DoD Awards $16.75M for Wired Telecom Services to AT&T, Competition Leveraged
Contract Overview
Contract Amount: $16,753,066 ($16.8M)
Contractor: AT&T Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2026-07-31
Contract Duration: 1,886 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: IPS, UCS, AA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to AT&T ENTERPRISES, LLC for work described as: IPS, UCS, AA Key points: 1. Significant contract value for essential telecommunications infrastructure. 2. AT&T is a major player, indicating potential for competitive pricing. 3. Fixed Price with EPA contract type introduces some cost escalation risk. 4. Spending falls within the Wired Telecommunications Carriers sector.
Value Assessment
Rating: good
The contract value of $16.75M over approximately 5 years appears reasonable for large-scale telecommunications services. Benchmarking against similar large federal contracts for wired telecommunications would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is ideal for achieving competitive pricing and ensuring fair market value. This method allows multiple vendors to bid, driving down costs.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment.
Public Impact
Ensures critical communication lines remain operational for the Department of Defense. Supports national security by providing reliable telecommunications infrastructure. Potential for service disruptions if contract performance is not adequately monitored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns.
- Reliance on a single large provider may limit future flexibility.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides service stability.
- Supports critical defense operations.
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, which is vital for government operations. Spending in this sector is generally consistent, with large contracts awarded to major providers.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Larger telecommunications contracts are often dominated by major industry players.
Oversight & Accountability
Oversight will be crucial to ensure AT&T meets performance requirements and that the economic price adjustment is managed effectively to prevent excessive cost increases.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Vendor lock-in risk with a large provider.
- Dependence on a single provider for critical infrastructure.
- Need for robust performance monitoring.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to AT&T ENTERPRISES, LLC. IPS, UCS, AA
Who is the contractor on this award?
The obligated recipient is AT&T ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-07-31.
What is the specific breakdown of services covered under this contract and how does it align with current DoD communication needs?
The contract covers wired telecommunications services, likely including voice, data, and network infrastructure. Its alignment with current needs depends on the specific technologies and bandwidth requirements of the Defense Information Systems Agency. A detailed review of the Statement of Work would clarify the exact services and their relevance to evolving DoD communication strategies and modernization efforts.
How will the economic price adjustment (EPA) clause be monitored to ensure it reflects genuine cost increases and not vendor profiteering?
Effective oversight of the EPA clause requires clear, pre-defined indices for price adjustments, such as the Producer Price Index for relevant telecommunications components. Regular audits and performance reviews by the contracting officer are essential to validate any requested adjustments against these indices and ensure they are justified by actual market fluctuations, not simply vendor discretion.
What is the potential impact of this long-term contract on the adoption of newer, potentially more cost-effective communication technologies within the DoD?
A long-term contract, especially for wired infrastructure, could potentially slow the adoption of newer technologies if it locks the DoD into legacy systems or specific vendor solutions. However, it can also provide a stable foundation for integrating new technologies if the contract includes flexibility clauses or if the awarded services are foundational to future upgrades.
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 - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $42,222,854
Exercised Options: $16,753,532
Current Obligation: $16,753,066
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
Start Date: 2021-06-01
Current End Date: 2026-07-31
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2025-11-24
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