AT&T Lands $34.2M EIS Contract for Wired Telecom Services in Virginia

Contract Overview

Contract Amount: $34,232,497 ($34.2M)

Contractor: AT&T Enterprises, LLC

Awarding Agency: Small Business Administration

Start Date: 2019-09-27

End Date: 2025-09-26

Contract Duration: 2,191 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ACQUISITION OF ENTERPRISE INFORMATION SYSTEM (EIS)

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22185

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $34.2 million to AT&T ENTERPRISES, LLC for work described as: ACQUISITION OF ENTERPRISE INFORMATION SYSTEM (EIS) Key points: 1. Contract awarded to AT&T Enterprises, LLC for Enterprise Information System (EIS). 2. Value of $34.2M over 5 years, with a focus on wired telecommunications. 3. Full and open competition was utilized for this acquisition. 4. The contract is managed by the Small Business Administration. 5. This acquisition falls under the Wired Telecommunications Carriers industry.

Value Assessment

Rating: good

The contract value of $34.2M for a 5-year duration appears reasonable for enterprise-level telecommunications services. Benchmarking against similar large-scale government IT contracts suggests competitive pricing, though specific service level agreements and performance metrics would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery and achieving fair market value. This method allows all qualified vendors to bid, fostering a competitive environment that typically drives down costs and improves service offerings.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives competitive pricing and the best available services.

Public Impact

Ensures continued access to essential wired telecommunications infrastructure for government operations. Supports federal agencies' need for reliable communication networks. The contract's duration suggests a long-term commitment to these services. Managed by SBA, potentially indicating a focus on specific government-wide telecommunications needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 5 years may require future re-evaluation for technological advancements.
Reliance on a single vendor for critical infrastructure could pose risks.
Time and Materials pricing model can lead to cost overruns if not closely monitored.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Managed by a federal agency (SBA), implying adherence to government standards.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically wired telecommunications. Government spending in this area is substantial, driven by the need for secure and reliable communication networks across various agencies. Benchmarks for similar large-scale enterprise telecommunications contracts vary widely based on scope and service level agreements.

Small Business Impact

While the contract is managed by the Small Business Administration, the primary awardee is AT&T Enterprises, LLC, a large business. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation goals are met.

Oversight & Accountability

The contract's management by the Small Business Administration suggests a level of oversight. However, the Time and Materials pricing structure necessitates diligent monitoring and accountability from the contracting officer to prevent cost creep and ensure adherence to the Statement of Work.

Related Government Programs

Wired Telecommunications Carriers
Small Business Administration Contracting
Small Business Administration Programs

Risk Flags

Time and Materials pricing model.
Long contract duration (5 years).
Potential for technological obsolescence.
Lack of explicit small business subcontracting details.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $34.2 million to AT&T ENTERPRISES, LLC. ACQUISITION OF ENTERPRISE INFORMATION SYSTEM (EIS)

Who is the contractor on this award?

The obligated recipient is AT&T ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-09-26.

What specific performance metrics and service level agreements are in place to ensure the value and effectiveness of the Enterprise Information System (EIS) services provided by AT&T?

The provided data does not detail specific performance metrics or Service Level Agreements (SLAs). For a comprehensive value assessment, it is crucial to review the contract's Statement of Work (SOW) and associated performance standards. These would outline expected uptime, response times, and other critical indicators of service quality, allowing for a robust evaluation of AT&T's performance against contractual obligations and taxpayer expectations.

Given the 5-year duration and the rapid evolution of telecommunications technology, what are the potential risks associated with technological obsolescence or the need for upgrades under this contract

The primary risk is that the contracted services may become technologically outdated before the contract's end date, potentially leading to suboptimal performance or the need for costly modifications. While Time and Materials contracts can accommodate some changes, significant upgrades might require contract modifications or new procurements. Proactive vendor engagement and regular technology reviews are essential to mitigate this risk and ensure the government maintains access to current capabilities.

How does the Small Business Administration (SBA) ensure that this large contract contributes to overall small business goals, even if the prime contractor is a large business?

The SBA's role as the managing agency suggests oversight of the contract's adherence to federal acquisition regulations, which often include small business subcontracting goals. While the prime awardee is AT&T, a large business, the SBA would typically monitor compliance with subcontracting plans. This involves ensuring a portion of the contract value is allocated to qualified small businesses, fostering their participation in federal contracting opportunities.

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

Solicitation ID: 73351019Q0060

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyto Athene, LLC

Address: 3033 CHAIN BRIDGE RD, OAKTON, VA, 22124

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: $147,341,309

Exercised Options: $34,232,497

Current Obligation: $34,232,497

Actual Outlays: $28,426,327

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