DoD's $13.4M Contract with Southwestern Bell for Telecom Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $13,395,161 ($13.4M)
Contractor: Southwestern Bell Telephone Company
Awarding Agency: Department of Defense
Start Date: 1999-10-01
End Date: 2010-04-27
Contract Duration: 3,861 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200010!5700!000208!GG01 !38 LS/LGC !F3460898H5013 !A!*!0001 !19991001!20030513!837702190!006326953!108024050!N!3D121!SOUTHWESTERN BELL TELEPHONE CO!1010 PINE STREET ROOM 12-E!SAINT LOUIS !MO!63101!23950!047!40!ENID !GARFIELD !OKLAHOMA !0001!+000000740909!N!N!000000000000!S113!TELEPHONE AND/OR COMMUNICATIONS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !4813!4!*!*!*!B!B!*!A !N!J!2!001!B!* !Z!N!Z!* !* !Y!C!*!Z!Z!A!A!A!A!* !*!N!A!A!N!*!*!*!*!*!
Place of Performance
Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72201
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to SOUTHWESTERN BELL TELEPHONE COMPANY for work described as: 200010!5700!000208!GG01 !38 LS/LGC !F3460898H5013 !A!*!0001 !19991001!20030513!837702190!006326953!108024050!N!3D121!SOUTHWESTERN BELL TELEPHONE CO!1010 PINE STREET ROOM 12-E!SAINT LOUIS !MO!63101!23950!047!40!ENID !GAR… Key points: 1. The Department of Defense awarded a $13.4 million contract to Southwestern Bell Telephone Co. for telecommunications services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract was 3861 days, spanning from October 1, 1999, to April 27, 2010. 4. The primary service provided was 'TELEPHONE AND/OR COMMUNICATIONS SERVICES', categorized under Wired Telecommunications Carriers. 5. The contract was a Firm Fixed Price type, suggesting predictable costs for the government.
Value Assessment
Rating: fair
The contract value of $13.4 million over approximately 10 years averages to about $1.34 million per year. Benchmarking this against similar large-scale telecommunications service contracts is difficult without more specific service details and market rates from the period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery through competitive bidding. This method is generally expected to yield fair market prices.
Taxpayer Impact: Awarding under full and open competition suggests the government likely received competitive pricing, maximizing taxpayer value for the telecommunications services procured.
Public Impact
Citizens benefit from reliable communication infrastructure funded by taxpayer dollars. The contract supported telecommunications services essential for military operations and government functions. The competitive award process aimed to ensure efficient use of public funds. The long-term nature of the contract provided stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) may have led to outdated technology or pricing by the end.
- Lack of specific performance metrics or service level agreements makes it hard to assess value.
- Contract value is significant, requiring robust oversight to ensure continued necessity and fair pricing.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Firm Fixed Price contract type provides cost certainty.
- Contract supported essential government communication needs.
Sector Analysis
The telecommunications sector, particularly wired telecommunications, was undergoing significant technological evolution during the contract period. Spending benchmarks for such long-term, large-scale government contracts are highly variable based on specific service requirements and market conditions.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large telecommunications contracts are often awarded to major providers, potentially limiting direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense, implying oversight from a major federal agency. However, the provided data lacks details on specific oversight mechanisms, performance reviews, or accountability measures implemented during the contract's extensive lifespan.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration potentially leading to price/technology obsolescence.
- Lack of detailed performance metrics.
- Potential for unexercised competition if market conditions changed significantly.
- Significant contract value requires robust oversight.
Tags
wired-telecommunications-carriers, department-of-defense, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to SOUTHWESTERN BELL TELEPHONE COMPANY. 200010!5700!000208!GG01 !38 LS/LGC !F3460898H5013 !A!*!0001 !19991001!20030513!837702190!006326953!108024050!N!3D121!SOUTHWESTERN BELL TELEPHONE CO!1010 PINE STREET ROOM 12-E!SAINT LOUIS !MO!63101!23950!047!40!ENID !GARFIELD !OKLAHOMA !0001!+000000740909!N!N!000000000000!S113!TELEPHONE AND/OR COMMUNICATIONS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !4813!4!*!*!*!B!B!*!A !N!J!
Who is the contractor on this award?
The obligated recipient is SOUTHWESTERN BELL TELEPHONE COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 1999-10-01. End: 2010-04-27.
Was the firm fixed price adequate given the technological advancements in telecommunications over the 10-year period?
Assessing the adequacy of the firm fixed price over a decade is challenging. While it provided cost certainty, the rapid pace of technological change in telecommunications could mean the price became unfavorable to the government as newer, more efficient technologies emerged. Without detailed contract modifications or performance data, it's difficult to definitively state if the price remained optimal throughout the contract's life.
What were the specific risks associated with a sole-source provider if competition was not truly effective?
While this contract was awarded under full and open competition, if competition had been limited or ineffective, risks would include inflated prices, reduced service quality, and lack of innovation. A sole-source situation removes the incentive for the contractor to offer competitive rates or improve services, potentially leading to taxpayer overpayment and suboptimal performance.
How effectively did the Department of Defense ensure the ongoing necessity and value of these specific telecommunications services over the contract's long duration?
The provided data does not detail the mechanisms used by the Department of Defense to ensure ongoing necessity and value. Effective oversight would involve regular reviews of service requirements, technology assessments, and comparisons against market alternatives. The long duration suggests a need for proactive management to prevent procurement of obsolete or overpriced services.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc.
Address: ONE SBC PLAZA, DALLAS, TX, 75202
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 1999-10-01
Current End Date: 2010-04-27
Potential End Date: 2010-04-27 00:00:00
Last Modified: 2022-06-06
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