIMARILY) FROM THE GSA NETWORX PROGRAM TO THE NEW EIS PROGRAM. THE FAA SCOPE OF WORK. Key points: 1. This contract supports the critical transition of telecommunication services from the GSA Networx program to the new EIS program. 2. The scope of work is specifically for the Federal Aviation Administration (FAA), indicating a direct impact on aviation infrastructure. 3. The contract is a delivery order under a larger master contract, suggesting a phased approach to service delivery. 4. The primary service involves telecommunication services, essential for the FAA's operational continuity and modernization efforts. 5. The duration of the contract extends over five years, highlighting the long-term nature of this transition and service provision. 6. The contract type is Firm Fixed Price, which provides cost certainty for the government but may limit flexibility.

Value Assessment

Rating: good

The contract value of approximately $77 million over five years for telecommunication services for the FAA appears reasonable given the scope. Benchmarking against similar large-scale telecommunication transitions for federal agencies suggests this is within expected cost ranges. The firm fixed-price structure helps control overall expenditure, though it necessitates careful scope management to avoid change orders.

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. This competitive process is expected to yield favorable pricing and service terms for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, ensuring the continuity and modernization of its telecommunication infrastructure. This contract enables the transition of essential telecommunication services, crucial for air traffic control and aviation safety systems. The geographic impact is national, as the FAA's operations span across the United States and its territories. Workforce implications may include the need for specialized telecommunication technicians and project managers to oversee the transition and ongoing services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition is not managed effectively.
Reliance on a single vendor (AT&T) for critical national infrastructure.
Risk of scope creep if transition requirements are not precisely defined.
Ensuring seamless integration with existing FAA systems is paramount.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract provides cost predictability.
Long-term contract duration allows for planned transition and service.
Vendor (AT&T) has extensive experience in telecommunications.
Supports a critical government function (aviation safety).

Sector Analysis

The telecommunications sector is a mature market with established providers like AT&T. This contract falls under the Wired Telecommunications Carriers industry (NAICS 517110). Federal spending in this area is substantial, driven by the need for secure, reliable, and high-bandwidth communication networks to support agency operations. The transition from older programs like GSA Networx to the Enterprise Infrastructure Solutions (EIS) program represents a government-wide effort to modernize IT infrastructure and achieve cost savings through consolidated contracts.

Small Business Impact

This contract was not set aside for small businesses and the vendor is a large corporation. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. However, large federal contracts often include provisions for small business participation, and the overall EIS program aims to foster opportunities for various business sizes.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. The General Services Administration (GSA), as the issuer of the master EIS contract, also provides a layer of oversight. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Networx Program
GSA Enterprise Infrastructure Solutions (EIS) Program
FAA Telecommunications Modernization Efforts
Department of Transportation IT Spending

Risk Flags

Potential for service disruption during transition
Cybersecurity risks associated with critical infrastructure
Dependence on a single vendor for essential services
Complexity of integrating new services with legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $77.1 million to AT&T ENTERPRISES, LLC. EIS TASK ORDER 693KA8-21-F-000083 - MASTER CONTRACT # GS00Q17NSD3000. VENDOR IS AT&T. FOR THE TRANSITION OF TELECOMMUNICATION SERVICES (PRIMARILY) FROM THE GSA NETWORX PROGRAM TO THE NEW EIS PROGRAM. THE FAA SCOPE OF WORK.

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $77.1 million.

What is the period of performance?

Start: 2021-02-16. End: 2026-07-31.

What is the historical spending pattern for telecommunication services by the FAA?

Historical spending by the FAA on telecommunication services has been significant, largely driven by the need to maintain and upgrade the complex systems supporting air traffic control and national airspace management. Prior to the EIS program, agencies relied on contracts like GSA Networx, which represented a substantial portion of federal telecommunications spending. The transition to EIS aims to consolidate and modernize these services, potentially leading to more predictable and efficient spending patterns over the long term. Analyzing past expenditures under Networx and similar legacy contracts would provide a baseline for evaluating the cost-effectiveness of the current EIS awards.

How does the pricing of this AT&T contract compare to other EIS task orders for similar services?

Direct comparison of pricing across different EIS task orders can be complex due to variations in scope, service levels, geographic coverage, and specific technologies deployed. However, the 'full and open competition' award for this FAA task order suggests that AT&T's pricing was deemed competitive at the time of award. Benchmarking would involve analyzing the per-unit costs for specific services (e.g., bandwidth, circuits, managed services) against other task orders awarded under the EIS program to similar large federal entities. The firm fixed-price nature provides a degree of cost certainty, but ongoing market shifts in telecommunications could influence the long-term value proposition.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

While specific KPIs are not detailed in the provided data, typical performance metrics for telecommunication transition contracts include service availability, network uptime, latency, bandwidth provisioning times, incident response times, and successful migration of services within scheduled timelines. The FAA, as the end-user agency, would be responsible for monitoring these KPIs. Contractual terms usually outline service level agreements (SLAs) that define acceptable performance thresholds and potential remedies or penalties for non-compliance. Regular performance reviews between the FAA and AT&T would be crucial for ensuring the successful execution of the contract.

What are the potential risks associated with transitioning critical FAA telecommunication services to the EIS program?

Key risks include service disruptions during the transition phase, which could impact air traffic control operations and safety. There's also a risk of interoperability issues between new EIS services and existing FAA systems. Vendor performance and adherence to SLAs are critical; any degradation in service quality could have severe consequences. Furthermore, the complexity of migrating vast amounts of data and services from legacy systems to the new platform presents technical and logistical challenges. Ensuring robust cybersecurity measures throughout the transition and operation is also a paramount concern.

What is AT&T's track record with large federal telecommunications contracts, particularly transitions?

AT&T has a long and extensive history of providing telecommunications services to the federal government, including significant roles in previous large-scale network programs like GSA Networx. They have been a major player in federal IT and telecommunications for decades, managing complex networks and large user bases across various agencies. Their experience includes managing transitions and modernizing infrastructure. While specific performance details for every contract vary, AT&T's established presence and capabilities suggest a strong foundation for undertaking the FAA's transition under the EIS program. Their track record includes both successes and challenges common to large-scale government IT projects.

Industry Classification

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

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

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: 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: $470,910,545

Exercised Options: $77,095,411

Current Obligation: $77,095,411

Actual Outlays: $56,320,255

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