FEMA Awards AT&T $80.3M for Voice & Data Services Under Full & Open Competition

Contract Overview

Contract Amount: $80,294,530 ($80.3M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE VOICE AND DATA (V&D) SERVICES FOR FEMA. THIS IS A FIRM FIXED PRICE TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $80.3 million to AT&T ENTERPRISES, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE VOICE AND DATA (V&D) SERVICES FOR FEMA. THIS IS A FIRM FIXED PRICE TASK ORDER Key points: 1. Significant contract value of $80.3 million for essential communication services. 2. AT&T selected through full and open competition, indicating market availability. 3. Firm-fixed-price contract type mitigates cost overrun risk for FEMA. 4. Wired Telecommunications Carriers sector, crucial for government operations.

Value Assessment

Rating: good

The $80.3 million award for voice and data services appears reasonable given the 5-year duration and the provider's established infrastructure. Benchmarking against similar large-scale telecommunications contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical FEMA communication needs.

Public Impact

Ensures continuous voice and data communication for FEMA's disaster response and recovery efforts. Supports national security and public safety by maintaining critical infrastructure. Provides reliable connectivity for federal employees and operations across various locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly integrated.
Reliance on a single provider for critical infrastructure.

Positive Signals

Firm-fixed-price contract limits cost uncertainty.
Full and open competition promotes market efficiency.
Long-term contract provides service stability.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, which is vital for government operations. Spending in this sector is consistently high due to the essential nature of communication services for federal agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or if subcontracting opportunities exist.

Oversight & Accountability

The firm-fixed-price structure provides a degree of cost control. Oversight will be crucial to ensure service delivery meets the requirements outlined in the task order and that performance remains optimal throughout the contract period.

Related Government Programs

Wired Telecommunications Carriers
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for service disruption if AT&T's infrastructure experiences issues.
Lack of explicit small business participation noted.
Reliance on a single vendor for critical communication infrastructure.
Need for detailed performance metrics and SLAs to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $80.3 million to AT&T ENTERPRISES, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE VOICE AND DATA (V&D) SERVICES FOR FEMA. THIS IS A FIRM FIXED PRICE TASK ORDER

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $80.3 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is the projected cost per user or per line for these V&D services, and how does it compare to industry benchmarks?

The provided data does not detail per-unit costs, making direct benchmarking difficult. However, the total contract value of $80.3 million over five years suggests an average annual cost of approximately $16 million. A comprehensive analysis would require breaking down the services procured (e.g., voice lines, data bandwidth) and comparing those unit costs against government-wide or commercial benchmarks for similar telecommunications solutions.

What are the specific performance metrics and service level agreements (SLAs) in place to ensure the quality and reliability of AT&T's V&D services?

The task order details do not explicitly list performance metrics or SLAs. However, for a contract of this magnitude and criticality, it is standard practice to include robust SLAs covering uptime, latency, data throughput, and response times for outages. FEMA's oversight would focus on monitoring AT&T's adherence to these unstated but presumed SLAs to ensure service continuity and quality.

How will FEMA ensure continued competition or evaluate alternative solutions at the end of this contract's term to avoid long-term dependency and potential price increases?

FEMA's strategy for future competition is not detailed here. However, proactive market research and engagement with the telecommunications industry prior to the contract's expiration are essential. This includes assessing technological advancements and potential new entrants to ensure a competitive re-solicitation process that secures optimal value and service for the government.

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 - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $131,065,060

Exercised Options: $131,065,060

Current Obligation: $80,294,530

Actual Outlays: $29,424,151

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